South Africa
Housing Consumer Protection Act, 2024
Act 25 of 2024
- Published in Government Gazette 52007 on 29 January 2025
- Assented to on 20 December 2024
- Not commenced
- [This is the version of this document from 29 January 2025.]
Chapter I
Interpretation
1. Definitions
In this Act, unless the context indicates otherwise—“build”, in relation to the structural integrity of a home, means the—(a)establishment;(b)installation;(c)repair;(d)renovation;(e)alteration; or(f)extension,of a home, and “construction” and “construct” have the same meaning;“certification body” means a legal person approved by the Council to provide certification services in respect of the design or compliance with the Home Building Manual through its certifier;“certifier” means an employee or agent of a certification body appointed by the homebuilder to issue certificates in relation to a design or compliance with the Home Building Manual, but excludes an inspector appointed in terms section 69;“Chief Executive Officer” means the Chief Executive Officer appointed in terms of section 15;“Chief Financial Officer” means the Chief Financial Officer appointed in terms of section 15;“Companies Act” means the Companies Act, 2008 (Act No. 71 of 2008);“competent person” means a person who—(a)is qualified by virtue of his or her education, training, experience and contextual knowledge to make a determination regarding the performance of a building or part thereof in relation to a functional aspect; and(b)where applicable, is approved and appointed in terms of the National Building Regulations and Building Standards Act, 1977 (Act No. 103 of 1977);“Council” means the juristic person referred to in section 4, which comprises of the administration responsible for the management of the affairs and the execution of the operations of the Council, the implementation of the provisions of this Act, and which acts under the strategic direction of the Board;“day” means a calendar day for purposes of Chapter V, Part 2 and in all other instances day means a business day, excluding the period from 16 December of any year to 15 January of the following year, both days inclusive, Saturday, Sunday and a Public Holiday;“developer” means a person or organ of state who initiates or executes, or both initiates and executes, a project with the aim to provide one or more homes to housing consumers, including but not limited to—(a)any other delivery agent as defined in section 1 of the Social Housing Act;(b)a social housing institution defined in section 1 of the Social Housing Act; or(c)any agent acting on behalf of that person, organ of state, other delivery agent or social housing institution;“funds advisory committee” means the funds advisory committee established in terms of section 38(2)(b);“head of department” means the head of department responsible for human settlements in a province;“home” means a permanent structure intended to provide protection against the natural elements and which is suitable to be occupied for residential purposes or partially for residential purposes by the housing consumer or leased out by any person, and includes—(a)a structure to be occupied for residential purposes as contemplated in the definition of “social housing" as contained in section 1 of the Social Housing Act;(b)a residential section registered in terms of the Sectional Titles Act, 1986 (Act No. 95 of 1986);(c)a unit as contemplated in the Housing Development Schemes for Retired Persons Act, 1988 (Act No. 65 of 1988);(d)a home forming part of a housing programme initiated by an organ of state;(e)the private drainage system from the home up to the municipal connection or up to and including a conservancy or septic tank;(f)water services in relation to a home, excluding the supply of water services from the point of supply to the point of discharge at fixtures and appliances;(g)any buildings ancillary to a home, including but not limited to storerooms, covered walkways, garages and common facilities;(h)any retaining wall necessary to ensure the structural integrity of the home;(i)any building or wall or swimming pool on common property adjacent to the home, but only if it has the potential to cause a major structural defect to the home;(j)homes that are co-owned in terms of the Share Blocks Control Act, 1980 (Act No. 59 of 1980), or the Property Time-Sharing Control Act, 1983 (Act No. 75 of 1983);(k)boarding houses; and(l)hostels;“homebuilder” means a person who—(a)builds or undertakes to build a home or to cause a home to be built for any person, including himself or herself; or(b)builds a home for the purposes of sale, leasing, renting out or otherwise disposing of such a home,irrespective of whether or not that person is registered in terms of this Act;“home building contract” means an agreement between two or more parties for the construction of a home, whether by prime or subcontract, and includes any form of contract contemplated in section 47;“Home Building Manual” means the Home Building Manual published by the Council in terms of section 85;“home warranty fund” means the home warranty fund contemplated in section 35(1);“Housing Act” means the Housing Act, 1997 (Act No. 107 of 1997);“housing consumer” means a person who has acquired, or is in the process of acquiring, a home for the purposes of owning that home, including but not limited to—(a)a co-owner of a home;(b)the owner of a section registered in terms of the Sectional Titles Act, 1986;(c)the holder of a housing interest as defined in section 1 of the Housing Development Schemes for Retired Persons Act, 1988;(d)the beneficiary in terms of a subsidy housing programme contemplated in the National Housing Code; and(e)the beneficiary of a housing development as contemplated in section 1 of the Social Housing Act,including that person’s successor in title;“Housing Consumers Protection Measures Act” means the Housing Consumers Protection measures Act, 1998 (Act No. 95 of 1998);“informal settlement” means an area where primarily non-permanent structures have been erected for residential purposes, including but not limited to—(a)an unplanned settlement not having been upgraded in terms of the Less Formal Township Establishment Act, 1991 (Act No. 113 of 1991), prior to its repeal by section 59 of the Spatial Planning and Land Use Management Act, 2013 (Act No. 16 of 2013); or(b)a squatter settlement;“inspector” means an inspector appointed in terms of section 69;“major structural defect” means a defect as determined in the Home Building Manual which gives rise, or is likely to give rise, to damage of such severity that it affects or is likely to affect the structural integrity of a home, and which requires complete or partial rebuilding of the home, or extensive repair work to it, and a structural defect has a corresponding meaning;“MEC” means a member of the Executive Council of a province responsible for human settlements;“Minister” means the Minister responsible for human settlements;“MMC” means a member of the Municipal Council of a municipality responsible for human settlements;“municipality” means a municipality as defined in the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000);“municipal manager” means a person appointed in terms of section 82 of the Local Government: Municipal Structures Act, 1998 (Act No. 117 of 1998);“National Housing Code” means the National Housing Code referred to in section 4 of the Housing Act, 1997;“National Regulator for Compulsory Specifications Act” means the National Regulator for Compulsory Specifications Act, 2008 (Act No. 5 of 2008);“organ of state” means an organ of state as defined in section 239 of the Constitution of the Republic of South Africa, 1996;“person”, in addition to the meaning attached to it in section 2 of the Interpretation Act, 1957 (Act No. 33 of 1957), includes a trust as defined in section 1 of the Trust Property Control Act, 1988 (Act No. 57 of 1988);“prescribe” means, in relation to—(a)the Minister, prescribe by regulation; or(b)the Council, prescribe by rule;“Promotion of Administrative Justice Act” means the Promotion of Administrative Justice Act, 2000 (Act No. 3 of 2000);“Public Finance Management Act” means the Public Finance Management Act, 1999 (Act No. 1 of 1999);“social housing” means housing provided as contemplated in the Social Housing Act;“Social Housing Act” means the Social Housing Act, 2008 (Act No. 16 of 2008);“subsidy housing” means housing projects and programmes contemplated in the National Housing Code or any other programme funded by government;“this Act” includes the regulations, rules, Home Building Manual and any directive issued in terms of this Act; and“Technical Requirements” means the Technical Requirements referred to in section 85(1), and Technical Standards have a corresponding meaning.2. Application of Act
3. Application of Public Finance Management Act
Chapter II
National Home Building Regulatory Council
4. National Home Building Regulatory Council
5. Objectives
6. Composition of Board
7. Term of office
8. Disqualifications, vacation and removal from office
9. Fiduciary duties and disclosure
10. Remuneration of members of Board and Compliance and Enforcement Committee
11. Meetings of Board
12. Committees of Board
13. Delegation and assignment of functions by Board
14. Functions of Council
15. Appointment of Chief Executive Officer and Chief Financial Officer
16. Conditions of appointment of Chief Executive Officer and Chief Financial Officer
17. Acting Chief Executive Officer and Acting Chief Financial Officer
18. Functions of Chief Executive Officer and Chief Financial Officer
19. Delegation by Chief Executive Officer and Chief Financial Officer
20. Staff of Council
The Chief Executive Officer must—21. Access to information
The Council must provide access to any of its records subject to the provisions of the Promotion of Access to Information Act, 2000 (Act No. 2 of 2000).22. Disestablishment of National Home Building Regulatory Council
Chapter III
Registration of homebuilders and developers
23. Register of homebuilders and developers
24. Contents of register
25. Homebuilder or developer to be registered
26. Requirements for registration
27. Cancellation, suspension or amendment of homebuilder’s or developer’s registration or grading status
28. Liability of unregistered homebuilder or developer
Failure by a person to register, or to retain the registration status, as a homebuilder or developer does not affect that person’s liability and obligations in terms of this Act.Chapter IV
Enrolment
29. Register of enrolments
30. Enrolment of home
31. Failure to enrol home
32. Duties in respect of subsidy housing project
33. Failure of MEC, MMC, social housing institution or delivery agent to comply with Act
Chapter V
Financial matters
Part 1 – Funds and fees
34. Funds of Council
35. Home warranty fund
36. Additional fund
The Board may, subject to section 14(2)(c), establish any additional fund for the purposes of achieving the objectives of the Council, including for the purpose of underwriting the home warranty fund liability.37. Bank account
Subject to the Public Finance Management Act, the Council must open a bank account with any bank, mutual bank or other similar institution, registered in terms of the Banks Act, 1990 (Act No. 94 of 1990), for the purpose of the Council’s funds or any fund contemplated in this Part.38. Management of funds
39. Fees
Part 2 – Claims and recourse against home warranty fund
40. Commencement date and duration of warranty
41. Claims and limitations
42. Claims and recourse
43. Minimum and maximum amount payable
The Minister may, by notice in the Gazette, determine—Chapter VI
Compulsory information and contractual matters
Part 1 – Compulsory information and prohibition
44. Definition
For the purposes of this Part, “employer” means a developer, person or organ of state that enters into a home building contract with a homebuilder.45. Prohibition on award of home building contract to certain person
46. Prohibition to continue building or effecting payment in certain circumstances
Part 2 – Contractual matters
47. Definition
For the purposes of this Part and Part 3, “contract” includes an agreement between—48. Contract
49. Contract with certifying body or competent person
50. Cession of rights
Any successor in title to the housing consumer has all the rights under this Part exercisable by, or available to, a housing consumer within the period contemplated in section 41.51. Prohibition of certain conditional payment provisions
52. Entitlement to progress payments
53. Right to suspend performance for non-payment
54. Prohibition and validity of contract
Any provision contained in a home building contract that excludes or waives any provision of this Part is void, but the fact that such a provision is void does not render the entire contract invalid.Part 3 – Adjudication of contractual disputes
55. Right to refer disputes to adjudication
56. Adjudication
The Minister may prescribe the powers of the adjudicators, the process of adjudication and any other matter necessary in relation to adjudication.57. Adjudication at cost of Council
The Council may prescribe the conditions, including a monetary threshold, under which an adjudicator may be appointed at the cost of the Council, to make a determination regarding a dispute lodged by a housing consumer.58. Effect of adjudicator’s decision
Chapter VII
Enforcement and alternative dispute resolution
Part 1 – Enforcement
59. System for enforcement of Act
60. Compliance and Enforcement Committee
61. Powers and duties of Compliance and Enforcement Committee
62. Initiating of complaint into suspected non-compliance
63. Administrative non-compliance with Act
64. Substantive non-compliance with Act
65. Administrative fine
Part 2 – Alternative dispute resolution
66. Objection against other decisions of Council
Any person or organ of state aggrieved by a decision of the Council, other than a decision in relation to administrative or substantive non-compliance, may, in the form and manner prescribed by the Minister, object against that decision, and that objection must be resolved in accordance with section 67 or 68.67. Alternative dispute resolution
68. Council’s authority to settle dispute
Part 3 – Appointment and powers of inspectors, and matters ancillary to inspectors
69. Appointment of inspectors
70. Duties of inspectors and employees
71. Powers of inspectors
Part 4 – Criminal offences and penalties
72. Disclosure of confidential information
73. Hindering administration of Act
It is an offence to hinder, oppose, obstruct or unduly influence any person who is exercising a power or performing a duty delegated, conferred or imposed on that person by or under this Act.74. Offences pertaining to functions of Compliance and Enforcement Committee
A person commits an offence if that person—75. Offences relating to compliance or administrative penalty notice
It is an offence to fail to comply with an administrative penalty notice or compliance notice, except where in respect of a compliance notice, the decision of the Compliance and Enforcement Committee to impose an administrative fine in terms of section 65 is taken on review before a competent court.76. Offences relating to Chapter VI
77. Offence in relation to registration or enrolment
78. Penalties for criminal offences
Any person, including any director, trustee, managing member or officer of a homebuilder or developer, who is convicted of an offence in terms of section 72, 73, 74, 75, 76 or 77, is liable to a fine not exceeding R1,5 million or to imprisonment for a period not exceeding 10 years.Chapter VIII
Miscellaneous
79. Vicarious liability and law of agency
If an agent of a person is liable in terms of this Act for anything done or omitted in the course of that agent’s activities on behalf of their principal, that principal is jointly and severally liable with that agent.80. Liability of homebuilder or developer
In the case where the homebuilder or a developer is a partnership, trust, company or close corporation, a principal of that homebuilder or developer may be held personally liable in terms of this Act, and may be prevented from registering as a homebuilder or enrolling a home in terms of section 25 or 30, as the case may be, by the Council, before he or she has complied with any instruction in terms of this Act, and on the conditions and in the manner prescribed by the Minister.81. Duty of property practitioner
82. Duty of financial institution
83. Duty of conveyancer
84. Recovery of fees
The Council may, in the manner prescribed by the Minister, recover any—85. Home Building Manual
86. Regulations
87. Rules
88. Liability of member, staff, accredited representative, expert and adviser of Council
A member of the Council, member of staff, an accredited representative, expert or adviser to the Council is not personally liable by virtue of any report, finding made or expressed in good faith in terms of this Act.89. Code of conduct
90. State bound
This Act binds the State.91. Repeal of laws
The Housing Consumers Protection Measures Act is hereby repealed.92. Savings
Any regulation made in terms of a provision that is repealed under section 91 remains valid to the extent that it is consistent with this Act and must be regarded as having been made in terms of this Act.93. Transitional provisions
94. Short title and commencement
History of this document
29 January 2025 this version
20 December 2024
Assented to
Cited documents 30
Act 30
1. | Constitution of the Republic of South Africa, 1996 | 12325 citations |
2. | Local Government: Municipal Systems Act, 2000 | 4621 citations |
3. | Local Government: Municipal Structures Act, 1998 | 4497 citations |
4. | Criminal Procedure Act, 1977 | 4009 citations |
5. | Insolvency Act, 1936 | 3911 citations |
6. | Spatial Planning and Land use Management Act, 2013 | 3426 citations |
7. | Public Finance Management Act, 1999 | 2719 citations |
8. | Promotion of Administrative Justice Act, 2000 | 2698 citations |
9. | Companies Act, 2008 | 2007 citations |
10. | Local Government: Municipal Finance Management Act, 2003 | 1775 citations |
Documents citing this one 1
Gazette 1
1. | South Africa Government Gazette dated 2025-01-29 number 52007 |