Buying Agricultural Land

Buying Agricultural Land

Section 3(b) of the Subdivision of Agricultural Land Act (Act 70 of 1970) prohibits the transfer of undivided shares in agricultural land without the prior written consent of the Minster. Accordingly, the Minister’s consent is required in order to transfer agricultural land into the name of parties married out of community of property.  There is however no bar against transferring agricultural land into the name of natural persons married in community of property.

When it comes to the signing of the sale agreement and transfer documentation by parties married in community of property, it is interesting to note that it is permissible for only one spouse to sign the agreement of sale in his or her capacity as purchaser. The Matrimonial Property Act (Act 88 of 1984)  provides that spouses married in community of property may perform any juristic act with regard to the joint estate without the other party’s consent. However, when it comes to the alienation of immovable property or burdening the immovable property with a bond or servitude, both spouses’ signatures are required. This having been said, the transfer documentation will have to be signed by both spouses and accordingly it is always advisable to obtain both spouses’ signatures on the sale agreement. 

For more information herein, please contact Madelein Williams of Smith Tabata Buchanan Boyes Somerset West & Stellenbosch at madeleinw@stbb.co.za