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Housing Consumers Protection Measures Act, 1998 (Act No. 95 of 1998)

Regulations

Regulations regarding NHBRC Disciplinary Proceedings

6. Penalties

 

(1) If the committee has in terms of regulation 5(12) convicted the home builder of a charge, it must give—
(a) the prosecutor the opportunity of proving whether the home builder has previously been convicted by the committee; and
(b) the home builder the opportunity of adducing evidence in mitigation and the home builder and the prosecutor the opportunity of addressing it in connection with the penalty which the committee should impose upon the home builder.

 

(2) A certificate signed by the chief executive officer and purporting to be an extract from the minutes of the proceedings of the committee stating the particulars of the charge brought against the home builder, the conviction of the home builder, and the penalty imposed upon the home builder by the committee is, upon its production by the prosecutor to the committee, in the absence of evidence to the contrary sufficient proof that the home builder had previously been convicted.

 

(3) After the provisions of subregulation (2) have been complied with, the committee must, subject to subregulation 5(14), impose a penalty and inform the home builder and an affected housing consumer accordingly.

 

(4) The penalties that may be imposed are—
(a) a warning;
(b) a fine not exceeding R25 000; or
(c) withdrawal of registration.

 

(5) Where a home builder wishes to appeal against or take under review, in terms of section 22(1) or (2) of the Act, a decision taken or a penalty imposed by the committee, the home builder must notify the Council of its intentions within 30 days of the issuing of the decision or penalty.

 

(6) Where the committee withdraws the registration of a home builder in terms of section 11(1) of the Act, the Council must publish in the Government Gazette—
(i) the names of such companies, close corporations, trusts, partnerships or sole traders;
(ii) the names, and identity numbers of the directors, members, trustees or partners; and
(iii) the reasons for such withdrawal of registration.

 

(7) Where a fine has been imposed, the committee may order that a portion of the fine, but not exceeding 80 percent of such fine, be applied, subject to finalisation as contemplated in subregulation (5), towards payment of compensation to any affected housing consumer who suffered pecuniary loss as a result of the home builder's contravention of the Act.

 

(8) Any fine imposed by the committee must be paid within 30 days of notification to the home builder, failing which the registration of the home builder is automatically suspended.

 

(9) Should the fine not be paid within 60 days, the Council may act in terms of section 11(1)(c) of the Act.

 

(10) Any person directly affected by the decision of the committee may within 30 days of notification of the decision request the committee in writing to furnish him or her with written reasons for a decision of the committee.

 

(11) Any person affected by the decision of the committee may request a copy of the record of proceedings of the committee.