Transfer must be a gift
Section 49A(1) VEA - Requirement for qualifying farmer
Section 49A(2) VEA - Requirement for former partner
The transfer of the relevant farming assets must have occurred by way of gift.
Example of a farm transfer that is not considered to be a gift
If the farmer signs a contract to sell the farm(s) to the younger generation, with the price to be paid by instalments, the amount of the unpaid instalments is not an asset that can be disregarded under RAFS.
Transfer must include real property
The assets transferred, as a gift must have included real property (land).
Transfer of legal title required
The farmer must have transferred the legal title of their farm land to the eligible descendant.
Transferring legal title of the farm
Transfer under general law system
Ownership of land under general law can only be proven by the 'chain of title', the group of documents that show changes in ownership for at least the last 30 years.
Where the farmer holds general law land, this land must have been converted to a Torrens title before the transfer of legal title was accepted for RAFS purposes.
Transfer under Torrens system
A farmer's ownership of land under the Torrens system can be shown on a certificate of title issued under the relevant State land law.
Verification of transfer of title
To confirm the transfer by the farmer to the younger generation, a copy of the certificate of title of the relevant farm land was required by the Department.
Acceptable proof of ownership, and thus transfer, differed depending on whether the title for the land was held under the general law (old) system or the Torrens system.