We have important news to share regarding a recent change in state law that will impact both the real estate and construction industries.
The North Carolina General Assembly has passed House Bill 488, which modifies the monetary threshold required for general contractor licensure.
Rising Construction Costs
Over the past few years, the construction industry has experienced a significant increase in construction costs. This increase has been due to a variety of factors, including rising material costs, labor shortages, and increased demand for construction services. As a result, many in the construction community felt that the previous monetary threshold of $30,000 for obtaining a general contractor license had become outdated and no longer reflected the current economic conditions.
New Monetary Threshold
In response to the rising construction costs, the North Carolina General Assembly has passed House Bill 488, which increases the monetary threshold for obtaining a general contractor license from $30,000 to $40,000, effective October 1, 2023.
Impact on Real Estate Agents and General Contractors
This change in the monetary threshold will have several implications for real estate agents and general contractors:
General Contractors: Individuals and businesses that engage in construction projects will now be able to undertake projects valued up to $40,000 without requiring a general contractor license. This is an increase from the previous limit of $30,000 and means that contractors can take on larger projects without the need for licensure. This change is particularly beneficial for smaller contractors who typically handle projects in this price range.
Real Estate Agents: Real estate agents often work closely with general contractors on various projects, from home renovations to new constructions. With the change in the licensure threshold, real estate agents should be aware of the new requirements and ensure that any general contractors they recommend or work with are properly licensed for the scope of the work being undertaken.
The increase in the monetary threshold for general contractor licensure is a significant development that reflects the rising costs in the construction industry. It is crucial for real estate agents and general contractors to be aware of this change and to take the necessary steps to ensure compliance with the new requirements.
If you have any questions or need further clarification on how this change may affect you feel free to contact us or ask a colleague in an upcoming CE Class!