Land and interests in land have traditionally been man’s most basic forms of wealth. As a result, many elaborate legal systems have evolved to protect this wealth and the rights associated with it. This has led to the establishment of the most recognized land registration systems, namely the title registration system (known as the Torrens system) and the deeds registration system. Both of these systems provide owners of land and lenders with protection regarding property ownership and financial interests in land. South Africa has chosen to adopt the deeds registration system with some elements of the title registration system. This system is hailed as among the best in the world, simply because the validity of ownership and interests in land are the responsibilities of conveyancing practitioners and land registration officials. However, such protection is not fully guaranteed. This paper discusses the possibility of introducing title insurance – a form of indemnity insurance which insures a person against financial loss from defects in title to immovable property and from the invalidity or unenforceability of mortgage liens – to protect the financial interests of both land owners and lenders in the property.
One of the consequences of sequestration is the vesting of the property of an insolvent person in the trustee of the insolvent estate. However, not all the property of the insolvent person vests in the trustee as there are some exceptions. Under section 63 of the Long-Term Insurance Act 52 of 1998, life insurance policy benefits are excluded from forming part of the insolvent estate and thus do not vest in the trustee and are unavailable for the payments of the debts of the insolvent. The exclusion of these benefits diverts property from the insolvent estate and, consequently, the creditors who could benefit from the property. This note discusses Malcolm Wentzel v Discovery Life Limited: In Re Botha v Wentzel (1001/19) [2020] ZASCA 121 (2 October 2020), and considers whether a beneficiary of a life insurance policy payout is required to hand over such payment to the trustee of his insolvent estate. Further, it highlights the conflicting provisions between insolvency legislation and insurance legislation and examines the effects of section 63 on an insolvent estate where the insolvent was married in community of property.
One of the consequences of sequestration is the vesting of the property of an insolvent person in the trustee of the insolvent estate. However, not all the property of the insolvent person vests in the trustee as there are some exceptions. Under section 63 of the Long-Term Insurance Act 52 of 1998, life insurance policy benefits are excluded from forming part of the insolvent estate and thus do not vest in the trustee and are unavailable for the payments of the debts of the insolvent. The exclusion of these benefits diverts property from the insolvent estate and, consequently, the creditors who could benefit from the property. This note discusses Malcolm Wentzel v Discovery Life Limited: In Re Botha v Wentzel (1001/19) [2020] ZASCA 121 (2 October 2020), and considers whether a beneficiary of a life insurance policy payout is required to hand over such payment to the trustee of his insolvent estate. Further, it highlights the conflicting provisions between insolvency legislation and insurance legislation and examines the effects of section 63 on an insolvent estate where the insolvent was married in community of property.
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