THE REPUBLIC OF SOUTH AFRICA

CONVEYANCING EXAMINATION
PART 2
4 MARCH 2020 4 Hours 09:00 - 13:15
Candidates are allowed 15 minutes to peruse the paper before starting to answer the questions.
No candidate may start writing in the answerbook during this period. The examination of 4 hours
then follows.

PLEASE NOTE:

1. Please write the number allocated to you on the cover of your answer book.

2. Candidates must write legibly and neatly. What may appear to a candidate
(being accustomed to his own handwriting) to be legible, may not be legible to the
examiners who cannot be expected to guess what has been written, nor would it
be correct or fair (to other candidates) to expect the examiners to do so. If a
candidate's handwriting is not clearly legible to the examiners, the candidate runs
the risk of losing many marks. ANSWERS MUST BE WRITTEN ONLY IN INK OR
WITH A BALLPOINT PEN.

3. Please use only one side of each page.

4. Details, especially the description of properties, may be changed to comply with

the practice prevailing at your Deeds Office. However, if a question relates to
farm property, the description may NOT be changed to that of an erf in a
township.

5. Candidates must furnish such further details as may be necessary to draw

properly the required deeds or documents, e.g. abbreviations (ID XXX),
alphabetical symbols for names, and "etc."/"...." are unacceptable.

6. Deeds and documents to be drawn must comply fully with the requirements of the
Deeds Registries Act and regulations, i.e. as if intended for lodgement in a deeds
registry.

7. Candidates MUST ANSWER ALL questions.

8. Except if a special reason exists, a candidate will not be required to do an oral if

50% aggregate or more is attained. If a candidate achieves an aggregate of
between 40% and 49% he/she will have failed the examination and will be
required to do an oral in order to convince the examiners that he/she does have
sufficient knowledge to pass the exam. Candidates who attain less than 40% will
not qualify for an oral and will have failed this examination.

TOTAL MARKS: [200]

LAW SOCIETY OF SOUTH AFRICA

LEGAL EDUCATION AND DEVELOPMENT [L.E.A.D] 1
QUESTION 1 [15]

Zodwa Mokomo is the registered owner of the Farm Saltpan and Kenneth Twala is the
registered owner of the Farm Mountain View. They agreed to pass a mortgage bond
over the aforesaid farms in favour of Norma Dendile, who is married in community of
property to Jason Dendile, as security for the sum of R500 000,00 (provisions of
National Credit Act not applicable) made up as follows:

R100 000,00 in respect of money lent and advanced to them;

R400 000,00 in respect of the balance of the purchase price of goods sold and
delivered to them.

The bond is to rank as a first mortgage over the farm Saltpan and as a third mortgage
over the farm Mountain View. The debtors are jointly and severally liable. There is an
existing bond over the farm Saltpan in respect of which preference will have to be
waived in favour of the bond about to be registered.

1.1 Using your own further particulars, as may be required, draw the operative
clause only of the waiver of preference in respect of the existing mortgage bond
over the Farm Saltpan. (6)

1.2 Using your own further particulars, as may be required, draw the following parts
of the bond about to be registered:

(i) The acknowledgement clause and cause of debt; (3)

(ii) The renunciation of legal exceptions clause; (3)
(iii) The ranking and property/security clause. (3)

QUESTION 2 [10]

Magnum Molepo, married out of community of property, is the registered owner of

Portion 4 of the Farm Mopani No. 64, Registration Division, LS Limpopo Province, in
extent 800 hectares, held by him by Deed of Transfer No T86321/2015. Sub-divisional
diagram SG No. 384/2016 was approved in respect of Portion 1 (a portion of Portion
4) of the Farm Mopani No. 64, in extent 400 hectares. The Land Surveyor discovered
that the original diagram of Portion 4 above is defective and he framed a substituted
diagram No. 487/2017 showing the extent of Portion 4 above to be 830 hectares.

2.1 Prepare the application to be lodged by Magnum Molepo to correct the error in
the extent of the land. (7)

2.2 Which documents must be lodged in support of the application. The property is
not bonded. (3)

QUESTION 3 [7]

Mr Jurie Botes dies owning a property described as Erf 123 Patryspark Township. In
his Will he directed that a usufruct in the property be awarded to his wife, Mrs Maria
Botes, to whom he was married out of community of property and who was pregnant
at the time. The bequest is subject to a condition that, after the expiry of such usufruct
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LEGAL EDUCATION AND DEVELOPMENT [L.E.A.D] 2
the property be sold and the proceeds of the sale should devolve on their unborn
child. Draft the necessary application to give effect to the said provisions of the above
Will.

QUESTION 4 [8]

Mr Jurie Botes had bequeathed the property to his unemployed wife and she is unable
without hardship to pay the costs involved in transferring the immovable property
transferred in to her name, to which she is entitled according to the Liquidation and
Distribution account. The surviving spouse wants peace of mind knowing that she is
going to receive the property but is aware that transfer is not possible due to her
financial constrain.

Draft the necessary application to give effect to wishes of the surviving.

QUESTION 5 [10]

Mortgage bond No. B829/2018 was passed by Fanus Swanepoel (unmarried) in

favour of Christo Muller (married out of community of property) for the sum of
R50 000,00. The capital sum bears interest at the rate of 17% per annum payable
annually in arrears on 30 June each year. The capital is repayable on 30 June 2024.

Swanepoel requests Muller to extend the repayment date to 30 June 2026, to which
Muller agrees provided that the interest rate is increased to 20% per annum with effect
from 1 July 2022 and provided further that, with effect from that date the interest is to
be payable quarterly in arrear, the first payment to be made on 30 September 2022.

Fanus Swanepoel married Gerda Swanepoel in community of property on 1 May

2019.

Draw the document which is required for registration purposes in order to give effect to
the new arrangements.

QUESTION 6 [10]

You have, on behalf of your client, opened a Sectional Title Register. No transfers of
units in the scheme have as yet been registered. You now have instructions to register
the first transfer of a unit, being Unit No 1. Unit 1 has the exclusive use of a garden
area, described as G1.

List the documents which you must lodge in the Deeds Office in order to achieve
registration of the transfer of the unit and exclusive use area.

QUESTION 7 [40]

The following facts apply to the circumstances:

James Viljoen is married in community of property to Sally Viljoen.

Edward Jones, married Charmaine in 2007 while he was studying in France for two
years.
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LEGAL EDUCATION AND DEVELOPMENT [L.E.A.D] 3
Yvette Smith married Albert Smith in 2006. The marriage was out of community of
property. Albert died in 2008 and Yvette resumed her maiden name, Du Preez.
James, Edward and Yvette carry on business as Viljoen and Associates.

Portion 1 of Erf 114 in the township Solwezi was registered in their names carrying on
business in partnership as Viljoen and Associates in 2008.

The transfer was registered under Deed of Transfer No. T4276/2008 with diagram
S.G. No A351/2008 annexed thereto.

James is now retiring from the partnership and his share in the property is being taken
over by Edward and Yvette who will continue the business as remaining partners.

The name of the new partnership will be Jones and Du Preez Decorators.

7.1 Draw the Deed of Transfer up to the end of the extending clause required to
give effect to the aforementioned agreement in so far as Portion 1 of Erf 114
Solwezi is concerned. Invent your own further particulars. (20)

7.2 The property is subject to a mortgage bond. How will you deal with this bond?
The bond is not to be cancelled. Discuss briefly. (6)

7.3 List the documents which must be lodged with the new deed of transfer. (6)

7.4 What would the procedure be if the partnership was dissolved, and the partners
agreed that Portion 1 of Erf 114 Solwezi was to be awarded to all three former
partners? Discuss briefly. (8)

QUESTION 8 [10]
Describe the transferee/s, including the reference to successors in title, in a deed of
transfer in respect of an erf in a township in the following cases, providing your own
further particulars.
The property was purchased by:
8.1 Joe Harvey, who died before taking transfer. Joe Harvey was married to
Maggie Harvey in community of property at the time of his death. (3)
8.2 John Healey, who married Maggie Healey in England while on holiday there.
John Healey has lived in Bloemfontein since his birth. He was advised at the
time of the marriage, that the marriage would be out of community of property
and that it was not necessary to enter into any form of contract with his
intended wife. (2)
8.3 Ashley Woods, who married Sandy Woods in England, where he was born and
was living at the time of the marriage. (2)
8.4 Christa Botha, who is married in community of property to AIIan Botha. She is
paying for the property with money she inherited and which inheritance was
expressly excluded from the community of property of any marriage she may
enter into. (3)
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QUESTION 9 [40]

Greg Warner and David Mtshali are civil union partners in a civil partnership concluded
on the 3rd of July 2007 in terms of the Civil Union Act No. 17/2006. They have
registered an antenuptial contract. They are the joint registered owners of Section
132 and 133 in the scheme known as “Happy Days”. The sections were registered in
their names by virtue of Deed of Transfer ST 99/2003 and their marital status is given
therein as “unmarried”.

9.1 Greg and David wish to have their changed status recorded in the Deeds
Office. Prepare the application required to record their changed status in Deed
of Transfer ST 99/2003. (15)

9.2 Assume that their changed status has now been recorded on Deed of Transfer
ST 99/2003. Greg Warner needs to borrow money and has a friend, Paul, who
is prepared to lend him the money on condition that Greg registers a mortgage
bond in his favour over the share of Greg in the two sections. David is not
prepared to have his share in the sections made subject to a bond. Prepare the
necessary application and deed required to enable Greg to register a mortgage
bond over his share in the property. You are not required to prepare the
mortgage bond. (20)

9.3 Assume that the document/s referred to in 9.2 has been registered. In the
interim, Greg has registered a notarial pre-emptive right in favour of his mother
over his share in the property under SK 324/2010. You must now register the
mortgage bond by Greg in favour of Paul. Prepare only the property/security
clause as it will appear in the bond to be registered. Paul is not concerned
about the changed circumstances. (5)

QUESTION 10 [3]

The provisional trustee in an insolvent estate must urgently sell an immovable property
belonging to the insolvent before the second meeting of creditors can be held. May he
do so? Discuss briefly.

QUESTION 11 [10]

Draw only the causa clause of a deed of transfer in the following cases. Commence
your answer with: “and the Appearer declared that …”. Provide your own details in
your answers.

11.1 The property was sold by the sheriff in execution. (5)

11.2 The property is registered in the name of a fiduciary who has died and who is
survived by the only fideicommissarius. (3)

11.3 The property has been donated by the father to his son subject to a life usufruct
in favour of the father and his wife who are married in community of property.
(2)

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LEGAL EDUCATION AND DEVELOPMENT [L.E.A.D] 5
QUESTION 12 [10]

ABC Bank Ltd has lost mortgage bond B12/2018 registered in its favour by John
Tshabalala, married to Mary Tshabalala which marriage is governed by the laws of
Zimbabwe. The bank requires a certified copy of the bond to enable it to cede the
bond to XYZ Bank. You have received instructions to attend to the matter on behalf of
ABC Bank Ltd.

Describe the procedure to be followed to comply with your instructions, list the
sequence of transactions to be registered in the Deeds Office and documents to be
lodged.

QUESTION 13 [13]

William Kruger owns Erf 15 Golden Place and has sold Portion 1 thereof to Glen
Cooper. It is a condition of sale that the seller shall, simultaneously with the transfer of
Portion 1, retain a right of way 3 metres wide across Portion 1 to Denver Street. The
Local Authority, when consenting to the said subdivision imposed as a condition of
subdivision that Portion 1 be made subject to a 2 metre wide servitude along any two
boundaries thereof other than a street boundary in favour of the Local Authority.

a) State briefly in which manner you will create these servitudes. (3)

b) Draft the two servitudes as they must appear in the title deed of Portion 1. (10)

QUESTION 14 [14]

Erf 123 Hillcrest is registered in the name of Donald Duck and Daisy Duck. The
parties were married out of community of property to each other. Donald Duck was
sequestrated on the 1st May 2015 and Paul Rush was appointed as the Trustee of his
insolvent estate. The trustee, with the consent of the spouse and the consent of the
Master of the High Court, sold the property for R2 500 000.00 to Bargain Properties
(Pty) Ltd. The property was bonded to Liberal Bank and the sum of R1 000 000.00
was still owing as at date of sequestration.

Inventing your own particulars:

14.1 Draw the power of attorney to pass transfer to Bargain Properties (Pty) Ltd.
(8)

14.2 List the sequence of transactions and the documents to be lodged in the Deeds
Office. (3)

14.3 Calculate the amount of transfer duty payable. Show your calculations in detail.
(3)

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