Updated almost 11 years ago on . Most recent reply
contractor on title in Washington state
As it currently stands, RCW 18.27 requires a contractor to be on title to fix and flip a property. We have a contractor that we are partnering with on a flip and I have been told that a Tenancy in Common agreement will satisfy this requirement provided it is stated on the title. My question is at what point does the contractor need to be added to the title? At closing? After closing but prior to work beginning?(Can we secure/purchase the property and then add the contractor?). Any thoughts..
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Previous discussion:
http://www.biggerpockets.com/forums/48/topics/1588...
Putting contractor on after closing but before work commences would work I think. Personally that seems like a legal quagmire I wouldn't want to be involved in. If you are going to keep flipping houses probably in your interest to get your license, it is relatively straightforward, just the paperwork is a pain.
Everyone from other states always starts getting riled up in these threads and derailing the topic. There are sound policy reasons behind the requirement and it isn't overly burdensome. And it's not like you can solve anything by arguing about it here anyways. Just have to wait and see if/when law changes.
Get your contractor's license, check and recheck that people you hire are licensed and paying L&I, pull permits.