Meanwhile, bonds on individual units are being approved before a completion certificate for the development is issued by the municipality concerned.

As a result, insurance companies are severely limiting the cover they are prepared to underwrite on specific units that could suffer damage as a result of uncompleted common infrastructure, such as storm water drains and retaining walls.

John Swan, an attorney with Lester Hall and Swan, said the practice was common in the rapidly expanding up-market area.

"Certain developers form a company for a specific development and then walk away when the money runs out, only to open a new company to finance another development," he said.

According to Neville Schaeffer, the chief executive of property management firm Trafalgar, the practice is "one of the oldest tricks in the trade".

"New bodies corporate are often involved in battles with developers, which is precisely why the developers set up these companies, which could otherwise be built under their own names." The best way for consumers to protect themselves was always to ensure that the developer had a record of integrity.

Wayne Maré, Standard Bank's head of home loans in KwaZulu-Natal, defended the bank's position. "A mortgage bond is registered only once the unit and surrounding common property have been completed. An assessment is also done by the bank to confirm completion.

"All the bank's documentation requirements must also be fulfilled. These include, but are not limited to, progress payments and a letter of satisfaction signed by the customer, an engineer's clearance certificate for foundational and reinforced work, a National Home Builders' Registration Council enrolment certificate from the builder, and an occupation certificate from the local authority."

Despite this, Standard Bank approved a bond on Amelia de Villiers' R1 million unit in Hillcrest two years ago on the strength of a three-month occupation certificate, pending the developer meeting his contractual obligations.

But that is looking less and less likely as promises remain unfulfilled.

Residents in the development will probably have to fork out another R40 000 to complete the common storm water drainage system and repair collapsed banks.

Mary Deighton, a trustee of the development's body corporate, said the Outer West municipality had still not issued a completion certificate.

The delay was because the engineer had been unable to sign off the development as it had not been completed to specification.

A building inspector from the eThekwini municipality said temporary occupation certificates were issued when a developer submitted one plan for the various phases and a unit was completed before the rest of the development was signed off.

"However, the crunch is that the certificate is for only a limited time. The municipality has written to the developer but has received no response."

The anomaly, allowed by building laws, required certain conditions to be met before the signing off. "What is needed is a legal mechanism that will come down hard on developers," he said.

Swan said buyers had little chance of claiming damages as the development was the company's only asset and they could not claim from the developer in his personal capacity.

Christo van Wyk, a director of Couzyns, said: "Unfortunately, when a developer closes shop without finalising a project, the consumer is not left with many options to recover his damages should the developer not be registered with the council.

"The only case in which a homeowner could recover damages against a developer in his personal capacity is when he has signed surety. This obviously does not occur very often, if ever. It would severely limit developers ... and I do not foresee any change in legislation in this regard."

While the council is supposed to act as the consumers' watchdog, this is no guarantee that problems will not arise.

According to Swan, a spate of letters to the council in Durban on behalf of another aggrieved client had drawn a blank.

Barbara Mhlongo at the council said it generally responded by sending back a complaint form, which would form the basis for a member to be suspended.

But complaints are obviously slipping through the cracks and the council must jack up its image if it is to retain credibility in the public's eyes and perform the function for which it was created. - Durban

HOW IT HAPPENS

• Property developer opens a company specifically for one development.
• Company runs out of money before development is completed.
• Company is wound up and developer opens another company to start a new development.
• Buyers in dumped development have little chance of claiming damages as company has no other assets and developer cannot usually be sued in his or her personal capacity.
• Homeowners generally have to raise a special levy to pay for the complex to be completed as the National Home Builders' Registration Council does not cover communally owned property or pay to complete unfinished work. They can try to hire another builder and sue the original contractor but are unlikely to succeed.