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

Regulations

General Regulations regarding Housing Consumer Protection Measures

13. Minimum and maximum amounts payable from Fund
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(1)The maximum amount that may be expended by the Council under section 17(1) in respect of homes enrolled in terms of section 14(1) of the Act pursuant to a failure of a home builder to meet its obligations in terms of section 13(2)(b)(i) of the Act, is the selling price of the home as declared by the home builder at the time of the enrolment of the home, up to a maximum amount of R500 000.

 

(2)The maximum amount that may be expended may include—
(a)any professional fee incurred by the Council in investigating and determining a cost effective method of rectification;
(b)the necessary cost for rectification of any major structural defect and for making good any finishes necessarily damaged by the rectification process; and
(c)reasonable accommodation costs where, in the opinion of the Council, it would be unreasonable for a housing consumer to remain in occupation of the property due to the extensive nature of the remedial works, prescribed at maximum daily rates by the Council up to a maximum of five percent of the selling price, or R25 000, whichever is the lesser.

 

(3)No amount shall be paid out of the fund in relation to—
(a)any limitation or exclusion in terms of regulation 14;
(b)consequential or economic loss of any kind or description whatsoever, including damages and penalties for and losses due to delay, breach of contract, loss of rental income or default in mortgage loan repayments; and
(c)any costs, loss or liability for which compensation is covered under an insurance policy.

 

(4)The Council may in exceptional circumstances, instead of having a defect rectified, make a payment to the housing consumer in full and final settlement of any claim.

 

(5)Should the costs of rectification, as estimated by the Council, in any particular case be less than five percent of the selling price of the home or R 4000, whichever is the lesser, the costs of such repairs is for the account of the housing consumer.