Conference Resolutions - Centre for Conveyancing Practice

Question Where it is endeavoured to cancel a mortgage bond but on closer perusal it is
determined that the bond is passed by the mortgagor in favour of the mortgagor.
Can such cancellation be effected by the correct mortgagee where a section
4(1)(b) amendment is brought by such correct mortgagee?
Resolution Proof as to the correct situation must be called for in terms of section 4(1)(a) of
the Deeds Registries Act. The bond must then be amended with a section
4(1)(b) application, made by the correct mortgagee, whereafter such bond must
be cancelled. The consent of all interested parties must be insisted upon -
(RCR30/2008).
Question Regulation 39(1) provides for a separate consent to be lodged for the release of
“property” from the operation of a bond. May one consent be utilized for the
release of more than one “property” from the same bond?
Resolution Yes. Regulation 39(1) provides that one consent may be utilized for the release
of more than one “property” from the same bond - (RCR16/2009).
Section 56(1)(b) of the Deeds Registries Act: Voluntary liquidations
Question Is it peremptory that where a company or close corporation is voluntary wound
up by virtue of a special resolution because it cannot pay its debts, that the open
bonds be lodged for disposal? The opinion is that the bonds need only be
lodged for disposal where the company or close corporation is wound up by a
court of law
Resolution Where the company or close corporation is not wound up by the High Court, the
open bonds must be lodged for disposal – (RCR37/2010).
Section 56(1)(b) of the Deeds Registries Act: Voluntary liquidation of company / close
corporation and cancellation of bonds
Question It is practice to accept a certificate from a conveyancer in instances where a
company is unable to pay its debts. Should it not be the liquidator who certifies
as to this fact?
Resolution Yes. In order to comply with section 56(1)(b) of the Deeds Act, it is necessary
that a transfer of property belonging to the company / close corporation in
liquidation be accompanied by a certificate from the liquidator that the company /
close corporation is unable to pay its debts – (RCR38/2010).
Paragraph 8 Substitution of debtor
Consent of co-mortgagor
Question Is the consent of the co-mortgagor necessary with substitution in terms of
section 57?
Resolution a) Yes, the consent of the co-mortgagor is necessary (RCR19/2005); but
b) section 57 can only be invoked where “... the ‘whole of the land
mortgaged’ is being substituted” - (RCR7/2006 and RCR7/1994).
Miscellaneous
February 2012 Self-Study Deeds Course
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