NHBRC Registration

What does the NHBRC stand for?
The National Home Builders Registration Council.

What is the purpose of the NHBC?
To regulate the home building environment and to protect the homeowner from poor quality workmanship.

What are the benefits of registering with the NHBRC?
All financial institutions recognize the NHBRC so it is easier for homeowners to secure funding for the build . In the unfortunate event that the builder does not complete the work to the required standard, the NHBRC Warrantee Fund will finance the completion of the project to the required standards. NHBRC also provides the builders with access to technical knowledge and free training.

Are there penalties for not registering?
Yes! A fine not exceeding R25000 or one year in prison for each director.

What is covered by the NHBRC Warranty?
The Warrantee Fund (paid by the builder) is an assurance fund which protects the homeowner in the event that the builder does not repair disputed poor workmanship. The warrantee is valid for five years for structural damage, one year against roof leakages and 3 months for poor finishes.

When can the homeowner call on the Warranty?
If the builder has been liquidated or is unwilling or unable to repair the defects, then the NHBRC is responsible to rectify the poor workmanship.

Must ALL new residential buildings be enrolled with NHBRC?
Yes, it is the conveyancing attorney’s responsibility to ensure that all new residential buildings are enrolled with the NHBRC.

How much is the enrolment fee for each home?
The enrolment fees are based on a percentage of the value of the land plus the building value and start from R 6 500 up to a maximum value of R 34 000.

How much money does the warranty cover?
Currently R 500 000 is the maximum amount the NHBRC will pay out. It covers the owner’s accommodation, storage, transportation, demolition, debris removal, repairs and professional fees.

How often does the NHBRC inspector visit the site?
The builder is required to notify the NHBRC five days prior to completion of major building phases such as Foundation, Superstructure, Practical Completion and Storm water to allow the inspector to sign off on the workmanship which will allow the contractor to continue.

If I am an Owner Builder, do I need to register with the NHBRC?
No, but you need an exemption before construction starts.