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, providing a personal right of security. 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.

Notarial bonds are primarily governed by the Security by Means of Movable Property Act 57 of 1993, which regulates how security over movable property is created and enforced. The Deeds Registries Act 47 of 1937 governs the registration process at the Deeds Office. Together, these statutes form the legal framework for notarial bond practice in South Africa.

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 together with the prescribed registration fees, 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 1 of the Security by Means of Movable Property Act requires that a notarial bond be lodged for registration within three months of its execution. If the bond is not lodged within this period, it lapses and a new bond must be executed and attested. This deadline is strictly enforced.

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 and fees.

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.

Notarial bond fees are calculated on a sliding scale based on the value of the security, typically ranging from approximately 1.2% to 1.9% of the bond amount. Additional costs include Deeds Office registration fees, FICA compliance charges, and petty disbursements. The exact fee depends on the amount secured and the complexity of the transaction.

Deeds Office registration fees are prescribed by regulation and are separate from the notary's professional fees. These fees are based on the value of the bond and are payable at the time of lodgement. The fee schedule is updated periodically by the Department of Agriculture, Land Reform and Rural Development.

Yes, the notary's professional fees for preparing and attesting a notarial bond are subject to VAT at the standard rate of 15%. Deeds Office registration fees, however, are not subject to VAT as they are government-prescribed charges. The total cost to the client includes both the VAT-inclusive professional fees and the Deeds Office fees.

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 the creditor takes actual physical possession of the bonded movable assets, or obtains a court order to do so. 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.