HOME IMPROVEMENT LICENSING REQUIREMENTS

Consumers prefer to hire licensed professionals, especially when it comes to home remodeling. If you want to be known as a licensed, *insured and bonded contractor, the Home Improvement license is a good start. (*Note: Insurance is not always required in order to obtain a license, however, check with your agent to make sure you, your employees and customers are properly protected.)

The Home Improvement license is required by law to perform remodeling to existing residential homes, where the cost is $3,000 to less than $25,000 ($25,000 and up require a "Contractor" license).  It is required to repair, replace, remodel, alter, conversion, modernization, improvement, or addition to any land or building, such as,  driveways, swimming pools, porches, garages, landscaping, fences, fall-out shelters, roofing, painting and other improvements adjacent to the dwelling. 

Home improvement does not cover electrical, plumbing or HVAC.  You must check with the local jurisdiction for their requirements, permits and inspections. This may include obtaining the State's LLE (Limited Licensed Electrican) or LLP (Limited Licensed Plumber) license; and there is not a state HVAC license for small projects less than $25,000. The contractor's license is required for these classifiations for projects over $25,000!

Presently, the following nine (9) counties require a home improvement license for projects in excess of $3,000 to less than $25,000: Bradley, Davidson, Haywood, Hamilton, Johnson, Knox, Robertson, Rutherford, and Shelby.  Any remodeler may apply for the home improvement license, as consumers prefer to only hire state licensed contractors who are licensed, bonded and insured!  This license does not require any exams or financial statements to obtain.  However, it does require a $10,000 surety bond which may be obtained from an insurance agent and costs aprroximately $100 to $300.  If you have one (1) or more employees workers compensation insurance is required by law.

Other counties may adopt the Home Improvement license requirement with a 2/3 vote from their commission! Adopting this requirement may be done without additional expense to the county, and it would be their option to charge for permits or perform inspections. Home Improvement licensing provides protection to consumers since they must be bonded and the State offers a mediation program with contractor complaints.

Effective July 1, 2007, new legislation went into effect, as Public Chapter 460.

NEW! Effective November 1, 2007, the Board office will require proof of General Liability Insurance in the amount of $100,000 in order to renew or obtain a home improvement license.

NEW! Contract Requirements

Home Improvement contractors must ensure their contracts are as follows:

(1) Contracts must be in legible writing and contain the complete agreement between the owner and the home improvement contractor; (2) State the full names and addresses of all parties, the license number of the home improvement contractor, the date when executed by the parties and contain a description of the work to be done and the goods to be used; (3) Be completed in full without any blank spaces to be filled in after the contract is signed by the owner and clearly describe any other documents which are to be incorporated, and shall contain the following notice directly above the space provided for the signature of the owner: “NOTICE TO OWNER: Do not sign this contract if blank. You are entitled to a copy of the contract at the time you sign”; (4) Contain the approximate dates when the work will begin and be substantially completed; (5) Contain the agreed upon consideration for the work; (6) Contain a notice that all home improvement contractors must be licensed by the board and that any inquiries about a contractor should be transmitted to the board's office; (7) Contain all other matters upon which the parties lawfully agree; and (8) Not contain any power of attorney to confess judgment.  No sales person, agent or employee of the home improvement contractor shall be authorized to make any changes in the agreement on behalf of the owner.

For projects exceeding $25,000, a contractor's license is required. A home improvement license is not required for new or commercial projects, less than $25,000.   Home improvement license does not cover electrical, hvac or plumbing.  As always, please check with you local codes office. If you have a contractor's license to perform residential, you do not have to obtain a separate home improvement license.

HOME IMPROVEMENT APPLICATION REQUIREMENTS

*No Examination Required*

1. Application fee of $150.00

2. Attach an original proof of financial responsibility in the amount of $10,000 in ONE of the following forms (the license is issued in the name of the company or individual as on the bond): Surety Bond with written Power of Attorney attached; or Cash Bond; or Property Bond; or Irrevocable Letter of Credit.

3. Please submit proof of Insurance ( workers compensation) and General Liability in the minimum amount of $100,000

4. Please allow 5 to 7 business days for mail delivery to State office.  You may check status of license issuance at:  http://licsrch.state.tn.us/

Note: General Liability Insurance may be required soon! If this law goes into effect, contractors will be notified at renewal time.

Download the Home Improvement Application [pdf]

Felony Conviction/ Judgements / Disclosure

Conviction does not preclude someone from licensing, however, does require the Board's approval. If you have been convicted of a felony or misdemeanor in any jurisdiction (Tennessee anyr state); or if you have had disciplinary action against another professional license, you must attach a statement explaining the details of the conviction, charging document, the disposition and proof of any sentence or court order and realease of probation.  Before a license is granted to anyone with a conviction, they may be required to appear before the Board which meets at least six (6) times annually. The Board is charged with protecting the safety and welfare of the public and they will judge each individual case on it's own merit.

The law requires disclosure of felonies, as well as any court litigation and judgements relative to home improvement. A license is not automatically denied due to judgements and convictions, however, failure to disclose is a violation of law where a civil penalty may be assessed or license revoked.

License Issuance

Upon approval of your completed application, a permanent license will be mailed. Applications submitted correctly and complete, take less than a week to issue; allow 5 to 7 business days for mail.  Please display your license in a noticeable place at your business location and list your license I.D. number in advertisements. Never require the consumer to pay for the project prior to completion. The law allows 1/3 down payment to begin the project. Contracts must be in writing.   Renew license annually; cannot be renewed if expired in excess of 90 days and would need to reapply. License is considered invalid upon bond cancellation. This license is for projects from $3,000 to less than $25,000 and does not cover electrical, hvac or plumbing. If you are a corporation, LLC or Limited Partnership, always ensure you are actively registered with the Tennessee Secretary of State. You should receive a license renewal within 90 days of expiration. However, you must notify the Board of any address change, as state mail is not forwarded. If you do not receive a renewal in the mail, you may download from the website at:

Home Improvement Renewal Form [pdf]

Lead abatement remodelers are required to be certified through the Department of Environment and Conservation and may be contacted at 1-888-871-5323 or their web site at:

State.TN.US/Enviornment/swm/leadpaint.

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