The case relates a contract between Four Arrows Investments and Abigail Construction, where Abigail agreed to give Four Arrows an option to purchase a demarcated portion of land. However, in terms of the Subdivision of Agricultural Land Act 70 of 1970, no portion of agricultural land may be sold or advertised for sale without the written consent of the Minister.

Four Arrows held that the nature of the property meant it does not fall within the prohibition contained in the Act.

Although the parties eventually entered into an agreement, the SCA found that the option agreement would have been invalid in any case without requisite Ministerial consent.

Landbou.com reports that the judgment holds far reaching consequences for the purchase of agricultural land.

It quotes lawyer Boy Louw as saying going forward, nobody will be able to enter into a binding option agreement to purchase a portion of agricultural land unless the Minister gives permission. He says this will also affect all existing option agreements on pieces of land for which the minister still needs to give his approval.

Sabrina Dean/OFM News