Owner-builder or contractor in Florida: what the law expects of you

The owner-builder exemption, its one-year sale rule and permit disclosure, and when hiring a licensed contractor is the safer choice.

Florida lets some homeowners act as their own contractor. That can save money, but it also moves legal and financial responsibility to you. Before you decide, know what the exemption covers and what you take on.

The owner-builder exemption

Chapter 489 does not require a contractor licence for owners building or improving property for their own use. The exemption in section 489.103(7) applies to one- and two-family residences and certain other structures when the owner personally supervises the work on site. Under it, the owner is building for their own occupancy, not to sell or lease. The statute creates a presumption of building for sale or lease where the owner sells, leases or offers for sale or lease the structure within one year after completion, and in that case the exemption is lost.

Permit disclosure

An owner-builder must appear in person and sign the building permit application and a disclosure statement. The statement spells out responsibilities such as the owner's duties as an employer, and the fact that the owner is responsible for the work. Read it carefully. Your local building department can give you the current form.

What you become responsible for

• Supervision. You must personally supervise the work on site.
• Subcontractors. Specialty trades such as electrical, plumbing and air conditioning generally need licensed contractors; check each one on DBPR.
• Workers. People who work for you may be employees, with workers' compensation and tax obligations, or they may be subcontractors who must carry their own coverage.
• Code compliance and inspections. If work fails inspection, you pay to fix it.
• Liens and payments. You are the person who must pay suppliers and subs, and who deals with lien claims.
• Warranty. There is no contractor behind the work, and no Recovery Fund claim for it.

Minor work

The same statute has a separate exemption for minor work whose aggregate value is under $2,500 (section 489.103(9)). Other limits apply to what counts as minor work and different rules apply by trade, so confirm with your building department before assuming that a small job needs no licence or permit.

When hiring is the safer choice

If you are not able to be on site, have no building experience, or the job is a structural addition, hiring a licensed contractor puts a company with a qualifying agent, licensed under Chapter 489, in charge of the work. You then also gain the protections of Florida's contractor law: licence discipline, the down payment rule in section 489.126, and eligibility for the Recovery Fund if you lose money through specified violations.

If you hire

1. Verify the licence number and class on DBPR's Verify a License page or in this directory.
2. Check that the class matches the work: building and residential classes have height and building-type limits.
3. Ask for insurance certificates, and call the insurer.
4. Insist on a written contract and a permit in the contractor's name.
5. Do not release final payment without the contractor's affidavit about who has been paid (see our contract checklist).

Questions to ask yourself first

Do I have the time to be on site daily? Can I read plans and understand the code requirements for each inspection? Do I have a reliable network of licensed subcontractors, and do I know what each will cost? Can I pay for mistakes and delays out of pocket? If the honest answer to several of these is no, a licensed contractor is likely worth the cost.

Time limits for defect claims

Florida's statute of limitations for actions based on the design, planning or construction of an improvement to real property is four years, with an overall limit of seven years after the earliest of a certificate of occupancy, a certificate of completion or similar events, or the date of abandonment of construction (section 95.11). Keep your paperwork and talk to a lawyer promptly if you suspect defects.

Updated 2026-10-01.

General information only, current as of the date above. The information on Florida Building & Residential Contractor Check is not a recommendation or a guarantee of anyone's work. A license record shows registration status on the date shown, not workmanship, insurance coverage at the time of your job, or suitability for your project. Confirm license, insurance and permits directly before you hire. Rules and programs change; check the official sources linked in this guide.