NHBRC wins appeal against rental market developer

The NHBRC has won its appeal in the Supreme Court of Appeal (SCA) against Xantha Properties 18 (Xantha), whereby the SCA declared that homes that are being built for leasing and rental purposes must be enrolled with the NHBRC, in a judgment delivered on 21 June 2019.

This arises from an NHBRC appeal lodged to the SCA following a ruling by the Western Cape Division of the High Court in favour of Xantha, which declared that a home builder is not required to enrol homes that are constructed exclusively for leasing or renting purposes.

According to the Housing Consumers Protection Measures Act 95 of 1998, all new homes must be enrolled with the NHBRC 15 days prior to construction. Home enrolment insures consumers against poor building practices and permits the NHBRC to conduct building inspections at key stages of construction.

Xantha alleged that it was not obliged to enrol a property development in Wynberg, Cape Town consisting of shops and 223 residential apartments it had no intention of selling or developing into a sectional title scheme, as it was for the rental market.

The SCA upheld the Appeal by the NHBRC with costs and ordered Xantha to pay the costs of two counsels.

"Our mandate as the housing watchdog requires us to take a stand against non-compliance with the Act to protect housing consumers, as this is the very essence of our existence. This ruling goes a long way in advancing our legislative powers and efforts to ensure that housing consumers are protected regardless of how they acquire a home," said NHBRC CEO Mziwonke Dlabantu.

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