Restrictions on agricultural land transactions: Key considerations for farm buyers.

By Bathandwa Nomtshongwana | Associate

When purchasing farm or agricultural land, there are specific legal restrictions and requirements that differ from buying residential properties or sectional title units. The Subdivision of Agricultural Land Act 70 of 1970 (the “Act”) outlines important limitations on owning and subdividing agricultural land. This article highlights the key restrictions that buyers and owners should be aware of.

Restrictions on Joint Ownership of Agricultural Land

Under Section 3 of the Act, agricultural land cannot be jointly owned by more than one person or entity without special permission. If more than one party wishes to own agricultural land, they must first obtain the consent of the Minister of Agricultural, Land Reform, and Rural Development. The only exception is for spouses married in community of property, as the property is legally part of their joint estate.

If a farm owner wants to transfer ownership of agricultural land to multiple people or entities, they must secure prior written consent from the Minister. Without this consent, any transfer of agricultural land to multiple parties cannot proceed legally.

Restrictions on Subdivision of Agricultural Land

The Act also restricts the subdivision of agricultural land. Owners cannot subdivide or sell an unsubdivided portion of agricultural land without first obtaining the Minister’s approval. If an owner attempts to sell an unsubdivided section of the land without this approval, the sale agreement will be invalidated.

Both current owners and potential buyers of agricultural land should ensure they have the necessary consent from the Minister when required. Additionally, it’s essential to review any existing title deed restrictions on the land, such as servitudes, water rights, or other obligations tied to the property.