FARMERS planning to subdivide and sell a portion of their land must be aware that no portion of agricultural land can be sold or advertised for sale unless it has been approved by the agriculture minister.

Tim De Wet, a director at law firm Deneys Reitz, says this comes from the latest interpretation of the Subdivision of Agricultural Land Act 70 of 1970 in a recent case heard in the Supreme Court of Appeal.

"People who have bought agricultural land subject to ministerial permission being granted in respect of the subdivision may need to examine the transaction in light of the judgment delivered in November 2003," warns De Wet.

This ruling confirms that farm owners wishing to sell undivided agricultural land can grant an option to purchase the land to prospective purchasers, but the option can be exercised only once the minister's consent has been obtained.

"Merely having a suspensive condition in the sales contract that the sale will take effect after the land has been subdivided isn't good enough, and the transaction will be void."

De Wet says the original purpose of the act was to curtail the fragmenting of agricultural land into uneconomic units.

"The provisions of the act also apply to proposed subdivisions for the establishment of a residential township as well as the division of land in a will to be shared by heirs."

Feb 11 2004 07:42:51:000AM Business Day Reporter Business Day 1st Edition