FREQUENTLY ASKED QUESTIONS

Applicants

How do I obtain a Home Builder’s License?

In order to obtain a State of Alabama Home Builders License, one must:

  • Obtain an application package by either clicking here or sending a written request along with a check or money order for $25 to Home Builders Licensure Board, P. O. Box 303605, Montgomery, AL 36130-3605.  Be sure to state whether you are requesting an unlimited license application package or a limited license application package.
  • Complete the appropriate application form and return the notarized application with a check or money order made payable to the Home Builders Licensure Board in the amount of $350.00 ($250 license fee and $100 new application processing fee).
  • Take and pass the Alabama Home Builders Exam. No authorization is required to take the exam.
  • Request that a current credit report on the individual or business who is making application be sent to the Board directly from a credit-reporting agency.
  • If applying as a corporation, limited liability company or limited partnership,
    1. Provide a Certificate of Compliance from the Alabama Department of Revenue.
    2. Provide a copy of the Articles of Incorporation, the Articles of Organization, or the partnership agreement as applicable.
    3. Additionally, if applying as an incorporation, provide a copy of the minutes of the board meeting showing the election of officers. If applying as an LLC, provide the Operating Agreement.
  • If applying as a foreign (out-of-state) corporation, limited liability company or limited partnership, also provide a Certificate of Existence from the Alabama Secretary of State.
How do I get an application?

To obtain an application package, either click here or send a written request along with a check or money order for $25 to Home Builders Licensure Board, P. O. Box 303605, Montgomery, AL 36130-3605.  Be sure to state whether you are requesting an unlimited license application package or a limited license application package.

How long does it take to get a license?

Processing of an application, including receipt of the application with attachments, test scores and credit reports, and review by the Board takes approximately 3 to 4 weeks. Applications must be on file in the Board’s office and be deemed complete seven days prior to a scheduled meeting of the Board in order for that application to be reviewed.

How long is a test score valid?

A test score is valid for three (3) years from the date of the test.

Where do I take the test?

In order to better serve the needs of each candidate, the Board offers nine testing facilities: Auburn, Birmingham (2), Enterprise, Huntsville, Mobile, Montgomery, Sheffield and Tuscaloosa. All testing is provided by Prov, Inc.. No authorization is required to take the test. To download your Candidate Information Bulletin that will answer all of your exam questions for the Alabama Home Builders exam, click here.

Is there a school or training classes offered to assist in obtaining a home builders license?

The Board does not offer training classes or study materials. However, the Candidate Information Bulletin  in the application packet provides basic information and references to study materials. Independent vendors will sometimes offer classes and study materials for the examination; if vendors provide the Board with information regarding the classes and study materials, the Board provides that information to applicants. Training classes, study classes, and study materials provided by vendors ARE NOT offered by, approved by, or supported by the Board.

Does the Board reciprocate with any other State?

If you hold a residential construction license in the States of Tennessee, South Carolina, Mississippi, or Louisiana, you may be exempt from the Alabama Home Builders Licensure Board Exam. If you hold a current and valid residential builder’s license in another state, answer yes to the question on the application asking whether you have applied for a residential home builder’s license or similar license to this Board or any other governmental agency, and provide a copy of your out-of-state license with your application.

I have decided not to continue with the application process. Can I get a refund?
Yes. You must mail a signed, written request for a refund to the Board.
I’m not sure whether I need a license to do this job. What do I do?

If you are not sure whether a license is required for a particular job, please contact the Board’s office and ask to speak to someone in the Legal Division.

Do I have to have insurance in order to be issued a license?

No. The law regulating residential home builders does not address insurance. However, insurance may be required under other state laws. You should contact the Department of Industrial Relations for more information regarding insurance requirements.

What documentation do I need to send regarding items being reviewed concerning my credit report?

Click on the appropriate item below for information on the documentation required for Board review in regards to credit issues:

Bankruptcy

Collection(s), ChargeOff(s), Write-Off(s)

Judgment(s) or Tax Lien(s)

All documentation must be returned to the Board office no later than 7 days prior to the Board meeting date of the application’s review.

 

Miscellaneous

Is there a difference between a Home Builder’s License and a General Contractor’s License?

Yes. In the State of Alabama, one who engages in the construction of commercial or public properties where the cost of the undertaking including labor and materials is $50,000 or more and swimming pool construction of $5,000 or more is considered a General Contractor. A residential Home Builder is one who engages in the construction, remodeling, repair, improvement, or reimprovement of a residential structure where the cost of the undertaking including labor and materials exceeds $10,000, unless the work performed is not within the jurisdiction of the Board.

I have a General Contractor’s License. Can I build homes?

Anyone holding a General Contractor License issued prior to the passing of the statute that brought into being the Home Builders Licensure Board in 1992 may engage in residential construction. This would include ONLY General Contractors License numbers from 1 to 18907. Anyone holding a General Contractors License with a license number of 18908 or higher MUST hold a Home Builders License to perform residential construction.

Is there an age limitation for receiving a license?

The statute is silent as to an age limit requirement. In order to follow the Board’s Rules and Regulations, a license holder must be old enough to enter into a contract with a homeowner. The statute in Alabama states that a person must be 19 years of age to enter into a contract.

Are builders required to offer a home warranty?
The home builder’s licensure law does not require builders to provide a written home warranty. However, many licensed builders provide written home warranties to homeowners. If you have questions about a written home warranty provided to you, you may consult with your attorney.
Does the law require home builders to be insured or offer workman’s compensation to their employees?
The law regulating residential home builders does not address insurance. However, insurance may be required under other state laws. If you have questions regarding this issue, you should consult with your attorney and contact the Department of Labor.
Where can I find a sample home warranty?

The Home Builders Association of Alabama offers a sample home warranty to its members. If you are not a member, consult with your attorney to write a home warranty specifically for your contracts.