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

Chapter II : Registration of Home Builders

10. Registration of home builders

 

 

1) No person shall-
a) carry on the business of a home builder; or
b) receive any consideration in terms of any agreement with a housing consumer in respect of the sale or construction of a home,

unless that person is a registered home builder.

 

2) No home builder shall construct a home unless that home builder is a registered home builder.

 

3) The Council shall register a home builder, on application in the form and manner prescribed by the Council, if the Council is satisfied that the home builder-
a) meets the criteria prescribed by the Minister under section 7(2);
b) will in carrying on the business of a home builder comply with the home builder’s obligations in terms of this Act; and
c) has appropriate financial, technical, construction and management capacity for the specific business carried on by the home builder in order to prevent housing consumers and the Council from being exposed to unacceptable risks.

 

4) Registration of a home builder shall be subject to the terms and conditions prescribed by the Minister under section 7(2) or imposed in any particular case, and the Council may register a home builder provisionally on the conditions that the Council deem fit.

 

5) The Council may, without prejudice to the generality of subsections (3) and (4), require any suretyship, guarantee, indemnity or other security that the Council may in its discretion deem necessary to satisfy itself in respect of the requirements contemplated in subsection (3).

 

6) The Council may, in addition to any other category that the Council may deem appropriate, in the registration of home builders distinguish between-
a) home builders themselves having the capacity to undertake the physical construction of homes or to manage the process of the physical construction of homes; and
b) home builders who in the normal course need to enter into agreements with other home builders in order to procure the capacity referred to in paragraph (a).

 

7) A home builder registered in terms of subsection (6)(b) shall be obliged, for the purposes of the physical construction of homes, to appoint a home builder registered in terms of subsection (6)(a).

 

8) If an application for the registration of a home builder has been made and the Council is of the opinion that the registration of that homebuilder should be refused, the Council shall notify that home builder in writing of its intention and reasons therefor.

 

9) A home builder contemplated in subsection (8) shall be entitled to make representations in writing to the Council in response to any reason provided in terms of that subsection.

 

10) If the Council, after consideration of the representations contemplated in subsection (9), is of the view that the home builder has not satisfied the Council regarding the requirements of subsection (3), the Council shall notify that home builder accordingly.

 

11) A home builder contemplated in subsection (10) may request the Council within 30 days of receipt of a notification referred to in that subsection, to allow the home builder to present its case to a registration committee established by the Council for that purpose, whose decision shall be the decision of the Council and which shall, subject to section 22(2), be final.

 

12) If a home builder fails to exercise its rights in terms of subsection (11), the decision contemplated in subsection (10) shall, subject to section 22(2), be final.

 

13) Unless it is approved by the Council and subject to the terms and conditions that the Council may impose, the registration of a home builder with the Council shall not be transferred to any other person.

 

14) The Council shall provide information regarding home builders to housing consumers and shall publish lists of home builders and their grading and lists of deregistered home builders.

 

15) The Council, a member of the Council or any person in the service of the Council or acting on its authority shall not be liable for any loss or damage resulting from anything done or omitted in good faith in terms of section 9, 10 or 11 of this Act.