Housing Consumers Protection Measures Act, 1998 (Act No. 95 of 1998)National Home Builders Registration Council : Code of Conduct for Home BuildersChapter Five : Duties before Construction |
| 5.1 |
| a) | A home-builder may begin building a home for a housing consumer only when the relevant Local Authority has approved the building plans or granted permission for building work to commence prior to the approval of the building plans, in terms of the applicable provisions of the National Building Regulations and Building Standards Act, No 103 of 1977. |
| b) | A home-builder must submit details of the home for enrolment to the Council 15 (fifteen) days prior to the commencement of construction and confirm that the home is available for inspection by the Council lnspectorate throughout the construction process. |
| 5.2) | A home-builder may begin building a home prior to the registration of transfer of the land on which the home is to be built for the housing consumer, if: |
| a) | the housing consumer has acquired the land in terms of an instalment sale agreement; or |
| b) | the home builder has agreed in the Building Contract to: |
| i) | accept all risks, which may ensue, should the land not ultimately be transferred to the housing consumer; and |
| ii) | to repay all amounts received from a housing consumer in terms of the building contract, should transfer of the property not be given to the housing consumer by the date specified in the building contract or, if no such date is specified, within a reasonable time. Where the building contract specifies that the transaction is a speculative building contract or where the housing consumer purchased the land from someone other than the home builder, then the building contract need not provide for such repayment. |