NHBRC Late Enrolment Guarantee
Late enrolment occurs when a registered home builder has not complied with the rules of the NHBRC to enrol the house fifteen days before the start of construction. Late enrolment of a house imposes considerable risk for the NHBRC in that an inspection of such a unit may not identify underlying structural defects.
Consequence of late enrolment
NHBRC can also due to the risk factor request a five (5) year financial guarantee (to be held by the NHBRC) for an amount up to 10% of the value of such property before issuing an enrolment certificate.
Does NHBRC accept guarantees besides bank guarantees?
Within the last 2 years the NHBRC have approved certain insurance companies to issue financial guarantees.
Why do I need to enrol the house with the NHBRC?
All registered home builders must enrol every new home on behalf of the housing consumer with the NHBRC within 15 days before construction, irrespective of the purchase price. If this is not done, the late enrolment guarantee is required as the NHBRC provides a warranty on the house to the housing consumer and they would be unable to ascertain whether the correct guidelines have been followed.
What does the NHBRC do with a registered home builder who does not enrol houses on time?
If the home builder fails to provide the financial bank guarantee as per the regulation, the NHBRC will:
- Suspend the home builder’s registration;
- Withdraw the home builder’s registration with the NHBRC;
- Institute disciplinary action against the home builder.
What costs are associated with a late enrolment guarantee?
The cost of the guarantee is calculated at a rate of 3.5% – 4.5% of the guarantee value (determined by the NHBRC) per annum for a period of up to 5 years. An inspection and admin fee may also be levied. All costs are payable before the late enrolment guarantee can be issued.
How long does it take to issue a guarantee?
Approximately 4- 5 working days