INTRODUCTION

Montgomery County Code Chapter 31C (i.e., Chapter 31C) is the local law which requires new homebuilders to be licensed, and for Builders to provide a limited new home warranty. A Builder must not be engaged in the business of constructing new homes or acting in the capacity of a Building Contractor without a license; violators of Chapter 31C are subject to a $500.00 civil fine in addition to all other remedies prescribed by the law, which may be both civil and criminal. Chapter 31C-4 creates the Board of Registration for Building Contractors. The five (5) member Board consists of two (2) members active in residential construction, and three (3) members representing the public. Board members serve for a term of three (3) years and may be reappointed for one additional term.

Montgomery County Code Section 31C-4 requires the Board to certify to the Director of the Office of Consumer Protection whether the applicant or the organization is qualified to comply with the building codes and laws of the County and State, as those duties and responsibilities relate to the construction of new homes in the County. The Board may conduct hearings and pursue action against a licensee including revocation of the license.

For the purpose of these regulations, the term “engaging in the business of erecting or otherwise creating a new home” includes constructing any new home for sale, acting as prime contractor to construct any new home for another person or advertising or holding oneself out as constructing or being available to construct a new home or homes. The term also means and includes the sale or transfer of title to a parcel of land to any person and the subsequent participation in the construction of a new home. The term also includes a person who contracts with a general contractor or with subcontractors for the construction of a new home for the purpose of sale to a purchaser.

The Board typically meets monthly on the first Tuesday of the month. Board meetings are open to the public. The licensing process requires submitting an application demonstrating experience in the construction trade, providing proof of insurance, banking and material references, and a $700.00 non-refundable application fee. You may obtain more information by calling the Office of Consumer Protection at 240-777-3636.