Michigan exempts owners building on property they use and occupy, plus landlords maintaining rentals. Here is what MCL 339.2403 says, the $600 project rule and the penalties for unlicensed work.
Michigan lets an owner build and maintain their own property without a residential builder license, but the exemption is narrower than most owners assume. It lives in MCL 339.2403, the exemption section of the Occupational Code article that governs residential builders and maintenance and alteration contractors. The owner door is open for a structure the owner uses and occupies, and the penalties for stepping outside it are heavy. This guide covers what the section says and where it stops.
At a glance MCL 339.2403(b) exempts a property owner for a structure on that property that the owner uses and occupies. Subsection (c) exempts an owner of rental property for maintaining and altering that property. Subsection (f) exempts a single project where the total price for labor, materials and other items is under $600.00, unless it is part of a larger operation or split to evade the act. Licensed electrical, plumbing and mechanical contractors are exempt only for the work in their own trade. Unlicensed residential builder activity is a misdemeanor with fines of $5,000 to $25,000 under MCL 339.601(6), and a felony if it causes death or serious injury.
For license types, the qualifying officer rules and the application path, see our Michigan contractor license guide. This page covers only the owner path.
What MCL 339.2403 exempts
The section says that, notwithstanding the licensing article, a person may act as a residential builder, a residential maintenance and alteration contractor or a salesperson without a license if they fall into a listed category. The categories that matter to owners and small operators are these.
| Provision | Who it covers | Condition to watch |
|---|---|---|
| (b) | Property owner | Structure on that property that the owner uses and occupies |
| (c) | Owner of rental property | Maintaining and altering that property |
| (e) | Person working solely under contract with a licensed builder | Not available to a salesperson |
| (f) | One project, one or more contracts | Total price under $600.00, not part of a larger operation, not split to evade |
| (g), (h), (i) | Licensed electrical, plumbing and mechanical contractors | Only the installation, maintenance or repair in that trade |
Read the current text on the Michigan Legislature website before you rely on any of these, since the section can be amended.
The owner who uses and occupies
Subsection (b) is the homeowner door. It covers a property owner building on that property, but the structure has to be one the owner uses and occupies. That wording matters more than the owner label.
- Your own home. Building or remodeling the house you live in fits.
- A house built to sell. A structure you plan to sell is not one you use and occupy, so do not assume (b) covers a build and sell project.
- Someone else's house. An owner exemption belongs to the owner. A friend who builds for you needs a license if the work is otherwise licensed.
Landlords and rental property
Subsection (c) is a separate door for an owner of rental property, limited to maintaining and altering that property. It does not stretch to building new structures for sale, and it does not let a landlord take jobs on someone else's property. A landlord who starts doing repairs for neighbors is no longer inside the exemption.
The $600 small project rule
Subsection (f) exempts a person doing one undertaking or project under one or more contracts when the total price for labor, materials and other items is less than $600.00. It does not apply if the construction work is only part of a larger or major operation, or if the project is divided into contracts under $600.00 to evade the act.
This is the line a handyman tests. Replacing a single door hinge set for $350 fits. A $2,400 bathroom job invoiced as four $600 pieces does not, and the anti evasion language reads both ways.
Trade contractors and the trade only exemptions
Michigan licenses electrical, plumbing and mechanical contractors under separate articles of the Skilled Trades Regulation Act. Subsections (g), (h) and (i) say those licensees do not need a residential builder license for installation, maintenance or repair they perform in their own trade. A licensed electrician can wire a house. They cannot frame it. If you work in one of those trades, read our Michigan electrician license guide, Michigan plumbing license guide and Michigan HVAC license guide.
Penalties for crossing the line
The general penalty section is MCL 339.601. For unlicensed residential builder or maintenance and alteration contractor work, subsection (6) sets these tiers:
| Offense | Classification | Fine | Jail or prison |
|---|---|---|---|
| First offense | Misdemeanor | $5,000 to $25,000 | Up to 1 year |
| Second or later offense | Misdemeanor | $5,000 to $25,000 | Up to 2 years |
| Violation causing death or serious injury | Felony | $5,000 to $25,000 | Up to 4 years |
A court can impose the fine, the jail time or both. The section also provides for restitution, injunctions and forfeiture. Check the current text before relying on a figure, because penalty sections change. Fees are set by the board or testing vendor and can change. Verify the current amount with the provider before you pay. For how other states treat the same conduct, read our guide to penalties for unlicensed contracting and our report on a Michigan company fined for unlicensed plumbing in Wisconsin.
Hiring help on an owner project
Owners often bring in helpers, and the exemption list speaks to that in subsection (e). A person who works solely under contract with a licensed residential builder or a licensed maintenance and alteration contractor does not need their own residential license for that work. Notice what it says and what it leaves out. It protects the worker who sits under a licensed builder, and it does not protect a stranger you hire directly to build your house.
If you hire someone yourself, ask whether their work is licensed, get the agreement in writing and keep the total contract price in one place. An owner who pays an unlicensed person to do licensed work can end up with unpermitted work, no recourse and a project an inspector refuses to pass.
Permits are a separate step
The exemption removes the license requirement. It does not remove the permit. Many Michigan building departments have owners sign a homeowner permit affidavit stating that they live in or will live in the home and will do the work themselves. Ask your local building department what it requires, and expect inspections.
When a business needs a qualifier
The owner exemption is for people building where they live. A company that sells residential building work to the public needs a licensed residential builder, and Michigan ties that license to a qualifying officer. A qualifying agent is a full time W-2 employee who qualifies the company for its license.
Read what a qualifying agent is, then see how to hire a qualifying agent or compare options on consultation packages. Michigan companies can also read our Michigan qualifying officer guide. Jeremiah Jaskulski and Marshall Schofield built The Licensing Company around that gap.
Before you start
- Confirm you own the property and will use and occupy the structure.
- Keep any project you hire out in one contract, with every cost counted.
- If you plan to sell soon after finishing, talk to LARA before you break ground.
- Hire licensed trades for electrical, plumbing and mechanical work you will not do yourself.
- Ask your building department for its owner permit rules.
Frequently Asked Questions
Can I build my own house in Michigan without a license? Under MCL 339.2403(b) an owner can for a structure the owner uses and occupies.
Can I build a house and sell it without a license? The owner exemption is written around use and occupancy, so a build for sale is not clearly covered. Confirm with LARA first.
Can a landlord repair their own rental property? Yes under subsection (c), limited to maintaining and altering that property.
Is there a dollar limit on unlicensed work? One project totaling under $600.00 is exempt, but it cannot be part of a larger operation or split into pieces.
What is the penalty for unlicensed residential building in Michigan? A misdemeanor with fines of $5,000 to $25,000 and up to 1 year in jail for a first offense, up to 2 years for a later one, and a felony if it causes death or serious injury.
Who can answer my specific situation? The Michigan Department of Licensing and Regulatory Affairs or a construction attorney. This guide explains the statute and is not legal advice.
Talk to Us About Your Michigan Business
If your company needs a licensed qualifier, call 615-219-2110 or start at Hire a Qualifying Agent. Browse the state by state licensing library to see where else you can grow.
Sources
- MCL 339.2403, Exemptions (Michigan Legislature), retrieved 2026-10-25
- MCL 339.601, Penalties (Michigan Legislature), retrieved 2026-10-25
- Michigan Legislature, retrieved 2026-10-25
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.