Housing Development Schemes for Retired Persons Act, 1988 (Act No. 65 of 1988)6. Restriction on receipt of consideration |
| (1) | Subject to subsection (3) and notwithstanding any other law, no developer may by virtue of a contract receive any consideration or any part thereof, unless— |
| (a) | an architect or a quantity surveyor has issued a certificate that the housing development scheme concerned has been erected substantially in accordance with any applicable officially approved building plans and town-planning scheme and applicable local authority by-laws, and is sufficiently completed for the purposes of utilization of the housing interest concerned; |
[Subsection (1)(a) substituted by section 4(a) of Act No. 70 of 1990]
| (b) | a copy of that certificate and a copy of the contract have been furnished to the purchaser concerned; and |
[Subsection (1)(b) substituted by section 4(b) of Act No. 70 of 1990]
| (c) | in the case where a housing interest includes a right of occupation, a practitioner has issued a certificate that the title deed of the land to which the right of occupation relates, has been endorsed as contemplated in section 4C, in so far as endorsement is required by that section, and a copy of that certificate has been furnished to the purchaser concerned. |
[Subsection (1)(c) inserted by section 4(c) of Act No. 70 of 1990]
| (2) | Any person who contravenes any provision of subsection (1) shall be guilty of an offence and liable on conviction to a fine not exceeding R20 000 or to imprisonment for a period not exceeding five years or to both that fine and that imprisonment. |
[Subsection (2) substituted by section 4(d) of Act No. 70 of 1990]
| (3) | Subsection (1) shall not apply to the receipt of any amount— |
| (a) | which the purchaser by virtue of a contract entrusts to a practitioner or an estate agent in his capacity as such, to be kept, for the benefit of the developer, in the trust account of the practitioner or estate agent until the provisions of subsection (1) have been complied with; or |
| (b) | which by virtue of a contract is paid to the developer if, before such payment, the purchaser was furnished with an irrevocable and unconditional guarantee by a banking institution registered otherwise than provisionally under the Banks Act, 1965 (Act No. 23 of 1965), a mutual building society registered otherwise than provisionally under the Mutual Building Societies Act, 1965 (Act No. 24 of 1965), a building society registered otherwise than provisionally under the Building Societies Act, 1986 (Act No. 82 of 1986), or a registered insurer as defined in section 1 of the Insurance Act, 1943 (Act No. 27 of 1943), in terms of which the banking institution, mutual building society, building society or insurer undertakes to repay the said amount to the purchaser, if the provisions of subsection (1) are not being complied with. |
[Subsection (3) substituted by section 4(e) of Act No. 70 of 1990]
| (4) | If, in the circumstances contemplated in subsection (3), the developer becomes an insolvent before the provisions of subsection (1) have been complied with, any amount kept in a trust account in terms of paragraph (a) of subsection (3) or the repayment of which was guaranteed in terms of paragraph (b) of that subsection, shall immediately become payable to the purchaser concerned by the practitioner, estate agent, banking institution, mutual building society, building society or insurer concerned. |
[Subsection (4) substituted by section 4(e) of Act No. 70 of 1990]