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Useful text explaining requirements for Owner Builder Exemption in South Africa

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How do I become an owner builder?
the nhbrc and you


I have decided to summarize again what the answer entails and document it. My disclaimer is that it is my interpretation and built on my experience as someone who had to go through the process, so pardon any bias – I take no responsibility or credit at all for anyconsequences of this writ.

Let’s start at the beginning, the question entails that you speak in the context of the nhbrc [National Home Builders Registration Council] which is established on authority of the HOUSING CONSUMERS PROTECTION MEASURES ACT NO. 95 OF 1998, see attached. In order to further understand your question and the answer to it, the above act of parliament will be our guide line, as both you and the nhbrc is bound by it. The next thing is to focus on the specific definitions of ‘home builder’ and ‘owner builder’, this is important as most of the misunderstanding arises from those being not clearly understood by the public and building contractors, municipalities, architects, draughtsmen, banking officials and engineers – to name but a few. It will help if you read the act, which is attached, but to summarize, a ‘home builder’ must be registered with the nhbrc and get a certificate and a registration number. This registration must be renewed every year and if you have a contractor building your house you must insist on seeing this document!

An ‘owner builder’, according to the act is:
(a) a person who builds a home for occupation by himself or herself; or

(b) a person who is not a registered home builder and who assists a person contemplated in paragraph (a) in the building of his or her home;


and it is here where the question, ‘how do i become an owner builder?’ comes to bear.

A owner builder does not need to register, but he must request exemption.

the act makes provision for exemption in article 10a:

10A. Owner builder exemption.An owner builder may, in terms of section 29, apply to the Council for exemptionfrom sections 10 and 14.

what does section 29 say?:

(1) The Council[nhbrc] may, on application made to it in the format prescribed bythe Council by notice in the Gazette[i have not been able to find this documentyet], in exceptional circumstances[it is clear that the nhbrc does not want you tobecome an owner builder] and on the conditions that the Minister may prescribe ingeneral or in any particular case, exempt a person or a home from any provision ofthis Act, if the Council is satisfied that 

(a) the granting of the exemption would be in the public interest[are you amember of the public?];

(b) the granting of the exemption would not undermine the objectives of this Act[which is‘To make provision for the protection of housing consumers…,] or theeffectiveness of the Council[the goal of the nhbrc is to‘to assist and protect housingconsumers…’]; or

(c) should the exemption not be granted, the effect would be extremely prejudicialto the interests of the applicant[like costing you money and forcing you into anunconstitutional situation] and housing consumers.

(2) The Council shall reach and make known a decision within 60 days of receipt ofan application made to it.

(3) An exemption contemplated in subsection (1) is not transferable.

you would assume that all people who want to build their own homes [paragraph a] are deemed to be owner builders [i mean are there not municipal and national building regulations safeguard and controls already built in??? ], like people who are charged with a crime are deemed to be innocent until proven guilty, but no. you are deemed to be a home builder, and thus ‘guilty’ [in the sense of having to be registered as such and to be regulated by the nhbrc] until you get exemption by them.

in order to be an owner builder you must be exempted from the act. the exemption process is nowhere made clear by the nhbrc – least of all on their web site due to a few reasons, one of them being that they will have no control over you once you are exempt and that they will loose out on the enrolment fee which you have to pay them – this fee would ostensibly be used by them to cover you against building defects but the reality shows that it is indeed a far cry from being so, meaning that there are huge problems implementing this idyllic ‘insurance’ you might believe you haveagainst unscrupulous building contractors.

here please note that the nhbrc is central government and as such ruling party!

in order to become an owner builder:

get the following documents, all copies certified as true copies of the original by a commissioner of oaths [police official] and all statements/memoranda certified as sworn statements/affidavits by a commissioner of oaths [police official] – make sure they use the right rubber stamps as some don’t know the difference between a date stamp and the rest… this is no joke.: also very important, in all your contact with the nhbrc keep record of time date and person spoken to and what was said. make copies [scan or clear photo with your mobile] of all documents before sending them to the nhbrc.

copies of id ’ s of applicants to become owner builders and of owners of property

if property not your own get written permission of owner and copy of id

get a list of all your other properties–  yes, they want to establish if you are not lying to them and actually want to start profiteering from the house you are about to build by trying to figure out if you might sell it before the 5 year period you promise to keep it  they will also do a deeds registry search–  they don’t  just trust you, why should you trust them?

get a copy of the title deed for the property.

if you co-own the property with your spouse provide them with a certified copy of the marriage certificate and your ante nuptial contract if applicable

a‘  Motivation Affidavit (Please ensure that the motivation affidavit reflects all details pertaining tothe project inclusive of who will do the actual physical building of the house, and so forth).’  the problem as you can see is the‘ and so forth’  –  I will provide an example, see attached.

fill in the nhbrc form and their questionnaire to get, see attached.

a site plan, that is the municipalities approved building plan for your house as drawn by the draughtsman/architect.

a covering letter–  see attached example.

thereafter you try and get hold of their‘manuals’  – phone them please for these have been out ofprint for a couple of years and maybe they can assist. go through the manual.

make an appointment in order to write the open book exam at one of their offices, hand in yourabove documents and wait. they are by law forced to come back to you with a decision within 60days… good luck.

remember to have all pages of all documents you hand to the nhbrc stamped by the commissionerof oaths and sign each page, if your spouse is co-owner he/she/it must also sign.

if you have a lawyer or property agent or administratively gifted friend, let them peruse your application.

ok, there you have it; if there are shortcomings here, please let me know!

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