Can the owner of one townhouse unit in a four-unit building use the Florida owner-builder exemption to do their own construction work without a contractor's license?
Plain-English summary
Florida Attorney General Ashley Moody concluded that the owner-builder exemption in § 489.103(7)(a)(1), Fla. Stat. — which lets a homeowner act as their own contractor on a "one-family or two-family residence" without a contractor's license — does not apply to a townhouse unit in a multi-unit building where each unit has a different owner.
The Town of Ponce Inlet asked whether owners of single units in four-unit residential buildings (each unit privately owned, sharing common walls and a common roof) could use the exemption to make their own improvements. The AG said no: the exemption is structured to apply to a whole one- or two-unit building owned by a single owner, not to one unit out of several.
The reasoning rests on a careful comparison of how the Legislature wrote other parts of chapter 489. Where the Legislature wanted to include townhouses, it said so explicitly (e.g., § 489.117(4)(d) "single-family residences, including a townhouse"; § 489.103(7)(a)(4) "one-family or two-family residence, townhome..."). The omission from § 489.103(7)(a)(1) is taken as deliberate.
What this means for you
If you own a townhouse or condo unit in Florida
You cannot rely on the § 489.103(7)(a)(1) owner-builder exemption to do unlicensed construction work on your unit. To improve your unit, you must either:
- Hire a licensed contractor, OR
- Check whether a different exemption applies — § 489.103(7)(a)(4) covers permit-completion work on townhomes and condos and may help in narrower circumstances.
If you're a building official or local permitting agency
When a townhouse owner applies for an owner-builder exemption under § 489.103(7)(a)(1), this opinion tells you to deny the application. The exemption requires the applicant to own and occupy the entire one- or two-family residence. A unit owner in a four-unit (or any multi-unit) building does not qualify.
Verify the building configuration before approving. If the building is truly a single-family detached home or a duplex with one common owner, the exemption is available. Multi-unit buildings with separate per-unit ownership do not qualify under (7)(a)(1).
If you're a city attorney or local government counsel
This opinion gives you a clear answer to give your building department. Cite it when explaining why townhouse-unit owner applications must be denied. Note that the AG explicitly invites legislative or judicial clarification — if you face significant push-back, the path forward is amendment to chapter 489, not creative interpretation.
If you're a Florida construction lawyer
Note the AG's statutory-construction methodology: when the Legislature uses different terms in different subsections of the same statute, the difference is presumed to be intentional. Compare § 489.103(7)(a)(1) ("one-family or two-family residences") with § 489.103(7)(a)(4) ("one-family or two-family residence, townhome..."). The opinion also relies on § 489.117(4)(d) and § 489.1402(i) as parallel evidence that the Legislature knows how to expand the meaning of "residence" when it intends to.
Common questions
Q: What's the owner-builder exemption?
A: Under § 489.103(7)(a)(1), Fla. Stat., a property owner can act as their own contractor — providing direct, on-site supervision of all work not done by licensed subcontractors — on certain residences they own, without obtaining a contractor's license themselves. The exemption is meant for owner-occupants improving their own homes.
Q: Why doesn't the exemption apply to townhouses?
A: Because the statute requires the owner to own and occupy the entire one- or two-family residence. In a townhouse with separately-owned units, each owner only owns one unit — not the whole building. The Legislature treated townhouses differently from detached one- or two-family residences in other parts of chapter 489, and the AG concluded that omission from this exemption is deliberate.
Q: What if I own all four units in the building?
A: The opinion doesn't directly address that. Read narrowly, it says the exemption doesn't apply where there are "four units, each of which is owned by a different owner." A single owner of an entire multi-unit building presents a different question; consult a licensed attorney.
Q: Can I use a different exemption?
A: § 489.103(7)(a)(4), Fla. Stat. provides a separate exemption for completing the requirements of a building permit on a "one-family or two-family residence, townhome, or an accessory structure...or an individual residential condominium unit or cooperative unit." This exemption explicitly includes townhomes — but it's narrower in scope (it's for completing permit requirements, not initiating new construction).
Q: Can the Town just decide to allow it anyway?
A: No. Issuing a permit on the basis of an inapplicable exemption could expose the Town to claims from neighbors or the state, and could leave the homeowner liable under chapter 489. The proper path for owners who want broader access to the exemption is to ask the Legislature to amend the statute.
Background and statutory framework
Chapter 489, Part I, Florida Statutes is Florida's contractor licensing law. The Legislature found it "necessary in the interest of the public health, safety, and welfare to regulate the construction industry." § 489.101, Fla. Stat. The owner-builder exemption is a narrow carve-out that lets homeowners do their own work on their own homes without going through the licensing process.
The exemption appears in subsection (7) of § 489.103, with several distinct categories:
- (7)(a)(1) — owners of farm outbuildings or one-family/two-family residences (≤$75,000 for commercial)
- (7)(a)(4) — owners completing permit requirements on a one-family/two-family residence, townhome, accessory structure, or individual condo/coop unit
The Legislature's choice to mention "townhome" in (7)(a)(4) but not in (7)(a)(1) is the textual hook the AG uses to deny exemption coverage to townhouse units.
The opinion also cites the rule from White v. Mederi Caretenders Visiting Servs. of Se. Fla., LLC, 226 So. 3d 774, 781 (Fla. 2017) that the Legislature uses "including" as a word of expansion, not limitation — confirming that when the Legislature wanted to expand "single-family residence" to cover townhouses (as in § 489.117(4)(d)), it knew how to do so explicitly.
Citations and references
Statutes:
- § 489.101, Fla. Stat. (Construction industry findings)
- § 489.103, Fla. Stat. (Exemptions)
- § 489.117, Fla. Stat. (Registration and certification of contractors)
- § 489.1402, Fla. Stat. (Homeowners' Construction Recovery Fund definitions)
- § 481.203, Fla. Stat. (Architecture & interior design definitions)
Cases:
- White v. Mederi Caretenders Visiting Servs. of Se. Fla., LLC, 226 So. 3d 774, 781 (Fla. 2017) — "including" is a word of expansion, not limitation
- Op. Att'y Gen. Fla. 97-89 (1997) — townhouse unit is not a single-family dwelling for sprinkler-system purposes
- Op. Att'y Gen. Fla. 89-68 (1989) — earlier interpretation of (7)(a)(1) before "or lease" was added
Original opinion text
The full opinion as issued by Attorney General Ashley Moody:
Mr. D. Andrew Smith, III
City Attorney, Town of Ponce Inlet
Shepard, Smith, Kohlmyer & Hand, P.A.
2300 Maitland Center Pkwy., Ste. 100
Maitland, Florida 32751-7410
Dear Mr. Smith:
This office received your letter requesting a legal opinion on behalf of the Town of Ponce Inlet ("Town"). In it, and in information you provided subsequent to submitting the request, you ask substantially the following question:
Does the owner-builder exemption from requirements of chapter 489, part I, which is codified at section 489.103(7)(a)(1), Florida Statutes, apply where a single unit owner seeks to make improvements to an individual dwelling unit in a building containing four such interconnected units?
In sum:
Unless and until judicially or legislatively clarified, I conclude that the exemption provided to persons building or improving "farm outbuildings or one-family or two-family residences" owned by such persons and not offered for sale or lease when "acting as their own contractor and providing direct, onsite supervision themselves of all work not performed by licensed contractors" does not apply to owners of individual dwelling units that are part of a single building comprised of four such units.
Background
The Town has received applications from property owners living in buildings that consist of four dwelling units per building. Each applicant seeks an owner-builder exemption that would allow the owner to make improvements to a single unit in the building. Such units are arranged in a row lengthwise across the building (i.e. the front doors all face the same direction); each unit is owned in fee simple ownership; each unit has a private front door, back door, and garage; each unit shares at least one common wall with another unit (interior units have two common walls); and the building has a common roof (i.e., one roof for the whole building). Thus, each residential building contains four individual units, each of which has a separate owner who lives in his or her own unit.
Analysis
Deeming it "necessary in the interest of the public health, safety, and welfare to regulate the construction industry," the Legislature enacted part I of chapter 489, Florida Statutes. Various sections throughout chapter 489 refer to types of dwellings and non-residential buildings. Among these are one-family (or single-family) residence; two-family residence (or duplex); three-family residence; quadruplex housing; townhome; townhouse; condominium unit or cooperative unit; and farm outbuilding.
Section 489.103(7)(a)(1), Florida Statutes, provides an exemption from licensing requirements codified in part I of chapter 489 for property owners acting as their own contractors in building or improving "farm outbuildings or one-family or two-family residences." In pertinent part, it provides:
This part does not apply to:
(7)(a) Owners of property when acting as their own contractor and providing direct, onsite supervision themselves of all work not performed by licensed contractors:
- 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.
The statute also includes a lengthy disclosure statement that the local permitting agency is required to provide to each applicant in connection with an owner's application for an exemption. It reflects that the applicant understands the scope of the exemption and that, if the applicant violates any limitation of the exemption, "the law will presume that [the applicant] built or substantially improved" the residence or farm outbuilding in violation of the exemption. § 489.103(7)(c), Fla. Stat. (2022).
To qualify for the exemption, section 489.103(7)(a)(1) requires that the owner of the subject residence occupy or use, and not offer for sale or lease, the entire one-family or two-family building. The exemption's inapplicability to owners of duplexes where one of the units is leased indicates that the Legislature intended the exemption to apply to a single owner rather than two separate owners of units in a two-unit building.
The Town's question appears to involve applicants who own residential townhomes or townhouse units. A "townhouse" ("[a]lso termed townhome") is defined in Black's Law Dictionary as a "dwelling unit having [usually] two or three stories and often connected to a similar structure by a common wall and (particularly in a planned-unit development) sharing and owning in common the surrounding grounds." Thus, the Town appears to be asking whether a townhouse or townhome unit is included in the Legislature's designation of one-family residence, for purposes of the exemption provided by section 489.103(7)(a)(1). For the following reasons, I conclude that they are not.
Throughout chapter 489, the Legislature opted to refer to different types of structures. In one instance where the Legislature intended its reference to a "single-family" residence to also mean a townhouse, it specifically signaled such intent by adding the expansion word, "including." Section 489.117(4)(d) allows certain persons to undertake the "construction, remodeling, repair, or improvement of single-family residences, including a townhouse as defined in the Florida Building Code . . . ." (Emphasis added.) By using the phrase "including a townhouse," the Legislature indicated it intended to expand the meaning of "single-family residence" in that particular provision to include townhouse dwelling units. In addition, this office has confirmed that "single-family dwelling" did not mean "townhouse" in a statute that provided an exception to certain sprinkler system requirements.
In another instance in which the Legislature intended to include townhomes in addition to one-family and two-family residences, it specifically stated such: in contrast to section (7)(a)(1), section (7)(a)(4) provides criteria for an exemption for completing the requirements of a building permit that applies to owners of "a one-family or two-family residence, townhome, or an accessory structure of a one-family or two-family residence or townhome or an individual residential condominium unit or cooperative unit." (Emphasis added.) Section (7)(a)(4) further distinguishes itself from section (7)(a)(1) by providing that an owner who qualifies for the exemption under section (7)(a)(4) need not occupy the dwelling or unit for at least 1 year after completion of the project.
Lastly, the Legislature has explicitly expanded the meaning of "residence" where it has intended to do so. In section 489.1402(i), Florida Statutes ("Homeowners' Construction Recovery Fund; definitions"), the Legislature created a unique definition for "residence," specifying that the definition applies to sections 489.140 through 489.144, Florida Statutes. The statute defines "residence" as "a single-family residence, an individual residential condominium or cooperative unit, or a residential building containing not more than two residential units in which the owner contracting for the improvement is residing or will reside 6 months or more each calendar year upon completion of the improvement." In contrast, the Legislature has not, in section 489.103(7)(a)(1), included language similar to that used in sections 489.103(7)(a)(4), 489.117(4)(d), or 489.1402(i) to explicitly include townhome structures.
Conclusion
Based on the foregoing, unless and until judicially or legislatively clarified, I conclude that the owner-builder exemption provided in section 489.103(7)(a)(1) does not apply to owners of individual dwelling units that are part of a single building comprised of multiple units, each of which is owned by a different owner.
Sincerely,
Ashley Moody
Attorney General