ALABAMA HOME BUILDER LICENSE

PROFILE OF A HOME BUILDER IN ALABAMA

A Home Builder in Alabama may be defined as “One who constructs or offers to construct a residential building less than four stories in height, containing no more than four separate residences, and costing in excess of $10,000.” However, the State of Alabama offers two types of Home Builder’s License – Limited and Unlimited.

  • A Limited Licensee is an individual who specializes in a single construction trade and whose work does not affect the structural integrity of the residence.
  • An Unlimited Licensee may be an individual, a partnership, corporation, Limited Liability Company or non-profit organization. This contractor may operate without limitation within the parameters of the definition of Home Builder.

HOW TO BECOME A HOME BUILDER IN ALABAMA

Applications must be notarized and payments must be made by check or money order. A Certificate of Existence from the Alabama Secretary of State and a Certificate of Good Standing from the Alabama Department of Revenue must be submitted by entities other than individuals, along with Articles of Incorporation, Organization, or Partnership Agreements. These documents must be on file with a Probate Judge prior to applying for the license. A current credit report must also be submitted, but it must be sent directly to the Home Builders’ Licensure Board by the credit reporting agency itself. Proof of citizenship or legal residency in the U.S. is also required.

A grade of 67.5% must attained in order to pass the Alabama Home Builder Exam. The 80-question exam is administered by PSI Exam Services. The license requirements are under the authority of the Alabama Home Builders License Board.

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