Construction Contracting: Prohibited Practices “Rent-a-License”

An unlicensed handyman pulls a permit using a friends contracting license. This happens all the time. Its unlawful, and most important, when it happens, the homeowner will not have to pay for the work.
However, many handymen (read unlicensed person) think they are acting lawfully, and even diligently, by having a properly licensed professional pull the permit for the work.
However, this is based on a complete misapprehension of the law. Simply put, a handyman cannot enter into a contract for work that requires a permit (or licensure) and then cure his unlicensed status by having a properly licensed contractor pull the permit for them, or even perform the work for them. This is unlicensed contracting, and pursuant to Fla. Stat. 489.128 Contracts entered into by unlicensed contractors unenforceable.— (1) As a matter of public policy, contracts entered into on or after October 1, 1990, by an unlicensed contractor shall be unenforceable in law or in equity by the unlicensed contractor.
Further, Fla. Stat. 489.127 specifically prohibits the licensed party from allowing this conduct.
Fla. Stat. 489.127 –489.127 Prohibitions; penalties.
(4)(a) A certified or registered contractor, or contractor authorized by a local construction regulation board to do contracting, may not enter into an agreement, oral or written, whereby his or her certification number or registration number is used, or to be used, by a person who is not certified or registered as provided for in this chapter, or used, or to be used, by a business organization that is not duly qualified as provided for in this chapter to engage in the business, or act in the capacity, of a contractor.
(b) A certified or registered contractor, or contractor authorized by a local construction regulation board to do contracting, may not knowingly allow his or her certification number or registration number to be used by a person who is not certified or registered as provided for in this chapter, or used by a business organization that is not qualified as provided for in this chapter to engage in the business, or act in the capacity of, a contractor.
(c) A certified or registered contractor, or contractor authorized by a local construction regulation board to do contracting, may not apply for or obtain a building permit for construction work unless the certified or registered contractor, or contractor authorized by a local construction regulation board to do contracting, or business organization duly qualified by said contractor, has entered into a contract to make improvements to, or perform the contracting at, the real property specified in the application or permit. This paragraph does not prohibit a contractor from applying for or obtaining a building permit to allow the contractor to perform work for another person without compensation or to perform work on property that is owned by the contractor.
(d)1. A person who violates this subsection commits a misdemeanor of the first degree, punishable as provided in s. 775.082 or s. 775.083.
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