New rules to protect consumers from bad builders.

Housing consumers now have much-needed protection against unscrupulous or incompetent builders thanks to significant and far reaching provisions embodied in a new Code of Conduct for Home Builders published by The National Home Builders Registration Council ("NHBRC")...

...Provisions of the Code
Warmback highlights some of the significant provisions in the new Code, which came into effect on 16 March 2007, as follows:

• home building contracts may now only be concluded once the housing consumer has had 30 calendar days to view the contract;
• restrictions on clauses in contracts which have the effect of taking away consumers common law or statutory rights;
• restricting deposits to no more than 10% of a contract price of a fixed cost building contract;
• minimum clauses that must be included in a building contract, and an obligation that a home builder must retain a copy of the contract and all records relating thereto, for a period of at least 6 years;
• a home builder may not accept final payment under a building contract unless the bank, NHBRC or competent person has certified in writing that the work has been completed according to NHBRC's prescribed minimum standards and guidelines.

In summary, the Code is intended to provide minimum standards to be maintained by all NHBRC home builders when contracting with consumers, says Warmback.

A home builder is defined in the Housing Consumer Protection Measures Act ("the Act") as a person who carries on the business of a home builder. Home builders are obliged to register with the NHBRC, must enroll a particular home or development with the Council, submit information relating to a development, and pay a prescribed fee.

"Banks are reminded that they are not allowed under the Act to lend money to consumers against the security of a mortgage bond registered over a home for the purchase of a home from a home builder," explains Warmback. "That is, unless the Bank is satisfied that the home builder is registered in terms of the Act, that the home is or will be enrolled with the NHBRC and that the prescribed fees have been paid." (Read More...)

Article privided by www.property24.com