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Legal Requirements of Licensees

The home builders licensure law, codified in Title 34, Chapter 14A of the Code of Alabama and the rules and regulations of the Home Builders Licensure Board, requires licensees to meet certain obligations to remain in compliance with the law. Please read carefully the requirements summarized below. If you have any questions, please contact the Compliance and Consumer Affairs Division, 1-800-304-0853.

  • The Board may revoke or suspend the license of any licensee who, in the opinion of the Board, has committed fraud or deceit in obtaining a license, or who has been guilty of gross negligence, incompetence, or misconduct in the practice of residential home building. Filing false information for the purpose of obtaining a license is a criminal offense.

  • The Board may revoke the license of any licensee, and any license held individually or with a common qualifying representative, upon payment from the recovery fund.

  • In addition to any other disciplinary action, the Board may require a licensee to successfully complete education requirements to be determined by the Board and may levy and collect administrative fines for violations of the home builders licensure law and the rules and regulations of the Board.

  • Licensees are required to:

    • Notify the Board, by certified mail, within ten days of the institution of any criminal prosecution, or a civil complaint if the subject involves a home building transaction or the goodwill of an existing home building business. Notice must include a copy of the complaint or criminal indictment. Failure to do so may be grounds for revocation or suspension of license.

    • Notify the Board, by certified mail, within ten days of the verdict in a criminal trial or the judgment in a civil action. Notice must include a copy of the court order. Failure to do so may be grounds for revocation or suspension of license.

    • Notify the Board immediately of the removal of the designated qualifying representative, and name a new qualifying representative within 45 days. Failure to do so may be grounds for revocation of license.

    • Notify the Board of any name or address change within 60 days to obtain a replacement license. The license issued under the former name expires 60 days after the name change occurs.

    • Utilize a valid written contract when engaging in the business of residential home building.