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

Regulations

General Regulations regarding Housing Consumer Protection Measures

11. Terms and conditions for registration

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(1)For the purpose of evaluating an application in terms of section 10 of the Act, the Council may have regard to the information set out in the application form prescribed by the Council.

 

(2)The Council may require additional information from the home builder or any other person and may conduct the investigations, that it may consider necessary to assess the application.

 

(3)The Council, or any persons contracted by it, must treat any financial information provided by an applicant as part of his application to the Council with the strictest confidence.

 

(4)Where the Council receives an application from a home builder, who in the opinion of the Council—
(a)has limited capital, fixed assets or active trading history; or
(b)appears not to have the ability to meet its obligations to housing consumers and to the Council,

the Council may require personal suretyships, indemnities and guarantees, as the case may be, as contemplated in section 10(5) of the Act from the home builder, the partners, directors, members, shareholders or trustees of the home builder or those of its associates.

 

(5)The Council may, where it receives an application from a home builder in respect of which there exists an associate, require security from such associate.

 

(6)The Council may undertake, within its discretion, a technical assessment of the home builder by means of–
(a)a technical interview to determine the ability of a home builder to meet and to comply with the guidelines set out in the Home Building Manual;
(b)undertaking site visits or inspections to examine homes or other forms of construction already completed or under construction by the home builder.

 

(7)The Council may require, as a precondition for registration–
(a)the satisfactory rectification of previous construction related problems; or
(b)the satisfactory resolution of financially related problems, such as the rescinding of court judgements.

 

(8)If the Council decides—
(a)to make the home builder's registration subject to conditions; or
(b)to amend, add to or cancel the conditions, to which a home builder's registration is already subject;

the Council must notify the home builder accordingly.

 

(9)A decision notified in terms of subregulation (8) takes effect—
(a)on receipt of written acceptance of any conditions from the home builder; or
(b)30 days after it has been notified to the home builder, unless the home builder exercises its rights under section 10(9) of the Act, to make written representations to the Council.

 

(10)The Council may, where a home builder has been registered with conditions or provisionally—
(a)limit the number of homes a home builder may enroll;
(b)require the home builder to notify the inspectorate of key stages of construction determined by the Council in sufficient time to allow the Council to arrange for inspection at its discretion; and
(c)apply any other reasonable condition that the Council considers appropriate,

until the home builder is able to demonstrate its capacity to meet the obligations of a registered home builder.

 

(11)Where the Council has determined that a home builder meets the requirements of section 10 of the Act, the Council must issue a registration certificate to a home builder where it has received at its registered address—
(a)written acceptance of any conditions;
(b)any suretyships, indemnities or guarantees requested, duly signed and completed; and
(c)payment in respect of the registration fee.

 

(12)The registration of a home builder remains effective for one year.

 

(13)A home builder must immediately notify the Council if that home builder—
(a)changes its address registered with the Council, its office premises or telephone or telefax numbers;
(b)ceases trading or resolves to do so;
(c)is a sole trader and any person acquires a financial interest in the home builder;
(d)is in partnership and there is a change in the composition of the partnership;
(e)is a company and there is a change in the board of directors or any person acquires more than ten percent of the issued shares of the company;
(f)is a close corporation and there is a change in the membership of the close corporation or the membership interest holding;
(g)is a trust and there is any change in the composition of the board of trustees or the ultimate beneficiary; or
(h)is no longer in a position to meet its obligations under the Act.

 

(14)A notification in terms of subregulation (13) must include the full name, identity number and addresses of any person acquiring a financial interest as well as any other information that the Council may require.

 

(15)The Council may at any time of its own accord, or on information received, or at the request of the home builder, review the home builder's registration having regard to the home builder's performance as a home builder during the period of registration and any changes in the ownership of the home builder.

 

 

(16)The Council may, when acting in terms of subregulation (15), take account of any complaints received from housing consumers, any notices of non-compliance received by the home builder from the inspectorate, the enrolment history of the home builder and any other relevant matter.

 

(17)The Council may, pursuant to the re-evaluation contemplated in subregulation (15), decide to change the registration status of the home builder or the conditions attached to such registration after having notified, in terms of subregulation (8) and (9), the home builder of its decision and the reasons for any decision.