Yes. Anyone improving a home for sale or lease is required to have a contractors’ license. A.R.S. § 32-1101(A)(8). However, there is an exception to licensing if the flipper hires a licensed general contractor or licensed subcontractors to do the work. To qualify for the exception the flipper must include the licensed contractors’ names and licensed numbers in all sales documents. A.R.S. § 32-1121(A)(6). Many flippers fail to include this information in all sales documents making them guilty of a crime. A.R.S. § 32-1151. Providing the licensed contractor information on the sales documents will not only protect the flipper but also give the buyer direct recourse if the work was not done properly.
*This article has been prepared for general information purposes only and is not legal advice. Legal advice is dependent upon the specific circumstances of each situation and varies from state to state. If you have specific questions about this issue or another legal matter, please contact the Law Office of Aaron Green, PC at 602-525-4659. Mr. Green practices in the areas of real estate, probate, estate planning, general business and bankruptcy.