Consumer Studies
Topic 4: Housing and Interior
Unit 1: Different Housing Acquisition Options
1. Building a Home:
Financial Responsibilities:
- Erf/plot: purchase price and transfer duties
- Labor: architect/draughts person and builder
- Materials
- Municipal fees
Contractual Responsibilities:
- Building contract: a written agreement between the landowner and the builder listing the
terms and conditions, where the builder undertakes to build a house for a specific price,
according to an agreed plan and specifications, on the plot.
General content of a building contract:
- Detailed breakdown of costs (building and legal)
- Dates, methods and terms of payment
- Exact dimensions of the house
- Date of completion
- Builder’s warranties with regard to structural defects, roof leaks, faulty construction or
incomplete work
- A clause re: cancellation of the contract
- Consequences of breach of contract by either party
- List of specifications attached to plan
National Home Builders Registration Council (HNBRC):
- Ensures adequate standards of construction and responsible behavior by contractors.
- Contractors and builders are required to register with the NHBRC.
Standard Home Builder’s Warranty:
Must be issued by the builder, in accordance with the conditions of registration with the NHBRC.
Under this defects warranty, the registered home builder must:
- Enroll the new house with the NHBRC and build the house to the standards and guidelines
laid down by the NHBRC
- Repair any defects related to the plans, workmanship, specifications and material used in
the new house that occur within 90 days of moving into the new house
- Repair of any roof leaks that occur within the first 12 months of moving into the house
- Provision of a 5-year warranty to ensure the structural integrity of the new house. This is a
guarantee that the substructure, roof structure, walls and private drains are sound
- Ensuring that you sign a letter that confirms the acceptance of occupation, of which a copy
must be provided to the NHBRC by the builder
Once you move into your new house:
- Compile a snag list detailing all defects in the house that require fixing
Topic 4: Housing and Interior
Unit 1: Different Housing Acquisition Options
1. Building a Home:
Financial Responsibilities:
- Erf/plot: purchase price and transfer duties
- Labor: architect/draughts person and builder
- Materials
- Municipal fees
Contractual Responsibilities:
- Building contract: a written agreement between the landowner and the builder listing the
terms and conditions, where the builder undertakes to build a house for a specific price,
according to an agreed plan and specifications, on the plot.
General content of a building contract:
- Detailed breakdown of costs (building and legal)
- Dates, methods and terms of payment
- Exact dimensions of the house
- Date of completion
- Builder’s warranties with regard to structural defects, roof leaks, faulty construction or
incomplete work
- A clause re: cancellation of the contract
- Consequences of breach of contract by either party
- List of specifications attached to plan
National Home Builders Registration Council (HNBRC):
- Ensures adequate standards of construction and responsible behavior by contractors.
- Contractors and builders are required to register with the NHBRC.
Standard Home Builder’s Warranty:
Must be issued by the builder, in accordance with the conditions of registration with the NHBRC.
Under this defects warranty, the registered home builder must:
- Enroll the new house with the NHBRC and build the house to the standards and guidelines
laid down by the NHBRC
- Repair any defects related to the plans, workmanship, specifications and material used in
the new house that occur within 90 days of moving into the new house
- Repair of any roof leaks that occur within the first 12 months of moving into the house
- Provision of a 5-year warranty to ensure the structural integrity of the new house. This is a
guarantee that the substructure, roof structure, walls and private drains are sound
- Ensuring that you sign a letter that confirms the acceptance of occupation, of which a copy
must be provided to the NHBRC by the builder
Once you move into your new house:
- Compile a snag list detailing all defects in the house that require fixing
