Jan 142014
 

The NHBRC has Deregistered
from VAT and Adjusted their Fees

NHBRC-Fees-Header

We have recently had a number of enquiries about how the NHBRC calculates the fees that have to be paid when a proposed new house is registered with them.

In 2011 the NHBRC was deregistered for VAT and they adjusted their registration fees accordingly.

Registration with the NHBRC

Every new home built in South Africa, since December 1999, must by law be registered with the NHBRC. No bank or home loan institution may lend money against the security of a mortgage bond unless the house is registered with the NHBRC. In addition to this the builder must be qualified, certified and registered with the NHBRC as well.

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NHBRC Fees

In another article,  NHBRC Suspends the Payment of House Enrolment Fees-PA003 we highlighted how the NHBRC is no longer allowing the registration fee to be bundled together with the first draw that the home owner gets from the financial institution – referred to as the PA003. This now has to be done at the time of registration or the house will not be accepted onto the NHBRC’s system.

As at the 1st April 2014 the NHBRC increased their residential house enrollment fees by 14%. This increase only applies to non-subsidy enrolments including late inspection fees. Here are their published figures:

Table of new NHBRC fees

Here is a breakdown of how the fees are calculated. These are the older figures and we have left them in this post as they will give you an idea (on the right hand side) how the NHBRC goes about their calculations for the fees that they charge. We do advise you to check with your local NHBRC office for the most up to date figures. This table will give you a good idea as to how they have structured the fees and what you can expect to pay.

 NHBRC ENROLMENT FEE SCHEDULE excl VAT

Fee Structure>

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  81 Responses to “NHBRC Fees”

Comments (81)
  1. Hi Penny

    I am about to start extending my existing house as soon as my Architecture completes the plans and registrations to the municipality.According to my architecture the site must be inspected and approved by an engineer before i can start and whose fees i must pay.I want to know if the engineer is still a must or necessary if i am using a NHBRC registered builder?

    Kindly forward reply to my email.Thanks

    • Hi Brian, The NHBRC registered builder has nothing to do with your engineer and geotechnical site inspection. This has to be done in terms of the regulations and if fees have to be paid then this must be done.

  2. Hi Penny,

    Can you please explain to me what the NHBRC is giving me when I have my house built through a registered NHBRC builder.

    Thank you

    • Maurice, you should get the benefit of their warranty, but it’s irrelevant! The fact is that in terms of our legislation you have to have the house built by an NHBRC-registered builder or apply for an exemption as an owner builder.

  3. Hi Penny,

    My husband is a Building Contractor for many years. We always were under the impression that you only need to enrol with NHBRC if the client make use of a bank loan. Now the gay from NHBRC visited us and said that every house should be enrolled. Is that true? Why didn’t the Municipality told us that when we took the plans for approval? Could you send the answer to my email address please. Regards

    • If your husband is a building contractor he should, quite frankly, know the laws as they apply to him. Every builder MUST be registered with the NHBRC and every house he/she builds must be enrolled. Only owner builders are allowed to apply from an exemption – i.e. not to enrol their house – and they have to do a test to show that they are knowledgable enough plus are not allowed to sell the house for at least five years after completion. So basically your husband has been operating illegally!

  4. Hi ,

    I have submitted my plan for enrollment, I have paid the money that was requested.

    Its been now 2months since I submitted the plan but nhbrs is failing to issue me with certificate.
    I asked what could be the reason was told engineer is not available.

    I am frustrated because I am paying lots of money for pinalties in an estate all because of NHBRC they don’t want provide me with certificate.

    please advise where I can escalate the matter because everytime when I call the number people seems to be clueless.

    I am so frustrated

    • I would go to an attorney!

      • hi Penny,

        In order to enrol the property do I need to be NHBRC registered as an owner builder? Or can I just submit a plan, pay the fees and appoint a registered engineer and a registered builder?

        • Only registered builders enrol houses. If you are planning to owner build, you need to apply for an exemption. This involves a multiple-choice test to ensure you know what you are doing. Plans go to the local authority – which is a separate issue.

  5. I want to build a new hous, have approved plans, have an engineer overseeing the project why must i have a nhbrc builder seeing that i am paying cash and will face the concequinces i want my builder but his not registered with nhbrc can i start building i dont mind the risk i now my builder

    • The only other option is for you to apply to the NHBRC for an exemption. You would then be classed as an owner builder and won’t have to pay the enrolment fee or use an NHBRC-registered builder. You will not though be able to sell the house for at least five years.

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