Bill 205 affecting owner builders needs opposition

[DanielP]

This law sounds like it probably violates anti-trust law and should be challanged in court.

Where in the law does it forbid a private party to build a house for the purpose of resale? There are not contracts involved with another party aside from the sales contract which provides disclosure; The house has been permitted and inspected and passed by the county. This just seems like a law meant to restrict competition.

I personally know plenty owner/builders who's work is far superior to many contractors.

Stinky crook politicians on the take IMHO.

[gtill]

I would appreciate a realtors take on passing on a permit before completion of structure. Leilaniguy did it, but were there changes to the law since then?

[jdirgo]

The law has not changed and it is relatively easy to transfer a permit prior to final. HOWEVER, since a person can only pull a limited number of owner-builder permits (one per two-year period) and the fines for violation are STEEP (first offense: $5,000 or 40% of the appraised value of the building, whichever is greater -- subsequent offenses: $10,000 or 50% of the appraised value). A transfer can be done, but it should not be taken lightly. Everything involving owner-builder permits is scrutinized pretty closely. In many cases, it would be better to transfer to a contractor who can verify and bond the work and have that contractor work with the County to complete the inspections and get the property finalled. Its often worth it in the long run. A good contractor can save both you and your buyer a lot of headaches, and its not that expensive.

John Dirgo, R, ABR, e-PRO
Aloha Coast Realty, LLC
808-987-9243 cell
http://www.alohacoastrealty.com

[missydog1]

From a buyer's perspective, gtill, I've looked at houses that would have involved a transfer of an open permit, and to a buyer who is not in the building trades it's a daunting idea to have to sign up to be involved with the Building Dept - as opposed to buying a house where that isn't an issue.

I would only have done it with a significant price incentive.

The seller having a good contractor lined up and a bid on the cost of completion would have helped allay my concerns. Fear of the unknown and dislike for dealing with bureaucracy and not having the house ready for occupancy on purchase, are all negatives for a buyer.

[gtill]

Thanks all, so if I transfer to a contractor and he final's the building, I'll be off the hook for the permit (it'll go to his name).
Appreciate the feedback, hope I don't have to but it is a possibility.