Restrictions in Georgia

[gnllr]

Hey everyone!
I'm trying to determine what's involved in building a log home in GA. They've changed the laws recently, requiring those building a house to have a contractors license. This is obtained by being approved to take an exam by a contracting board. The board determines your eligibility through an engineering degree, other coursework, or contracting experience (none of which I have). This is from the Secretary of State's website in regards to the question, " <a href="http://sos.georgia.gov/plb/contractors/FAQ%20frames/Q8.html" target="frame">Will I be able to build my own house or building without a license?"</a>
The FAQ states the following:
"Yes, property owners may construct a building or structure which is for their own use and not for use by the general public and not offered for sale or lease. If you sell or transfer the building or structure, you will not be allowed to build another for a period of two years, unless you obtain a license or hire someone who is licensed to oversee the construction."
When I asked the woman at the office why it states that I cannot sell the structure, yet if I do sell the structure I cannot build another one for 2 years, she said she couldn't interpret this law for me...oookay.
I'm interested in building a log home(s) to rent out, so my options are: build homes every two years, get my contractor's license or find/hire a contractor to oversee the project. Am I interpretting this correctly? Anyone else build recently in GA with insights or know someone who has?
Glen

[rreidnauer]

. . . . but typically a owner/builder does not require a contractor's license as your law reflects. Now, usually the idea is not to sell it before two years anyhow to avoid (capital gains?) taxes. I guess that's the point at which the government assumes you've been there long enough that you didn't originally intend to sell it when you built it. I'm guessing the whole "can't build again until" thing is probably loosely based on that tax exclusion, and is just an instrument to dissuade people from trying to build for profit without the contractor's license.

[gnllr]

Are you planning on building to sell? Renting what you own isn't selling.
Hi Rod,
In the first sentence they say the house cannot be offered for lease. Your thoughts about owning the home for two years makes sense though and perhaps this applies to leasing as well. I want to rent a few homes much like the article 'How to build log homes with the "Rich Dad, Poor Dad" method'. That's an inspiring story.
Glen
P.S. Your model is amazing! With the lighting and the camera views I have to remind myself it's not a lifesize log home!

[rreidnauer]

Yea, I caught that after re-reading it and edited out the question, but you beat me to it.

[Yuhjn]

If I'm not mistaken you not only cannot lease it but it must be your primary residence for at least 2 years to avoid the capital gains?
Not 100% sure on the details but I'm almost positive you cannot use it as a lease.

[Timber]

I know they have changed the rules on flipping to slow the real estate boom from people who caused the market to go haywire. not sure why there doing that in Georgia but it could coincide with the new tax laws on capitol gains and real estate. in my opinion the flippers are risk takers and earn there money making homes look nicer etc.I don't blame them for the housing crunch. .Alan Greenspan should have raised interest rates when things were headed North unrealisticly. Of course banks lending money to people who no where near qualified for a loan helped this disaster too.

[edkemper]

Primary Residence. That means over 50% of the days in a year.

[gnllr]

I guess I will have to hire a general contractor to oversee the construction if I want to lease the home. Anyone know if a general contractor has to be there on site at all times or just at certain points in the project, like after the site prep, foundation, walls are up, etc. (like an inspector)? A buddy of mine a couple towns over built a saddlenotch house in the 80s. He thinks the county inspectors still wouldn't sign off on his home...they're that hard to work with.
Glen

[greenthumb]

What county in GA are you planning on building in? Depending on where you build, the counties may tend to look another way, especially with many building departments hurting for cash with permits being down.
Do you have a statute for a reference? A FAQ on a government site isn't good enough for me. The law might have a loophole. I'm in GA(S. Metro area) and can't really answer your question because I'm not building to sell, but you might consider building what you want, then using it for your own purposes when you're finished.
My take on this law is that it was pushed through by developers who want to 'protect' their interests, and stifle competition, and by the state as a way to gain more revenue.
As for building a log home, they can't stop you from doing it, but they will probably throw some roadblocks in your way such as requiring engineering, graded logs, termite treatments(required for all new homes in GA), etc. Basically you have to grease more palms now than you did 25 years ago.
I might know the saddlenotch guy you're talking about. He built in the 80s and was later discouraged from building a log garage.

[greenthumb]

From here:
http://law.justia.com/georgia/codes/43/43-41-17.html


(h) Nothing in this chapter shall preclude any person from constructing a building or structure on real property owned by such person which is intended upon completion for use or occupancy solely by that person and his or her family, firm, or corporation and its employees, and not for use by the general public and not offered for sale or lease. In so doing, such person may act as his or her own contractor personally providing direct supervision and management of all work not performed by licensed contractors. However, if, under this subsection, the person or his or her family, firm, or corporation has previously sold or transferred a building or structure which had been constructed by such person acting without a licensed residential or general contractor within the prior 24 month period, starting from the date on which a certificate of occupancy was issued for such building or structure, then such person may not, under this subsection, construct another separate building or structure without having first obtained on his or her own behalf an appropriate residential or general contractor license or having engaged such a duly licensed contractor to perform such work to the extent required under this chapter, or it shall be presumed that the person, firm, or corporation did not intend such building solely for occupancy by that person and his or her family, firm, or corporation. Further, such person may not delegate the responsibility to directly supervise and manage all or any part of the work relating thereto to any other person unless that person is licensed under this chapter and the work being performed is within the scope of that person?s license. In any event, however, all such work must be done in conformity with all other applicable provisions of this title, the rules and regulations of the board and division involved, and any applicable county or municipal resolutions, ordinances, codes, permitting, or inspection requirements. I guess it all depends on what your intentions are. I haven't seen anything yet that states a penalty for not having the GC license other than threat of not issuing permits for two years and with permit requests being so low now I don't see many counties enforcing this fully. Good luck. Have you taken the class?

[gnllr]

I've spoken with some contractors already. I have a friend who is a general contractor and my understanding is he can pull permits and be onsite at times (doesn't need to be there all the time). I then can do all the work and he can sign-off on it. I mentioned in my other post that I want to make a career change and build log homes to rent out. After I have two homes built, I will then have the necessary experience to sit for the exam and become a contractor myself, which would be a big plus.
Glen

[gnllr]

Thanks guys for running a new class this year! I'm signed up and looking forward to it.
Glen

[Yuhjn]

Thanks guys for running a new class this year! I'm signed up and looking forward to it.
Glen


Shhhh, it's a secret (email list only until they post it on the web site) hehehe.
Enjoy Skip's special cookies, watch out for Fang, congratulations and we'll see you on the member's side.

[gnllr]

Thanks guys for running a new class this year! I'm signed up and looking forward to it.
Glen


Shhhh, it's a secret (email list only until they post it on the web site) hehehe.
Enjoy Skip's special cookies, watch out for Fang, congratulations and we'll see you on the member's side.

Thanks!

[greenthumb]

It will be nice to have more real log homes(and builders!) in this part of the country. I'm collecting logs for a shed right now, hope to have it built by end of summer. After that I'll start the house...
Keep reading as much as you can on this side of the forum, there is a lot of good info here(and a whole lot more in the members section).
Andy
john_galt27 AT yahoo DOT com

[gnllr]

It will be nice to have more real log homes(and builders!) in this part of the country. I'm collecting logs for a shed right now, hope to have it built by end of summer. After that I'll start the house...
Keep reading as much as you can on this side of the forum, there is a lot of good info here(and a whole lot more in the members section).
Andy
john_galt27 AT yahoo DOT com

It will be nice to bounce ideas off each other and be close geographically. I'm like a sponge in the forums now.
Glen