Monday, 27 January 2025
President Cyril Ramaphosa has signed the Housing Consumer Protection Bill into law, introducing stronger safeguards for housing consumers and bolstering support for new entrants in the homebuilding industry.
The legislation addresses issues identified by the Department of Human Settlements and the National Home Builders Registration Council (NHBRC) under the Housing Consumers Protection Measures Act of 1998. The NHBRC protects consumers against unscrupulous builders and substandard construction practices.
The new law strengthens regulatory mechanisms and consumer protections while introducing enforcement measures and penalties to deter non-compliance. Key provisions include:
- Personal liability for members, directors, and trustees of homebuilding companies.
- Obligations for estate agents, financial institutions, and conveyancers.
- Codes of conduct for NHBRC members, developers, and builders.
The law applies to professional builders and owner-builders, who must now register with the NHBRC. It mandates the enrolment of homes before construction begins, outlines consequences for failing to do so, and establishes duties related to subsidy housing projects. Non-compliance by housing authorities or subsidy delivery agents is also addressed.
The law extends NHBRC regulations to cover repairs, renovations, alterations, and home extensions.
Additionally, it promotes economic transformation within the homebuilding sector by introducing provisions for the use of surplus warranty funds to support industry development. These funds, primarily intended to address structural defects reported by homeowners, may now also be used for developmental programs.
New contractual measures are included to support the sustainability of emerging builders, fostering greater inclusion in the sector.
