Homebuyers’ knowledge of their rights and obligations when buying a new house : a small scale survey in Mpumalanga

Abstract

The ever-increasing population size in South Africa has resulted in an increase in the number of homebuyers who enter the property market. For this reason, there was a risk of homebuilders building houses of poor quality in order to meet the everincreasing demand. National Home Builders Registration Council (NHBRC) was established in 1998 to regulate the home building industry. The NHBRC is mandated to protect the homebuyers from unscrupulous builders who built houses of poor quality. The purpose of this study was to establish the extent of homebuyers’ knowledge of their rights and obligations when they are in the process of buying new houses and when they have occupied their homes. The researcher in her position as a complaints officer at NHBRC observed that most homebuyers in the Mpumalanga Highveld region report defects to NHBRC when the defects are already outside the Defect Liability Period (DLP) and thus lose their right to have defects attended to by homebuilders at no cost to themselves. Observing their plight is what led to this study. International studies indicate that across the world, many homebuyers do not have adequate knowledge of their rights and obligations. In this study, it has been established that homebuyers in the Mpumalanga Highveld region of South Africa do not demonstrate adequate knowledge. Underpinned by Sen’s Capability Approach, this qualitative study was conducted and open-ended questions were asked to determine participants’ behaviours, experiences, attitudes and perceptions. Particular attention was paid to homebuyers’ knowledge of defect liability periods and redress channels as stipulated in Section 13 of the Housing Consumer Protection Measures Act 95 of 1998. A sample of 10 participants was interviewed telephonically. The results showed that the participants have inadequate knowledge of the homebuyer’s rights and obligations. The study suggests that there is a definite need for structured homebuyer education by NHBRC. Recommendations are based on the key constructs of Sen’s Capability Approach, namely, capability, functionality, and agency.