Answers to Frequently Asked Questions

General

1. Who needs a license?

Any person constructing a new home for sale, acting as prime contractor to construct a new home for another person, or anyone who advertises or holds oneself out as constructing or being available to construct new homes. This includes the sale or transfer of title of land to any person and the subsequent participation in the construction of a new home. It also includes a person who contracts with a general contractor or with subcontractors for the constructing of a new home for the purpose of sale to a purchaser.

2. What is the purpose of a license?

To help protect consumers by ensuring that each Builder has provided the proper documentation and has met the conditions established under Chapter 31C.

3. How long does it take to get a license?

If all information has been properly submitted, and approved by the Board, the process normally takes 45 days.

4. How long is the license valid?

Two years from the date issued.

5. What else do I need, other than a Montgomery County license to build in Montgomery County?

All Builders will need to comply with the requirements established by the Departments of Permitting Services and Environmental Protection, MarylandNational Park and Planning Commission, and any other State, Local and Federal requirements.

6. Why can’t I just come in and pick up my license?

Montgomery County Chapter 31C requires that the Board of Registration determine whether the Builder meets the established qualifications.

7. What is the appeal process if the Board denies my application?

Appeals must be made to the Board of Appeals located at 100 Maryland Avenue, 2^nd Floor, Rockville, MD 20850.

Licensing Qualifications/Requirements

8. What experience do I need to get a license?

The Builder needs to be able to demonstrate that he/she has the requisite knowledge of the construction industry and that he/she has supervised, managed, and performed the duties necessary to build a home or do major remodeling renovations..

9. What documents do I need to provide in order to get a license?

1) Three Material Supplier References (from building material suppliers);

2) Letter of reference from a Bank indicating how long you have maintained a business account with them, and verification that business account is in good standing.

3) A Certificate of Registration for Liability Insurance for no less than $500,000 and Worker’s Compensation, if applicable. Note that Montgomery County Office of Consumer Protection must be listed as an additional named party on the insurance certificate.

4) Resume or detailed explanation of your building experience

5) Copies of other relevant licenses.

6) The current fee is $805 for a two (2) year license. Checks should be made payable to Montgomery County, Maryland.

All documents must be in the name of the licensee.

10. I am just starting my business – how do I get Building Material Supplier References?

You must establish credit accounts at three (3) building material supplier businesses.

11. Do you offer reciprocity for licenses issued in a different jurisdiction?

No

12. I have a State of Maryland builder’s license – do I need a Montgomery County license?

Yes, if you plan to build in Montgomery County.

13. I have a State of Maryland General Contractor’s license - do I need Montgomery County license?

Yes, if you plan to build in MontgomeryCounty. The General Contractor’s license does not apply to residential construction of new homes; it typically applies to commercial construction (for example an office building).

14. I have an MHIC license – do I need a Montgomery County license?

Yes, if you plan to build new homes in Montgomery County. An MHIC license only allows you to perform home improvements.

15. If sub-contractors are licensed - do I need a license?

Yes, any person acting as prime contractor to construct a new home for another person must be licensed.

16. I am building in the City of Rockville or Gaithersburg – do I need a Montgomery County license?

Yes, Chapter 31C applies in the City of Rockville, City of Gaithersburg and all the other municipalities in Montgomery County.

17. I am a non-profit organization – do I need a license?

Yes, non-profit organizations are not exempt from Chapter 31C.

18. I build condominiums for sale - do I need a license?

Yes, any construction of new homes is covered by Chapter 31C.

19. I build town homes for sale – do I need a license?

Yes, any new home is covered by Chapter 31C.

20. I am building a home for a friend – do I need a license?

Yes, a license is needed when building a new home for another person.

21. I am building a house for myself – do I need a license?

No, as long you establish residency in the home and sign an affidavit.

22. I own the land and I want to build a new home for my family and myself – do I need a license?

No, as long you establish residency in the home and sign an affidavit.

23. I do major renovation/remodeling – do I need a new home builders license?

No, you would need to be licensed by the State Home Improvement Commission, for more information call at 410-230-6309.

However, please note that license requirements may depend on the type of permit issued. Contact the Department of Permitting Services at 240-777-6370 for further clarification on permits issued.

24. I am going to build a new home, but a Realtor will sell the home - do I need a license?

Yes, a license is needed if the new home is constructed for the purpose of sale to a purchaser.

25. I have already built the house – how do I get a retroactive license?

You must apply for the license and meet all the requirements under Montgomery County Code Chapter 31C. You are subject to a minimum $500 fine and other penalties for violating Chapter 31C.

Insurance and Warranty Issues

26. Do I need Workers’ Compensation insurance if I do not have employees?

No, but a written explanation is required.

27. What warranties must I give to the buyer?

You can find the information about warranties by clicking here.

Fees/Penalties

28. What is the cost of a license?

As of September 2008, the cost of a license is $805, which is non-refundable, and valid two (2) years.

29. How are the fees established?

The County Executive establishes licensing fees.

30. If you build without a license what are the penalties?

You may be subject to a $500 fine, in addition to all other remedies prescribed by Law, which may be both civil and criminal.