Buying a stand and planning the perfect home is a dream for many people. But what happens when that dream becomes a nightmare due to non-compliance by a builder. How can you be assured that a builder is indeed going to be able to build that dream and not end up with a house that is far from the picture perfect house you imagined?

Since 1998 all builders must be registered at the National Home Builders Registration Council also known as NHBRC. Even in the event of building your own home, registration is also compulsory.

The act regulates all building projects relating to residential properties, build after 1998. 
A builder may not commence the construction of a home unless

• The home builder has submitted the prescribed documents, information and fee to the Council in the prescribed manner; 
• The Council has accepted the submission and has entered it in the records of the Council; and 
• The Council has issued a certificate of proof of enrolment in the prescribed form and manner to the home builder. 

It is therefore your right as a housing consumer to request a copy of your builder’s NHBRC certificate. 
In the event that your builder is not able to provide you with a certificate due to non-registration, he will have the opportunity to apply for late enrolment. 
In the case of late enrolment and non-declared late enrolment, the home builder shall— 

• submit to the Council such documentation and information as may be prescribed in the Council Rules; 
• at the request of the Council, pay a prescribed late enrolment fee in an amount determined by the Council for a special inspection to be undertaken by the Council to enable an inspector to determine compliance with NHBRC Technical Requirements, prior to the acceptance of enrolment; 
• at the request of the Council, and prior to the acceptance of the enrolment, rectify any defects
• at the request of the Council provide any surety, guarantee, indemnity or other security considered reasonable by the Council to satisfy its obligations under 

In the event that the construction of your house was not on standard, you have to option to claim. The claim procedures are as follows:  

The NHBRC shall assist home owners and make payment to them if within— 
• (i) five years of the date of occupation, a major structural defect has manifested itself in respect of a home as a result of non-compliance with the NHBRC Technical Requirements and the home builder has been notified accordingly within that period; 
• (ii) 12 months of the date of occupation, a roof leak attributable to workmanship, design or materials has manifested itself in respect of a home and the home builder has been notified accordingly within that period; 
• The home builder is in breach of the home builder’s obligations regarding the rectification of such defect; 
• the relevant home was constructed by a registered home builder, had been enrolled with the Council and, at the occupation date, the home was enrolled with the Council
• the home builder no longer exists or is unable to meet his or her obligations; and 
Please be aware that the warranty does not cover the following:
• Maintenance items
• Fence or pre-cast fencing
• Temporary structures
• Alterations / additions
• Swimming pool
• Tennis court
• Lift
• Mechanical ventilations or air conditioning systems
• Household appliances
• Stables
• Workshops

Financial institutions are Obliged by the Act not to lend money to a housing consumer against the security of a mortgage bond registered in respect of a home, with a view to enabling the housing consumer to purchase the home from a home builder, unless that institution is satisfied that the home builder is registered in terms of this Act and that the home is or shall be enrolled with the Council and that the prescribed fees have been or shall be paid. 
Conveyancer attending to the registration of a mortgage bond in favour of such a financial institution shall ensure that the home builder is registered in terms of the Act.

Any person who contravenes the above shall be guilty of an offence and liable on conviction to a fine not exceeding R25 000, or to imprisonment for a period not exceeding one year, on each charge. 

We therefor urge clients to do the homework on their builders, and make sure that the builder is registered at the NHBRC before entering into a building agreement.

Clients are welcome to contact our offices should they require assistance.

By Cornelia Basson