The fees are designed to provide a warranty cover for 5 year major structural defects for all new homes enrolled. The law requires all home builders to enroll every new home with the NHBRC, irrespective of selling price or whether it is built through cash or mortgage loan. All new homes must be enrolled 15 days before construction commences. Before an enrolment certificate is issued, the homebuilder must pay an enrolment fee that has been determined.
A house valued up to R500 000 is subject to a levy of 1,3%. An additional 1% is added up to R1-million, 0,75% up to R2-million and 0,5% beyond that up to a maximum of R34 000 per housing unit.