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

National Home Builders Registration Council : Code of Conduct for Home Builders

Chapter One : Definitions

 

 

The purpose of this chapter is to define words to which a meaning is attached which expands on the dictionary meaning of the word.

 

Definitions

 

1) In this Code of Conduct, unless the context otherwise indicates-

 

a) "Additional Costs"

means any costs not included in the contract price and which are or may be payable under a fixed cost building contract or sale agreement, such as costs for:

Soil testing

Engineer's service

Plan drawing

Plan approval

Transfer (including transfer duty and bond registration)

Inspections

Electrical cable connection

Sewerage connection and other service connections

 

b) "Advance payment"

means any amount of money paid by a housing consumer (in relation to a Building Contract) to a home-builder before completion of work equal in value to the advance. This shall include other amounts the housing consumer may have paid to the home-builder for the construction of a home.

Note:

"Advance payments" exclude additional costs or any deposit.

 

c) "Building Contract"

means an agreement concluded between a home builder and a housing consumer for the construction of a home.

 

d) "Business Document"

means a document containing the following particulars of a home builder:

• full name;
• company or close corporation's registration number;
• names of all directors of company or members of close corporation;
• physical and contact address where the home builder can be contacted;
• business telephone number;
• business fax number (if any), e-mail address (if any).

The name of the contact person for the housing consumer NHBRC registration number.

 

e) "Contract Price"

means the amount payable by a housing consumer to a home-builder for the construction of a home in terms of a building contract or sale agreement.

 

f) "Cost-plus building contract"

means a contract where the housing consumer pays the actual costs of all the services, labour and materials needed to build the home and a percentage or fixed sum as a fee to the home builder.

 

g) "Deposit"

means monies paid by a housing consumer to a home- builder before the home builder starts building or land is registered in the housing consumer's name. (excluding additional costs).

 

h) "Fixed Cost Building Contract"

means a contract where the homebuilder pays for all the material, labour needed for the building of a home, subject to additional costs.

 

i) "Housing Consumer"

means a person who is in the process of acquiring or has acquired a home and includes such persons' successor in title.

 

j) "Home Builder"

means a person who carries on the business of a homebuilder.

 

k) "lnstalment Sale"

means a sale agreement that is a "contract" as defined in the Alienation of Land Act, 1981 (Act No. 68 of 1981).

 

l) "NHBRC"

means National Home Builders Registration Council as established by the Housing Consumers Protection Measures Act, 1998 (Act No. 95 of 1998).

 

m) "Sale agreement"

means an agreement in which a home- builder sells land to a housing consumer on which a homebuilder has built - or is to build a home or an agreement in terms of which a homebuilder sells one or more sectional title units to the housing consumer.

 

n) "The Act"

means the Housing Consumers Protection Measures Act, 1998 (Act No. 95 of 1998), including any regulation, the rules, the Home Building Manual and any circular prescribing any matter that a homebuilder has to comply with in terms of the Act.

 

o) "Non-standardised building methods"

means any form of home building which uses building systems, methods, materials, elements or components which are not fully covered by existing standards and specification or Codes of practice; and/or are not described in the "deemed to satisfy" rules of the National Building Regulations).