Thesis (LLD)--Stellenbosch University, 2012. / Includes bibliography / ENGLISH ABSTRACT: The forced transfer of immovable property to enforce judgment debts by way of sale in execution has constitutional implications. Firstly, if the property is residential, section 26 of the Constitution (the housing clause) raises the question whether the current legal framework takes sufficient account of the imperative to respect people‟s access to adequate housing. Read with section 36 (the limitation clause), the requirement is that someone‟s home may only be violated if the result is proportionate based on all the relevant circumstances. Secondly, since the home qualifies as “property” for purposes of the section 25 (the property clause), the law that regulates this forced sale may not permit the arbitrary deprivation of property. In other words, it is necessary to also investigate whether the sale in execution of debtors‟ property satisfies the section 25(1) non-arbitrariness test. Therefore, the research problem that this dissertation addresses revolves around the implications of sections 25 and 26 of the Constitution for the “normal” sale-in-execution process. More specifically, the scope of the investigation is limited to forced transfers of residential property as a result of mortgage foreclosure. What makes this perspective interesting is that, in addition to the debtor‟s constitutional rights, the creditor also enjoys constitutional protection by virtue of the limited real right (the mortgage) that is registered over the debtor‟s home. This real security right is also “property” that is worthy of recognition under section 25. To the extent that the National Credit Act places obstacles in the way of creditors‟ right to enforce their debts, this interference may also amount to a deprivation of property, which must satisfy the requirements of the property clause. This dissertation shows that the traditional common law framework of mortgage foreclosure does not give full effect to debtors‟ sections 25 and 26 rights. Nevertheless, based on the subsidiarity principles, I argue that a development of the common law or the creation of unique constitutional defences is not called for. The reason for this submission is that the debt relief mechanisms of the National Credit Act already provide constitutionally appropriate relief for debtors who face the loss of their properties. The available mechanisms – including debt review, debt rearrangement and the right to reinstate credit agreements – are aimed at resolving the root of mortgage foreclosure, namely over-indebtedness. This approach will ensure that mortgage foreclosures have a constitutionally valid and proportionate effect on the rights of both parties to the mortgage relationship. / AFRIKAANSE OPSOMMING: Die afdwinging van vonnisskulde by wyse van die verkoop in eksekusie van onroerende eiendom is ‟n gedwonge oordrag van eiendom met grondwetlike implikasies. Eerstens, waar die eiendom residensieël is, verg artikel 26 van die Grondwet (die behuisingsklousule) dat die huidige regsraamwerk voldoende rekenskap sal gee van die opdrag om mense se toegang tot geskikte behuising te respekteer. Saamgelees met artikel 36 (die beperkingsklousule), mag daar slegs op iemand se reg van toegang tot behuising inbreuk gemaak word indien die impak regverdigbaar is met inagneming van al die relevante omstandighede. Tweedens, aangesien die huis kwalifiseer as “eiendom” vir doeleindes van artikel 25 (die eiendomsklousule), mag die regsreëls wat eksekusieverkope reguleer nie arbitrêre ontnemings van eiendom toelaat nie. Met ander woorde, dit is nodig om ondersoek in te stel of die verkoop in eksekusie van skuldenaars se wonings aan artikel 25(1) se nie-arbitrêrheidstoets voldoen. Die navorsingsprobleem behels dus die implikasies van artikels 25 en 26 van die Grondwet vir die “normale” verkoop-in-eksekusie proses. Die omvang van die ondersoek is spesifiek beperk tot oordragte van residensiële eiendom as gevolg van die oproep van verbande. Wat hierdie perspektief verder interessant maak, tesame met die feit dat skuldenaars grondwetlike regte het, is die feit dat skuldeisers ook grondwetlike beskerming geniet ten aansien van die beperkte saaklike reg (die verband) wat geregistreer is oor die skuldenaar se huis. Hierdie saaklike sekerheidsreg is ook “eiendom” wat erkenning verdien in terme van artikel 25. Vir sover as wat skuldeisers se vermoë om hul skulde af te dwing deur die Nasionale Kredietwet aan bande gelê word, mag hierdie beperkinge moontlik ook op ‟n ontneming van eiendom neerkom. Gevolglik moet hierdie skuldverligtingsmeganismes ook aan die vereistes van die eiendomsklousule voldoen. Hierdie proefskrif wys daarop dat die tradisionele gemeenregtelike raamwerk vir die oproep van verbande nie ten volle effek gee aan skuldenaars se regte onder artikels 25 en 26 nie. Nietemin, met beroep op die subsidiariteitsbeginsels argumenteer ek dat ‟n ontwikkeling van die gemenereg of die skep van unieke grondwetlike remedies nie in hierdie konteks toelaatbaar is nie. Die rede hiervoor is dat die Nasionale Kredietwet se skuldverligtingsmeganismes reeds voorsiening maak vir grondwetlik aanvaarbare verligting vir skuldenaars wat deur die moontlike verlies van hul eiendomme in die gesig gestaar word. Die beskikbare maatreëls – insluitend skuldhersiening, skuldherstrukturering en die reg om kredietooreenkomste te laat herleef – is gemik daarop om die oorsaak van verbandoproeping aan te spreek, naamlik oorverskuldigdheid. Hierdie benadering sal verseker dat die oproep van verbande ‟n grondwetlik geldige en proporsionele effek op die regte van beide partye het. / South African Research Chair in Property Law / National Research Foundation / Ciucci Bursary

The National Credit Act (NCA) was promulgated and implemented on 1 June 2007. The purpose of this research study was to outline the residential mort-gage market in South Africa in the context of the NCA and to determine how residential mortgage lending under the new NCA was regulated. The purpose of the NCA was to remove the many unfair practices, inappropriate disclosure and anti-competitive practices from the market and to achieve honesty in the credit market. Low-income groups were held back because they could not gain access to formal finance to build or improve houses or supplement housing subsidies to get bigger houses. This study applied the quantitative research design using time series secondary data. Registered data on monthly residential mortgages was obtained from Lightstone Property for the period January 2001 to August 2011. Secondary data was collected from the BA900 of the SARB to see how many loans were approved and rejected between 2008 and 2014. The statistical analysis techniques used in this study were t-tests, descriptive statistics, trend analysis and correlation analysis. It was found that the NCA had a positive effect on the residential mortgages in SA. / Business Management / M. Com. (Business Management)

A real security right improves a creditor’s chances of recovering a debt owed to him by the debtor. In the case of an ordinary pledge, the pledgor delivers physical control of his movable property to his creditor to serve as security for the repayment of the principal debt. The increasing value and use of movable property as an object of security coupled with technological advancement have resulted in many countries calling for legal reform of real security rights over movable property. In South Africa this led to the introduction of the Security by Means of Movable Property Act 57 of 1993 which makes provision for a pledge without possession. The Act regulates only special notarial bonds and does not apply to general notarial bonds. The real security right vests in the bondholder upon registration of the bond, provided that the movable property encumbered is described in a notarial bond in a way that makes it readily recognisable. The Act has substituted delivery with registration in the Deeds Registry. Registration of the notarial bond in the Deeds Registry is questioned as to whether it complies with the publicity principle. This is because movable property can be shifted from one place to another without any knowledge on the part of the creditor due to the inaccessible and costly registration system. The third party then receives the property subject to the real security right of the creditor. The substitution of delivery with registration is the controversial feature in this study. Linked to the legal problems regarding compliance with the publicity principle, is the description and identification requirement as provided for under the Act, the exclusion of general notarial bonds from the application of the Act, and the question of whether it is appropriate to regard special notarial bonds as pledges without possession. This study questions whether the current land registry system should be used for the registration of notarial bonds and suggests that a new system designed specifically for the registration of real security rights over movables be considered. I compare the position in the Belgian legal system as regards developments in real security rights over movables to identify possible solutions and recommendations for the South African approach. / Private Law / LL. M.