LPL4805 Assignment 1 2025 Due 3 September 2025

LPL4805 ASSIGNMENT 1 2025
SEMESTER 2 2025
DUE DATE: 03 SEPTEMBER 2025.
TOTAL: 20 MARKS.

Question 1.

Xolani is the owner of Erf 201 Meadowlands Township, which he leases to Zanele.Xolani is also the holder of a usufruct over the farm, Moreson, just outside the
town where he farms. Xolani borrows money from a family member Moses. Xolani
instructs you, a notary, to draft and register in the deeds registry, a notarial bond
over these two assets in favour of Moses as security for payment of the debt.
Fully explain whether you will be able to execute the instruction.

In terms of the Deeds Act and the notarial/conveyancing rules, you cannot simply
prepare and register one notarial bond over both Erf 201 (an immovable) and Xolani’s
usufruct in respect of the farm Moreson the way you describe.

Legal character of the two assets

Erf 201, Meadowlands (immovable) – this is immovable property (land/building)
registered in the deeds registry in an owner’s name. Security over immovable property
is created by a mortgage bond (a mortgage over immovable property), not by a notarial
bond.

Usufruct over Moreson (real right) – a usufruct is a limited real right (a right to use and
enjoy another’s immovable). Whether and how it can be used as security depends on
whether the usufruct is registrable/registered and the exact terms of the usufruct, but it
is not a movable that falls within the ordinary notarial-bond regime.