The Subdivision of Agricultural Land Act 70 of 1970

The drafting of agreements relating to the sale of or subdivision of agricultural land still poses problems for some: Because clients often request attorneys / agents to draft an agreement of sale prior to obtaining consent from the Minister of Agriculture.

If agricultural land is sold without the consent of the Minister being obtained prior to the contract being entered into the agreement is ab initio void (not valid).

In terms of section 3(e) of the Subdivision of Agricultural Land Act 70 of 1970 (“the Act”) – “no portion of agricultural land, whether surveyed or not, and whether there is any building thereon or not, shall be sold or advertised for sale, except for the purposes of a mine as defined in section 1 of the Mines and Works Act 27 of 1956…. unless the Minister has consented in writing”.

In conclusion: any sale of agricultural land without the consent of the Minister of Agriculture’s consent shall be invalid. A provision put in place to protect our agricultural land.

This article has been reprinted with the kind permission of Masilo Freimond Inc.
Tel : 011 958 0488
Fax : 086 610 0276
E-mail : info@masiloincjhb.co.za

Freehold vs Sectional

This article was discovered on the Better Bond Website. We would like to share this with You as it provides helpful information on sectional or non-sectional property – explaining the different sections to ensure that the buyer is able to make the right decision without any later on regrets. To view this article, visit http://www.betterbond.co.za/InfoforBuyers/FreeholdvsSectionalTitle/tabid/67/Default.aspx, or simply read below: 

” There are two types of ownership for residential property: 

Freehold / Full Title
Full title describes the transfer of full ownership rights when you own the property as well as the land it is built on. 

Freehold – Full Title: 

House
This is a normal free standing house with ERF number. 

Cluster House
A cluster house is a freehold property, usually in a development of similar houses. The group of houses usually has limited access through a security control. Each house is individually owned and no levy is charged to the occupants. 

Residential property used for business purposes
The property will be regarded as residential property provided that no structural changes are made which could affect its description as a domestic residential dwelling. A risk premium above the qualifying home loan rate is applicable if more than half of the house is used for business purposes. 

Smallholding
A smallholding is classified as such if it is situated in or within a 150 km radius of a built up area, does not exceed 20 hectares and is able to be connected to a local authority water supply or has a borehole.
There must be a dwelling on the property and the main source of income must not be from farming on the property. If the smallholding is larger than 8.56 hectares, it will be charged a risk premium above the qualifying home loan rate. 

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Sectional title
This describes separate ownership of units or sections within a complex or development. When you buy into a sectional title complex you purchase a section or sections and an undivided share of the common property. These are collectively known as the unit. 

Sectional Title: 

Mini subtype house
This is a small, sub-divided portion of a large property which is suitable for cluster housing developments. 

Semi-detached house
This consists of two houses attached to one another. They may be on separate stands and bonded individually as ordinary houses. They can also be on one stand and bonded together under one bond. They can be sold as separate units in a sectional title development. 

Townhouse or flat
A townhouse or flat unit must be in an approved sectional title complex. The complex must contain residential units only. 

Duet house
This is similar to a semi-detached house, but there are two separate free-standing units on one stand. It could also be two dwelling units attached to one another on one stand. They can be sold under sectional title. When you buy into a sectional title complex you purchase a section or sections and an undivided share of the common property. These are collectively known as the unit. 

Common property
The common property is that part of the development which does not form part of any section. Structures and areas in this category include; driveways, gardens, swimming pool, club houses, corridors, lift, entrance foyer, outer wall and foundations. 

Exclusive use area
Exclusive use areas are portions of the common property which have been demarcated and may only be used by the owner of a particular section. It is an aspect of the property which you do not own, but over which you alone have use. This could include: parking bays, garden, patio, garages and storeroom. 

The Body Corporate
It is the collective name given to the owners of the units in your complex. All registered owners of units are members of the body corporate. This means you will be liable for the debt of the body corporate, so it is advisable that you scrutinize the financial statements of the body corporate before you purchase. 

Levies
These are the costs incurred in running the complex which have been paid by the body corporate. The levies include the following costs: Rates and taxes and other charges, insurance premiums, repairs and maintenance of the common property, wages and salaries of cleaners and other staff, water and electricity used on the common property. “