Florida law lets a property owner pull a building permit as an “owner-builder” and act as their own contractor on a one- or two-family home they will live in, under Florida Statutes section 489.103(7). In exchange, you become the legally responsible party for the job: you must personally supervise the work on site, you take on employer obligations for anyone unlicensed you hire, and if you sell or lease within a year of completion, the law presumes you built it for sale, which violates the exemption.

It is a legitimate option. It is also easy to get wrong, especially when the idea came from a contractor who did not want their own name on the permit. Here is what the exemption allows and what it costs as of 2026.

What the owner-builder exemption allows

Section 489.103(7)(a)1 exempts owners who act as their own contractor and personally provide direct, onsite supervision of all work not done by licensed contractors. It covers:

  • Building or improving a one-family or two-family residence, or farm outbuildings, for your own occupancy or use, not offered for sale or lease.
  • Building or improving a commercial building for your own use, not offered for sale or lease, at a cost not exceeding $75,000.

You can hire licensed contractors for individual trades, such as a licensed electrician or plumber, and many owner-builders do exactly that. What you cannot do is hand off the supervision. Under 489.103(7)(b), you may not delegate it to anyone who is not registered or certified for that work, and the exemption does not protect anyone you hire who acts as a contractor.

The disclosure statement you sign

Before the permit is issued, you must personally appear, sign the permit application and sign a disclosure statement whose wording is set in the statute. Building departments also require identification, a notarized signature or another acceptable verification. The disclosure is worth reading line by line, because it is the state telling you, in its own words, what you are accepting. In summary, you acknowledge that:

  1. You are the responsible party of record on the permit, and hiring a licensed contractor who pulls the permit in their own name can reduce your personal financial risk.
  2. You must provide direct, onsite supervision of the work.
  3. You may not hire an unlicensed person to act as your contractor or to supervise workers, and you are responsible for checking that the people you hire are licensed.
  4. You may be liable for injuries to unlicensed workers or their employees on your property, and your homeowner’s insurance may not cover those injuries.
  5. Any unlicensed worker you use must be your own employee, working under your direct supervision, with federal income tax and FICA withheld and workers’ compensation provided as the law requires.
  6. The work must comply with the building code, local ordinances and zoning.
  7. If you hire an unlicensed contractor, the Construction Industry Licensing Board and the Department of Business and Professional Regulation may be unable to help with your financial losses, and civil court may be your only remedy.

Item 3 is the trap most people walk into. The arrangement where a contractor says “pull it as owner-builder and I’ll do the work” is exactly what the statute prohibits.

Liability: you are the employer and the permit holder

When you pull a permit as owner-builder, the building department deals with you. Failed inspections, corrections, code violations and closing the permit are your responsibility. If the job stalls, the open permit is in your name.

The employment side is less obvious and more expensive. If you pay unlicensed workers directly, the statute treats them as your employees, with withholding, FICA and workers’ compensation obligations. Broward’s administrative provisions also require employers to show proof of workers’ compensation coverage as a condition of receiving a building permit. Most homeowners have no payroll system, no workers’ comp policy and no idea they have become an employer.

If something goes wrong (a fall from a ladder, a cut, a dropped beam) the disclosure you signed says you may be liable and that your homeowner’s policy may not respond.

Insurance questions to ask before you sign

We are not insurance advisors, and policies vary. But the statute’s warning is enough reason to call your agent before you apply. Ask, in writing:

  • Does my homeowner’s policy cover injuries to workers on my property during renovation?
  • Does it cover damage to the house caused by the work itself, or do I need a separate builder’s risk policy?
  • Do I need workers’ compensation coverage for anyone I pay directly?
  • Does the policy change when the house is unoccupied during construction?

When a contractor pulls the permit, these questions shift largely to the contractor’s insurance. That is part of what you are paying for.

The one-year resale and rental restriction

The exemption is for your own use. Under 489.103(7)(a)1, if you sell, lease or even offer the property for sale or lease within one year after the work is completed, the law presumes you did the work for sale or lease, which takes it outside the exemption.

The consequences are spelled out in 489.103(7)(c): the permitting agency may withhold final approval, revoke the permit, or pursue unlicensed-activity enforcement against you and anyone who performed licensed work under the permit. For anyone renovating to sell, or a house they plan to rent, owner-builder is the wrong tool. Our article on renovating a house to sell in South Florida covers that path properly.

Why owner-builder often costs more

This is our analysis, not a statute. The appeal of owner-builder is saving the contractor’s margin. In practice, the savings are often smaller than expected, and sometimes negative, for reasons that have nothing to do with effort:

  • Sequencing. A general contractor’s main value is putting trades in the right order. Tile set before the shower valve is inspected, or drywall closed before rough electrical is approved, means demolition and rework.
  • Failed inspections. Each failure costs a re-inspection, a delay, and often idle trades who bill for the return trip.
  • Trade pricing and availability. Subcontractors price one-off homeowner jobs differently from steady work for a contractor they know, and they schedule them that way too.
  • Time. Supervising daily on site is the legal requirement, not a suggestion. If you have a full-time job, the hours have a cost.
  • Carrying costs. Every extra month is another month of mortgage, insurance and temporary housing. Our article on how long a renovation takes explains why timelines slip.
  • No recourse. If the person you relied on was unlicensed, the state may be unable to help, and court is slow and expensive.

When owner-builder does make sense

It can be the right choice for an owner with real construction experience, the time to be on site, a modest scope and licensed trade contractors lined up for the regulated work. It is also useful in one specific situation: Florida Statutes section 553.79 allows an owner to close out an old permit as an owner-builder, which can clear an expired permit before a sale.

Condo owners have an additional layer. Associations set their own rules for who may work in the building, often including insurance certificates and an approved-contractor process. Check the building’s rules before you assume the exemption gets you through the door. Our condo renovation rules article covers the approval side.

What to do instead of guessing

If you hire a contractor, the permit should be in the contractor’s name. Verify the contractor’s state license on the DBPR site (myfloridalicense.com), confirm their workers’ compensation status, and get a written scope and contract. Our contractor hiring checklist walks through each step, and fixed-price vs. cost-plus contracts explains how the payment structure affects your risk. For permit mechanics, see our guide to Broward County remodeling permits.

If a contractor asks you to pull the permit yourself, ask why. There is rarely a good answer. You can read more about how we work, or see the home renovation process we run from permit to final inspection.

Frequently asked questions

Can I be my own contractor in Florida?

Yes, under the owner-builder exemption in section 489.103(7), for a one- or two-family residence you will occupy, or a commercial building for your own use costing $75,000 or less. You must personally supervise the work on site, sign a state-mandated disclosure statement and appear in person for the permit. The property cannot be built or improved for sale or lease.

Can I sell my house after an owner-builder permit?

You can sell, but timing matters. If you sell, lease or offer the property for sale or lease within one year after the work is completed, the law presumes the work was done for sale or lease, which violates the exemption. The permitting agency may then withhold final approval, revoke the permit or pursue unlicensed-activity enforcement.

Can I hire workers under an owner-builder permit?

You can hire licensed contractors for their trades. You cannot hire an unlicensed person to act as your contractor or supervise workers. Unlicensed workers must be your own employees, under your direct supervision, with income tax and FICA withheld and workers’ compensation provided as the law requires. That makes you an employer, with the obligations that come with it.

Does homeowner’s insurance cover owner-builder projects?

Not necessarily. The state’s own owner-builder disclosure warns that you may be liable for injuries to unlicensed workers on your property and that your homeowner’s insurance may not cover them. Ask your insurance agent in writing about worker injuries, damage caused by the work and builder’s risk coverage before you apply for the permit.

Why would a contractor ask me to pull an owner-builder permit?

Often because they cannot or will not pull the permit in their own name, which can mean they are not licensed for that work. The disclosure statement you sign says you may not hire an unlicensed person to act as your contractor. If a contractor asks this, verify their license on myfloridalicense.com and consider it a serious warning sign.