Key Takeaways

  • Severe Penalties: Hiring an unlicensed contractor in Florida can lead to fines, lawsuits, and liability for damages.
  • Legal Consequences: First-time violations are misdemeanors, while repeat offenses or state-of-emergency violations are felonies.
  • Consumer Risks: Homeowners may face financial losses due to unenforceable contracts and lack of legal recourse.
  • Licensing Requirements: Contractors must be registered or certified by the Florida Department of Business and Professional Regulation.
  • Possible Defenses: Lack of intent, misinterpretation of licensing laws, and compliance with certain exceptions may serve as defenses in legal cases.
  • Civil Lawsuits: Property owners may be held liable for injuries or damages resulting from unlicensed work.
  • Finding Legal Help: Consulting an attorney is advisable to navigate disputes and ensure compliance with Florida law.

The penalty for hiring unlicensed contractor in Florida, which is an offense that includes a wide range of conduct pertaining to the home improvement and construction industries, is outlined in Florida Statutes Section 489.127.

Overview of Florida Statutes Regarding Unlicensed Contractors

What Unlicensed Contractors Cannot Do

The statutes outline what an unlicensed contractor is not allowed to do. They cannot:

  • Present themselves or a business as the holder of a license, certificate holder, or registrant.
  • Impersonate a registrant or a certificate holder.
  • Present the certificate registration of another person as their own.
  • Knowingly provide false or forged information/evidence to the board or a board member.
  • Attempt to use a revoked or suspended certificate of registration.
  • Engage in business or act as a contractor without proper certification or registration.
  • Perform any work without the required building permit(s).
  • Deliberately ignore or violate any ordinances for the country or municipality relating to unregistered or uncertified contractors.

Note that once a qualifying agent is terminated, the business cannot participate in contracting for 60 days unless another qualifying agent has been designated.

In a nutshell, there are nine ways a person can be in a position to commit a crime by being an unlicensed contractor in Florida. Should proof of such a violation be evident, it is sufficient to sustain a conviction in a court of law.

Unlicensed contracting can be either a felony or a misdemeanor, depending on the facts. The first offense can result in a first-degree misdemeanor, which may include penalties such as 12 months of probation, up to one year in jail, and a $1,000 fine. Further offenses are deemed third-degree felonies under Florida Statute 775.083. A third-degree felony can incur up to five years in prison or probation and a $5,000 fine.

Additionally, any offense committed by an unlicensed contractor during a state of emergency declared by the governor is a third-degree felony.

Along with the potential for time in jail and subsequent fines, a person who is either convicted or pleads to a charge of contracting without a license is often subject to court-ordered restitution. Restitution may result in awards totaling tens of thousands of dollars. If the person fails to make payments on time, they may be held in contempt of court.

According to Section 713.02(7) of the Florida Statutes, an unlicensed contractor or subcontractor shall have no liens in their favor.

Contracts entered into by an unlicensed contractor are unenforceable in law or in equity. The unlicensed contractor may also lose their bond claim.

Clarification of Definitions

  • Certificate: This is a certificate of competency issued by the Department of Business and Professional Regulation.
  • Contracting: The accused engaged in business as a contractor according to the definition of "contractor" in Section 489.105 of the Florida Statutes.
  • Registration: The person has registered with the Department of Business and Professional Regulation in accordance with Florida Statutes.

Allowed to Do

According to Florida Statutes Section 489.101, a contractor is a person or company providing materials or labor to perform a project for compensation. The person will submit a bid and then take on the project themselves or hire others to work on the project, which may include:

  • Construction
  • Repair
  • Alteration
  • Remodeling
  • Additions
  • Demolition
  • Removal
  • Improving a building or structure

Civil and Criminal Penalties for Hiring an Unlicensed Contractor

Homeowners and businesses that knowingly hire an unlicensed contractor in Florida face significant legal consequences. Under Florida law, penalties for hiring an unlicensed contractor can include:

  • Civil Fines: Homeowners may be required to pay fines imposed by the Florida Department of Business and Professional Regulation (DBPR), which may range from hundreds to thousands of dollars.
  • Legal Liability: If an unlicensed contractor causes injury or property damage, the property owner could be held responsible for medical expenses, repair costs, or other damages.
  • Unenforceable Contracts: Contracts with unlicensed contractors are typically unenforceable, meaning property owners may have no legal recourse if the contractor fails to complete the work.
  • Felony Charges in Emergency Situations: If the work occurs during a state of emergency, hiring an unlicensed contractor can escalate to a third-degree felony, punishable by up to five years in prison.

Additionally, insurance companies may deny claims related to work performed by unlicensed contractors, leaving property owners to cover all repair costs out of pocket.

Hiring an Unlicensed Contractor

Unlicensed contractors generally do not offer a contract, nor do they have lien rights. Their services are usually less expensive than those of a licensed contractor. Legally, you are not obligated to pay an unlicensed contractor.

Even if you were aware that the contractor was unlicensed before entering into a contract, the contractor and the applicable surety remain liable for incomplete work or poor workmanship.

In Florida, a person involved in contracting must be certified, licensed, or registered for the specific areas of the work being performed. The purpose of these requirements is the protection of consumers against those who have not fulfilled the requirements set forth by the State of Florida regarding educational requirements to attain state licensing. These requirements also exist to ensure Florida citizens' safety.

Legal Defenses Against Charges Related to Unlicensed Contracting

While Florida imposes strict penalties for hiring unlicensed contractors, certain legal defenses may apply in specific cases:

  1. Lack of Knowledge: If a homeowner was unaware that the contractor was unlicensed and had taken reasonable steps to verify their credentials, this could be a defense.
  2. Misrepresentation by the Contractor: Some individuals may unknowingly hire unlicensed contractors who provide fraudulent licensing information.
  3. Exception for Certain Trades: Florida law allows specific minor work, such as handyman services, to be performed without a license. However, major structural work, plumbing, electrical, and HVAC repairs require licensure.
  4. Corrective Action: If a contractor corrects licensing deficiencies before facing charges, penalties may be reduced.

It is crucial for homeowners to verify a contractor's license status through the Florida DBPR website before hiring to avoid these potential legal complications.

How to Verify a Contractor’s License in Florida

To avoid hiring an unlicensed contractor and facing penalties, property owners should take the following steps:

  • Use the Florida DBPR Online Database: The Department of Business and Professional Regulation provides an online verification tool where users can check a contractor’s licensing status.
  • Request Documentation: Licensed contractors should be able to provide proof of their credentials, including a license number, insurance policy, and business registration.
  • Check for Complaints or Violations: Even licensed contractors may have a history of disciplinary actions or consumer complaints, which can be reviewed on the DBPR website.
  • Verify Insurance Coverage: Licensed contractors should carry liability insurance and workers' compensation to protect property owners from financial risk.

Taking these precautions ensures that you remain in compliance with Florida law and avoid costly legal disputes.

Frequently Asked Questions

  1. What is the penalty for hiring an unlicensed contractor in Florida?
    Hiring an unlicensed contractor can result in fines, legal liability for damages, and unenforceable contracts. If hiring occurs during a state of emergency, it may lead to felony charges.
  2. Can homeowners be sued for hiring an unlicensed contractor?
    Yes, if an unlicensed contractor causes property damage or injuries, the homeowner may be held financially responsible.
  3. How do I verify if a contractor is licensed in Florida?
    You can verify a contractor’s license using the Florida Department of Business and Professional Regulation (DBPR) online database or by requesting proof of licensure.
  4. Can an unlicensed contractor sue me for nonpayment?
    No, under Florida law, contracts with unlicensed contractors are generally unenforceable, meaning they cannot legally sue for unpaid work.
  5. Are there any exceptions where a contractor does not need a license in Florida?
    Some minor repair and handyman services may not require a license. However, most structural, plumbing, electrical, and HVAC work requires proper licensing.

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