Notarial Bonds FAQ: Your Questions Answered

A notarial bond is a legal instrument registered over movable property to secure a debt. It is attested by a notary public and registered at the Deeds Office, providing the creditor with security over the debtor's movable assets without requiring physical delivery of those assets.

Learn more in our comprehensive guide to notarial bonds.

A general notarial bond covers all of the debtor's movable assets as a class. Before perfection it gives only personal rights plus, in insolvency, a statutory preference over the free residue under section 102 of the Insolvency Act 24 of 1936 — not a real security right; the holder is not secured until it perfects by taking lawful possession. A special notarial bond covers specifically identified and described movable assets, creating a real right of security. Special bonds offer stronger protection, particularly in insolvency, where the holder ranks as a secured creditor.

See our detailed comparison of general vs special notarial bonds.

There is no single "Notarial Bonds Act" — the governing law depends on the type of bond. A special notarial bond is governed by the Security by Means of Movable Property Act 57 of 1993, section 1(1) of which deems specified, readily recognisable corporeal movables to be pledged to the creditor on registration. A general notarial bond is a creature of the common law, with its insolvency preference flowing from section 102 of the Insolvency Act 24 of 1936. The registration of every notarial bond, general or special, is governed by the Deeds Registries Act 47 of 1937.

Only a notary public admitted and enrolled in South Africa may attest a notarial bond. The notary must also be a practising attorney. The bond is then lodged for registration at the Deeds Office by a conveyancer, who is often the same practitioner.

A mortgage bond is registered over immovable property (land and buildings), while a notarial bond is registered over movable property (vehicles, equipment, shares, intellectual property). Both provide security for a debt, but they cover fundamentally different categories of assets and are governed by different statutory provisions.

The process begins with drafting the bond instrument, which is then attested by a notary public. FICA documentation for both parties must be obtained. The bond is lodged at the relevant Deeds Office, where it is examined and, if in order, registered against the debtor's name.

Registration typically takes between 2 to 4 weeks from the date of lodgement at the Deeds Office, depending on the office's workload and whether any requisitions are raised. Preparation time before lodgement — including drafting, FICA compliance, and attestation — adds an additional 1 to 2 weeks.

Section 61(1) of the Deeds Registries Act 47 of 1937 requires that a notarial bond be registered in a deeds registry within three months of its execution, "or within such extended period as the court may on application allow". If the three-month period is missed, the bond cannot be lodged late as of right — but it does not automatically become void with no remedy. The remedy is a court application to extend the period under section 61(1).

You will need the executed notarial bond instrument, FICA documentation for both creditor and debtor (proof of identity and address), a resolution authorising the transaction if a company is involved, the underlying agreement creating the debt, and the prescribed Deeds Office lodgement forms.

A notarial bond is registered at the Deeds Office having jurisdiction over the area where the debtor resides or has its registered office. South Africa has multiple Deeds Offices — in Pretoria, Cape Town, Johannesburg, Pietermaritzburg, Bloemfontein, King William's Town, Vryburg, and Mpumalanga.

Enforcement of a notarial bond requires a court order. The creditor must apply to court for an order authorising attachment and sale of the bonded assets. The creditor cannot unilaterally seize the assets. Once the court order is obtained, the sheriff of the court will attach the assets, which are then sold in execution to satisfy the debt.

In insolvency, the type of bond determines the creditor's ranking. A special notarial bond holder ranks as a secured creditor and may claim directly from the proceeds of the specifically bonded assets. A general notarial bond holder ranks as a preferred creditor with preference over concurrent creditors, but does not enjoy secured creditor status unless the bond has been perfected.

Read more about enforcement and legal rights for notarial bonds.

Perfecting a general notarial bond means converting it into a real right by the creditor obtaining lawful possession of the bonded movable assets. The creditor cannot simply seize the assets. Unless the debtor hands them over by consent, the creditor must apply to the High Court for an order authorising it to take possession, which is then executed by the sheriff; self-help dispossession is reversed by the courts under the mandament van spolie. Once perfected, the general notarial bond holder gains a real right equivalent to a pledge, elevating their status from preferred creditor to secured creditor in insolvency proceedings.

The notarial bond itself does not prescribe independently — it is accessory to the underlying debt it secures. If the underlying debt prescribes (typically after 3 years for most debts under the Prescription Act 68 of 1969), the notarial bond falls away as there is no longer a debt to secure. The bond remains valid for as long as the secured obligation exists.

Yes, a notarial bond can be cancelled by lodging a consent to cancellation at the Deeds Office, signed by the creditor. Amendment of a registered bond is more complex and typically requires cancellation of the existing bond and registration of a new one. Partial cancellations may be possible in certain circumstances with the creditor's consent.

Notarial bonds can cover a wide range of movable assets, including vehicles, equipment, machinery, inventory, livestock, shares, intellectual property, book debts, and receivables. A special notarial bond requires the assets to be specifically and sufficiently described to be identifiable. A general notarial bond covers all movable assets as a class without individual identification.

See our full list of assets covered by notarial bonds.

Yes, it is common for a creditor to hold both a mortgage bond over immovable property and a notarial bond over movable property as security for the same debt or related obligations. This provides comprehensive security across both categories of assets and is a standard practice in structured financing transactions.