The Housing Consumers Protection Measures Act 95 of 1998 and NHBRC certificates

Building a home can be stressful, from the very start of searching for vacant land up until choosing the right light fittings for your dining room.

Here are some important tips that you need to know in terms of the Housing Consumer Protection Measures Act No 95 of 1998.

When a home builder is instructed to build a house for a Purchaser and the parties fall within the definition of the Housing Consumers Protection Measures Act, the agreement in terms of section 13 of the Act need to comply with the following:

1. The Agreement has to be in writing and signed by both parties.
2. The agreement has to set out all the material terms, including the financial obligations of the housing consumer; and
3. Attached to the agreement it has to specify all the materials that will be used during the process to build the home. The plans of the building also need to be an annexure to the agreement and these plans need to be approved by the local government body.

In terms of the Housing Consumer Protection Measures Act, the Conveyancers who are instructed to attend to the registration of the mortgage bond over the property are required to ensure that there is a valid NHBRC (National Home Builders Registration Council) certificate in place, if the building is less than 5 years old.

It is important to note that no financial institution shall lend money to a Purchaser if the following requirements are not adhere to:

1. The homebuilder must be registered in terms of the Housing Consumer’s Protection Measures Act.
2. The Home is or shall be enrolled with the National Home Builders Registration Council; and
3. The Prescribed fees have been paid.

It is the duty of the Conveyancer to ensure that the above has been attended to in terms of section 18 of the said Act.