This Bill was published on 30 August 2019 by the Minister of Human Settlements for public comment. Any interested persons or institutions are invited to submit written comments or representations with regard to the draft Bill within 60 days of the publication thereof to the Director General of the Department of Human Settlements in Pretoria at Lisa.Masilo@dhs.gov.za and Rose.Murray@dhs.gov.za (Enquiries at 012-444 9097 or 012- 444 9283).
It will have multiple effects on our industry, among others the replacement of the NHBRC (in its current form) by the National Home Builders Regulation Council. Other issues of concern are the current surplus funds at the NHBRC and the enrollment fees. Stringent duties will be imposed on estate agents, financial institutions, conveyancers and the Registrar of Deeds too.
You are encouraged to study the Bill and raise any other issues which you may find. The SAARDA committee is scrutinizing this Bill to submit its comments before 29 October. Please check how this draft Bill may affect your business. SAARDA members are welcome to forward their comments and objections on this draft Bill to Michael Hartman by 25 October for inclusion in the SAARDA comments.
The imposition of the following duties on a financial institution is an example of an issue which will have a definite impact on the business of a developer too:
“Duty of financial institution
83. (1) A financial institution—
(a) as defined by section 1 of the Home Loan and Mortgage Disclosure Act, 2000 (Act No. 63 of 2000); or
(b) established or deemed to have been established in terms of section 3(4)(h) of the Housing Act must, before approving a mortgage bond application or financing the building of a home, determine whether that application relates to a home to which has to be enrolled in terms of Chapter IV of this Act or which is covered by the home warranty fund.
(2) The institution referred to in subsection (1) must, in the case where the mortgage bond application relates to a home that has to be enrolled in terms of Chapter IV of this Act, determine whether the home concerned has been enrolled in terms of Chapter IV.
(3) If the home concerned is not enrolled in terms of Chapter IV of this Act, the institution concerned must notify the Council accordingly and that institution may not process any further payments in terms of the mortgage bond or other financing method before the home concerned is enrolled.
(4) The Council may report an institution that does not comply with this section to the Financial Services Board established in terms of section 2 of the Financial Services Board Act, 1990 (Act No. 97 of 1990), or to the Minister in the case of an institution established or deemed to have been established in terms of section 3(4)(h) of the Housing Act.”