There was nothing straight forward about applying for Owner Builder exemption from the NHBRC. In the end I did receive it without a hitch but if I had known then what I know now, the process might have gone differently. If you want to build your own house in South Africa and are actually capable of doing so (this is the key factor) you can request to be exempt from the obligatory quality control procedures governed by the National Home Builders Registration Council.
The NHBRC is an organisation that inspects and upholds quality standards of home building in South Africa. Any builder or contractor that is employed to build a house in South Africa must be registered with the NHBRC and pay membership fees and an enrolment fee for your building to be protected from construction and material failure for up to 5 years. In theory, this is an amazing service that the organisation offers and if implemented properly protects home owners from shoddy work.
However, if you are like us and you know that you can do it yourself and will build your home to the highest and safest standard you can physically and financially achieve, then it stands to reason you don’t need that protection. Hence the Owner Builder exemption.
There are a few caveats to receiving it though, and I only mention a couple here: namely that you can’t sell your house for 5 years (the same period of time for which the NHBRC warranty would pay out if something in your building fails) and you can’t hire a NHBRC registered builder to do your work as it defeats the purpose of receiving the exemption in the first place. Which makes sense.
What doesn’t make sense is why it is so difficult to get this exemption. On one hand the NHBRC is there to protect home owners but on the other hand they are a short-staffed business that oversees hundreds and hundreds of buildings. They will obviously always be more focused on the money.
To get the exemption there are few basic things you need to do and then you should receive it without any fuss.
At the time of my research, I found this document most helpful and informative – I have copied over the salient parts onto this post.
- Make an appointment, don’t bother calling or emailing
As I mentioned, the NHBRC is under-staffed so the person who may be responsible for processing your paper-work will likely not answer your email swiftly or with enough information and this can prove to be frustrating. Also, don’t even bother trying to call the offices, more often than not the line isn’t working or no-one answers. However, if you go to their offices (I went to the offices at Century City – Centennial Office Park, First Floor East Block, Century Blvd, Milnerton, Cape Town, 7441) then you will be greeted by people who are very friendly and willing to help. Ask to make an appointment to write the builder’s exam to submit along with your paperwork. You will receive a document that explains the implications of applying for and receiving Owner Builder Exemption as well as an application form. Then study and write the exam.
2. To study or not to study? that is an important question.
The reason for writing the exam is to prove that you know as much or more than a registered builder. If you really have enough knowledge about building, then you will be able to pass the multiple choice exam without trouble. If you are a bit rusty (like I was) or ill-prepared to do this, then I suggest studying.
The exam is open book and is based on the NHBRC SANS Collection for Home Builders (pictured above) which seems to only be available for sale at the NHBRC offices. It is an illustrated portrayal of the SABS SANS 10400 laws which govern building in South Africa. If you have the budget for this book (at the time of my application it cost over R3000!) then I do recommend getting it as it answers almost every building question you may have. If your funds are limited like ours, then you can find approximate documents online (such as this one) that will give you some information but should not be used in the open book situation as the information does differ. It occurred to me only after writing my exam that this book might be available at a library such as UCT Built Environment Library which one might be able to visit as a guest to study the proper document before the test.
If you are truly capable of building your own home then I worth taking a chance and trusting your own knowledge and answering the questions as best you can. You only need 50% or higher to pass and if you can’t pass it then you should possibly not be building your own home.
3. Write a letter of motivation to support your documentation
Aside for filling in the Owner Builder Application Form, you need to hand in a certified copy of your title deed and a site plan and ground floor plan. In addition to this, you must include a motivational letter that explains why you are capable of doing this project, how you plan on going about doing it, which professionals and artisans will be helping you.
There should be an explanation of how you plan on project managing your building process (in terms of time management). You need to strike a balance between showing that you have neither too much money (and can therefore employ a registered builder and pay the enrollment fee) or too little money (and will therefore not be able to complete your project or provide jobs for local labourers). The letter should also explain the material composition of your project and the resources that will be used to create it. I included a bit about the environmentally friendly solutions we will be employing on site and in our building.
State in the letter that it is your only home and that you intend living in the residence for at least 5 years (I gave the ID numbers of the final occupants). Also, state that you fully understand the implications of applying for Owner Builder Exemption.
This may not be relevant to your project, but I had to explain a question about funds and so I included this as a foot note in my letter.
What are the benefits of going through all this to get the Owner Builder Exemption?
For one thing, you will save a lot of money! Not only in registration and enrolment fees but also in contracting and labour costs. This website explains the enrolment fee very well:
The NHBRC enrollment fees are based on a sliding scale based on the value of the land as well as the building fees including labor and materials. However, this amount is capped at R 29 824,56. Please note, previously this amount used to be capped at R 34,000 however, ever since the NHBRC de-registered for VAT, the builders no longer have to pay the VAT amounts, hence prices have become a lot cheaper.
You can view the NHBRC house enrollment fee calculator by clicking here.
https://fixonate.co.za/services/nhbrc-enrollments/
Don’t start until you receive the exemption
It was heavily impressed on me that we could not start building until we received our Owner Builder Exemption. Failure to comply would result in the exemption not being issued so don’t take the risk.
I think it was worth it for me to go through this and get the exemption but it may not be for you. Don’t hesitate to contact me if you want more information about what I went through to get my Owner Builder Exemption from the NHBRC in South Africa.