1. Legal Non-Compliance
Your builder will be in violation of the Housing Consumers Protection Measures Act (No. 95 of 1998). This could lead to legal action and penalties against the builder.
2. No Enrolment of the Property
Without NHBRC registration, the property cannot be enrolled with the NHBRC. Enrolment is mandatory for new homes before construction begins. If the property is not enrolled:
You will not receive the NHBRC warranty that protects against structural defects for five years.
You will lose the right to claim for repairs if defects arise due to poor workmanship.
3. Difficulty Obtaining Home Loans
Financial institutions usually require NHBRC enrolment to approve home loans or building loans. If your builder is not registered, the bank may refuse to fund the project.
4. Quality and Accountability Issues
NHBRC accreditation ensures that builders meet certain standards of quality and workmanship. A non-registered builder may not adhere to these standards, increasing the risk of poor construction.
5. Potential Legal and Financial Risks for You
As the homeowner, you could face delays or incur additional costs if construction does not meet standards and needs to be redone. You may also face challenges with the resale of the property, as potential buyers could question the legitimacy of the construction process.
What Can You Do?
Insist on NHBRC Registration: Ensure your builder provides proof of NHBRC registration before starting the project.
Report Non-Compliance: If your builder proceeds without registration, you can report them to the NHBRC.
Seek Legal Advice:
Consult a lawyer to understand your rights and options if your builder is not registered.
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