FAQ - Building Packages
Thank you for choosing MER.C.KOR as your housing partner. Here, you’ll find answers to common questions regarding the building process. For more information, please contact your agent or MER.C.KOR.
Click on the below questions to see the answers.
BEFORE CONSTRUCTION - The loan was GRANTED and ACCEPTED, what are the next steps?
You will be contacted to sign the relevant Bond and Transfer documents with the Attorneys, and MER.C.KOR building documentation with a MER.C.KOR representative. During this period, we will also finalise the plan of your new home. The required documentation will be submitted to the NHBRC, City Council and the financial institutions for approval, issuing of certificates and proceed to lodge the transaction for registration of the bond, and transfer of the land at the Deeds Office.
BEFORE CONSTRUCTION - May I request changes to the house plan?
You will be presented with a draft plan according to the correct stand orientation after bond approval at which point you can make changes whereafter the architect will finalize the house plan for submission to the City Council for approval.
Should you require assistance or clarity, our Project Manager will assist with design suggestions and provide clarity on specification, general requirements, and other questions you may have.
DURING CONSTRUCTION - When does construction start, how long is the construction period, and will I receive updates?
After registration, approval of the plan, issuing of the NHBRC enrolment certificate etc. construction will commence on your property. Construction may take four to six months to complete. Also see Clause 5 of the Building Contract.
Please note that all time frames may change due to weather, finishes required, material shortages, strikes etc. Please ensure we have all the correct contact details and please keep them updated with us, as we can keep you informed on the progress during the construction process period.
When construction is nearing completion, you will be contacted to meet a representative at your property to do the final inspection and to finalise the required documentation. These documents will be sent to the Bank so their valuator can do a final inspection and, in most cases, contact you, the client, to approve final payment. When final payment is received, we will contact you again, this time to collect the keys to your new home!
Copies of the Occupation Certificate, Electrical Certificate (COC) and the Approved Building Plan will be available upon request.
DURING CONSTRUCTION - Who inspects the house, and am I allowed to visit the construction site?
During the construction process the City Council’s building Inspector, the NHBRC, our Structural Engineer, the Bank, our Contractor, and Project Manager will inspect the property. This is to ensure that we adhere to the Engineer’s design specifications, and the NHBRC regulations and Bank’s requirements.
You are allowed to visit the site, on condition that this is arranged with MER.C.KOR prior to your visit.
DURING CONSTRUCTION - May I install burglar bars or do any alterations before final payment from bank?
Unfortunately, these additions/alterations are NOT permitted.
The bank needs to do their final inspection based on the project of the approved loan and the Contractor paid in full before additional work may be done.
AFTER CONSTRUCTION - What are retentions and how are they reported?
Retentions are defects regarding the construction of the property you may notice after occupation of the property. This MUST be reported in WRITING by simply completing a retention form and sending it via email to sales@merckor.co.za.
Please note that the date on the Occupation Certificate is the date when the property was habitable, not the date when the property was occupied.
Retention periods (from date of Occupation Certificate):
Hand-over retention (all items listed at the final inspection) – 7 days.
General retention (plumbing, electrical work including geyser element and settlement/surface cracks) – 3 Months.
Roof leakages and geyser (tank only) – 1 Year.
Structural defects (crack wider than 4mm) – 5 Years.
The full contract amount must be paid to the Contractor before any retentions will be attended to.
GENERAL - Do I have to pay the interim interest during the construction period and why?
YES, interim interest should be paid on any amount paid from the loan after registration of the bond. Also see Clause 2.5 of the Building Contract.
Interim interest which is not serviced/paid will be deducted from the funds available to finance the construction of the dwelling, which will result in a shortfall when builder receives final payment.
We advise clients to consult the financial institution (Bank) regarding this matter.
GENERAL - When should I start paying Rates and Taxes to City Council?
Property Rates and Taxes are payable to the City Council from date of registration or transfer.
