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Another applicant complains about the long delay in building her house

ROCKY GROUND: Wilhemina Mnguni stand which has yet to be developed at 5704 Extension5. Pic. Antonio Muchave. 08/10/07. © Sowetan.
ROCKY GROUND: Wilhemina Mnguni stand which has yet to be developed at 5704 Extension5. Pic. Antonio Muchave. 08/10/07. © Sowetan.

"I was reading Sowetan when I saw a story about M5 Dimension Home Loans.

"I was reading Sowetan when I saw a story about M5 Dimension Home Loans.

"I have the same problem as Tumi Makibela," said Wilhemina Mnguni, who has been waiting for her house to be built since last year July.

Mnguni complained that M5 had not built her house despite taking her payment of R119000.

Standard Bank Home Loan approved her R398200 application last July and paid M5 R119000.

Like Makibela, Mnguni signed all the progress-plan payment forms in one day, to allow M5 to claim payment.

Last week, Consumer Line reported that Makibela accused the company of not building her house in spite of paying M5.

In January, when her house was still not built, she wrote to Absa cancelling her loan. Only after this action did M5 start building her house.

But she complained that the house is badly built and is not according to her specifications.

Makibela also accused Absa of not following her instruction when she decided to cancel the loan, after M5 did not meet the construction deadline.

Last week Absa cancelled her home-loan agreement.

"Let me inform you of the good news. I just received a call from Absa that my home loan cancellation has been processed according to my instruction in a letter I faxed to the bank in March.

"They denied receiving it and wanted the fax confirmation and original letter. I sent it to them. It helps to keep records.

"The bank will not give the builder any more money and the amount already paid is for the land," Makibela said.

Barbara Beswick, M5's general manager said the delays in construction on Makibela and Mnguni's houses are inevitable.

She said that when they launched the project of 3500 bonded houses, Cosmo City Extention 3 and 5 were not proclaimed.

"The proclamation took place in August 2005 and January 2007 respectively," said Beswick.

"The National Builders Registration Council (NBRC) and transfer processes were delayed due to the influx of submissions to council and the deeds office.

"Council was flooded with plan approval on the project," Beswick said.

She said signing the progress payment plan should not be frowned upon.

"Applicants are asked to sign all the progress payment forms when signing their bond and transfer documents so as not to inconvenience them by having to take time off work, going backwards and forwards signing documents.

"Also, the bank will not release the funds requested against progress payments until their officials have inspected the property and are satisfied that the required stage of progress is complete," Beswick said.

But the NBRC said it was not procedural and unacceptable.

Makibela's bank only went to inspect the poorly built house a few days ago.

Beswick said that Makibela's house would be completed in the disputed plan by December 10.

The foundation on Mnguni's property had not been laid in spite of Beswick assuring him that the construction had commenced last Wednesday.

Beswick said the interim interest on the loan is paid for by developers and it is deducted from the final amount.

"So it is therefore in M5's interest that houses are completed as soon as possible," Beswick said.

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