*Demolition Law Updated as of 8/21/2023*
The Office of Consumer Protection registers any business that constructs or sells new homes in Montgomery County. Montgomery County Code Chapter 31C and Montgomery County Executive Regulations (PDF) define who is a New Home Builder and New Home Seller and details the laws applicable to New Home Builders and New Home Sellers.
This law was enacted to protect consumers by ensuring that each new home builder and new home seller has met the requirements established under Chapter 31C. Registrations are valid for two (2) years from the date of registration.
This law was enacted to protect consumers by ensuring that each New Home Builder or New Home Seller has met the requirements established under Chapter 31C. Registrations are valid for two (2) years from the date the Registration is issued. Violators of Chapter 31C are subject to a $500.00 civil fine-- for each day of the violation-- in addition to all other remedies prescribed by the law, which may be both civil and criminal.
Who must be Registered?
Montgomery County law (PDF) requires any person that is in the business of constructing or otherwise creating a new residential home to register with the Office of Consumer Protection as a New Home Builder.
A New Home Builder includes any person:
Registration Process
Montgomery County law requires New Home Builders and New Home Sellers to be registered with the Office of Consumer Protection and to provide a new home warranty.
Chapter 31C-4 creates a Board of Registration for New Home Builders and New Home Sellers. The five (5) member board reviews applicants and certifies to the Office of Consumer Protection whether the applicant is qualified to comply with the building codes and laws of the County and State, as those duties and responsibilities relate to the construction and sale of new homes in the county. Properly completed applications will be forwarded to the Board of Registration for their review and approval. The Board meets once each month to review registration applications. The review process normally takes 45 to 60 days. You will typically be notified of the Board's decision within two business days.
For New Home Builders, the Registration process requires submitting a completed Registration application, demonstrating experience in the construction trade, providing proof of insurance, banking and material references, a $805.00 non-refundable application fee and possibly a $250 fee for the State Guarantee Fund if not already Registered by the State Home Builder Registration Unit . View the "Forms" tab above for additional information. A Registration is valid for two (2) years from the date issued.
For New Home Sellers, the Registration process is similar. The process requires a completed Registration application which identifies the location of the new home to be sold and the registration number of the registered New Home Builder that is constructing the new home. The New Home Seller must identify if it is related to the New Home Builder by common ownership or control. The registration must include a $400.00 non-refundable registration fee and possibly a $250 fee for the State Guarantee Fund if not already Registered by the State Home Builder Registration Unit . View the " Forms " tab above for additional information. A Registration is valid for two (2) years from the date issued.
If the Board denies an application, you can appeal to the Board of Appeals located at 100 Maryland Avenue, 2nd Floor, Rockville, MD.
Maryland Home Builder Guaranty Fund
* Important * The State of Maryland established a “Home Builder Guaranty Fund” to protect consumers who purchase new homes in Maryland. The Maryland Attorney General’s Office will collect the appropriate fees when builders register with the State. However, New Home Builders or New Home Sellers who only build or sell in Montgomery County, and are therefore Registered only in Montgomery County, are also required to pay $250.00 to the "Office of the Attorney General" for this guaranty fund. Our office is required to collect this fee and submit it to the State of Maryland.
Accordingly, if you are not Registered with the State of Maryland as a new home builder, in addition to your non-refundable check in the amount of $805.00 payable to “Montgomery County, MD” you must also provide a second check, in the amount of $250.00, made payable to: Office of the Attorney General . If you are Registered with the State of Maryland as a new home Builder, please provide your Home Builder Registration Unit number to forego this payment.
Additional Information
If you have any questions, please do not hesitate to contact the Office of Consumer Protection, Business Registration and Licensing Unit by email at [email protected] .
How to Register
If you are Registering as a New Home Builder you need the following:
Montgomery County Office of Consumer Protection
Business Registration and Licensing Unit
100 Maryland Avenue, Suite 3600
Rockville, MD 20850
Waiver from Registration
If you are a property owner who intends to construct a New Home to be occupied by you as your personal residence, you can apply for a waiver of the Registration requirements under Chapter 31C-2(b) by submitting the Waiver Request Form.
Additional Information
If you have any questions, please do not hesitate to contact the Office of Consumer Protection, Business Registration and Licensing Unit by email at [email protected] .
These FAQs apply to the law pre-May 16, 2019. New FAQs are in development.
What experience do I need to get a license? The builder needs to be able to demonstrate that he/she has the requisite knowledge of the construction industry and that he/she has supervised, managed, and performed the duties necessary to build a home or do major remodeling renovations.
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What documents do I need to provide in order to get a license? Application, three (3) material supplier references, a bank reference, Certificate of Registration for Liability Insurance and Worker's Compensation, detailed description of building experience, and copy of other relevant licenses. All documents must be in the name of the license applicant.
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I am just starting my business – how do I get Building Material Supplier References? You must establish credit accounts at three (3) building material supplier businesses.
Do you offer reciprocity for licenses issued in a different jurisdiction? No. However, we do encourage applicants to provide the Board with copies of any current licenses.
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I have a State of Maryland Builder’s - or - General Contractor's License – do I need a Montgomery County license? Yes, if you plan to build in Montgomery County. Even if you have a license issued by the State of Maryland, you are still required to have a Montgomery County Building Contractor's New Home Builder's License. See Montgomery County Code Chapter 31C2(a)(1). The General Contractor's License does not apply to construction of residential homes. Back to Top
I have an MHIC license – do I need a Montgomery County license? Yes, if you plan to build new homes in Montgomery County. An MHIC license only allows you to perform home improvements.
If sub-contractors are licensed - do I need a license? Yes, any person acting as prime contractor to construct a new home for another person must be licensed. Back to Top
I am building in the City of Rockville or Gaithersburg – do I need a Montgomery County license? Yes, Chapter 31C applies in the City of Rockville, City of Gaithersburg and other municipalities in Montgomery County.
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I am a non-profit organization – do I need a license? Yes, non-profit organizations are not exempt from Chapter 31C.
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I build condominiums - or - town homes for sale - do I need a license? Yes, any construction of new homes is covered by Chapter 31C.
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I am building a home for a friend – do I need a license? Yes, a license is needed when building a new home for another person.
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I am building a house for myself – do I need a license? No, as long you establish residency in the home, intend to live in the home, intend to act as the general contractor and sign an affidavit attesting that you are building the home for yourself.
I own the land and I want to build a new home for my family and myself – do I need a license? No, as long you establish residency in the home, intend to live in the home, intend to act as the general contractor and sign an affidavit attesting that you are building the home for yourself. Back to Top
I do major renovation/remodeling – do I need a new home builders license? Probably not. Certain remodels and renovations could trigger the new home builder statute. For general renovations, you would need to be licensed by the Maryland Home Improvement Commission . For more information on the MHIC license, please call 410.230.6309.
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I am going to build a new home, but a realtor will sell the home - do I need a license? Yes, a license is needed if the new home is constructed for the purpose of sale to a purchaser.
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I have already built the house – how do I get a retroactive license? Constructing a new home for sale without a Building Contractor's license issued by Montgomery County is illegal. Thus, you must apply for the license and meet all the requirements under Montgomery County Code Chapter 31C. You are subject to a minimum $500 fine (per day) and other penalties for violating Chapter 31C. Without the requisite license, the construction is not covered by the Maryland Home Builder's Registration Unit's Guaranty Fund.
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Do I need Workers’ Compensation insurance if I do not have employees? No, but a written explanation is required.
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What warranties must I give to the buyer? The OCP has provided a brochure with sample language for ease of reference which you can find by clicking here.
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What is the cost of a license? As of September 2008, the cost of a license is $805, which is non-refundable, and valid for two (2) years. As of October 1, 2016, the Maryland Home Builder Registration Fee is an additional non-refundable fee of $250 made payable to the "Office of the Attorney General." This additional fee is only required if the applicant is not already licensed by the State's Home Builder Registration Unit .
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How are the fees established? The County Executive establishes licensing fees.
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If you build without a license what are the penalties? You may be subject to a $500 fine per day, in addition to all other remedies/penalties prescribed by Law, which may be both civil and criminal. Additionally, your consumer will not be protected by the State's Home Builder Guaranty Fund .
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I build kit or pre-fabricated homes and extensions, do I need a license? Yes. If you are using prefabricated pieces to build a new home, and acting as the prime contractor, you will require a builder's license. If you are using prefabricated pieces to build an extension, you would need to be licensed by the Maryland Home Improvement Commission. For more information on the MHIC license, please call 410.230.6309.
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