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

Chapter III : Protection of Housing Consumers

14. Enrolment

 

 

1) A home builder shall not commence the construction of a home falling within any category of home that may be prescribed by the Minister for the purposes of this section unless-
a) the home builder has submitted the prescribed documents, information and fee to the Council in the prescribed manner;
b) the Council has accepted the submission contemplated in paragraph (a) and has entered it in the records of the Council; and
c) the Council has issued a certificate of proof of enrolment in the prescribed form and manner to the home builder.

 

2) A home builder shall not commence the construction of a home the acquisition of which will be financed solely from the proceeds of a state housing subsidy, unless-
a) the home builder has submitted the prescribed documents and information to the Council in terms of the agreement contemplated in section 5(4)(c);
b) the Council has accepted the submission contemplated in paragraph (a) and has entered it in the records of the Council;
c) the Council has issued a certificate of proof of enrolment of the project in the prescribed form and manner to the home builder; and
d) the provincial housing development board has paid the prescribed fee to the Council in terms of the agreement contemplated in section 5(4)(c).

 

3) A home builder shall provide the housing consumer with a copy of the certificate contemplated in subsection (1)(c) or (2)(c), as the case may be.

 

4) The enrolment of a home with the Council may be cancelled or suspended by the Council prior to the occupation date of the home if-
a) the Council, on reasonable grounds, is not satisfied that the home has been constructed in accordance with the NHBRC Technical Requirements to the extent that it may apply to that home; or
b) the home builder, having commenced construction in respect of a home, has failed to complete the construction of that home and another home builder continues that construction without complying with the provisions of subsection (7).

 

5) The enrolment of a home with the Council shall be deemed automatically to have been cancelled by the Council-
a) on the granting of an order by a court for the provisional liquidation or the sequestration of a home builder;
b) on the withdrawal of the registration of the home builder with the Council in terms of section 11; or
c) on the suspension of the registration of a home builder with the Council in terms of section 11,

where any such event occurs prior to the occupation date.

 

6) The Council may reinstate an enrolment contemplated in subsection (4) or (5) within its discretion: Provided that if the Council does not reinstate such enrolment, it shall repay to the home builder, or any person entitled thereto, the enrolment fees less the reasonable costs incurred by the Council in respect of the matter.

 

7) If a registered home builder fails to complete the construction of a home contemplated in subsection (1) and (2), no home builder shall complete the construction of that home without informing the Council and without assuming the obligations of the home builder in terms of section 13(2)(b)(i) or the reasonable obligations that the Council may require.

 

8) The Council may refuse to enrol a home submitted for enrolment while the home builder’s registration is suspended in terms of section 11(3).

 

9) Where an enrolment has been suspended or cancelled in terms of subsection (4) or (5), the Council shall seek-
a) to inform the relevant housing consumer and the persons referred to in section 18 of such action; and
b) to advise the housing consumer on the options available to him or her.