Flipping and the Contractor's Board

The Portland market is back to where some homes seem to be a deal. Obviously time will tell but based on current sales there are some well priced homes. After the surge we had in 2005 and the first half of 2006, people don't want to miss the next surge.

A quiet law, quiet because I have not seen it referenced in any of the many articles or news stories in Portland, is that you need to have a contractor's license to buy a home you don't live in and plan to fix to resell; flipping homes.

From the CCB website:
"Oregon law requires anyone who works for compensation in any construction activity involving improvements to real property to be licensed with the Oregon Construction Contractors Board (CCB). This includes roofing, siding, painting, carpentry, concrete, on-site appliance repair, heating and air conditioning, home inspections, tree service, plumbing, electrical, floor covering, manufactured dwelling installations, land development and most other construction and repair services.

A CCB license is also required for:

- those who purchase homes with the intent to fix them up and resell them, even if they do not perform the work themselves.
- material suppliers that receive compensation for installing or arranging the installation of the materials."

I have sent an email to the Board to ask if this law is satisfied if one of multiple owners is a licensed contractor.

I am not a lawyer but it seems that the law doesn't apply, and this makes sense, if you rent out the property. They would be overly strict and oppressive if they required every landlord to have a contractor's license.

I am still not sure the benefit to the community for this law.

Did you know some areas require a permit to install a new toilet or a sink? Always so many little details.

Mike