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How Do I Know If the Contractor I Want to Use is Licensed?

By
Real Estate Agent with Long and Foster Real Estate VA License # 0225089470

How Do I Know If the Contractor I Want to Use is Licensed?

Not too long ago, I was recommending contractors to a seller in Bristow who needed some home inspection repair work done.  There are a few contractors in the neighborhood that get referred over and over.  In fact, one of them did some work for a seller of mine about twelve months ago.

Because the Northern Virginia Regional Sales Contract home inspection addendum states that all repairs must be done by a licensed contractor, I looked up everyone I was about to refer.  To my surprise, one of the top recommended contractors, who had done that work for a seller of mine last year in Bristow, was not coming up as licensed.  I was sure this had to be mistake.  So I messaged him.  A few days later, I got the response, "No, I am not licensed."  

Even if the home inspection addendum hadn't stated that the work needed to be done by a licensed contractor, I would still want my sellers to have the protection of working with a licensed professional.  Someone licensed to do work as a contractor, in any field, must be covered by a liability policy.  Of course, if you can hire a Class A contractor, they carry the highest level of license and have higher insurance coverage.  

If you don't know how to check and see if the contractor you are considering hiring is licensed, simply click this link to Virginia's Department of Professional and Occupational Regulation website.  You'll see in the upper left hand corner a link that says LICENSE LOOKUP.   Type in the name of the business, or contractor and see if they are licensed.  You can find electricians, plumbers, HVAC companies and even roofers.  

Hiring a handyman may be cheaper, but you are also taking on more risk with that type of worker.  Hiring someone with a license ensures competency and that they are insured.  It pays in the long run to work with a licensed contractor.  

 

Comments (17)

Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Chris Ann - That requirement isn't written into our forms, so when we're writing an inspection objection for a buyer, we always specify a licensed contractor - we've seen way too much of good ol' uncle bob's attempts to risk that.

Feb 24, 2016 08:44 AM
Chris Ann Cleland

The contractor that I was shocked to learn wasn't licensed does good work and gets rave reviews.  I think people assume he is licensed.  I'm puzzled why he isn't.

Feb 24, 2016 08:47 AM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Ask for a copy of it and then verify it with the governing authority

Feb 24, 2016 08:51 AM
Chris Ann Cleland

And the link to the governing authority in our area is in the post.

Feb 24, 2016 08:53 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Chris Ann

Interesting that the recommended contractor isn't licensed. Perhaps a cost issue? Seems rather risky

I think it's pretty important for most work to be done by someone who is licensed, even if not required in the contract (but if not I would add it in the repairs request) and sellers should know how to find out.

Feb 24, 2016 08:55 AM
Chris Ann Cleland

Me too.  That's why, even if  I am 99% sure they are, I check.  You just never know.

Feb 24, 2016 10:08 PM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

There are a lot of very qualified tradesmen that can do similar work or even better in some instances that one that is licensed, but that extra degree of certainty is the reassurance that all will be done to code.

Feb 24, 2016 10:45 AM
Chris Ann Cleland

And the fact that they are licensed to a higher level, carrying more insurance, if something goes wrong.  

Feb 24, 2016 10:08 PM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

In GA you check the secretary of state.  No way would I let an unlicensed or uninsuraned contractor work on my house.

Feb 24, 2016 11:40 AM
Chris Ann Cleland

Maybe to paint to a door or something like that.  Not to work on plumbing, electrical, or other things in the guts of the home.

Feb 24, 2016 10:09 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

This is important information to convey, Chris Ann!  California also has a website where you can check status of contractors.

Feb 24, 2016 03:33 PM
Chris Ann Cleland

I'm sure most states do. In the case of the contractor not licensed, but referred like crazy, he is probably also on Angie's List with rave reviews.  And I'm sure people check that he is licensed because they assume he is.  That's why I like to go to the licensing body and find out.

Feb 24, 2016 10:11 PM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hi Chris Ann --- the California purchase agreement does not have this specific language.  Your discovery of one of your neighborhood contractors is not licensed is interesting and does prompt a question(or two) of why.   

Feb 24, 2016 10:14 PM
Chris Ann Cleland

I personally know a Class A contractor who lost his business and license in a dispute with a client.  They reopened with his wife holding the license for the company.  That's why I am on the look out for these things.

Feb 24, 2016 10:51 PM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

I would certainly want a licensed contractor. Great information for all home owners!

Feb 25, 2016 02:35 AM
Chris Ann Cleland

Same here.

Feb 25, 2016 07:22 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Chris Ann, I always check contractor license status. I actually saw a contractor on Angie's list that has a complaint pending against him.  I am surprised that Angie's list allows that ... but then again, he has the right to "dispute" the claim that he subcontracted to an unlicensed person.  The risk is too high ... I'd rather pay more than get stung in the end all over "saving a few dollars."  And some of the unlicensed contractors charge more than one who is.

Feb 25, 2016 05:34 AM
Chris Ann Cleland

Same here.  Pay more for less risk.

Feb 25, 2016 07:21 AM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

We are not required to use licensed contractors in California, and some people want to save a little money by hiring a handyman, for example, but that's not always the best route. There is little recourse if you're unhappy  (without suing) or, like you state, there is often no liability insurance. There is also no assurance the licensed guys will do a better job. What often comes up for us is the permit issue.

Feb 25, 2016 05:35 AM
Chris Ann Cleland

Recommendations of satisfied customers, agents and a license are my favorite combo for a contractor.

Feb 25, 2016 07:22 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

FEATURED IN CRAP-TACULAR

 

MR. CRAPPY KNOWS THAT HIRING AN UNLICENSED CONTRACTOR CAN NET REAL CRAPPY RESULTS ... ON SO MANY LEVELS

 

Feb 25, 2016 05:35 AM
Chris Ann Cleland

Thanks for the feature.

Feb 25, 2016 07:22 AM
Debb Janes
Nature As Neighbors - Camas, WA
Put My Love of Nature At Work for You

I agree with you Chris Ann. Why the heck wouldn't he be licensed? That's curious - and your point is well-made. Always check. Assumptions lead to disappointments. 

Feb 25, 2016 11:38 PM
Chris Ann Cleland

I wouldn't hire anyone not licensed to do work on my home outside of painting.  


BTW, like your new photo, Debb Janes EcoBroker and Bernie Stea JD .

Feb 26, 2016 02:35 AM
Curtis Van Carter
Better Homes & Gardens Wine Country Group - Yountville, CA
Your Napa Valley Broker Extraordinaire

Chris Ann

Interesting your contract state the home inspector needs to be licensed. Here, it refers to the two home inspectors associations but not that have to licensed. Heck, the seller can do any repairs, cheers cvc

Feb 26, 2016 05:20 AM
Chris Ann Cleland

Not referring to the inspectors, but the removal of the home inspection addendum states repairs must be done by a licensed, professional contractor.

Feb 27, 2016 01:20 AM
Curtis Van Carter
Better Homes & Gardens Wine Country Group - Yountville, CA
Your Napa Valley Broker Extraordinaire

a ps the liability for a home inspector is 3 times their fee. Not real justice, cheers cvc

Feb 26, 2016 05:21 AM
Marney Kirk
Cummings & Co. Realtors - Towson, MD
Towson, Maryland Real Estate

Chris Ann, in Maryland, we as agents are actually legally responsible to recommend licensed contractors, even if it isn't part of a contract. If a past client calls me to ask for a recommendation, that person must be licensed, or I could be in trouble. It is rather scary for us as agents.

Feb 26, 2016 11:01 AM
Chris Ann Cleland

That's why I'm double checking folks in the DPOR website.

Feb 27, 2016 01:21 AM
Patricia Kennedy
RLAH@Properties - Washington, DC
Home in the Capital

Chris Ann, it seems really easy to find license information throughout the DC Metro area.  

Feb 26, 2016 12:02 PM
Chris Ann Cleland

It is.  The thing is to not assume someone who has been referred to you is licensed.

Feb 27, 2016 01:22 AM
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

The first time I ran into unlicensed contractors was during Hurricane Katrina. It was disasterous! There were so many unskilled, untrained "contractors" scurrying around after a disaster, and they compounded the problem. It's important to have that extra layer of protection.

Feb 29, 2016 08:29 AM
Chris Ann Cleland

Protection is a good thing.  And hiring a licensed contractor may be the first way to protect yourself.

Feb 29, 2016 08:38 AM