When a Notary Public affixes their seal and signature on a document, they bestow upon the document a presumption of correctness, making it admissible as evidence.
Notarial Documents stand as pillars of legal certainty and public faith, which transcends ordinary contracts and agreements.
Why Notarial Deeds or Bonds Are More Important Than You Think, Here Are Few Examples That May Apply to You!
Entrepreneurship and business loans:
Business owners and aspiring entrepreneurs often make use notarial bonds to secure a business loans.
The Entrepreneur will pledge their business premises, equipment, and inventory as collateral and with the loan, the Entrepreneur can set up their dream business and commence with the sale of goods or delivery of services.
There are two types of notarial bonds:
1. General Notarial Bond: This creates a personal right against the debtor, covering all their movable assets. Conversely, it doesn’t award a real right until fulfilment by means of attachment of the movable asset.
2. Special Notarial Bond: Introduced by the Security by Means of Movable Property Act 57 of 1993, this bond describes specific movable assets in detail and ensuring the creditor’s security is unambiguously defined. Importantly, it confers a real right without requiring attachment, provided it’s registered in the Deeds Office.
These bonds provide assurance to lenders and/or bank.
Aging Population and Life Rights in Retirement Villages:
South Africa’s aging population has led to an embrace of life rights in retirement villages. Notarial deeds play a role in ensuring stability and legal certainty for residents.
Long-Term Commercial or Agricultural Property Leases:
Companies use notarial documents to secure long-term leases for office buildings, to ensure stability and avoid frequent relocations.
Farmers necessitating to expand their agricultural operations by planting more crops but does not necessarily own enough land can enter into a long-term lease agreement with a nearby farmer, subject to the consent of the Minister of Agriculture.
When a lease extends beyond 10 years in South Africa, it transcends ordinary contractual law.
Such long-term leases, often spanning decades or even a century, require notarial execution and registration at the Deeds Office. A notarial executed long-term lease creates a limited real right, binding not just the current landowner but all subsequent owners. This offers tenants extraordinary long-term security and even if the property is sold, their right to occupy or use remains intact.
Usufruct Agreements:
Retired parents often grant their child an usufruct right over the orchards and fertile farmland, while the parents stay the owners of the property and occupy the historic farmhouse. The child can use and enjoy the property during his lifetime but cannot sell or transfer ownership. Notarial deeds formalise this arrangement and the right is registered against the property’s title deed.
Servitudes: Rights Over Another’s Property
Servitudes are another domain where the notarial pen frequently travels. A servitude is a right that one person holds over someone else’s property, either for personal benefit (personal servitude) or for the benefit of another property (praedial servitude).
Common servitudes to be notarised includes:
– Right of way (allowing passage through another’s land)
– Water rights (Farmers and developers may buy water rights through notarial deeds, ensuring legal recognition of their access to water sources or permitting access and use to a neighbour’s borehole)
– Grazing rights (letting one’s cattle graze on another’s pasture)
Each servitude must be notarised, executed and registered, as it significantly impacts property rights. When these deeds are drafted, the notary must precisely define the nature, extent, and duration of the right.
Notarial Deeds for Timeshare:
Many South Africans buy timeshare for holidays. Your “share” (usually a week each year) is recorded in a notarial deed, especially in upscale schemes with longer-term rights.
Notarial documents go beyond mere authentication; they can open doors to various opportunities. For instance, they can assist in obtaining a business loan even if you don’t own immovable property, securing water rights, or negotiating a long-term lease for a prestigious office building with stunning ocean views, all while staying within budget.
Should you require additional information or assistance regarding notarial deeds and bonds, please do not hesitate to contact our offices. We are here to provide expert guidance and ensure legal certainty for your transactions.