Property & Housing

Notarial Bond

A notarial bond is a mortgage-type security registered over movable assets (like business equipment) by a notary public. It gives the creditor a real right against those assets.

Legal Definition

A bond executed by a notary public over movable property, registered in the Deeds Registry (for general notarial bonds) or by possession (for special notarial bonds). A general notarial bond (GNB) covers all present and future assets; a special notarial bond (SNB) covers specified assets.

📖 Constitutional / Statutory Basis: Section 25, Constitution of the Republic of South Africa, 1996; Security by Means of Movable Property Act 57 of 1993

Practical Example

A business takes a loan and registers a general notarial bond over its equipment. If the business defaults, the bank can have a sheriff attach and sell the equipment to recover the debt.

Frequently Asked Questions

What is the difference between a mortgage bond and a notarial bond?

A mortgage bond covers immovable property (land and buildings). A notarial bond covers movable assets.

Can a notarial bond be registered without the debtor's knowledge?

No. The debtor must consent and sign the bond documents before a notary public.

What happens to a notarial bond if the debtor is sequestrated?

Secured creditors with notarial bonds rank above unsecured creditors in the distribution of the insolvent estate.

Related Terms

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