PROHIBITION TO AFFORD AN OPTION TO PURCHASE
A PORTION OF AGRICULTURAL LAND

The Supreme Court Appeal case of Four Arrows Investments 68 v Abigail Construction 20470/2014 [2015] ZASCA 121 dated 17 September 2015 (copy attached for ease of reference) once again confirms that the provisions of section 3(e)(i) of the Subdivisions of Agricultural Land Act, 70 of 1970, must again be closely observed when entering into an agreement of sale of portions of Agricultural land (see also CRC 6 of 2002 copy attached hereto for ease of reference).

In the aforesaid case it was held that even an option for the purchase of an undefined portion of agricultural land was a sale subject to a suspensive condition, and cannot be concluded without the prior consent of the Minister being obtained.  It was held that an option thus falls within the ambit of the prohibition contained in Act 70 of 1970. 

Conclusion

No sale agreement inclusive of an option for the purchase of an undefined portion of agricultural land (subdivision) may be concluded without prior written consent of the Minister being obtained (see also Geue and Another v Van der Lith and another [2003] ZASCA118  2004(3) SA 333 (SCA).