Published on 10/3/2023, 2:31:00 PM

Contracting Without a License in Maryland

Contracting without a license in Maryland is a crime, not a paperwork problem. Whether you’re a contractor trying to stay legal or someone who just got charged, this guide covers the Maryland laws on unlicensed contracting, the penalties, and where a lawyer fits in.

Who is in charge of contracting licenses in Maryland?

Maryland’s Home Improvement Commission, or MHIC is tasked with maintaining contracting licenses and investigating suspected violations of Maryland home improvement laws.

The Legal Stance: Understanding Maryland’s Business Regulation

According to the Maryland Business Regulation Code, Title 8, which pertains to Home Improvement:

Section 8-601 - Acting as Contractor or Selling a Home Improvement Without License

(a) A person cannot act or offer contractor services in Maryland unless they possess a contractor license. This means even if you have intentions to work and advertise, without the license, it’s against the law.

(b) Likewise, selling or even offering to sell a home improvement requires a contractor or salesperson license.

© Breaking this law is a misdemeanor On the first conviction, one can face a fine of up to $1,000 or a prison term not exceeding 6 months - or even both. Subsequent convictions carry steeper penalties, with fines going up to $5,000 or imprisonment of up to 2 years, or both.

Reading the law verbatim provides clarity, but let’s break down what this means for individuals and businesses.

Unlicensed Contracting: Real-life Consequences

Imagine John, an enthusiastic individual skilled in home renovations. He moved to Maryland from another state and, eager to set up his business, started advertising his services. John took up a home improvement task which involved constructing a porch and remodeling a kitchen. Midway through the project, the homeowner discovered John didn’t have a Maryland contractor’s license and reported him.

John now faces potential jail time, hefty fines, and damage to his professional reputation. Had he sought proper counsel, such as the experienced attorneys at FrizWoods, he would have understood the risks and the importance of obtaining a license before commencing any work.

John’s story shows why the license matters and why it helps to have someone who knows the law in your corner. See how we’ve helped others on our reviews page.

Section 8-605 Abandonment of or Failure to Perform Contract

Maryland law states that a contractor may not

1. abandon or fail to perform, without justification, a home improvement contract; or

2. deviate materially from plans or specifications without the consent of the owner.

This law makes it a crime to fail to complete a contract, with a possible penalty of a fine not exceeding $1,000 or imprisonment not exceeding 6 months or both. This criminal offense is also a misdemeanor.

What Qualifies as a “Home Improvement”?

You might be thinking, “I only did a small renovation. Does that fall under ‘home improvement’?” Well, according to Maryland’s regulations:

Definition of “Home Improvement”

“Home improvement” means: the addition to or alteration, conversion, improvement, modernization, remodeling, repair, or replacement of a building or part of a building that is used or designed to be used as a residence or dwelling place or a structure adjacent to that building

This can range from altering a building used as a residence, constructing a fence, installing a bathroom, repairing a plumbing line, hanging a door, to even adding a deck or swimming pool.

What’s Excluded from the definition of “Home Improvement”?

However, there are some activities that don’t fall under “home improvement”. These include constructing a brand-new home, or smaller tasks like connecting or repalcing an appliance.

The line between a home improvement and something outside the definition can be thin, and that line can decide a case. Knowing which side your work falls on is where a lawyer helps.

Circuit Court or District Court? Where Do You Stand?

In Maryland, where your case is heard can influence its outcome. The severity of the offense and even the way the case is presented might differ based on the court. Most unlicensed contracting cases resolve in the District Court

Misdemeanors and less serious charges usually stay in District Court. That doesn’t make them minor. A guilty verdict can still hit your livelihood and your business, so representation matters here too.

Frequently Asked Questions About Unlicensed Contracting

Legal terms and court processes trip a lot of people up. Here are answers to common questions:

Can I get a contractor’s license after a conviction?

Yes. According to the Home Improvement Law, if an individual is convicted of acting as a contractor without a license, they may still be eligible to apply for one. The requirements are that all outstanding obligations must be settled, and a year must have passed since the date of conviction.

What defines a “Home improvement contract”?

As per Maryland’s regulations, a “home improvement contract” is any oral or written agreement between a contractor and an owner where the contractor promises to perform a home improvement.

I only worked on an individual condominium unit; does that count?

Yes. Work done on individual condominium units is considered a home improvement.

I got a call from MHIC, what should I do next?

If you’ve been contacted by MHIC and are worried that you might have broken the law, it’s important to speak with an attorney as soon as possible.

FrizWoods: Why Choose Us?

Unlicensed contracting charges are more serious than they look, and the right lawyer changes how the case goes. Why FrizWoods?

1. Experience: Our team knows Maryland’s home improvement laws. We’ve represented many clients and won reduced penalties and dismissals.

2. Personalized Approach: No two cases are identical. We learn your situation and tailor the defense to it.

3. Client Testimonials: Don’t just take our word for it. See our clients’ stories on our reviews page.

4. Affordable & Transparent: We offer clear pricing with no hidden costs.

Conclusion: Don’t Handle This Alone

Contracting without a license in Maryland looks like a small oversight, but the fallout can last for years. Whether you’re already charged or trying to get ahead of it, stay informed and talk to a lawyer.

If you’re dealing with an unlicensed contracting issue, reach out to FrizWoods and let our attorneys walk you through it. Contact us for a consultation.