Housing Consumers Protection Measures Act of 2008
The Housing Consumers Protection Measures Act 95 of 1998
Updated 2008 – EXPLAINED
1. Purpose of the HCPA
1. The main purpose of the Housing Consumers Protection Act is to give protection to housing consumers. At the same time it created the NATIONAL HOME BUILDERS REGISTRATION COUNCIL (NHBRC), whose objective is to stand for the interests of housing consumers by giving a warranty to protect against defects in new homes and to give cover to housing consumers in respect of the failure of builders to fulfill their obligations in terms of this Act.
2. Housing consumer is a “person…”
2. A housing consumer is a “person who is in the process of getting or has taken possession of a home and includes such a persons “successor in title”. What this means is, that for the period that the “original” homeowner is covered by the warranties that may be applicable in terms of this Act, that warranty remains in place no matter the change of ownership. Any other action undertaken by the first owner is transferred to, and enforceable by, the new owner – so long as the original owner did everything in line with the Act. Different time frames apply depending on what the defect is.
3. A homebuilder
3. A homebuilder is defined as a person who carries on the business of a home builder and constructs a home for a housing consumer.
4. Owner builder
4. An owner builder may contract a homebuilder for the building of a home for occupation by that person. If someone builds himself a home, lives in it and later on sells it, the mere fact that the house is still new does not suddenly mean that for purposes of this Act, the seller of that house suddenly becomes a homebuilder.
5. Occupation
5. “Occupation” is either the date that the housing consumer who first gets the home, accepts it as is by signing a document confirming the acceptance, this is known as a “happy letter”, this is needed by banks before they will pay out the loan on a bond that was registered for a new home, or the certificate of occupancy issued by a local authority in terms of the National Building Regulations and Building Standards Act of 1977.
6. Ownership
6. By signing the acceptance document you take complete ownership of the house and you do not have to physically move in to “occupy” the house for the purposes of the Act.
7. Registered homebuilder
7. Most important is the part of the Act that states that no person shall carry on the business of a home builder, or receive any remuneration from any agreement with a housing consumer in respect of the sale or construction of a home, unless that person is a registered homebuilder with the NHBRC.
8. Not registered
8. If anyone or any company wants to do any sort of building work, they MUST first be registered with the NHBRC. Before they start work or accept any payment of any kind for the project.
A home builder shall not commence the construction of a home falling within any category of
a home that may be prescribed by the Minister for the purposes of this section unless—
(a) the home builder has submitted the prescribed documents, information, and fee to the
Council in the prescribed manner;
(b) the Council has accepted the submission contemplated in paragraph (a) and has
entered it in the records of the Council; and
(c) the Council has issued a certificate of proof of enrolment in the prescribed form and
manner to the home builder
If a builder has finished your entire house for you, and if they are not registered with the NHBRC, you don’t need to pay them a cent. Be aware that you will have to prove that did not know that the builder was not registered from the start otherwise you might also be found to be complicit in breaking the law.
You can read more about the NHBRC here: national-home-builders-registration-council
Here is a copy of the Act that you can download:
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Hi
I did not register with the nhbrc, I am a owner builder, doesn’t have a contract with any builder, build with my cash money. The nhbrc has now brought a court order to stop me from building. Do I have to register and can they bring legal steps against me.
Thank you
Hi Leana, Is this a new house that was registered with the NHBRC? If not then they cannot help as they only deal with new houses. If the builder and your new house was registered with the NHBRC then you need to contact an attorney to write them a letter. You can contact the Construction Industry ombudsman here: http://www.cidb.org.za/default.aspx alternatively the Master Builders
HI,
I have submitted my claim to the NHBRC regarding poor workmanship. This was almost a year ago! My concrete floor cracked ( not hairline cracks) and numerous other things no they sent me a letter stating that they can not help me? Surely there must be an Ombudsman I can go to?
What can I do?
Hi Jeanene, If you did put the plans as a condition in the offer to purchase then this will be one of the suspensive clauses that have to be fulfilled before the sale can go through. As far as I am aware it is standard practice that banks must call for plans before they grant a bond so that they know what they are investing their money into. Do not sign or accept anything until this is sorted out as you cound be liable for heavy costs and fines. Ideally you should have appointed your own conveyancer. If not then instruct the transferring attorney (in writing) to send a letter to the bank suspending the home loan until the supensive clauses have been met. It might be your “dream home” but it will be better to wait rather than buying an “illegal” house.
Hi Chamilla, This is not a Building Regulations problem. You will have to ask an Attorney who deals with wills etc. for professional guidance.
I want to buy a house from someone but the property is in his deceased mothers name, the two people on the property letter agrees to well but the court want kids of the deceased, if I buy the house without the daughter who cannot be found will it cause a problem for me on a later stage even though she does not appear on the property
Hi There
Please tell me if we have signed a offer to purchase and we have received a 90% home loan from the bank. Now we face the issue of the house plans not being updated, as this is one of our conditions we placed in the offer to purchase contract. The last updated house plans shows only 1993. A lot of changes has taken place and non have been applied for at the building control department of the municipality – South Africa. The plans does not show the swimming pool, the flat let and the inside of the house that was changed – re build as well as carports. The 1993 building plans show buildings like garages that is not there. The flat let is not the garages as the garages is transformed in to a lounge. The flat let is build away from the house – free standing and not attached to the house like the garages – which doesn’t exists any more. It looks like the garages that was build against the house have been converted into a lounge. We are being told that the current owner needs to bring this building plans up to date – 2014, but it could take from 6 months up to 9 months for this to be done. What do we do with our home loan from the bank while this proses takes place. We have reported this matter to the estate agent and to the registrations attorney but as of yet nothing is happening. We hope that you could assist us with information as how to handle this situation and what needs to be done. What would the total cost be to bring these building plans up to date? How do we save guard our self’s so that this baby doesn’t become ours – the house isn’t registered on our name as of jet. Please could you email me your advice on Jeanene.kruger@gmail.com
Thank you so kindly.
Hi Aubrey, If you are building a new house then it must be registered with the NHBRC. The NHBRC has a process that must be followed when a builder does shoddy work or uses inferior materials. The builder must be given written notice to repair or put right the “snag list” within 90 days. You must inform the NHBRC that you have lodged a complaint with the builder. After that you must then lodge your complaint with the NHBRC and they will act on your behalf to get the builder to fix the problems or the NHBRC will organise for another builder to do it under their warranty scheme. Read more here: nhbrc-consumer-info
Morning i want to know what must i do when the builder has put broken bath and roof tiles in my new house.
I would appreciate email response.
Anton, You will have to follow the legal process and apply to court. You could probably go via the Small Claims Court which will be a lot cheaper. Alternatively get a lawyer to write a letter putting the client to terms. You cannot just walk in and remove it.
HI I AM A REGISTERED PLUMBER AND I INSTALLED A GEYSER IN A CLIENTS HOME. IT IS WORKING PROPERLY BUT THE CLIENT DOES NOT WANT TO PAY ME.
DO I HAVE THE WRIGHT TO GO REMOVE THAT GEYSER?
There are no special regulations for boarding houses. The National Building Regulations govern ALL construction work.
Good day, I have two boarding houses on the estate, where can i obtain building regulations for boarding houses.
Hi Cherie,
This is covered by each municipality’s own by-laws. Generally the approved plans will be valid for a period of 12 months. As delays do happen, municipalities grant extensions to builders/developers at a laid down fee. As you have a new building/dwelling it should have been registered with the NHBRC and they have warranties in place to protect the home owner. I would contact them and ask their advice. Their Toll Free No. 0800 200 824 and the website has more info here: nhbrc.org.za
I would just like to know if there is any law in South Africa governing the time frame a residential structure is to built within?
We have been waiting for over a year now for a complex of 16 units to be built. we were told we could move in last year September 2012. i have complained to the real estate agent(even the CEO) but nothing has happened. there are so many errors we have to either fix ourselves while they building or get them to redo it.
regards
Cherie Freeman