• Building Officials
• Owner/Builder Overview

Owner/Builder Overview

This section provides answers to questions regarding owner/builder's and briefly describes the laws surrounding the practice.

Who is considered an owner/builder?

Any individual, or group of individuals, who own the property on which they plan to construct, alter, repair, improve, or remodel a building or structure. Also, a tenant may be considered an owner/builder (case-by-case).

Is an owner/builder required to have a license?

An owner/builder is exempt from licensure, but there are limitations.

A license is not required if:

• The owner/builder does the work himself or herself or through his or her own employees with wages as their sole compensation and the structure(s) is/are not intended for sale.
  
• The owner/builder contracts with properly licensed subcontractor(s).
  (This exemption applies to the construction of a single-family residential structure and limits the number of structures intended or offered for sale to four or fewer in a calendar year.)
• The owner/builder contracts with a general building ("B") contractor. (The number of structures is then unlimited.)

Is a homeowner required to obtain a license if he/she wants to improve his/her home?

A homeowner improving his or her principal place of residence is exempt from licensure if all of the following exist:

• The work is performed prior to sale;
• The homeowner resides in the residence for the 12 months prior to completion of the work; and,
• The homeowner has not taken advantage of this exemption on more than two structures during any three-year period.

Are there any trades that property owners are prohibited from performing themselves?

Property owners are prohibited from performing well-drilling work covered under the C-57 Well Drilling classification.

Does the owner/builder exemption apply to an individual who builds homes for resale (spec homes) and are there any limitations?

Yes.

The owner/builder exemption would apply to an individual who builds homes for resale under any of the following conditions:

• Licensed tradesmen are hired to perform all work on the project (provided no more than four structures per calendar year are intended for resale).
• A licensed general contractor is hired to perform and/or subcontract the completion of all work on the project. (No restriction on the number of structures completed per calendar year.)
• The owner/builder performs the work, all or in part, and resides in the completed structure for one year prior to resale. (Applies to not more than two structures in a three-year period.)

(For more information regarding owner/builder, see section 7044 of the Business and Professions Code or The Risks of Being an Owner/Builder under the "Consumers" section of this Web site.)