owner builder

[lweinlan]

What is the name of your state? CA

I want to build a house in CA, and act as my own general contractor or owner builder. I will use licensed CA subcontractors to build my house. Assuming that all the paperwork (certificate of occupancy, building permits, etcetera) is ok, can I sell the house right after completion? I have heard of a "one year restriction" for selling a house if it has been built by an owner builder ???Some construction people says it is illegal to sell within one year. One manager of a planning department in the city I live in told me that it is ok to sell within one year if the work has been done by licensed CA subcontractors....I am confused...Can someone clarify? thank you.

 

[HomeGuru]

What is the name of your state? CA

I want to build a house in CA, and act as my own general contractor or owner builder. I will use licensed CA subcontractors to build my house. Assuming that all the paperwork (certificate of occupancy, building permits, etcetera) is ok, can I sell the house right after completion? I have heard of a "one year restriction" for selling a house if it has been built by an owner builder ???Some construction people says it is illegal to sell within one year. One manager of a planning department in the city I live in told me that it is ok to sell within one year if the work has been done by licensed CA subcontractors....I am confused...Can someone clarify? thank you.

**A: You cannot sell upon completion. Under the law, you cannot sell for 12 months from the date of completion.
And if you hire contractors that are unlicensed for completion of work over $500 in value, you may be considered their employer for tax and liability purposes.

www.cslb.ca.gov/consumers/owner-builder.asp

 

[lweinlan]

hello Home Guru...

I am very confused by your answer..in the link you gave (the CA contractor state license board), it is clearly written under 7044 (b), and this refer to exemptions to general contractor licenses:".. An owner of property, building or improving structures thereon or appurtenances thereto, who contracts for such a project with a subcontractor or subcontractors licensed pursuant to this chapter.

However, this exemption shall apply to the construction of single-family residential structures only if four or fewer of these structures are intended or offered for sale in a calendar year. This limitation shall not apply if the owner of property contracts with a general contractor for the construction.."

You can see that they mention that there is a limitation on how many Single family houses you can sell per year (4). It does not say that you can not sell a house within one year of completion, but rather that you can sell a maximum of four.

The only place where they mention that you can not sell a house (they do not even talk about 1 year) is 7044 (a). It says: "..An owner of property, building or improving structures thereon, or appurtenances thereto, who does the work himself or herself or through his or her own employees with wages as their sole compensation, provided none of the structures, with or without the appurtenances thereto, are intended or offered for sale."

In this case (7044 (a)), you can not sell the house if you built yourself or if you have employees.

I am getting more and more confused......please HELP.....??????


Thanks
Luc

 

[HomeGuru]

hello Home Guru...

I am very confused by your answer..in the link you gave (the CA contractor state license board), it is clearly written under 7044 (b), and this refer to exemptions to general contractor licenses:".. An owner of property, building or improving structures thereon or appurtenances thereto, who contracts for such a project with a subcontractor or subcontractors licensed pursuant to this chapter.

However, this exemption shall apply to the construction of single-family residential structures only if four or fewer of these structures are intended or offered for sale in a calendar year. This limitation shall not apply if the owner of property contracts with a general contractor for the construction.."

You can see that they mention that there is a limitation on how many Single family houses you can sell per year (4). It does not say that you can not sell a house within one year of completion, but rather that you can sell a maximum of four.

The only place where they mention that you can not sell a house (they do not even talk about 1 year) is 7044 (a). It says: "..An owner of property, building or improving structures thereon, or appurtenances thereto, who does the work himself or herself or through his or her own employees with wages as their sole compensation, provided none of the structures, with or without the appurtenances thereto, are intended or offered for sale."

In this case (7044 (a)), you can not sell the house if you built yourself or if you have employees.

I am getting more and more confused......please HELP.....??????


Thanks
Luc

**A: I suggest you read 7044 again.