AA - 2016

Author:  Hein Nauschutz – STBB
2 August 2016

TRANSACTIONS INVOLVING FARM LAND       

There are volumes of case law dealing with disputes arising from the sale of agricultural land, many judgments dealing with issues arising from non-compliance with the Subdivision of Agricultural Land Act. The Act prohibits the transfer of undivided shares in agricultural land without the prior written consent of the Minister. Accordingly, the Minister’s consent is required to transfer agricultural land into the names of two purchasers (whether individuals or entities), including purchasers who are married out of community of property.

There is no bar against transferring agricultural land into the name of persons married in community of property to each other, as the separate estates of parties in such a marriage are considered joined, constituting one undivided estate.

Contact STBB for any questions relating to agreements involving agricultural land.