Tennessee lets owners build a single residence for personal use without a contractor license, with a two year resale presumption and a notarized permit affidavit. Here is how it works.
Tennessee lets a property owner build a single residence for personal use without a contractor license, but the exemption comes with a two-year test and a notarized permit affidavit that many cities now require. Owners get into trouble when they build a second house inside that window, hire a friend to manage the job, or list the home for sale soon after finishing. This guide explains the owner exemption in Tenn. Code 62-6-103, how a city homeowner affidavit applies it, and the penalties for unlicensed contracting.
At a glance The owner exemption in Tenn. Code 62-6-103 covers an owner who builds a single residence on property they own for individual use. The statute excludes buildings for resale, lease, rent or other similar purpose. Filing more than one permit application, or building more than one residence, within two years creates a rebuttable presumption of intent to resell. Contracting without a license required by the statute is a Class A misdemeanor under Tenn. Code 62-6-120. The licensing board may also impose a civil penalty of up to $5,000 per offense.
For the license itself, including monetary limits and classifications, see our Tennessee contractor license guide. This page covers only the owner-builder path.
What Tenn. Code 62-6-103 says
Tennessee makes it unlawful to engage in or offer to engage in contracting for a project unless the person holds a license with a monetary limit sufficient for the project. The same section carves out an owner exemption. A person, firm or church that owns property and constructs single residences on it for individual use, and not for resale, lease, rent or other similar purpose, is exempt from the requirements of the licensing part.
Two details deserve attention. The exemption is tied to individual use, so the intent at the time of construction matters. It also speaks of single residences, not subdivisions or a string of speculative homes.
The two-year presumption
The statute adds a rebuttable presumption. If more than one permit application is filed, or more than one residence is built, within two years, the law presumes the owner intended to resell. Rebuttable means the owner can try to prove otherwise, but the burden has shifted to them.
| Situation | Exemption likely available? | Why |
|---|---|---|
| One home you will live in | Yes | Single residence for individual use |
| Second home started within two years | Presumed no | Triggers the resale presumption |
| House built to sell | No | Resale is outside the exemption |
| Home built for your family, sold years later | Generally yes | Intent at construction was individual use |
| Church building its own sanctuary | Statute names churches | Property owned and built for its own use |
How a city homeowner affidavit applies it
Permit offices in Tennessee cities and counties often require a homeowner to sign a notarized affidavit before they issue a permit. These forms are local, so the wording varies. The Kingsport homeowner affidavit is a useful example because it cites Tenn. Code 62-6-103 directly.
On that form the owner swears to several points:
- The owner occupies the property and may perform all types of work on a single family residence.
- The owner may construct a new home once every two years, for individual use and not for resale, lease or rent.
- The owner has not applied for a homeowner permit for new construction within the last two years.
- The owner will perform the work under the permit, and anyone hired must show a license.
- The owner is not hiring a construction manager to oversee the project.
The form explains that anyone the owner hires is considered a prime contractor or construction manager and is not exempt from the license requirements. If the owner stops acting as the builder and hires a contractor, the owner must ask that the permit be voided, and the contractor must apply for a new one. If the property is later offered for sale or for rent, the city building division files a complaint with the contractors licensing board. Your own city may use a different form, but expect a version of these promises.
What the owner-builder exemption does not cover
- Building to sell. A residence built for resale falls outside the exemption.
- Back-to-back projects. A second permit or second residence within two years triggers the presumption of intent to resell.
- A hired manager. The Kingsport form says the owner is not hiring a construction manager, and a hired builder needs a license.
- Work for other people. The exemption is about your own property and your own use.
- The trades. Electrical, plumbing and heating work have their own rules. Read our guides to electrician licensing in Tennessee, plumbing licensing in Tennessee and HVAC licensing in Tennessee before you do any of that work yourself.
Penalties for unlicensed contracting
Tenn. Code 62-6-120 makes it a Class A misdemeanor to engage in or offer to engage in contracting without a license required by 62-6-103. The statute does not state a fixed fine for the misdemeanor itself. Separately, the board may levy a civil penalty of up to $5,000 per offense against an unlicensed contractor, and a director's citation must carry a civil penalty between $50 and $1,000.
For an owner-builder the practical consequences usually start earlier. A permit can be voided, a city can file a complaint with the board, and a false statement on a sworn form creates its own legal exposure.
A practical checklist for Tennessee owner-builders
- Confirm you own the property and that the home will be for your own use.
- Decide now whether you might sell soon after finishing. If you might, talk to a Tennessee construction attorney first.
- Check whether you have filed any other new-construction permit in the last two years.
- Ask your city or county building office for its homeowner affidavit and read every line before the notary signs.
- Do the work yourself or hire licensed trades for specific tasks, and verify each license before you pay.
- If a hired helper begins directing the job, stop and talk to the permit office. Do not let the arrangement drift into a hidden construction manager role.
Mistakes that cost owners the exemption
The most common mistake is using the exemption for a second house. One owner-built home is common and lawful. Two permits inside two years looks like a business, and the statute treats it that way.
The second mistake is the quiet manager. An owner signs the affidavit, then lets an unlicensed friend run the crews and the schedule. The form says anyone hired is a prime contractor or construction manager and is not exempt. The third is listing the house for sale during or soon after construction, which can prompt the city to refer the file to the board.
When the owner-builder path ends
The exemption works for a home you will use. It does not work for a business that builds for others. A company that takes paying customers needs a licensed contractor with a monetary limit that fits the work, and in Tennessee a company often relies on a licensed individual to qualify it.
A qualifying agent QUALIFIES a company. The qualifier meets the state's experience and exam requirements, and a qualifier placed through The Licensing Company is a full-time W-2 employee of the company they qualify. If you are moving from owner projects to a contracting business, start with what a qualifying agent is, read our Tennessee qualifying agent guide, then look at how to hire a qualifying agent or review the consultation packages. If you already hold a Tennessee license and want to qualify companies, see how to become a qualifying agent. Our founders, Marshall Schofield and Jeremiah Jaskulski, have placed qualifiers with contractors nationwide.
For a comparison with other states, read our guides to the North Carolina owner-builder exemption, the Georgia owner-builder exemption and the Florida owner-builder exemption.
Frequently asked questions
Can I build my own house in Tennessee without a contractor license? Yes, under Tenn. Code 62-6-103, if you own the property and build a single residence for your individual use and not for resale, lease, rent or similar purpose.
How often can I use the exemption? Filing more than one permit application, or building more than one residence, within two years creates a presumption that you intend to resell. City forms such as Kingsport's describe it as one new home every two years.
Can I hire a construction manager? Not under the Kingsport form. It states the owner is not hiring a construction manager, and a hired manager is treated as a prime contractor who needs a license.
Is there a dollar threshold in the owner exemption? The exemption itself states no dollar figure. Contractor license monetary limits are set by the licensing board, which our Tennessee state page covers.
What happens if I list the house for sale? The Kingsport form says the building division will file a complaint with the contractors licensing board if the property is offered for sale, rent or lease.
Is this legal advice? No. It is general information based on the statute and a sample city form. Confirm your facts with the Tennessee Board for Licensing Contractors, your local building office or a Tennessee attorney.
Sources
- Tenn. Code 62-6-103, license required and owner exemption, via Justia, retrieved October 21, 2026
- Tenn. Code 62-6-120, penalties, via Justia, retrieved October 21, 2026
- Kingsport homeowner affidavit, City of Kingsport, Tennessee, retrieved October 21, 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.