November 18, 2019

Any residential builder is well advised to obtain and keep a builder’s license up to date. A builder’s license can be the difference between collecting payment or not.

In a recent decision, the Michigan Supreme Court reaffirmed this very issue.  Part of the holding stated, an unlicensed residential builder cannot sue to collect compensation for work performed. Even if the residential builder follows the lien process to collect, the residential builder will be prohibited from collecting if he or she is unlicensed.

But what if the residential builder is sued? While the residential builder will not be able to sue to collect its fees, the residential builder will still need to defend the action. As a practice point, it is important that residential builders obtain a license. Lawyers representing residential builders should check and ensure their clients have a residential builder’s license before defending or pursuing an action on their client’s behalf. 

To speak with an attorney about builder license issues, or construction law matters in general, please contact Keller & Almassian at 616-364-2100 to schedule an appointment or phone consultation.

 

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