Fund

When the Fund will Carry Out Repairs
The Minimum Claim Payable
What NHBRC Fund Does not Cover
The Fund Will Not Pay For
Limitations, Qualifications and Exclusions From the Home Builder's Deemed Warranty
Maximum Amount Payable
What The Maximum May Cover
Further Information

When the Fund will Carry Out Repairs

The NHBRC will pay for rectification when;

The conciliation report has been finalised and the contents notified to the NHBRC;
The home builder or any guarantor of the home builder has been notified and required to meet his or her respective obligations and has failed to do so within the period determined by the NHBRC; and
The NHBRC has confirmed that the home builder is no longer in existence.

The Minimum Claim Payable

If the NHBRC determines that the cost of rectification is less than 5% of the selling price of the home of R4000 (whichever is less), then the housing consumer shall bear the cost himself or herself.

What NHBRC Fund Does Not Cover

The NHBRC definition of a 'home' for the purpose of rectification from the NHBRC fund, does not cover any:

Maintenance items
Fence or pre-cast fencing
Temporary structure
Swimming Pool
Tennis Court
Lift
Mechanical Ventilation or air conditioning system
Household appliances
Stable
Workshops
Alterations/Additions.

The Fund Will Not Pay For

Consequential or economic loss, such as damages and penalties for, and losses due to, delay, breach of contract, loss of rental income or default in mortgage loan repayments; or
Any costs, loss or liability for which compensation is covered under an insurance policy or any limitation, qualification or exclusion from the home builder's deemed warranty.

Limitations, Qualifications and Exclusions from the Home Builder's Deemed Warranty

The limitations and exclusions in respect of which a home builder is not liable for loss, damage, destruction or threat of collapse are as follows:

Wilfully destructive acts or omissions by the housing consumer or other people living in the home;
Fire, explosion, or damage caused by a third party;
Damage as a result of lightning, storm, flood, or earthquake, or any other destructive act of nature;
Structural alterations, repairs, and modifications to the home, or the imposition of any load greater than that for which the structure of the home was designed , or the use of the home for any purpose other than that for which it was designed;
Subsisdence or landslip for any cause not related to non-compliance with the NHBRC's technical requiremnets;
Any change in colour, texture or staining or other ageing process;
Pressure waves caused by aircraft travelling at supersonic speeds or the impact of aircaraft or articles falling from the sky;
Destruction of or damage to the home caused by ionising radiation or contamination by radioactivity or nuclear weapons material;
War, invasion, act of foreign enemy, hostilities, (whether declared or not), civil war, revolution, rebellion, insurrection or any military or ursurped power, strike, riot, civil commotion;
Loss or damage to any finishes unless caused by a major structural defect in the residential structure;
Wear and tear, or deterioration from neglect or damage caused by the failure of the housing consumer to notify the home builder in good time of any defects
Any costs, loss or liability for which compensation is provided by other legislation, and
Misuse or abnormal use of a private drainage system.

Maximum Amount Payable

The maximum amount that may be paid by the NHBRC in the rectification of a home is the selling price of the home as declared by the home builder at the time of enrolling the home, up to a maximum amount of R500 000.

What the Maximum May Cover

The Maximum amount that may be expended may include:

Any professional fee incurred by the NHBRC in investigation and determining a cost effective method of rectification;
The cost of rectification of any major structural defect;
Reasonable accomodation costs, where the NHBRC believes it would be unreasonable for a housing consumer to remain in occupation of the home; and
Property damaged due to the extensive nature of the remedial works. This is prescribed at maximum daily rates by the NHBRC up to a maximum of five percent of the selling price, or R25 000, whichever is the lesser.

Further Information

Further Information on the Valuable Final Products of Council and other related matters may be obtained by Contacting the NHBRC