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ARTICLE · 03 JUNE 2010

The Consumer Protection Act - How Will This Affect Home Owners Associations And Developers?

Developers and Home Owners Associations fall within the definition of ‘suppliers’ in terms of the Act and will thus, as of October 2010, be subject to the provisions of the Consumer Protection Act in terms of which various 'Fundamental Consumer Rights' have been identified.

South AfricaConsumer Protection
Karien Hunter
Karien Hunter

Developers and Home Owners Associations fall within the definition of 'suppliers' in terms of the Act and will thus, as of October 2010, be subject to the provisions of the Consumer Protection Act in terms of which various 'Fundamental Consumer Rights' have been identified.

The Act not only applies to contracting parties, for example the purchaser and/or seller of a property on an estate, and the Section 21 company which administers the estate (HOA), but also other 'users' of the services, for example tenants and the guests of the home owners.

Great care should accordingly be taken by the directors of a Home Owners Association and a thorough check of their Conduct Rules and Articles of Association should be undertaken before the Act kicks in.

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