Importance of NHBRC registration and enrolling a new home

Recently the Association has received numerous queries regarding the National Home Builders Registration Council (“NHBRC”). Therefore, the following information is shared for members to note.

The NHBRC is a regulatory body established to promote quality standards when building homes. The Housing Consumers Measures Protection Act (“the Act”) governs the activities of the NHBRC. The Act is currently being amended, and if these amendments are promulgated, the ramifications include, among other things, impacts to owner builders and the definitions of certain other pertinent aspects governed in terms of the Act.

The Act defines a home builder as any person who carries on the business of a home builder. This includes any contractor responsible for constructing a new home on behalf of a client.

Any person in the business of building homes is required by law to be registered with the NHBRC. Any person in the home building business must be registered with the NHBRC and renew their membership annually. Any person who contravenes this shall be guilty of an offence and liable to a fine or imprisonment for a period not exceeding one year.

The Act requires every new home to be registered/enrolled with the NHBRC at least 15 days before construction, and such enrolment is the first step in protecting the housing consumer’s rights as provided in the Act.

In section 10(1) of the Act, no person shall carry on the business of a home builder or receive any compensation in terms of any agreement with a housing consumer in respect of the sale or construction of a home unless that person is a registered home builder. In section 14 of the Act, a home builder may only commence with the construction of a house if that home builder has enrolled the home with the NHBRC and the NHBRC has issued an enrolment certificate, amongst other requirements. A home builder who does not comply with the provisions of sections 10(1) and 10(2) is precluded from receiving any compensation in terms of the Act. This is over and above the criminal sanctions that may be imposed due to non-compliance being regarded as an offence.

A “home” means any dwelling unit constructed or to be constructed by a home builder after the commencement of this Act for residential purposes or partially for residential purposes, including any structure prescribed by the Minister for the purposes of this definition or for the purposes of any specific provision of this Act but does not include any category of dwelling unit prescribed by the Minister.  

The NHBRC provides standards and guidelines for, among other things, foundations, structural elements, roofing, plumbing, and electrical installations. It furthermore requires that contractors comply with its ethical and professional standards.

The NHBRC has the power to monitor and enforce compliance with the applicable regulations through inspections and investigations on a site. The NHBRC can take legal action against contractors who fail to comply with the rules and may impose a fine, revoke registration with the NHBRC, impose penalties, or require remedial works to be performed.

It is important to note that the Act lays out mandatory compliance, and parties cannot legally contract out of the requirements of the Act. To avoid unnecessary delays in a new home project, possible legal actions and reputational damage, it is recommended that a contractor ensures their registration with the NHBRC is in good standing. The contractor must also ensure that the home is enrolled promptly and there is compliance with the NHBRC technical requirements which are designed to ensure that all homes built are constructed to a minimum standard of safety, quality and habitability.

Bilaal Dawood

Head: Membership Services