Housing Consumers Protection Measures Act, 1998 (Act No. 95 of 1998)National Home Builders Registration Council : Code of Conduct for Home BuildersChapter Six : Duties in Respect of Financial Matters |
| 6.1 | A home builder may not, prior to the actual commencement of construction, accept payment from a housing consumer except: |
| a) | a deposit and/or; |
| b) | additional costs; |
| 6.2 | Where the housing consumer requires finance a written confirmation must have been received from a third party, confirming that finance will be provided. |
| 6.3 | Any deposit paid in respect of a sale agreement which is not an instalment sale shall be kept in trust by an attorney or an estate agent as defined in Section 1 (iv)(a) of the Estate Agency Affairs Act, 1976 (Act No. 112 of 1 976), until the land or sectional title unit, as the case may be, is registered in the name of the housing consumer or the contract is validly cancelled, in which case the deposit will be dealt with as specified in the clauses in the contract relating to cancellation. |
| 6.4 | The home-builder must: |
| a) | immediately issue a receipt for all payments made to him/her by the housing consumer; and |
| b) | issue such receipt on a business document; |
| c) | issue statements which are clear, contain all information and are understandable to the housing consumer. |
| 6.5 | The provisions in clause 6.3 shall not: |
| a) | apply to money received by a home builder from Provincial Housing Departments for housing subsidy payments. |
| 6.6 | Except as expressly stated in a Building Contract or sale agreement, a home builder may not: |
| a) | require a housing consumer to pay any deposit or advance monies; |
| b) | require a housing consumer to pay for labour and/or materials supplied at various stages during the construction of a home; |
| c) | vary the contract price unless the contract specifically stated so initially and was agreed to by parties. |