In terms of the Agricultural Holdings (Transvaal) Registration Act, 1919, an “Agricultural Holding” (AH) is land of which the use is determined, and which is not smaller than 1 morgen (8565 square meters). This applies to all properties registered in the jurisdiction of the former Transvaal and includes all agricultural holdings in Gauteng.
Usually, the title deed contains conditions which restrict the holding from being subdivided or transferred to two or more persons without the consent of the Board, now represented by the local municipality.
Section 5(2) of the Act imposes further restrictions on AH owners and states that an AH may not be transferred to more than one person, if such owner’s portion will be smaller than 1 morgen (8565 square meters) on division thereof. Accordingly, transferring agricultural holdings to 2 buyers generally requires a consent from the council. Obtaining the consent from the municipal council will cause a delay in the transfer.
It is therefore important for agricultural landowners, when attempting to transfer an agricultural holding to consult a conveyancing attorney before entering into such an agreement of sale.