Flipping newbie question about deed restriction...

[Leonard Fisher]

Does the one-year-wait restriction (upon completion of renovation work) apply to homes paid for by cash and NOT financed, or are some deed restrictions applicable to homes sold to potential flippers irregardless of the source of purchase capital? Does it depend on the county or are there federal rules that pertain to this matter universally?

For the sake of discussion, assume that anti-fraud flipping guidelines are being adhered to religiously and the home being purchased is very low in cost, needing much renovation work, paid for in cash and not in a neighborhood with strict HOA guidelines.

Thanks in advance.

[James Wise]

@Leonard Fisher

welcome to the site. Post the restriction here for us to take a look at it.

[Leonard Fisher]

Here is an excerpt and link:

http://www.ppines.com/DocumentCenter/View/67

Florida Statutes, Chapter 489, Licenses Required, 489.103, Exemption [7] License requirements do not apply to: Owners of property when acting as their own contractor and providing direct, onsite supervision themselves of all work not performed by licensed contractors: (a) When building or improving farm outbuildings or one-family or two-family residences on such property for the occupancy or use of such owners and not offered for sale or lease, or building or improving commercial buildings, at a cost not to exceed $75,000, on such property for the occupancy or use of such owners and not offered for sale or lease. In an action brought under this part, proof of the sale or lease, or offering for sale or lease, of any such structure by the owner-builder within 1 year after completion of same creates a presumption that the construction was undertaken for purposes of sale or lease.

Thanks for looking.

[Crystal Smith]

@Leonard Fisher  I'm not familiar w/ the one-year-wait restriction your referring to.   Fannie Mae has some 6 month restrictions. 

The Florida Statute you posted isn't a deed restriction. 

[Greg H.]

@Leonard Fisher

The statute appears to deal only with do work without obtaining a permit that otherwise a permit would be required and is not a deed restriction.  A deed restriction is language actually written into the deed that prohibits a sale with the given period of time

[Bill Gulley]

I  don't see this as an anti-flipping restriction, it is to ensure non-contractors don't do work on properties to the public where a non-contractor would not be held responsible as a contractor would be for one year from work performed. Just get a contractor to put his license on the job, he can hire you to do some of the work where he will be responsible for the work done.

Temporary deed restrictions can be contracted and title transferred with the restriction noted in the deed, where I sell to you and restrict the use of the property as a rental for five years for example. Restrictions can be rather involved and shouldn't be something investors try to implement to effect some deal without a title attorney. :)    

[Marlon Wilson]

Hi Leonard!

Welcome to bigger pockets!

[Leonard Fisher]

Originally posted by @Bill Gulley:

 ......Just get a contractor to put his license on the job, he can hire you to do some of the work where he will be responsible for the work done.........

So, theoretically then, I could do the work and legally pay to have a contractor inspect, and then sign off on it (provided he is satisfied with the quality of the work done), and be free of the one - year waiting period?

BTW, I want to thank everyone for your contributions to this thread, and for helping a newbie gain some valuable wisdom with clarifications on this issue. I very much appreciate the input.

[Wayne Brooks]

This purely a licensing exemption for an Owner Occupant, in order to pull permits, working on their own occupied residence, end of story.   It doesn't apply to flippers....you'd simply need a licensed contractor to pull any required permits.

[Bill Gulley]

As long  as you work under the supervision of a licensed contractor, they can hire who ever they like. :) 

[Marlon Wilson]

Hi @Leonard Fisher!

Welcome to biggerpockets! All the best!