What is the Purpose of the NHBRC?

 

The National Home Builders Registration Council was established in terms of the Housing Consumer Protection Measures Act, 1998 (Act No. 95 of 1998). The Council is mainly established to protect the interest of housing consumers, and to regulate the home building industry.

 

The National Home Builders Registration Council Fund (Pty) Ltd established an indemnity fund to promote the interests of gratia basis to finance the rectification of defects in housing units in circumstances where contractors were either unable or unwilling to do so.

 

The NHBRC from time to time does quality assurance Inspections at houses being built, by home builders and not obligated to inspect the progress of your home being built. They rely on the agreement and conditions of registration agreed to by the builder that all work will be done as per the prescribed method as concluded in the NHBRC's Home Building Manual.  

 

It is important to know that:-

 

Should these not been adhered to the NHBRC Fund will carry out repairs for rectifications when;

The Fund does not cover:-

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.

If the Defects detected in your new home is other than structural, do you have any recourse?

Yes. Even though the NHBRC’s main purpose and mandate is to ensure that the structure of your home is/was constructed as specified in the HBM, poor workmanship and inferior and substandard materials used, is not permitted. If identified by our Inspectors, it has to be rectified by the Builder. Should a builder fail to comply with these regulations, successful prosecution could be achieved and the builder will be suspended.  

The Home Builder has an obligation to build according to the law. However, whether or not the form of defect is covered by the NHBRC, the NHBRC have its purpose and that could be encapsulated in essence to cover the super structure of a house i.e. foundations, walls, roofs etc. In other words for the building work itself, not for example poor tiling work. In the event of a dispute occurring with regards to workmanship it is highly recommended that a qualified NICRC.SA independent inspector be appointed to assess the workmanship.