Comments on: Who Needs to Register as a Contractor? http://raincityguide.com/2008/01/03/who-needs-to-register-as-a-contractor/ Seattle's Leading Resource for Real Estate Information Sat, 20 Mar 2010 16:58:13 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Sophia Katt http://raincityguide.com/2008/01/03/who-needs-to-register-as-a-contractor/#comment-323894 Sophia Katt Tue, 26 Aug 2008 21:05:40 +0000 http://raincityguide.com/2008/01/03/who-needs-to-register-as-a-contractor/#comment-323894 While we have no units for sale in our association, we as separate unitholders haven't had too much need for individual unit repair services, or finding repair contractors who will do work on units. Our problem is finding qualified contractors who will work on upkeep for our common element areas, like resurfacing the common deck or fixing dry rot on outdoor doors. The contractors who do individual unit work say that they can't find insurance if they do common element work. Is this a general problem in the condo management industry right now? While we have no units for sale in our association, we as separate unitholders haven’t had too much need for individual unit repair services, or finding repair contractors who will do work on units. Our problem is finding qualified contractors who will work on upkeep for our common element areas, like resurfacing the common deck or fixing dry rot on outdoor doors. The contractors who do individual unit work say that they can’t find insurance if they do common element work. Is this a general problem in the condo management industry right now?

]]> By: Deborah Burns http://raincityguide.com/2008/01/03/who-needs-to-register-as-a-contractor/#comment-240608 Deborah Burns Tue, 08 Jan 2008 09:21:33 +0000 http://raincityguide.com/2008/01/03/who-needs-to-register-as-a-contractor/#comment-240608 Hi everyone, I talked to Dennis at the Department of Labor & Industries Monday afternoon, and he answered a couple of questions: ARDELL wanted to know: "I’m wondering about people who bought property prior to this change and started or even finished working on it before the change" Dennis said that if they have not owned the property for more than 12 months, did not finish before 7-23-07, then they would be need to register as a general contractor ASAP. However, they would also have been out of compliance from 7-23-07 until they were registered, and could be investigated, and fined etc. because work was done after 7-23-07 and they were not registered when the law went into effect. Essentially ignorance of the law does not excuse a person. If they finished before 7-23-07 then they would be OK. Remember also that this law change only applies to properties owned for 12 months or less, if the propery has been owned for more than 12 months, then this law change does not apply. No good answer for RE agents who may be contacted by someone wanting to sell a property to whom this applies. You should also talk to Dennis to find out more, and possibly talk to an attorney as well, as there is no good answer on how to guide your new client. FYI, you cannot get around the law by hiring a general contractor to make improvement to a property to sell if you have not owned it more than 12 months. Because this law is still so new there are many questions, and I am not an expert, questions should be directed to Dennis Yonker from L & I, at 360-902-6303 to talk to him about your particular circumstances. FYI, the Department of Labor & Industries number is 800-647-0982. You may also want to talk to your attorney about your concerns should this law change have caught you by surprise and you now find yourself out of compliance. Hi everyone,

I talked to Dennis at the Department of Labor & Industries Monday afternoon, and he answered a couple of questions:

ARDELL wanted to know:

“I’m wondering about people who bought property prior to this change and started or even finished working on it before the change”

Dennis said that if they have not owned the property for more than 12 months, did not finish before 7-23-07, then they would be need to register as a general contractor ASAP. However, they would also have been out of compliance from 7-23-07 until they were registered, and could be investigated, and fined etc. because work was done after 7-23-07 and they were not registered when the law went into effect. Essentially ignorance of the law does not excuse a person.

If they finished before 7-23-07 then they would be OK. Remember also that this law change only applies to properties owned for 12 months or less, if the propery has been owned for more than 12 months, then this law change does not apply.

No good answer for RE agents who may be contacted by someone wanting to sell a property to whom this applies. You should also talk to Dennis to find out more, and possibly talk to an attorney as well, as there is no good answer on how to guide your new client.

FYI, you cannot get around the law by hiring a general contractor to make improvement to a property to sell if you have not owned it more than 12 months.

Because this law is still so new there are many questions, and I am not an expert, questions should be directed to Dennis Yonker from L & I, at 360-902-6303 to talk to him about your particular circumstances. FYI, the Department of Labor & Industries number is 800-647-0982.

You may also want to talk to your attorney about your concerns should this law change have caught you by surprise and you now find yourself out of compliance.

]]> By: Deborah Burns http://raincityguide.com/2008/01/03/who-needs-to-register-as-a-contractor/#comment-240598 Deborah Burns Tue, 08 Jan 2008 08:44:57 +0000 http://raincityguide.com/2008/01/03/who-needs-to-register-as-a-contractor/#comment-240598 Hi Dustin, LOL! Salvadore Dali seems to have hi-jacked my photo... :-) Hi Dustin,

LOL! Salvadore Dali seems to have hi-jacked my photo… :-)

]]> By: Deborah Burns http://raincityguide.com/2008/01/03/who-needs-to-register-as-a-contractor/#comment-239960 Deborah Burns Mon, 07 Jan 2008 00:21:45 +0000 http://raincityguide.com/2008/01/03/who-needs-to-register-as-a-contractor/#comment-239960 Hi Eileen, Thanks! Rental properties won't have a problem with doing or having work on them prior to leasing out, since most rental properties are held longer than the 12 month period that the contractors registration law applies too. That's interesting that the investor groups that you have talked to did not know about the changes, certainally real estate agents in general did not know. I think we should have been made aware of the changes since that could affect how we could help and advise clients. Hi Eileen,

Thanks! Rental properties won’t have a problem with doing or having work on them prior to leasing out, since most rental properties are held longer than the 12 month period that the contractors registration law applies too.

That’s interesting that the investor groups that you have talked to did not know about the changes, certainally real estate agents in general did not know. I think we should have been made aware of the changes since that could affect how we could help and advise clients.

]]> By: Eileen http://raincityguide.com/2008/01/03/who-needs-to-register-as-a-contractor/#comment-239435 Eileen Sat, 05 Jan 2008 23:17:51 +0000 http://raincityguide.com/2008/01/03/who-needs-to-register-as-a-contractor/#comment-239435 Thanks Deborah for the update. That's what I get for not reading RCG for a week or so! I'm glad you did the research and seem to understand it well. notgointotakeitanymore (creative) is correct and I think the biggest problem with being a contractor and that is the insurance. You have to qualify for the insurance and have a track record and it takes some time and effort. I'm glad that homeowners don't need it, but there's still the rental that's leased during the first year. Hopefully, in the meetings they will clarify that since buying rental real estate is a great inflation hedge. The investor groups I've talked to weren't made aware of the L&I change prior to the change. It will change the nature of the professional fix and flipper. The ones I talked with considered it just a cost of doing business. By the way, I didn't have a problem getting a contractor's license while having a real estate license. We just formed an Inc, and had no problems. One thing that needs to be brought up at the L&I meetings is whether or not an LLC member can be the contractor. It's not practical to become a contractor for every project. Many builders create a new LLC every time they develop and use the original construction company to do the building, so I'm anxious to see how that is all ironed out. And Deborah, I agree with you. Most of the home improvements I've seen that suck are the ones done my the homeowners for their own family. I generally find that converting a garage back to a garage adds more value than than having a home with no garage but more finished square feet. Great article. Thanks Deborah for the update. That’s what I get for not reading RCG for a week or so!
I’m glad you did the research and seem to understand it well. notgointotakeitanymore (creative) is correct and I think the biggest problem with being a contractor and that is the insurance. You have to qualify for the insurance and have a track record and it takes some time and effort. I’m glad that homeowners don’t need it, but there’s still the rental that’s leased during the first year. Hopefully, in the meetings they will clarify that since buying rental real estate is a great inflation hedge.
The investor groups I’ve talked to weren’t made aware of the L&I change prior to the change. It will change the nature of the professional fix and flipper. The ones I talked with considered it just a cost of doing business.
By the way, I didn’t have a problem getting a contractor’s license while having a real estate license. We just formed an Inc, and had no problems. One thing that needs to be brought up at the L&I meetings is whether or not an LLC member can be the contractor. It’s not practical to become a contractor for every project. Many builders create a new LLC every time they develop and use the original construction company to do the building, so I’m anxious to see how that is all ironed out.

And Deborah, I agree with you. Most of the home improvements I’ve seen that suck are the ones done my the homeowners for their own family. I generally find that converting a garage back to a garage adds more value than than having a home with no garage but more finished square feet.

Great article.

]]> By: Deborah Burns http://raincityguide.com/2008/01/03/who-needs-to-register-as-a-contractor/#comment-239156 Deborah Burns Sat, 05 Jan 2008 08:18:02 +0000 http://raincityguide.com/2008/01/03/who-needs-to-register-as-a-contractor/#comment-239156 Hi JW Brein, Thanks for the information and the links! Was your investor group aware of the changes in who is required to register as a contractor, before the change occured? How much before or after? I am wondering how well informed different parts of real estate were as to the changes, because real estate agents weren't made aware of this, and how if could effect how we need to help our clients. I brought it up to my broker when I first read Russ's post, and he was not aware of it. Your inverstor group might want to invite Dennis or another member of L & I to find out more or give your feedback as to how effective this new law is. Hi JW Brein,

Thanks for the information and the links!

Was your investor group aware of the changes in who is required to register as a contractor, before the change occured? How much before or after?

I am wondering how well informed different parts of real estate were as to the changes, because real estate agents weren’t made aware of this, and how if could effect how we need to help our clients. I brought it up to my broker when I first read Russ’s post, and he was not aware of it.

Your inverstor group might want to invite Dennis or another member of L & I to find out more or give your feedback as to how effective this new law is.

]]> By: ARDELL http://raincityguide.com/2008/01/03/who-needs-to-register-as-a-contractor/#comment-239058 ARDELL Sat, 05 Jan 2008 03:39:41 +0000 http://raincityguide.com/2008/01/03/who-needs-to-register-as-a-contractor/#comment-239058 Could be the builder is proposing a whole new floor in his proposal of next week. I'd wait until you see the proposal before consulting an attorney, as the attorney will likely need to know what remedy the builder is proposing before helping you decide if that proposal is adequate. Could be the builder is proposing a whole new floor in his proposal of next week. I’d wait until you see the proposal before consulting an attorney, as the attorney will likely need to know what remedy the builder is proposing before helping you decide if that proposal is adequate.

]]> By: sash http://raincityguide.com/2008/01/03/who-needs-to-register-as-a-contractor/#comment-238982 sash Sat, 05 Jan 2008 00:10:20 +0000 http://raincityguide.com/2008/01/03/who-needs-to-register-as-a-contractor/#comment-238982 The subject of contractors and builders is one so relavent to the current scenario: I wanted your opinion on the situation I am in: My hardwood floor (in a new home, 6 months old) seems to have some quality issues. The floor boards are either cracked or have been installed defectively. The builder and his hardwood floor contractor came out an identified the number of defective boards, and the total count came upto 50. However I was able to find 100 more boards bringing the total to 150+. When I communicated this to the builder and the contractor, they scheduled an inspection of the hardwood floor with a representative from the manufacturer. The inspection report however is not available to me to view per builder directive. Builder wants to keep the report between them-contractor and propose a solution by mid next week. I want to know the following: 1) Am I eligible to view the report as owners of the home? I.e. do I have a legal right here? 2) Should I be worried that the builder/contractor is not being transparent? 3) What would be an acceptable solution? Replacement of entire floor? Or just defective boards? I am worried because what is to say more boards won’t show up defective in time. 4) What should be my best course of action – hire a lawyer? Get a hardwood floor inspector? Can you share your advice please? The subject of contractors and builders is one so relavent to the current scenario:

I wanted your opinion on the situation I am in: My hardwood floor (in a new home, 6 months old) seems to have some quality issues. The floor boards are either cracked or have been installed defectively. The builder and his hardwood floor contractor came out an identified the number of defective boards, and the total count came upto 50. However I was able to find 100 more boards bringing the total to 150+. When I communicated this to the builder and the contractor, they scheduled an inspection of the hardwood floor with a representative from the manufacturer. The inspection report however is not available to me to view per builder directive. Builder wants to keep the report between them-contractor and propose a solution by mid next week.

I want to know the following:

1) Am I eligible to view the report as owners of the home? I.e. do I have a legal right here?

2) Should I be worried that the builder/contractor is not being transparent?

3) What would be an acceptable solution? Replacement of entire floor? Or just defective boards? I am worried because what is to say more boards won’t show up defective in time.

4) What should be my best course of action – hire a lawyer? Get a hardwood floor inspector? Can you share your advice please?

]]> By: JW BREIN http://raincityguide.com/2008/01/03/who-needs-to-register-as-a-contractor/#comment-238981 JW BREIN Sat, 05 Jan 2008 00:01:34 +0000 http://raincityguide.com/2008/01/03/who-needs-to-register-as-a-contractor/#comment-238981 This information is great for home owners and RE Investors alike. As investors, we all have a responsibility to educate ourselves on the latest laws, techniques, taxes, opportunities, and especially ethics of real estate investing. This is true whether we are flipping houses, lending money or buying land. There are numerous investor groups in the Seattle area that provide an opportunity to learn about this subject. Please visit their sites and attend their meetings. Here are a few key groups to start with, although I acknowledge there are probably others: Bellingham: BREIN - www.breinonline.org featuring rehab expert Robyn Thompson on Jan 23 U district: REAPS - www.reapsweb.com also featuring Robyn Thompson Jan 24 Eastside: RE Investors Assoc. of WA - www.reiawa.com Jan 7 Lynnnwood: NW Real Investors - www.nwria.com/ featuring John Burley Jan 17 Mount Vernon/Burlington: SIREN - http://realestate.meetup.com/527 Discussing Title/Escrow issues and Lease Options Jan 10 Not all RE investors and rehabbers are unscrupulous. While it is unfair to generalize with any segment of the population, most members of these groups and organizations like them are probably bona-fide business people and committed to excellence in this industry. I encourage everyone who is interested to attend, learn, and get involved. My opinion? This law is an effort to regulate where regulation is not beneficial or practical. This information is great for home owners and RE Investors alike. As investors, we all have a responsibility to educate ourselves on the latest laws, techniques, taxes, opportunities, and especially ethics of real estate investing. This is true whether we are flipping houses, lending money or buying land.
There are numerous investor groups in the Seattle area that provide an opportunity to learn about this subject. Please visit their sites and attend their meetings. Here are a few key groups to start with, although I acknowledge there are probably others:
Bellingham: BREIN – http://www.breinonline.org featuring rehab expert Robyn Thompson on Jan 23
U district: REAPS – http://www.reapsweb.com also featuring Robyn Thompson Jan 24
Eastside: RE Investors Assoc. of WA – http://www.reiawa.com Jan 7
Lynnnwood: NW Real Investors – http://www.nwria.com/ featuring John Burley Jan 17
Mount Vernon/Burlington: SIREN – http://realestate.meetup.com/527 Discussing Title/Escrow issues and Lease Options Jan 10

Not all RE investors and rehabbers are unscrupulous. While it is unfair to generalize with any segment of the population, most members of these groups and organizations like them are probably bona-fide business people and committed to excellence in this industry. I encourage everyone who is interested to attend, learn, and get involved. My opinion? This law is an effort to regulate where regulation is not beneficial or practical.

]]> By: Deborah Burns http://raincityguide.com/2008/01/03/who-needs-to-register-as-a-contractor/#comment-238897 Deborah Burns Fri, 04 Jan 2008 20:04:32 +0000 http://raincityguide.com/2008/01/03/who-needs-to-register-as-a-contractor/#comment-238897 Hi NotGoingToTakeItAnyMore, I don't have answers for you regarding insurance on rental properties since I don't work with investors seeking rental properties and I do not have the information to reply to that part of your comment. However, about being a landlord you said this: "To legally fix something on my broken rental here is the process: If something breaks, I let the tenant move out, hire a contractor to fix it and let it sit 12 months before leasing again and hope nothing breaks during the 12 months while it sits vacant...." This not the answer that is published on the L & I site which is: " #3: “I am purchasing a residential properly that I am going to remodel or make improvements and then rent it out. Do I need to be a registered contractor? No. " A landlord is able to fix and make improvements without having to register as a contractor, as long as they own their property more than 12 months. Investors of rental properties generaly hold those properties for much longer than 12 months so this change does not effect a landlords ability to fix or improve their property. I agree with you that everyone who this law change impacts negitively should be sure to attend the Public Hearings to make sure their voice is heard and possibly help initiate changes. Come back and let us know how it goes at the Public Hearing you attend. Hi NotGoingToTakeItAnyMore,

I don’t have answers for you regarding insurance on rental properties since I don’t work with investors seeking rental properties and I do not have the information to reply to that part of your comment.

However, about being a landlord you said this:

“To legally fix something on my broken rental here is the process: If something breaks, I let the tenant move out, hire a contractor to fix it and let it sit 12 months before leasing again and hope nothing breaks during the 12 months while it sits vacant….”

This not the answer that is published on the L & I site which is:

” #3: “I am purchasing a residential properly that I am going to remodel or make improvements and then rent it out. Do I need to be a registered contractor? No. ”

A landlord is able to fix and make improvements without having to register as a contractor, as long as they own their property more than 12 months. Investors of rental properties generaly hold those properties for much longer than 12 months so this change does not effect a landlords ability to fix or improve their property.

I agree with you that everyone who this law change impacts negitively should be sure to attend the Public Hearings to make sure their voice is heard and possibly help initiate changes.

Come back and let us know how it goes at the Public Hearing you attend.

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