The home builder licensing law is intended to provide professionalism, competence, and accountability in the home building industry. To that end, this standard is designed to help local officials, consumers, and other interested parties assess the quality of home builders in their communities. The standard addresses all aspects of residential construction including general requirements for a Home Builder Contractor license as well as specific conduct requirements that apply only to licensed contractors who build new homes or make substantial improvements on existing homes.
Home Builders Contractors
- Home builders are required to be licensed.
- Home builders must meet certain standards of quality and conduct.
- Home builders must disclose certain information, including the price of a home, in writing before entering into a contract with a buyer for the sale or lease of the property; if the seller is not an employee of the builder or does not receive compensation from the builder for acting as such, then this disclosure is required only if requested by buyer (which may happen at closing).
- They must follow certain procedures when purchasing materials from suppliers, including obtaining bids and documenting prices paid; ensuring that all material used complies with applicable codes; making sure that any subcontractor hired has met all requirements set forth in the law regarding qualifications for participation as such (for example: having workers’ compensation insurance).
General Home Builders Contractors
A Home Builders Contractors is a person or company that builds new homes. A home builder contract is a legal document that covers the terms of your business relationship with your customers, including everything from payment schedules to warranties and guarantees. A state agency will require you to obtain certain licenses and permits before you can legally operate as a home builder contractor in their jurisdiction. You may also be required to register with them if you want to sell homeowner’s insurance policies through your company name rather than under an individual agent’s license number (the latter being called an ” assumed name”).
Definitions of Home Builders Contractors
- Home Builder: A person who constructs or intends to construct a new home, or makes substantial alterations or additions to an existing home.
- Home Builder Contractor: A person who contracts with others to provide construction services related to the building of homes and residential structures, including but not limited to framing, electrical work, and plumbing.
Minimum Requirements for Home Builder Contractor Licensing Law
The minimum requirements for a home builder contractor licensing law are as follows:
- Home builders must be licensed by the state.
- A home builder license is valid for two years and may be renewed in the same manner as it was issued; however, no person shall be issued more than one renewal within any two-year period.
Home Builders Conduct and Disclosure Requirements
Home builders must disclose all known material defects in the home to the buyer within a reasonable time period. Material defects are those that would be likely to have an adverse impact on the value or suitability of the property. These include:
- Structural problems (such as cracks, sagging floors, or doors that don’t close properly).
- Electrical issues (such as faulty wiring).
- Mechanical issues (such as faulty air conditioning units).
The buyer must understand that the developer buys the land and arranges the necessary permits for the use of the land, and the builder plans the layout and constructs the building. General contractors handle quality and sublet tasks such as renovations, plumbing, and electrical to sub-contractors.
This Standard Is Intended To Help Local Officials
This standard is intended to help local officials, consumers, and other interested parties assess the quality of home builders in their communities. It establishes minimum requirements for licensing, education, and experience that must be met by a builder before issuing a license. This standard also requires that all homes built by licensed contractors meet minimum standards of quality set by state law or local ordinances. Homeowners should be able to expect their new homes will be constructed properly so they can enjoy them for many years after construction has been completed.
Conclusion
This standard is intended to help local officials, consumers, and other interested parties assess the quality of home builders in their communities. While a contractor oversees the entire construction project, a builder takes care of the actual construction of the building. They have their own crew or will hire personnel who will work on the construction site. In some cases, the general contractor is also the builder of your project and will use his own team and subcontractors for the construction and mechanical works. This is especially useful in rural areas, where almost all builders are also general contractors to maintain their business.
