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

Chapter V : Legal Enforcement

18. Obligations of mortgagees, conveyancers and provincial housing development boards

 

 

1) No financial institution shall lend money to a housing consumer against the security of a mortgage bond registered in respect of a home, with a view to enabling the housing consumer to purchase the home from a home builder, unless that institution is satisfied that the home builder is registered in terms of this Act and that the home is or shall be enrolled with the Council and that the prescribed fees have been or shall be paid.

 

2) Any conveyancer attending to the registration of a mortgage bond in favour of an institution contemplated in subsection (1) shall ensure that the home builder is registered in terms of this Act, has enrolled the home with the Council and has paid the prescribed fees in respect of that enrolment.

 

a) approve a housing development project in respect of which a housing consumer is eligible for a state housing subsidy in respect of a dwelling unit that has been or is to be constructed as part of that project;
b) grant a state housing subsidy to a housing consumer for the construction or sale of a home by a home builder; or
c) pay a home builder any portion of housing subsidy funds in respect of a housing development project approved by it,

unless that home builder is registered in terms of this Act and has enrolled the project in terms of section 14(2).

 

4) A provincial housing development board shall enter into an agreement with the Council in terms of section 5(4)(c).