RECORDAL OF CONTRACTS IN TERMS OF SECTION 20 OF THE
ALIENATION OF LAND ACT 68 OF 1981

In the decided case of V and Another v Coetzee (35029/2014) [2015] ZAGP JHC 102 dated 5 June 2015 (case attached hereto for ease of reference) it was once again reiterated that

Chapter II of the Alienation of Land Act 68 0f 1981 (ALA) gives special protection only to individuals purchasing residential property in instalments.  Attempts of a purchaser of industrial property in an instalment sale to insist on recordal of the agreement against the title deed and notification of the seller's bond liability, will be futile.  Other measures protecting such purchasers, outside Chapter II, such as the right to demand transfer once more than 50% of the purchase price has been paid, may well become applicable for non-residential property, but then the relevant conditions must be complied with.

Conclusion

From the said judgment and the definition of "land" for purposes of the application of Chapter II of ALA, the land must be used mainly for residential purposes and specifically excludes "agricultural land" as defined in the Subdivision of Agricultural Land Act 70 of 1970.  In terms of CRC 6 of 2002 all land with the word "farm" therein.

However, contract may be recorded against agricultural holdings which are mainly used for residential purposes (see Mangion v Bernhardt 1977 (3) SA 901(W)