Essential Requirements

Question 1

what act are special notarial bonds governed by?

Answer 1

Security By Means of Movable Property Act 1993 (SMPA)

Question 2

What are the 3 essential requirements of special notarial bonds?

Answer 2

1. There must be a valid underlying obligation
2. property of another
3. Creation of a limited real right

Question 3

What type of obligation is the special notarial bond

Answer 3

Accessory obligation

Question 4

What are the 2 contracts?

Answer 4

Loan agreement and the notarial bond

Question 5

What does the bond holder have?

Answer 5

Limited real right in the property of the debtor

Question 6

2 steps to the creation of the real right

Answer 6

1. The signing of the notarial bond
2. Registering the notarial bond at the Deeds registration office

Question 7

Who must the bond be signed infront of?

Answer 7

The notary public and 2 witnesses

Question 8

What’s 2 requirements need to be met for the limited real right to be created on registration?

Answer 8

1. The bond is over tangible movable property
2. The property is described in the bond in such a manner which renders it easily recognisable