[CLC-Discussion] 489 Question

[Mason, W]

Hi All,

I am working on a research project for a client. A question that has come up is whether there is any requirement to have a contractor registration or certification number listed on a purchase agreement between a single family home builder and the purchaser of a single family home.

489.119(5)(b) provides that "the registration or certification number of each contractor shall appear in each offer of services, business proposal, bid, contract, or advertisement, regardless of medium, as defined by board rule, used by that contractor or business organization in the practice of contracting."

The "developer exemption" in 489.105(6) states that "the term "contracting" shall not extend to an individual, partnership, corporation, trust, or other legal entity that offers to sell or sells completed residences on property on which the individual or business entity has any legal or equitable interest, or to the individual or business entity that offers to sell or sells manufactured or factory-built buildings that will be completed on site on property on which either party to a contract has any legal or equitable interest, if the services of a qualified contractor certified or registered pursuant to the requirements of this chapter have been or will be retained for the purpose of constructing or completing such residences."

Assume the client qualifies for the developer exemption. Since a purchase agreement between a developer and a purchaser of a residence isn't a contract used by a contractor in the practice of contracting, my initial opinion was that the statutes are pretty clear, and because developers aren't "contracting," there is no party to the purchase agreement between the developer and purchaser that could constitute a "contractor" practicing "contracting" where there needs to be a registration/certification number pursuant to 489.119.

Am I missing anything here? The answer seems pretty easy but the client is worried that it needs to have a contractor certification or registration number on every purchase contract and has asked me to triple check. If a developer has retained a contractor to build the homes sold by the developer to the purchaser is there some other authority that requires the developer to list the contractor's license number on the purchase contract even though the contractor is not a party to the purchase agreement and is only retained by the developer and not the purchaser?

Thanks for any input.

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