SB294 Alabama 2020 Session

Summary

Primary Sponsor

Tom Whatley

Republican

Session

Regular Session 2020

Title

Home building, exemptions for owner of property, further provided, notice requirements prior to sale provided

Summary

SB294 would expand owner-builders' exemptions from many building requirements for homes they build or improve for their own use and not for sale, while adding pre-sale steps if they later sell.

What This Bill Does

The bill allows a property owner who acts as their own contractor on a one- or two-family home not offered for sale to skip state and local building permits, codes, inspections, insurance requirements, and occupancy rules. If the owner plans to sell later, the exemption still applies only if the home is completed under the exemption and certain conditions are met before sale. Before signing a sale contract for a home built under the exemption, the owner must ensure local code compliance, have necessary inspections and a occupancy certificate, and provide written notice to the buyer that the home was built under the exemption. Subcontractors working for the owner-builder must be properly licensed and permits for their work obtained.

Who It Affects

• Property owners building or improving a single-family or two-family home for their own occupancy who are acting as their own contractor
• Subcontractors hired by owner-builders, who must obtain all required licenses and permits
• Potential purchasers of a home built under the owner-builder exemption, who receive written notice and that the home underwent required inspections and has an occupancy certificate before sale

Key Provisions

• Exemption from building permits, local/state building codes, certain Title 34 requirements, board rules, inspections, permit and occupancy fee requirements, workers' compensation insurance, and related rules for owner-builders of one- or two-family homes not offered for sale
• Exemption does not apply if the owner does not own or occupy the home after completion, and a home is deemed offered for sale if sold or offered for sale within one year of completion
• Subcontractors hired by an owner-builder must obtain all required licenses and permits for their work
• Before selling a home built under the exemption, the owner must ensure local code compliance, obtain inspections per Standards of Practice, obtain a certificate of occupancy, and provide written notice to the prospective purchaser
• Effective date: the act becomes law on the first day of the third month after it passes and is approved

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.