Housing Consumers Protection Measures Act, 1998 (Act No. 95 of 1998)

Chapter I : National Home Builders Registration Council

7. Regulating measures

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1)The Council may, by publication in the Gazette-
a)make Rules-
i)regulating the conduct of registered home builders;
ii)prescribing procedures for the registration of home builders and the expiration of registration;
iii)prescribing enrolment fees and late enrolment fees, including the method of calculating such fees, in respect of homes or categories of homes and other fees, excluding the fees contemplated in subsection (2);
iv)prescribing procedures for enrolment, late enrolment, non-declared late enrolment and cancellation of enrolment;
ivA)governing the application of NHBRC Technical Requirements to homes financed by a state housing subsidy;
v)prescribing procedures for the consideration of applications for assistance by housing consumers from its funds or a fund;
vi)prescribing the procedures for resolution of disputes by conciliation or arbitration and providing for the payment and refunding of deposits or fees for such conciliation or arbitration;
vii)prescribing procedures to be complied with by housing consumers, relating to the lodgement of complaints with the Council;
viii)recommending terms to be included in or excluded from agreements between home builders and housing consumers in respect of the construction or sale of homes;
ix)prescribing a code of conduct; and
x)prescribing forms for the purposes of the Council; and
b)prescribe any matter which is necessary or desirable to be prescribed by the Council in order to achieve the objectives of this Act.

 

2)The Minister shall prescribe-
a)application fees, registration fees and annual registration renewal fees;
b)the terms and conditions for the registration and renewal of registration of home builders;
c)procedures for disciplinary proceedings before the disciplinary committee in respect of alleged misconduct of home builders and make provision for fines and other penalties to be imposed on home builders who contravene the code of conduct prescribed by the Council;
d)requirements applying to a home builder for the design and construction of prescribed homes in respect of structural strength and stability, serviceability, materials, behaviour in fire, drainage and storm water management; and
e)the minimum and maximum amounts which may be expended under section 17(1) in respect of any home pursuant to the failure of a home builder to meet his or her obligations in terms of section 13(2)(b)(i), and for the purposes of section 17(1) the Minister may prescribe which costs may be included in a claim and which costs may not be included in a claim.

 

3)The Council shall give home builders reasonable notice of proposed changes to the Rules or the NHBRC Technical Requirements.

 

4)
a)The disciplinary committee may, whenever a fine has been imposed on a home builder in terms of subsection (2)(c), order that any portion of the fine, but not exceeding 80 per cent of such fine, be applied towards the payment of compensation to a housing consumer who suffered a pecuniary loss as a result of the conduct of the home builder concerned.
b)The Council shall on receipt of the fine imposed on the home builder concerned, make the payment to the housing consumer concerned :
Provided that such payment shall not be made until all appeals in respect of the imposition of the fine have lapsed or have been finalised or have been abandoned.
c)This subsection shall not preclude any person from pursuing any civil remedy against a home builder: Provided that if an award is made by a court in favour of a person who has received payment from the Council as contemplated in this subsection, the court shall take the payment into account.