Florida lets owners act as their own contractor under section 489.103(7), with a $75,000 commercial cap, a one-year sale rule and a signed disclosure. Know the limits first.
A Florida property owner can act as their own contractor on certain projects without holding a state certification. The rule is the owner-builder exemption in section 489.103(7) of the Florida Statutes, and it comes with a dollar limit, a one-year sale rule, a supervision duty and a signed disclosure statement. Owners who miss any piece of it risk a revoked permit and an unlicensed-activity action.
This guide explains who qualifies, what the exemption covers, what you promise when you sign the permit paperwork, and when a project has outgrown it. For the company-wide rules, see our Florida contractor license guide.
At a glance Source: section 489.103(7), Florida Statutes. Covers: farm outbuildings and one or two family homes for your own use, or a commercial building costing $75,000 or less. Sale rule: selling, leasing or offering the building within one year of completion creates a presumption it was built for that purpose. Duty: you personally supervise all work not done by licensed contractors. Paperwork: you sign a disclosure statement before the permit issues.
What the owner-builder exemption covers
Under the statute, owners of property who act as their own contractor are exempt from the licensing part of Chapter 489, as long as they personally supervise all work that licensed contractors do not perform. The exemption has four situations.
| Situation | What it allows | Key limit |
|---|---|---|
| Own-use construction | Build or improve a farm outbuilding, a one or two family residence, or a commercial building | Commercial building cost of $75,000 or less; not for sale or lease |
| Emergency roof repair | Repair or replace wood shakes or asphalt or fiberglass shingles on a one, two or three family home damaged by natural causes during a governor-declared emergency | Property not offered for sale within one year |
| Solar panels | Install, remove or replace panels on a one, two or three family home | Local permitting agency must take part in a specified federal solar grant program; a licensed electrical contractor does the wiring |
| Finishing a permit | Complete work the listed contractor substantially completed | Local agency approval first; one or two family homes, townhomes, accessory structures and individual condo or co-op units |
The first row is the one most owners use, and it is the one that causes trouble. Read the dollar limit and the sale rule closely before you pull a permit.
The $75,000 commercial limit
The dollar cap applies to a commercial building. The statute and the standard disclosure form describe it as a commercial building costing no more than $75,000. Residences and farm outbuildings are described without that cap. Because the cap tracks cost, keep an itemized budget in case the building department asks for backup.
The one-year sale rule
The exemption is for building something you will use. If you sell, lease or offer the property for sale or lease within one year after completion, the law creates a presumption that you built it for that purpose. That presumption can matter if the local agency or the state brings an action against you. Owners who plan to sell soon after finishing should assume this exemption is not available and hire a licensed contractor.
What you cannot do as an owner-builder
The exemption does not cover anyone employed by or contracting with the owner who acts as a contractor. Two practical rules follow:
- You may not hire an unlicensed person to act as the contractor or to supervise the workers.
- You may delegate supervision only to someone registered or certified under Chapter 489, and only for work inside that person's license.
Workers who are not licensed may still work, but only under your direct supervision and as your employees. The disclosure statement ties that to real obligations: federal income tax withholding, FICA and workers' compensation coverage. Paying a crew on 1099 forms and calling them subcontractors does not fit this model.
The disclosure statement you sign
Before a permit issues, the local permitting agency gives you a disclosure statement in substantially the form set out in the statute, and you must sign it and return it with identity verification the agency accepts. The standard form walks through your responsibilities in numbered points. The ones owners overlook are these:
- Applying as owner-builder makes you the responsible party of record on the permit.
- You are legally and financially responsible for the project.
- You may be liable for injuries to unlicensed workers, and homeowner's insurance may not cover them.
- A permit pulled in a licensed contractor's name can reduce your exposure.
You must also personally appear and sign the permit application and meet any local requirements showing you understand your obligations. The one exception is a solar project submitted electronically with certification through the agency's system.
What happens if you break the rules
Subsection (7) sets out enforcement tools for the local permitting agency. If someone violates the subsection, the agency may withhold final approval, revoke the permit, or pursue action for unlicensed activity against the owner and anyone doing work that requires a license. The text of subsection (7) itself does not set a dollar fine, so check the rest of Chapter 489 and your county's rules for penalties.
How to pull a permit as an owner-builder
Local procedures vary by county and city, but the sequence is usually the same.
- Confirm the property is yours and the project fits one of the four situations above.
- Estimate the cost, and if the building is commercial, confirm it stays at or under $75,000.
- Check that the trades involved are not covered by a separate rule. Electrical and alarm work has its own owner provision in section 489.503, covered in our Florida electrician license guide.
- Visit the building department and ask for the owner-builder disclosure statement.
- Appear in person, sign the permit application and the disclosure statement, and provide your identification.
- Hire licensed contractors for the work you will not supervise yourself, and supervise the rest directly on site.
- Set up payroll withholding and workers' compensation if you employ any unlicensed worker.
Owner-builder or contractor in the permit name
Some owners assume the exemption saves money by definition. It shifts cost and risk onto you. As owner-builder you become the responsible party of record, you carry the supervision duty, and you carry the payroll and workers' compensation duties for anyone you employ. A licensed contractor who pulls the permit takes on the permit responsibility, and the standard disclosure notes that this can reduce your risk. Compare both paths in writing before you commit, and ask your insurance agent how your policy treats injuries on an owner-managed site.
When an owner-builder project needs a licensed contractor
The exemption is narrow by design. Move to a licensed contractor in these cases:
- You intend to sell or lease the building soon after it is done.
- The project is a commercial building that will cost more than $75,000.
- You cannot be on site to supervise directly.
- You want to bring in a crew that is not licensed and not on your payroll.
For these projects, the work is done by a certified or registered contractor. A company that wants to hold a contractor license in Florida needs a qualifying individual tied to it, and that person must hold the matching credential. If your company has the capital and the projects but no one with the credential, read what a qualifying agent is and our Florida qualifying agent guide.
The bridge for builders who grow
Many owner-builders start with a house for themselves and then keep going: a second build, a rental, a small commercial building. Each of those steps moves the work out of the exemption. The next stage is a licensed company, and the license needs a qualifier. Marshall Schofield and Jeremiah Jaskulski built The Licensing Company around placing qualifying agents as full-time W-2 employees of the contractor, so the company holds the license and the qualifier works for it. You can start at Hire a Qualifying Agent or see the consultation options.
Frequently asked questions
Can I build a house in Florida without a license?
Yes, if you are the owner, the house is a one or two family residence for your own use, you personally supervise the work, and you do not sell or lease it within a year. Use licensed contractors for the trades you do not supervise.
Is there a dollar limit on a residence?
The $75,000 cap in the standard disclosure applies to a commercial building. The residence and farm outbuilding language does not state a cap.
Can I hire a friend who is not licensed to run the job?
No. The exemption does not cover anyone employed by or contracting with you who acts as a contractor, and you cannot delegate supervision to an unlicensed person.
What does it cost to hire a qualifying agent?
It depends on the trades, the number of licenses and the company's situation. We do not publish a price. See our consultation options for a quote built around your company.
Statutes change, and local building departments add their own forms. Confirm the current text and your agency's checklist before you file.
Sources: section 489.103, Florida Statutes, Town of Hilliard owner-builder disclosure, January 2026.
Disclaimer: This article is provided for educational and informational purposes only. It does not constitute legal advice, licensing guidance, or an offer of services. Licensing requirements vary by jurisdiction. For specific compliance questions, contact The Licensing Company for a confidential consultation.