What is the name of your state (only U.S. law)? Alabama
Hello,
My wife and I purchased our first piece of "investment property" nine months ago in order to renovate, with the desire to eventually rent or possibly sell. Before ever purchasing I contacted the permit departments to confirm I could do the work myself as the owner of the property, as I am not a licensed contractor, and such was confirmed. I also confirmed there was a septic system as it would not have been worth purchasing otherwise. I was told I could do the renovations myself as the Owner with exception of installing the central air conditioning. As the home was basically gutted I had to acquire plumbing, electrical, and building permits with each requiring three phases of inspections respectfully.
I renovated the home and we recently offered it for sale. Soon afterward I was notified of being in violation of Alabama Code 34-14A-1 in regards to Home Builders Licensing. As I have come to learn, in the state of Alabama you must be licensed if you remodel a home in which you spend more than $10,000.00 on the remodel and then offer it for sale within one year after completion. If you do such you are deemed a Home Builder and in violation of the law which is a class A misdemeanor with up to $2,000.00 fine and possible 1 year prison.
Well, all the above was news as nothing was ever stated to me in regards to such. This is disappointing considering we used a Real Estate and a Loan Agent who deals with such property. They have also claimed to have been completely unaware of this code. When you apply for a permit to do work on property you must prove you are “licensed” or “exempt”, as the case of a property owner.
Anyhow, upon researching the matter I discovered the Permit department had me sign an exemption form, Home Owners Affidavit, which was outdated. The code was completely misrepresented in the Affidavit as it reflects how the law used to read. It is a minimum 4 years outdated as the lady at the Home Builders Licensure Board admits and possibly even older.
The Affidavit only regulated future property purchases. In other words I could fix up this property without any limitations in regards to selling it etc, which is the assumption I was under. It in facts mentions the possibility of a sale by noting "subsequent purchaser" twice in Paragraph 5; in giving a type of disclaimer notice in regards to any lawsuits which could possibly arise, such as due to poor craftmanship etc.
The Affidavit explicitly outlines the limitations only being regulated to future homes I may have undertaken to construct.
Quote:
Paragraph 6
Paragraph 7 “
In regards to “residential homebuilder” as noted in Paragraph 7, Paragraph 4 completely contradicts it by making you state, “As the residential homebuilder…I am responsible for the quality of work….”
In regards to “exemption” status Paragraph 2 simply has you state “I do hereby solemnly swear that I am exempt…….as I am the property owner of said property…”. It references the specific code in the middle of that sentence.
None of the above reflects how the code actually reads today.
They want me to plead guilty and pay a fine of $1,000.00 with the matter being closed at that. However, I do not want to do such as the law was completely misrepresented by the Governing authority themselves, the County Inspection Office. In addition, it is something which I will have to live with and could affect job opportunities? The Homebuilders Licensing Board is now fully aware the law was misrepresented to me but such has not swayed them.
I am waiting to receive their letter of terms, IE: payment of $1,000.00 and admission of violation of law, but will seek legal advice. We took what we thought was every attempt to abide by all laws and codes. Any advice or insight?
Thank you,
Hello,
My wife and I purchased our first piece of "investment property" nine months ago in order to renovate, with the desire to eventually rent or possibly sell. Before ever purchasing I contacted the permit departments to confirm I could do the work myself as the owner of the property, as I am not a licensed contractor, and such was confirmed. I also confirmed there was a septic system as it would not have been worth purchasing otherwise. I was told I could do the renovations myself as the Owner with exception of installing the central air conditioning. As the home was basically gutted I had to acquire plumbing, electrical, and building permits with each requiring three phases of inspections respectfully.
I renovated the home and we recently offered it for sale. Soon afterward I was notified of being in violation of Alabama Code 34-14A-1 in regards to Home Builders Licensing. As I have come to learn, in the state of Alabama you must be licensed if you remodel a home in which you spend more than $10,000.00 on the remodel and then offer it for sale within one year after completion. If you do such you are deemed a Home Builder and in violation of the law which is a class A misdemeanor with up to $2,000.00 fine and possible 1 year prison.
Well, all the above was news as nothing was ever stated to me in regards to such. This is disappointing considering we used a Real Estate and a Loan Agent who deals with such property. They have also claimed to have been completely unaware of this code. When you apply for a permit to do work on property you must prove you are “licensed” or “exempt”, as the case of a property owner.
Anyhow, upon researching the matter I discovered the Permit department had me sign an exemption form, Home Owners Affidavit, which was outdated. The code was completely misrepresented in the Affidavit as it reflects how the law used to read. It is a minimum 4 years outdated as the lady at the Home Builders Licensure Board admits and possibly even older.
The Affidavit only regulated future property purchases. In other words I could fix up this property without any limitations in regards to selling it etc, which is the assumption I was under. It in facts mentions the possibility of a sale by noting "subsequent purchaser" twice in Paragraph 5; in giving a type of disclaimer notice in regards to any lawsuits which could possibly arise, such as due to poor craftmanship etc.
The Affidavit explicitly outlines the limitations only being regulated to future homes I may have undertaken to construct.
Quote:
Paragraph 6
Quote:
Paragraph 7 “
This is perfectly clear.
In regards to “residential homebuilder” as noted in Paragraph 7, Paragraph 4 completely contradicts it by making you state, “As the residential homebuilder…I am responsible for the quality of work….”
In regards to “exemption” status Paragraph 2 simply has you state “I do hereby solemnly swear that I am exempt…….as I am the property owner of said property…”. It references the specific code in the middle of that sentence.
None of the above reflects how the code actually reads today.
They want me to plead guilty and pay a fine of $1,000.00 with the matter being closed at that. However, I do not want to do such as the law was completely misrepresented by the Governing authority themselves, the County Inspection Office. In addition, it is something which I will have to live with and could affect job opportunities? The Homebuilders Licensing Board is now fully aware the law was misrepresented to me but such has not swayed them.
I am waiting to receive their letter of terms, IE: payment of $1,000.00 and admission of violation of law, but will seek legal advice. We took what we thought was every attempt to abide by all laws and codes. Any advice or insight?
Thank you,
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