NHBRC Suspends Fees Included in PA003

NHBRC Suspends the Payment of House Enrolment Fees-PA003

The National Home Builders Registration Council (NHBRC) announced at the beginning of November 2013 that the home registration fees, that must be paid on all new houses, will no longer be allowed to be included in the first progress payment that is made to the home builder – the PA003. The notice quotes Regulation 1408  and 1410 and these deal with:

• The procedures for registration and expiry of the registration, the enrolment process and the appointment of competent persons.
• Methods of payment for enrolment fees.
• Rules for issuing of enrolment certificates
• The responsibilities of the housing consumer and the home builder regarding complaints.
• Procedures for the processing of complaints and disputes.

Regulation 1410 establishes the NHBRC registration fees.

What are the implications for the homeowner?

The home builder/contractor or developer must now have enough financial as well as technical and managerial “capacity”. This would appear to put the burden on the contractor to register the new home and pay the required fees before the building can start. The NHBRC clearly states that:
Mortgagees, conveyancers, and provincial housing development boards may not:
lend money, effect transfers or allow development to proceed unless the home builder in each case is registered in terms of the Act and the home has been enrolled with the Council and the prescribed fees have been paid.

The risk is that if builders and developers do not adhere to these rules they will be liable to fines and being struck off the approved list of builders and thereby not have access to finances from morgage lenders.