In terms of Section 10 of the Housing Consumers Protection Measures Act, 1998
(the Act) any person in the business of home building must register with the
National Home Builders Registration Council (the NHBRC). Failing to register,
and found guilty of this offence in terms of Section 21 of the Act could upon
conviction, be liable to pay a fine of up to R25 000 and/or a one year prison
sentence on each charge.
The Home Builders Legal basis for obligations
Home builders shall comply with their obligations to their housing consumers in
terms of the Housing Consumer's Protection Measures Act, 1998.
Home builder's obligations to Housing Consumers are to:
Conclude a written agreement for the construction, or sale of any new home.
A written agreement shall:
signed by both parties;
out all the material terms including the financial obligations that the
housing consumer has attached as an annexure, the specifications for materials
and plans reflecting the dimensions and measures of the home;
Ensure the home builder does not demand or receive from the housing consumer:
deposit until a written agreement, as outlined above, has been concluded.
other payment until such time as he or she has enrolled the home with the
Honour the deemed warranties to the housing consumer in relation to the
construction of the home. These deemed warranties are that the home
shall be built in a workmanlike manner;
shall be fit for habitation;
shall be built in accordance with the NHBRC Technical Requirements and the
terms, plans and specifications of the agreement.
Honour the post-occupation warranties to:
rectify any major structural defect caused by non-compliance with the NHBRC
Technical Requirements notified to him or her within a period of not more
than five years;
any roof leak attributable to the workmanship, design or material occurring
and notified to him within a period of not more than one year.
rectify any non-compliance with the terms, plans and specifications of the
agreement or any deficiency related to design, workmanship or material
occurring and notified to him or her within a period of not more than three