Owner-Builder Permits in Florida: Can You Pull Your Own Permit?

Florida lets homeowners act as their own contractor in limited circumstances. Done right, it can save money on a project you're able to manage. Done wrong, it shifts all of a contractor's legal and financial risk onto you.

The owner-builder exemption

Section 489.103(7) of the Florida Statutes exempts owners from the contractor licensing requirement when they build or improve:

• a one-family or two-family residence, or farm outbuildings, for their own use and occupancy, or
• a commercial building for their own use, up to a cost limit set in the statute.

The building or home can't be built for sale or lease. Building departments enforce this through an owner-builder disclosure statement that you sign when you apply for the permit. Read it carefully; it's a summary of what you're taking on.

The key conditions

• You supervise the work directly, on site. You're the contractor.
• You can't hire an unlicensed person to act as your contractor. If you hire someone to manage or perform work that requires a license, they must be licensed.
• People you hire directly are your employees. The disclosure statements explain that you must handle payroll withholding and provide workers' compensation for unlicensed workers you employ.
• The one-year rule. If you sell or lease the home within one year after completing the work, the law presumes it was built for sale or lease, which violates the exemption.
• Licensed trades. You can hire licensed electrical, plumbing, roofing and air conditioning contractors, who pull their own trade permits.

Some departments add their own procedures. Jacksonville, for example, says homeowners can permit work on their primary residence if it's not for sale or rent and their name is on the deed, and they must apply in person.

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Electrical work

Florida has a separate owner exemption for electrical work, in section 489.503, with similar limits: the home must be for your own use and occupancy, not for sale or lease, and you can't hire an unlicensed person as your electrical contractor. See electrical permits in Florida.

When owner-builder makes sense

It can work well when you have construction experience, time to be on site, and a project you can break into licensed trades and simple tasks. It's riskier for structural work, roofing and anything involving hurricane protection, where mistakes are expensive and inspections are demanding.

The risks

• Liability. If a worker is hurt and you don't have workers' compensation, you may be personally responsible.
• Liens. You're responsible for paying everyone and for the Notice of Commencement.
• No Recovery Fund. The Homeowners' Construction Recovery Fund only helps homeowners harmed by licensed contractors.
• Insurance and resale. Your insurer and future buyers will want to see permits closed out properly.

A warning sign

If a contractor suggests that you pull the permit as an owner-builder for work they'll be doing, be very careful. It's a common way for unlicensed contractors to operate, and it puts all the risk on you. Read about general contractors vs. hiring trades and contractor insurance in Florida before deciding.