DIY Home Sellers Without a License?
Reading the latest publication from the Arizona Association of Realtors and this one stuck out like a sore thumb! I've written many times about the amazing rebound we've had in our housing market in Arizona, so this article about homeowners acting as General Contractors really hit home.
I've also written about using a general contractor for work over $1,000, but that requirement also exists if you are a home seller.
Arizona lead the country in fix and flip recovery from 2013 to 2014, so it was very common to see completely refurbished homes at almost every showing. Homes were painted, carpeted, cleaned up and resold. A great way to improve prices, too!
But where there is change in the system, there are those that would bypass regulations. Regular home owners becames investors, buying homes at the auctions. These would also be remodeled and resold, but what about the quality of the work?
There are statutes protecting those that purchase homes that have been flipped from unlicensed contractor/owners. In Arizona, those statutes require that a home seller improving their own home in order to sell it without a general contractors license must only be making repairs under $1,000 if they intend to do the repairs to sell the home. If the repairs are over $1,000 and completed by a home owner, the home cannot be sold until a full year has passed if that owner is an unlicensed contractor.
For the exact wording on statute ARS 32-1211. This statute refers specifically to the handyman exemption.
Another Statute protecting the consumer is ARS 32-1511. It is unlawful to act as a General Contractor without a license!
And don't file a false statement or ARS 32-1169 comes into play!
Protecting the consumer against unlicensed contractors protects values and gives the home buyer assurance that the repairs and upgrades are completed properly, providing security and peace of mind.
So the next time you're buying a home, make sure to ask if the work was completed by a licensed contractor! If not, NEXT!
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