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FAQs

Written by NHBRC

1. What Is The NHBRC?
2. When Was The NHBRC Founded?
3. What Purpose Does The NHBRC Serve?
4. What Is Covered By The NHBRC Warranty Scheme?
5. Who Audits The NHBRC?
6. Does The Act Make Provision For Alterations and Improvements?
7. How Does One Know Whether A Builder Is Registered With The NHBRC?
8. Does The NHBRC Conduct Inspections?
9. What Does The NHBRC Really Inspect?
10. What Role Does The NHBRC Play During The Building Process?
11. How Many Inspections Are Carried Out By The NHBRC In The Building Process Up To Completion Of A House?
12. How Does The NHBRC Handle Complaints?
13. What is conciliation?
14. What Does Conciliation Cover?
15. What Should a Home Owner Do When There Is a Problem with a Builder’s Work?
16. How Does The NHBRC Prevent A Deregistered Builder from Registering Under A New Name And Still Continue Building?
17. Under What Circumstances Will The NHBRC Do Remedial Work To My House?
18. Is The NHBRC Doing Anything About Consumer Education?
19. What Happens If Major Structural Defects Arise Within The First Five Years Of Occupation?
20. Must Each And Every Homebuilder in South Africa Register With the NHBRC?
21. What Process Should Be Followed When One Wants To Register With The NHBRC?
22. What Are The Benefits Of Being A Registered Homebuilder?
23. What Happens When You Fail To Register With The NHBRC?
24. Why Are Homebuilders Suspended?
25. Does the NHBRC Receive an Enrolment Fee of Each New House which is built In South Africa?
26. What Does The Enrolment Fee Cover?
27. What Is The Turnaround Time of Enrolments?
28. Does the NHBRC have a Disciplinary Procedure?

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On 26 March 2001 a Statutory Council was installed, in accordance with the provisions of the Housing Consumers Protection Measures Act, 1998 (Act No. 95 of 1998).

3. What Purpose Does The NHBRC Serve?

The NHBRC protects the interests of housing consumers (home owners) and regulates the home building industry. All homebuilders must register with the NHBRC and all homes must be enrolled 15 days prior to the commencement of building.

4. What Is Covered By The NHBRC Warranty Scheme?

The warranty scheme protects the housing consumer by providing a five-year warranty against major structural defects on the new home, 90 days defects liability warranty cover,12 months roof warranty cover.

A housing consumer (home owner) will have the assurance that a homebuilder registered with the NHBRC has agreed to abide by the rules and regulations laid down by the NHBRC. This means that the homebuilder has agreed to build the enrolled house to a minimum quality standard that has been set out in the NHBRC's Home Building Manual.

5. Who Audits The NHBRC?

The Office of the Auditor General has given three consecutive unqualified audits reports in the past three years. It should be borne in mind that the Office of the Auditor General invites itself to conduct audits on any public entity. The independent audit of the Office of the Auditor General has confirmed to the public that NHBRC is properly managed. The increase in both home enrolments and registration of homebuilders demonstrates public confidence.

6. Does The Act Make Provision For Alterations and Improvements?

The Act does not make provisions for the alterations, conversions, additions or improvements, but the matter is being discussed with an intent to make a recommendation to the National Department on Housing.

7. How Does One Know Whether A Builder Is Registered With The NHBRC?

The NHBRC has established customer centres in all provinces. To find out if a builder is registered with the NHBRC you can contact your nearest customer center, search online or by calling the toll free number 0800200824.

9. What Does The NHBRC Really Inspect?
The following inspections are carried out:

Foundations
Roof height
Practical completion
Stormwater
Carpentry
Plumbing
Electrical
And waterproofing

10. What Role Does The NHBRC Play During The Building Process?

We undertake risk management inspections to ensure compliance to our technical standards.

11. How Many Inspections Are Carried Out By The NHBRC In The Building Process Up To Completion Of A House?

A minimum of four inspections are carried out to ensure that the house is of good quality and that it will be fit for habitation. Housing consumers and home builders are encouraged to demand an inspection from the NHBRC during construction.

Complaints
12. How Does The NHBRC Handle Complaints?
The NHBRC has established a complaint handling mechanisms, which has assisted many housing consumers. Each complaint is professionally and speedily processed on behalf of the housing consumer. According to our records the NHBRC has not failed any housing consumer who had a genuine structural defect. All home owners, public and private institutions and media houses are advised to send all the complaints received by it to the NHBRC for evaluation.

13. What is conciliation?

This is a process whereby the NHBRC calls both the housing consumer and home builder to site to check which items of the housing consumers complaints are valid and need to be rectified by the home builder, with the aim of resolving the dispute.

14. What Does Conciliation Cover?

Conciliation covers all relevant structural concerns of the housing consumer and clarifying the homebuilder's responsibility and the housing consumer's obligations.

15. What Should a Home Owner Do When There Is a Problem with a Builder’s Work?

The housing consumer (home owner) should contact the home builder within three to seven days. The housing consumer can approach the NHBRC if the home builder fails to attend to the problem.

16. How Does The NHBRC Prevent A Deregistered Builder from Registering Under A New Name And Still Continue Building?
The ID details of the individual directors, owners of the companies/close corporations and sole traders are captured on the IT system, preventing re-capture of the same under different companies/close corporations.

17. Under What Circumstances Will The NHBRC Do Remedial Work To My House?
The NHBRC is responsible for repair of major structural defects which occur to an enrolled home. The process is initiated once it is established that the home builder is either liquidated, unwilling or is unable to undertake remedial works. When the homebuilder disputes the findings and recommendations in the conciliation report or the recommendation of a competent person (Engineer), the NHBRC will assist the housing consumer by undertaking remedial work.

18. Is The NHBRC Doing Anything About Consumer Education?

The NHBRC is engaged in numerous campaigns to educate housing consumers about their rights and obligations. Knowledgeable housing consumers too, alert the NHBRC about any inappropriate use of inferior material on site and will support other initiatives of the NHBRC.

19. What Happens If Major Structural Defects Arise Within The First Five Years Of Occupation?

The housing consumer notifies the builder
The defect is a result of non-compliance with the NHBRC Technical requirements
The homebuilder is in breach of his obligations to rectify a major structural defect
The home was built by a registered homebuilder and was enrolled with the fund at the date of occupation
The homebuilder no longer exists or is unwilling or unable to meet his obligations.

The NHBRC’s fund for rectification covers a home which includes:

Private drainage system from the structure up to the municipal connection or the cesspit connection
Any garage or storeroom
Any permanent outbuilding designed for residential purposes
Any retaining wall
In the case of sectional title unit, it includes the common property in terms of the sectional Titles Act.

financial capacity,
technical capacity, and
managerial capacity.

22. What Are The Benefits Of Being A Registered Homebuilder?

Registered homebuilders are recognized by financial institutions as homebuilders, and are accepted sas reputable homebuilder by housing consumers (home owners). Builders gain access to NHBRC technical requirements as contained in the homebuilding manuals. A homebuilder will access the NHBRC free training programmes offered in both rural and urban areas.

23. What Happens When You Fail To Register With The NHBRC?

If you are in the business of home building and you fail to register, you will be found guilty of an offence in terms of Section 21 of the Act. On conviction, you will be liable for a fine not exceeding R25 000 or a one-year prison term on each charge.

24. Why Are Homebuilders Suspended?

If the homebuilder fails to honour his/her obligations in terms of the Housing Consumers Protection Measures Act he /she may be suspended which may lead to a disciplinary hearing.

Enrolments
25. Does the NHBRC Receive an Enrolment Fee of Each New House which is built in South Africa
The fees are designed to provide a warranty cover for 5 year major structural defects for all new homes enrolled. The law requires all homebuilders to enroll every new home with the NHBRC, irrespective of selling price or whether it is built through cash or mortgage loan. All new homes must be enrolled 15 days before construction commences. Before an enrolment certificate is issued, the homebuilder must pay an enrolment fee that has been determined.

26. What Does The Enrolment Fee Cover?
The enrolment fee which is paid by the housing consumer covers the following service such as, enrolment of the home, operating costs for inspection of the home, complaints handling and consequential remedial works. In the case of remedial works, the housing consumer is provided with accommodation, storage and transportation when the home is demolished and is being rebuilt. The cost of remedial works includes amongst others, demolition of a home, removal of debris, erection of the new home and all professional fees such as architects’, quantity surveyors’ and engineers’ fees).

27. What Is The Turnaround Time of Enrolments?
On the normal enrolment of homes the turnaround time is a minimum of one hour and a maximum of 24 hours, for the dolomitic enrolments the turnaround time is a minimum of 4 days and a maximum of 8 days and lastly for the Rational designs the turnaround time is a minimum of 48 hours and a maximum of 4 days.

28. Does the NHBRC have a Disciplinary Procedure?
Yes. Where a contravention warrants a disciplinary process, a notice will be given to the builder advising him that the matter has been referred to the Committee, draw a charge, implications of the charge should be explained to the builder should he be found guilty and the builder is afforded a 30 days period to respond to the allegations.

Following repeated requests from members of the public regarding the role of the NHBRC and the how the warranty scheme operates, this news release is designed to address those issues.