contractor license - Posted by lou

Posted by Scot - SoCal on July 09, 2001 at 15:48:12:

Having worked for many contractors and many homeowners and having a deep background in construction, I think I can answer this question.

A property owner can do any work on their property. They can ‘act’ as a general contractor on their property in that they can pull permits, hire sub-contractors, and otherwise oversee their project.

They can do all this without any special licence. But they must be the owners or the ‘agent’ of the owner.

contractor license - Posted by lou

Posted by lou on July 09, 2001 at 15:26:52:

Do you need a contractor license to build a house and then lease option it out?

Re: contractor license - Posted by wayne

Posted by wayne on July 10, 2001 at 02:53:03:

You might want to check with your you state contractors board…

In oregon you need to have a contractors license for the following (verbatim from ccb pamphlet)

Who needs to become licensed with the ccb:
Oregon Construction Contractor Licensing Act, ORS Chapter 701, requires you to become licensed with the Oregon Construction Contractors Board if you are engaged for compensation in any construction activity involving improvements to real estate. This includes partnerships, corporations, limited liability companies, limited liability partnerships and self-employed individuals, whether working by the hour, week, job, or “cost-plus,” and whether by written contract or oral agreement.

A license is required for any individual or business entity which advertises, offers, bids or arranges to do, or actually does any construction, alteration, remodeling, or repair involving residential, commercial, industrial, or public works improvements. Inspection services, tree services, power washing businesses, chimney sweep businesses, developers who build houses with the intent to sell, and businesses who provide labor only (such as employee leasing or temporary businesses) are also required to become licensed.
Violations for working while not licensed or working in the wrong category can result in civil penalties of up to $5,000 per offense.

Who Does not need to become licensed with the ccb!
1-Work on your own personal property as long as there is no intent to sell.
2-Work within the boundaries of a federal site or reservation.
3-Supply or delivery of materials but not installation.
4-Owners or residents who contract for work and do not intend to sell the structure.
5-Owner-Builders who are not building the structure for resale.
6-Licensed engineers, architects, water well contractors, sewage system installers, property managers, real estate managers/agents, and landscaping businesses, when operating within the scope of those licenses.
7-Employees of property managers and licensed contractors.
8-Mobile home manufacturers.
9-Moving of modular homes.
10-Commercial lending institutions.
11-Units of government other than schools that sell student-built residential structures.

Luckily, one of my partners in my corp is a general contractor, and it is very easy to have a new license issued to my corp under his name. In oregon, now it is a helluva lot more difficult to get a contractors license, classes tests yech.

As you can see, it is pretty plain and clear that as an rei investor, If I want to rehab houses I have to have one…bonding insurance is actually pretty cheap.

You may want to check with your state, they may have stringent requirements like mine.