Flip a House = Pay a Fine, aka Washington SHB 1843

Sarah,

Thanks for posting on this topic; it needs all the attention it can get.I don't see how the public is now better protected with this bill, nor could I discern a desperate situation in regards to consumers suffering from substandard work on their homes. Most new construction is warrantied and most buyers get a home inspection before they purchase a property. If this measure was not driven by need, then it's probably a money issue. I don't think that the increase in licensing funds from additional contractor's registration will offset the the benefits (financial and communal) of improving real property. And I don't believe it's realistic to think that invester will now flock to get their contractor's license.

Sarah:  I don't see how this new law is a benefit to the people of Washington.  They need to establish  better licensing standards.  If contractors were used to do the work, if it were shoddy I would go after the contractor not the owner. 

I know it doesn't work that way but If I were sued for flipping a house that had some bad work done, I would go after the person who did the work.  If they were licensed they would be in danger of loosing their license if they didn't make it right.

I have to agree with Ray.  A person should be able to buy and sell real estate for profit without having a contractor licens, and be able to hold contractors accountable for shoddy work.  Great information, Sarah.

Wow.  If I ever saw a post that outlined how local government was out of control, this is it.  For the state to say that I can't buy a property, and then have work done that meets code, and then sell the house at a profit (or loss) without being a contractor, is a SERIOUS breach of property rights. 

I can work on my own house, as long as the work meets code, without having a professional license in any discipline.  I can do my own plumbing, electrical or HVAC.  However, I can't run around charging others for it.  

If there is a big problem with substandard work, it sounds like the state is looking at the wrong issue.  Perhaps they need to look to the permitting process if there aren't permits and inspections, home inspectors if the non-code work isn't being caught, and tradespeople if the work is being done in a sub-standard manner (of course, they should also fine tradespeople if they are doing un-inspected work on non-permitted jobs). 

Great information!  I'm with those that expressed concern for the private person who simply wants to buy a fixer, fix it up and sell it.  I don't see why one would have to have a license to to this as along as permits are pulled etc.  I can see the intent of the law but it seems to take away the role of regular joes wanting to fix up a property.

Sarah: This is a great post, thank you.  I also wanted to thank you for all of your great contributions to the Washington Real Estate and Property Law group, which is where I found this!

To add a bit to your warranty comment, it might be worth nothing there is one warranty a builder may give to a home's first buyer: the warranty of habitability.  This is an implied-in-law warranty, meaning that it exists even if it does not appear in the contract.  It is not the kind of warranty protection that I believe a lot of consumers are looking for or might even expect, as all it requires is that the home is, in fact, "habitable."  Additionally, the Condominium Act does require a number of warranties, although those warranties can be specifically excluded.  However, as your post and the comments demonstrate, this is not necessarily the kind of protection  that most consumers might expect.

Thanks for the great post!

I purchased my home in April 2009, this was my first home as a single mother.  I learned later that not only was this law passed but my house in fact was illegally flipped by a non licensed/bonded person acting as contractor which in fact had no idea what he was doing.  The city of Clarkston allowed this as a one time courtsey even though it was illegal and then the building inspectors didnt do their job and make sure this was done correctly My house is now falling apart and I have to file a claim with the city but I feel my home is a total loss How could of this happened? Some one please help and let me know how to get this to a higher level with the state!

Nicole- The building inspectors should be doing their job and making sure things are done legally!

Michael, you should only eat at restaurants instead of fixing your own meals.  The buyer should invest in a building inspection to make sure the home is well built.  Just an update on this.  My daughters father in law wants to sell her and his son his house in Washington for less than market value to help them out.  They want to fix it up to sell but can't because they would not have lived it.  They now may have to sell a house that may not qualify for a loan because it needs some basic repairs and upgrading or they have to fix it up first before they buy it or be fined.  Of course they had planned to hire contractors to do the work but this law only lets contractors buy, fix up and sell homes.  There are a few things that a non contractor can do well on a home he or she owns but the work still has to be up to code. What happened to the inspectors who are supposed make sure everything is done right?  This is government getting way too involved in personal property rights.  Of course, that is the way of Washington State these days.