The Act

Purpose of The Act

 
The Housing Consumers Protection Measures Act, 1998 (Act No 95 of 1998), herein referred to as “The Act”, ensures the Housing Consumer a quality-built house as well as a Warranty against poor workmanship and structural defects. It also provides for the establishment of the NHBRC Council who is mandated to regulate the procedures and processes to accomplish sound residential structures.
Purpose of The Act

The Act

 

Means the Housing Consumers Protection Measures Act, 1998 (Act No 95 of 1998) which makes provision for the protection of Housing Consumers and provides also for the establishment of the National Home Builders Registration Council (NHBRC) which is mandated to apply “The Act” through prescribed applications, procedures, processes, regulations and rules as per Government Gazette 1 December 1999

Purpose of The Act

Implications of The Act

 

For the NHBRC to warrant any residential dwelling against poor workmanship resulting in structural defects, all newly build residential dwellings are to be enrolled by any Developer, Home Builder and Prospective Home Owner with the NHBRC, whether being built cash or through finance assistance by any legal bond holder.

The following are the various types of dwellings covered by “the Act”:

  • Homes
  • Flats
  • Town Houses
  • Employee/Corporate Housing
  • Maisonettes
  • Rented Homes, Flats (Sectional Titles Units).

Additions and alterations are not covered.

Owner Builders must apply through the NHBRC for exemption before construction occurs. All Developers and Home Builders or Building Contractors that are in the business of building or effecting residential units, must Register with the NHBRC.

Purpose of The Act

NHBRC Warranty

 

The NHBRC warranty covers the sub-structure, super structure, floor slabs, stairs and roof up to a maximum amount of R500,000 which may include:

  • Any professional fee
  • Necessary costs for rectification
  • Reasonable accommodation costs

The period covered by the warranty is 5 (five) years maximum, from occupation date.

Defects and poor workmanship must be recorded formally (in writing) to the Developer, Home Builder or Building Contractor as well as the NHBRC within 3 (three) months from date of occupation.

Roof leaks attributable to poor workmanship and materials must be recorded, formally (in writing) to the Developer, Home Builder or Building Contractor as well as to the NHBRC within 12 (twelve) months from date of occupation.

The NHBRC warranty takes effect from date of occupation by the Homeowner of the newly built dwelling, providing that the dwelling was formally enrolled with the NHBRC and that the NHBRC didn't issue a formal letter of non-compliance in accordance with the NHBRC Technical Requirements.

Purpose of The Act

Offences

 

Following are the different offences covered by “The Act”.

  • Section 10: Failure to register with the NHBRC
  • Section 14: Failure to enrol the new home 15 days prior to construction.
  • Section 19: Obstructing the NHBRC inspectors from executing their duties.
  • Section 18: To finance or register a bond on a new home without ensuring the Developer, Home Builder or Building Contractor is registered with NHBRC and the home are enrolled with the NHBRC.
  • Section 18. (2) Failure by Conveyancer to ensure that the Developer, Home Builder or Building Contractor is registered and that the home is enrolled.
  • Section 18. (3) Failure by subsidy provider to ensure Developer, Home Builder or Building Contractor is registered with NHBRC and the home is enrolled.
  • Section 21. (a) Withholding information or giving false or misleading information.
  • R 20658 Sect. 15: Failure to declare Late Enrolments.
Purpose of The Act

Convictions

 

A fine of R25 000-00 or 1-year imprisonment on each charge according to the Government Gazette No.19414 and R20658

Purpose of The Act

Interdicts

 

Should the Developer, Home Builder, Building Contractor or Housing Consumer refuse to comply with “the Act”, the Council may apply for a court order in terms of Section 20 of “the Act” to:

  • Enforce compliance
  • Stop construction of a home
  • Grant any other assistance that may be appropriate in the circumstances.