My father bought land in Marloth Park - Mpumalanga in 2005. He got a quotation from a company that builds
loghomes. He accepted the quote and ask your man to build the house.
Innitially the person agreed to start building the house without a deposit, but then later insisted on a deposit. My father applied at Absa bank to get a building loan, they approved it on the following conditions needed from the builder:
1- NHBRC Certificate - Valid
2-Inspection from the bank's inspector - on previous buildings from this company
3-Engineer inspecting the building, throughout the whole process.
The person from this company then insisted on a deposit while the bank is approving the building loan. My father didn't have the funds, he then applied for a personal loan to pay the company the deposit. The bank would then pay off the personal loan when the money from the building loan got paid out. The builders wife phoned the bank numerous times to find out when they will deposit the money into their account.
While all this was happening, my father kept phoning the builder and ask for the NHBRC Certificate as well as for the builder to make an appointment with the inspector of the bank etc. The bank then transferred the funds into a given account, different from the company me father initially did the agreement with.
As soon as they received the funds, my father kept calling and asking them to fax the NHBRC Certificate. They eventually faxed through the certificate, but it has already expired. My dad called them again and the builder told him to get someone else to build his house then.
After all this my father kept phoning them and ask them to start building the house as agreed or return the money then. The builders wife where very arrogant and told my dad they dont have money to pay him back and they dont care if my father take legal action against them. They Liquadated the company whilst my father where seeking legal help. By the time the solicitors letters went through court etc. the company where already bursting.
The initial agreement where between Cosy Homes and my dad. The money where paid into RJ Timber
Construction's account. This company is still going strong.