National Home Builders Registration Council v Michiel Wessel Adendorff & others

The National Home Builders Registration Council (NHBRC), a statutory body established under the Housing Consumers Protection Measures Act 95 of 1998, sought declaratory and interdictory relief against the first to fourth respondents in their personal and representative capacities as trustees of Mike’s Trust. The Trust constructed a sectional title housing development in Polokwane. Although the Trust initially registered as a home builder for one year, it failed to renew its registration and continued building homes. The NHBRC issued notices of non-compliance, which the trustees ignored. The High Court held that a trust is not a ‘person’ and therefore not a ‘home builder’ required to register under the Act, prompting the NHBRC to appeal.

The appeal was upheld. The High Court order was set aside and replaced with a declaration that trusts are home builders as envisaged in sections 1 and 10(1) of the Act, and that the trustees of Mike’s Trust carried on the business of a home builder. No order as to costs was made.

This case authoritatively clarifies that trusts fall within the scope of the Housing Consumers Protection Measures Act and are required to register as home builders if they engage in home construction. It strengthens consumer protection in the housing sector and prevents developers from using trusts to circumvent statutory regulation.