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Exam (elaborations)

2021 LPL4804 EXAM NOTES WITH Q AND ELABORATED ANSWERS

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THIS DOCUMENT CONTAINS ALL LEARNING UNITS SUMMARIZED NOTES ACCOMPANIED BY QUESTIONS AND ANSWERS.

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LPL4804 EXAM PACK 2021




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,LPL4804
CONVEYANCING
EXAM PACK

Conveyancing QUESTIONS & ANSWERS
Unit 1

Briefly discuss: The South African deeds registration system is characterised by a
high degree of state interference. (4)

• Despite the South African registration system being nominally a negative
system, there is a great deal of state interference.
• In the South African system the registrar is obliged in terms of section 3 of
the Deeds Registries Act, to check the deeds for registrability and reject deeds
if they do not conform.
• The registration system is linked to the state cadastral system.
• The registration system requires municipal rates clearances from local
authorities and transfer duty receipts or exemptions from the South African
Revenue Service.




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Briefly discuss: The limited state liability for incorrect data in the South African
deeds registration system in terms of section 99 of the Deeds Registries Act,
illustrates both positive and negative characteristics. (4)

• Section 99 provides that the state and or the registrar/official will be liable for
incorrect data where they were either o Mala fide or
o Failed to exercise reasonable care and diligence.
• This is a positive characteristic in the sense that the state does accept some
liability although South Africa has a negative registration system.
• However, simultaneously, the fact that the state liability is so limited and
defined, and not a general acceptance of state liability, is a negative
characteristic.




Why is the South African deeds registration system generally described as negative?
(4)

• The state provides no automatic guarantee that information is correct.
• The state does not have a special fund to compensate for incorrect
information.
• A new deed is required for every transfer.
• In terms of section 99 of the Deeds Registries Act, the state is, however,
liable for incorrect information as a result of an act or omission by an
employee that is mala fide or does not reflect reasonable care and diligence.
• The South African deeds registry system has characteristics of both positive
and negative systems, but is regarded as nominally negative.




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Explain why and how deeds which are lodged for execution in a South African
deeds registry are linked. (5)

• Deeds that must be registered simultaneously for financial reasons, although
prepared and lodged by different conveyancers, can be linked as a batch.
• This is done by completing their lodgement covers in a specific way.
• These are then lodged on the same day in separate lodgement covers.
• The deeds are then examined/checked together, by the deeds personnel, as a
batch, and are registered simultaneously as a batch.
• The linked deeds are all deemed to be registered only when the last
transaction in the batch has been signed by the registrar.




List five characteristics of the South African deeds registration system that are
indicative of a positive system. (5)

• The state examines/investigates documentation and transactions for legality.
• The state completes and maintains a register to title.
• Register of title is linked to a cadastral system of maps and diagrams.
• The state is liable under specific circumstances for shortcomings.
• The state register is subject to a great deal of state supervision and
intervention/interference.
• The public relies on the accuracy of the deeds registry data, although no
guarantee is given by the state.
• Linking of transactions occurs.




Why is the South African deeds registration system regarded as a negative deeds
registration system? (3)

• The state gives no guarantees as to the accuracy of the state register.
• The state as a general rule does not incur liability for inaccurate or incomplete
records, except in very specific and limited circumstances.
• Transfer is generally effected in a new deed of transfer for each transaction.




Unit 2



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