Application for Owner Builder

Policy on owner builders
Definition of owner builder
Owner Builder Application
Review of Documentation
Adjudication Process

Policy on owner builders

Genuine owner builders are not obliged to register with the NHBRC, nor do their homes need to be enrolled with the NHBRC.

Definition of owner builder

A genuine owner builder, in terms of the Act, is a builder who is:

  • not in the business of home building,

  • building a home for his own occupation and

  • not using an NHBRC registered home builder to assist him in the building of that home.
    Example 1: "in the business…"
    If a person is building more than one house a year (or every few years), then he or she is "in the business of home building" and needs to register and enroll the houses.

    Example 2 "using a registered homebuilder"
    If an owner-builder uses an NHBRC registered home builder as a contractor to help him or her to build a home, that registered home builder must enrol the home.

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Owner Builder Application

The owner builder applicant must:

  • Complete the required questionnaire in full.
  • Furnish a motivational affidavit. The affidavit should comprise the following key points:
    • Will the applicant be employing a contractor / skilled artisans to assist him? If so, the names of the contractors / project managers, etc. must be confirmed together with the terms of conditions (contract).
  • A copy of the identity document.
  • A copy of the Trust/Title Deed (Essential for purposes of verifying ownership).

The above documentation will be submitted to the Provincial Manger who will then conduct an interview with the applicant and do an on-site inspection to check the progress of construction, if any. All of the documentation must be signed and attested to by a Commissioner of Oaths (preferably by the SAPS).

Review of Documentation

When reviewing the documentation, the PROVINCIAL Manager checks the following:

  • That the applicant is not utilizing the services of an NHBRC registered homebuilder.
  • Where the above cannot be verified, the Provincial Manager may request the conditions of employment between the applicant and the builder.
  • Where construction is in respect of more than one residential unit (multiple units), the applicant cannot qualify as an owner builder. An owner builder applicant may only occupy one unit (home).
  • Whether the applicant will be able to be on-site to supervise construction most of the time.
  • Whether construction has commenced or is substantially completed.
  • Whether the application is in the name of a Close Corporation (CC) or (PTY) Ltd. (In terms of the Act, only natural persons can occupy a home, therefore a CC or (PTY) Ltd are not classified as natural persons and cannot apply for exemption).

    NB:Where any of the above has been confirmed, the Provincial Manager is mandated by the Registration Committee of Council to decline the application on the grounds that the criteria have not been met.

    Once all of the above-mentioned have been verified and confirmed, and all of the prescribed documentation completed in full, the documents are forwarded to the Registration Committee for adjudication.

Adjudication Process

The Registrations Committee will assess the merits of each case taking into consideration the recommendation of the Provincial Manager.
It will advise the applicant as follows:

    Letter 1: Exemption Granted
    In view of the fact that the applicant is building the house him/herself, and not conducting the business of a home builder, the Committee will be of the opinion that the provisions of the Act do not apply to him/her. The applicant should, however, note that the house will not have any protection under the Warranty Cover of the National Home Builders Registration Council (NHBRC).

    Where the Committee unanimously finds from the merits that the applicant is excluded from the provisions (falls outside of the ambit) of the Act, the applicant qualifies as a bona fide owner builder.

    The Council Secretariat will issue a Letter of exemption to the applicant via the Provincial Customer Care Centre.

    Letter 2: Completed homes
    Where the Committee unanimously finds that construction has commenced or is substantially completed, the Committee will not be in a position to express an opinion since the NHBRC is unable to verify the claims regarding the compliance with NHBRC procedures used in the construction, and it is unable to express an opinion whether the applicant can be classified as an owner builder, and as such would fall outside the ambit of the Housing Consumer Protection Measures Act, 95 of 1998.

    Because the NHBRC is unable to form an opinion in either supporting or rejecting this application, the applicant would have to discuss the financial implications of this with his/her banking institution. The financial institution may request the applicant to complete an affidavit containing any further particulars that they may require.

    The Council Secretariat will issue a letter together with an affidavit form to the applicant via the Provincial Customer Care Centre.

    Letter 3: Rejected
    Where the Committee concludes that the application falls within the ambit of the definitions of a 'home builder' as provided for in the Housing Consumer Protection Measures Act, 95 of 1998, the applicant will not qualify as a bona fide owner builder.

    The Council Secretariat will issue a letter of rejection to the applicant via the Provincial Customer Care Centre.

    NB: The above mentioned letters will be forwarded to the Provincial Customer Care Centre within one (1) week preceding the meeting of the Registration Committee.