Statutes Requiring Contractor License for Rehabbers

[Brandon Anderson]

My home state of Virginia requires a rehabber to hold a contractor's license or employ the services of an appropriately licensed general contractor. This seems completely absurd for the light rehabs (paint, carpet, appliances, landscaping) I plan to start with, and it heavily favors the contracting industry. Does anyone, as a rehabber, have experience with similar state laws? How did you go about your rehabs?

An attorney associated with my local REIA explained the statute as follows:
"Anyone who builds a new house or who rehabilitates a home and then offers it for sale meets the definition of contractor and must have a license issued by the Board for Contractors. They may, however, qualify for the owner/developer exemption if they do two things:

1) Hire an appropriately licensed contractor to perform all of the work, AND
2) Place a provision in their sales contract that gives the individual who buys the house privity (a contractual relationship) with the contractor that was hired to perform the work.

They must do both of those things in order to be exempt from licensure. If they only do one, they DO NOT meet the criteria for exemption and, therefore, must have a license."

Your help is much appreciated.