Can a notarial bond be registered over immovable property?
Mortgage bonds over the immovable property of the debtor in favour of the creditor are somewhat standard. These assets can be secured by means of either a general notarial bond (GNB) or a special notarial bond (SNB). An SNB burdens specifically described movable property belonging to a debtor.
What is notarial bond?
A general notarial bond is a mortgage by a borrower of all of its tangible movable property in favour of a lender as security for a debt or other obligation. However, a general notarial bond does not (in the absence of attachment of the property before insolvency) make the lender a secured creditor of the borrower.
Does the South African courts have a duty to abolish the REI Vindicatio?
During apartheid, courts found stable legal meaning in the South African doctrinal tradition that entitled a private owner to exclude others from her property and to enforce this right against others by means of the rei vindicatio.
How is movable property transferred?
Transfer of property is an act of conveying property from one person to another, in present or future. There are various modes of transferring ownership of property: permanently by 1) relinquishment 2) sale 3) gift; and temporarily by way of 4) mortgage 5) lease and, 6) leave and license agreement.
How is a notarial bond Cancelled?
Cancellation of notarial bond registered in more than one deeds registry If a notarial bond is, in terms of s 62 of the Act, registered in more than one deeds registry, a copy of the original consent to cancellation, duly certified by the registrar of deeds in whose office the bond was initially cancelled, may be …
What is considered movable property?
A movable property can easily be moved from one place to another, without changing its shape, size, quantity or quality. Common examples are vehicles, books, utensils, timber, etc. 2. Banyan trees, if cut and sold for timber purpose, are considered as movable property.
How does a notarial bond work?
A notarial surety bond is a bond registered by a third party (the surety) over its movable property, on behalf of the principal debtor, in favour of the creditor. The surety provides security for the debt or obligation of someone else.
Which are the three laws that regulate the law of sale in South Africa?
It has three essentials: consent (consensus ad idem); a thing sold (merx); and a price (pretium). Remember that a sale contract is a special form of contract, and so all law discussed under the article on the South African law of contract is relevant in considering sale contracts.
Is salary a movable property?
He contends that the salary or pay due to a Government servant is ‘moveable’ property for all purposes and that therefore the Magistrate is competent to issue an order of attachment under Section 380(1) of the Code of Criminal Procedure.
Which of the following is movable property?
How does a mortgage bond work?
A mortgage bond is a bond in which holders have a claim on the real estate assets put up as its collateral. A lender might sell a collection of mortgage bonds to an investor, who then collects the interest payments on each mortgage until it’s paid off. If the mortgage owner defaults, the bondholder gets her house.
What is the definition of a notarial bond?
Definition: A notarial bond is registered in the Deeds Office to provide credit security over movable property which a debtor has put up as a security obligation to a creditor in terms of a creditor loan. To understand what notarial bonds are we need to first look at the term “credit security”.
Can a special movable serve as security in a notarial bond?
In Reeskens v Registrar of Deeds 1964 (4) SA 369 (N), the Court held that the extending meaning “and/or” is to be given to “or” in the definition of “notarial bond” in section 102 of the Deed Registries Act, 1937, and that therefore special movables plus movables generally (excluding the special movables) may serve as security in one notarial bond.
Can a mortgagor grant a general notarial bond?
As the mortgagor, you have a choice to grant either a special notarial bond over specific movable assets or a general notarial bond over all the movable assets (these two forms of bonds may be incorporated into a single bond document, if necessary). A special notarial bond is registered over movable property specifically identified in the bond.
What happens to a notarial bond in an insolvency?
Insolvency of a borrower Security granted pursuant to a special notarial bond constitutes a form of real security over the movable assets specifically identified in the bond and, as such, a lender’s claim secured by such security will rank first in relation to the specific assets upon the insolvency of the borrower.