National Homebuilders Registration Council …

1 National Homebuilders Registration Council ( nhbrc ). What is the role of the nhbrc . Its aim is to maintain and What is the nhbrc ? improve the quality of all newly constructed houses. Building Loan Process The National Homebuilders The nhbrc implements and & Documentation Registration Council ( nhbrc ) regulates quality standards in is a Juristic Statutory body the home building industry. The completed building loan application form created by the Housing Consumer Protection Measured The nhbrc is responsible for duly completed by the client, plus the following establishing a warranty fund to documents have to be submitted to your Act. provide assistance to housing Siyeza Team for consideration of finance: It is a housing consumer consumers whose - Building Plan protection body.

2 Homebuilders fail to meet - Building Contract certain obligations. - Schedule of finishes - Builder's nhbrc Registration certificate - Builder's nhbrc property enrolment certificate (R25 000 fine for non-compliance). - Minimum specs and Waiver of Lien What is the role of the Assessor? - All Risk Insurance cover ensuring materials on site are covered until completion. Assess the property using the plan, schedule of finishes and building contract. Structure the retention amount nhbrc . and number of progress What is the role of the Bank? payments (normally 4 progress National payments). Homebuilders Provide finance to the client. Monitor building progress period.

3 Registration Council Submit fully completed application and all minimum supporting documents to the Siyeza Teams. Retain funds to complete the building project. Pay the builder on instruction from the client. What is the role of the Client? What is the role of the Builder? Inform builder and the bank of any Register as a builder with the problems, concerns and delays. nhbrc Sign process payments (19-13B). Conclude a building contract (B68) Nedbank form, only once the with the client. client is satisfied with the work done Build according to the contract by the builder. and plans. Client to obtain expert advice if Enrol the property for necessary and should not rely on the bank's assessor only.

4 Development with the nhbrc . Pay the required enrolment fee. Maintain the interim payment interest generated on amounts paid out. This fee is included in the contract. Sign debit orders, stop orders, salary Obtain Electrical/Occupancy stop orders or other payment instructions to pay the monthly certificates. instalment. These can be processed via a current or savings account. Submit the electrical compliance certificate and the certificate of occupancy to the Home Loans Building Loans Team. (Client obtains these from the Builder or the Municipality). nhbrc Client is liable for any shortfall and nhbrc . Why are new homes enrolled? this is payable prior to processing of What is involved in house inspection?

5 Any progress payment. A housing consumer (home-owner) will have the Every new house constructed must be inspected. insurance certificate that the builder registered Contract amount less amount placed on If a house is enrolled prior to construction, the with the nhbrc has agreed to abide by the retention = Shortfall nhbrc is afforded the opportunity to carry out rules and regulations laid down by the nhbrc . (Client to pay!) all necessary inspections. This means that a homebuilder has agreed to The number of inspections conducted for each build the enrolled house to a minimum quality house is depended on the size and complexity of standard that has been set out in the nhbrc the house design.

6 The following inspections are home building manual. carried out: Foundations Timeous enrolment of homes ensures that a new Roof height home is protected by the warranty scheme, Practical completion providing a 5-year warranty against major Storm water structural defects, 90 days defect liability Carpentry warranty cover and 12 months roof warranty Plumbing cover. Electrical Waterproofing