KGC Properties LLC ~ Property Management & Real Estate In Tucson!

About two years ago, I helped a buyer purchase a fix and flip home.  The Seller of the home was a licensed real estate agent.  Most of the remodel work was done by an unlicensed handyman and the Seller himself.  

Quick "two cents" about a licensed Realtor doing fix and flips - s/he should know better - or at least know the rules about hiring hanymen here in Tucson.  Here are those rules:

There are limitations in place when you use a handyman to fix a property. First, the amount paid to the handyman cannot exceed $1,000. And that $1,000 has to include labor, materials and all other items associated with the job. Statute does exclude from the $1,000 amount anything which can be plugged in to a regular two-pronged or three-pronged electrical outlet so long as the item doesn’t use another form of energy (like gas). Also exempt from the $1,000 limit are items that are attached by a nail, screw or other “fastening device.” The handyman exemption in statute does give additional leeway in some circumstances; but be aware that the exemption doesn’t apply if a local building permit is required, or if the work to be done is part of a larger project or a major operation. (Additional rules require unlicensed handyman to state "not a licensed handyman" in their advertisement.)

About 2 months after the buyers moved in - many things started to go wrong.  Many of them, major. Of course the first person they call - is their real estate agent!  We went to the Seller asking him to honor his warranty but use a licensed person.  There was resistance of course - which resulted in two phone calls - one to the agents Broker, and one to the AZ Contractors office.

What the agent saved by not following rules - ended up costing him more in the end when he had to write a sizeable check to the Buyers.  

Handyman rules apply to us all - agent or not - so keep these in mind when you are hiring someone to work on your home.