© Master Builders KwaZulu-Natal 2017

There are several factors that come into play with regards to registration as a Home Builder and the enrolment of new residential dwellings. Cognisance must be taken that enrolment is not restricted to Building Bonds only; all new dwellings must be enrolled. For more further information refer to the “Housing Consumer Protection Measures Act, 1998 (Act No. 95 1998) or visit the NHBRC website at www.nhbrc.org.za

Registration of Non-Subsidy Projects

All homebuilders, developers, engineers and other relevant stakeholders have to be registered with the NHBRC in order to enrol new residential dwellings. Please Note that the registration process requires an examination to be written and all criteria as per the registration form have to be met.

All new residential dwellings, whether plot and plan, sectional title, share block, flats, etc. are eligible for enrollment with the NHBRC under the Housing Consumer Protection Measures Act, 1998 (Act No. 95 1998). Failure to enroll can result in the following penalties:

  • Fines of up to R 25 000, 00 per unit or a prison sentence of up to 1 Year.
  • Lending institutions refusing to grant bonds.

Failure to enroll no later than fifteen (15) days prior to commencement of construction can result in a “Late Enrollment”. “Late Enrollments” have the following consequences:

  • A Late enrollment fee.
  • Travelling costs for inspection.
  • Additional Competent person (Engineers) inputs.
  • NHBRC can also due to the risk factor request a five (5) year financial guarantee (to be held by the NHBRC) for an amount up to 10% of the value of such property before issuing an enrolment certificate.

The following is a checklist of the documentation required for enrolment, as well as the structure of enrolment fees.

Registration of Subsidy Projects

In brief all Subsidy Projects are required to be registered and enrolled with NHBRC together with the Department of Housing and other stakeholders.

All Municipalities are required to be register with the NHBRC.

All Municipalities are required to register and enrol their Subsidy Projects with the NHBRC.Soon to be published on masterbuilders.co.za, more details on the entire Subsidy Procedure.

For More information the Provincial Subsidy Administrator can be contacted at all NHBRC offices.

Checklist for Enrollment of Non-Subsidy Homes

1. Normal enrollment: Plot and Plan

15 day before construction

EFOO3- Soil classification on B3

B1-

Single storey – RD1, RD2, RD5 (F3 IF REQUIRED)

Double storey – RD1, RD3, RD5 (F3 IF REQUIRED)

PAOO3 (financial institute involved)

Or proof of payment

Documents to be attached:

Title deed or agreement of sale (for land)

Contract between builder and owner of the house

Approved Plans (Floor & Site)

2. Cluster development/ Spec building / cash build

EF003 – Soil classification on B3

B1-

Single storey –RD1, RD2, RD5 (F3 IF REQUIRED)

Double storey – RD1, RD3, RD5 (F3 IF REQUIRED)

PAOO3 (financial institute involved)

Or proof of payment

Documents to be attached:

Title deed or agreement of sale (for land)

Contract between builder and owner of the house

Approved Plans (Floor and Site)

3. Sectional title

ST003- Soil classification on B3

B1-

Single storey –RD1, RD2, RD5, RD9 (F3 IF REQUIRED)

Double storey – RD1, RD3, RD5, RD9 (F3 IF REQUIRED)

Documents to be attached:

Deed of sale of units sold – or estimated selling price per market value per unit

Deed of transfer/ sale for land

Copy of floor and Site plans

Please be advised that with regard to all multi-storey apartments (i.e. more than 4 storeys) and soil classification P the submission must include:

  • All design calculations (structural, civil & Foundation designs)
  • Geo-Tech report
  • Structural report
  • Architectural Drawing

4. Late Enrollment: Plot & Plan/ Cluster development/ Spec building / cash build

EFOO3- Soil classification on B3

B1 - D1

Late enrolment questioner

Single storey –RD1, RD2, RD5 (F3 IF REQUIRED)

Double storey – RD1, RD3, RD5 (F3 IF REQUIRED)

Proof of payment

Documents to be attached:

Title deed or agreement of sale (for land)

Contract between builder and owner of the house

Approved Plans

Late Enrollment: Sectional title

ST 003

D1- for each unit

Late enrolment questioner - for each unit

Documents to be attached

Deed of sale of units sold – or estimated selling price per market value per unit

Deed of transfer/ sale for land

Copy of floor and Site plans 

Late Enrollment

Late enrollment occurs when a registered home builder has not complied with the rules of the NHBRC to enroll the house fifteen days prior to he commencement of construction. Late enrollment of a house imposes considerable risk for the NHBRC in that a late inspection of such a unit may not identify underlying structural defects.

The following documents are required for late enrollment:

  • Completed NHBRC Pro-Forma Documents – EF003 (Enrollment form) + Appendix B1  + Appendix D1 
  • Payment of enrollment fee + Late enrollment inspection fee (up-front payment) – bank guaranteed cheque
  • Confirmation of selling price (price structure) – sale agreement or deed of sale for land with building contract
  • Copy of the plans
  • Street address, area map and contact person on site

Late enrollment fees, applicable in addition to the enrollment fees are:

R150.00 per unit for late enrollment, R250.00 per hour inspection fee to assess compliance with NHBRC technical requirements, R1.73 per km travelled for travelling costs.

The Council (NHBRC) may request any surety, guarantee, indemnity or other security considered reasonably by the Council to satisfy its obligations under section 16 (1) of the Housing Consumer Protection Measures Act No. 95 of 1998 before issuing the enrolment certificate.