Dec 12, 2011

Owner-Builder Law clarifies Hardship Exemption

Effective July 01, 2011:
The state law governing owner-builder requirements was amended this year to clarify what constitutes a Hardship. The owner-builder law was previously amended last year to allow Sellers to sign as owner-builders and sell their home in less than 12 months, (a General Contractor is not required) if the work < $10,000 valuation.

Evidence of what is considered hardship include:
         (A)  Evidence of receipt of unemployment compensation;
         (B)  Tax returns;
         (C)  Medical records;
         (D)  Bank statements;
         (E)  Divorce decrees ordering sale of property;
         (F)  Mortgage default letters; or
         (G)  Bankruptcy filings.

Clarifies that an owner with an open permit may be exempt, upon a showing of hardship, from the prohibition on sale of lease of a property constructed or improved under an owner-builder exemption within one year of the construction or improvement.  (HB319 CD1)

Link to the act.