How rent to own works and sell a house fast. We buy homes, apartments, condo. Buy a lease purchase option home.

Do Flipper’s Need a Contractor’s License?

There was an excellent published in the last issue of the Rental Housing Association (Washington) newspaper on the topic of whether or not house flippers need to have a contractor’s licenses.  RHA writes about the new law in Washington and was responding to a question from a reader who’s accountant advised him that as a flipper of properties he would now need a contractor’s license. After reviewing several aspects of the law, RHA wrote “Looking at your case, depending on the time period you are holding your properties, whether you are engaging licensed contractors to do the rehab work for you and other factors, it certainly may be the case that you are now required to obtain a contractor’s license.”

I found this particularly disturbing in that the article points out the new law actually applies to those of us who do work on our own properties, or offer to sell our property without occupying it for more than a year from the date we complete our improvements. He states that the law makes clear that at least some persons doing work on their own properties will need to be licensed. It even sounds to me from this article that we will not even be allowed to install carpet or other floor covering, repair a roof or siding, remove a tree from the property, do any cabinet installations, etc. etc.

This sounds totally bizarre. This could dramatically change the way all of us do business if we want to remain compliant with the law, and who doesn’t? If I can’t operate legally, I won’t do it. But, I don’t think the legislators had any idea what kind of nightmare this is going to create if all of us have to go become contractors before we can rehab a property. I can see why some improvements need to be more controlled for the safety of the people who are purchasing the homes, such as electrical work. However, laying carpet? Give me a break!

Clean Up Your Credit Report

One Response to “Do Flipper’s Need a Contractor’s License?”

  1. A friend of mine talked to Labor & Industries (washington) yesterday and here is what he found out.

    I just talked to L&I and they told me I had to have a license now. They said there would be no grace period for flippers. You have to have a license if the work is over $500 and you intend to sell the property within a year. Good news is that it is only $113.40 for the registration with L&I and your contractor’s bond + your insurance + whatever taxes you owe + other stuff I’m sure I missed.

Leave a Reply

CommentLuv Enabled

This site uses KeywordLuv. Enter YourName@YourKeywords in the Name field to take advantage.


Powered by Yahoo! Answers