National Home Builders Registration Council (NHBRC)

Background

The National Home Builders Registration Council (NHBRC) is a section 21 company established in terms of the Housing Consumers Protection Measures Act (1998). Its purpose is to provide housing consumers with warranty protection against defects in new homes, and to provide protection against any failure of builders to comply with their obligations in terms of the act.

The Housing Consumer Protection Measures Act 1998 (Act 95 of 1998) extends the NHBRC home warranty scheme to government housing subsidy schemes.

The warranty scheme has been implemented in three phases, since the approval of the Act by Parliament in October 1998. The first phase of the Act came into effect on the 4th June 1999. At this point the Council assumed powers of a statutory body and began consultation processes necessary to implement the second and third phase. 

The second phase of the Act came into effect on 1 December 1999. At this point, NHBRC received statutory powers to operate effectively in the home building market with exception of subsidy only projects. This phase made it obligatory for all builders operating in the mortgage bond market to be registered. During this phase, extensive consultation took place with regards to Ministerial Regulations, NHBRC Regulations, technical standards and financial implications.

The third phase was implemented with effect from 1 April 2002 and the Warranty Scheme now applies to all housing subsidy financed houses constructed as part of approved projects.  The Warranty Scheme does apply to existing housing stock purchased by beneficiaries through individual subsidies.  It furthermore does not apply to institutional housing subsidy programmes where existing buildings are converted and upgraded. 

The Warranty Scheme ensures that all new homes build from the 1st April 2002 under the government subsidy scheme are fit for habitation, build in a workmanlike manner, comply with the NHBRC technical requirements, carry a one year roof leak warranty from the home builder and carry a five-year major structural defects warranty from the homebuilder which is supported by the NHBRC fund.

The NHBRC generates most of its funding through registration fees.