EXEMPTIONS

Subcontractors

Subcontractors who are employed by a licensee are not required to hold a residential home builders license. Ala. Code § 34-14A-6(a). A subcontractor employed by a licensee who is contracting with the homeowner is not required to hold a residential home builders license.

Employees of Government Entities

No residential home builders license is required for employees of the United States, the State of Alabama, or any municipality, county, or other political, if the employee does not hold himself or herself out for hire or otherwise engage in residential home building except in accordance with his or her employment. Ala. Code § 34-14A-6(b).

General Contractors

General contractors holding a current and valid license issued by the State Licensing Board for General Contractors prior to January 1, 1992, are exempt from holding a residential home builders license. Ala. Code § 34-14A-6(c). The license number issued by the State Licensing Board for General Contractors must be 18908 or below.

Real Estate Licensees, Engineers, and Architects

No residential home builders license is required for real estate licensees, licensed engineers, and licensed architects when operating within the scope of their respective licenses on behalf of clients. Ala. Code § 34-14A-6(d).

Homeowners

The Home Builders Licensure Law provides an exemption for homeowners who build or improve their own residence for their own occupancy or use.

Owners of property when acting as their own contractor and providing all material supervision themselves, when building or improving one-family or two-family residences on such property for the occupancy or use of such owners and not offered for sale. This exemption is a nontransferable privilege.
Ala. Code § 34-14A-6(e)(1).

Homeowners claiming the homeowner exemption violate the Home Builders Licensure Law if the residence is offered for sale within one year of substantial completion.

In any action brought under this chapter, proof of the sale or offering for sale of such structure by the owners of property, as provided in this subdivision, within one year after completion of same is presumptive evidence that the construction was undertaken for the purpose of sale.
Ala. Code § 34-14A-6(e)(2).

Please note the following:

  • Homeowners claiming the homeowner exemption jeopardize their rights for protection under the provisions of the Home Builders Licensure Law, which include benefits of filing a consumer complaint and receiving payment from the Homeowners’ Recovery Fund. See Homeowner Exemption affidavit.
  • Homeowners who hire or compensate anyone to supervise the building or improvement of their residence are not acting as their own contractor.
  • Subcontractors hired by homeowners claiming the homeowner exemption must be licensed if the cost of the undertaking for the portion the subcontractor is hired to do exceeds $10,000.00. See Types of Home Builder Licenses.

Mobile Homes

No residential home builders license is required to perform improvement work on mobile homes or any structure regulated by the Alabama Manufactured Housing Commission. Ala. Code § 34-14A-6(f).

Agricultural Buildings

No residential home builders license is required to build or improve agricultural buildings except for any contained therein. Ala. Code § 34-14A-6(g).