Hiring a Florida Builder From Out of State: How to Vet Them

When you’re building from another state, your builder is the most important decision you’ll make. You can’t drop by the site, run into the foreman, or drive past other houses they’ve built on a Saturday. So you need to do your checking on paper and online, and get a contract that protects you when you’re not there. This is part two of our series on building a Florida home from out of state.

Short version: Verify the builder’s license yourself with Florida’s Department of Business and Professional Regulation (DBPR). Make sure it’s the right type for your project, and either certified for statewide work or registered in your county. Confirm general liability insurance and workers’ compensation, which Florida requires for construction employers with even one employee. Check county court and official records for lawsuits and liens filed by unpaid subcontractors on past clients’ homes. In the contract, look for the Florida notices required for residential work over $2,500, a payment schedule tied to completed work, written change orders, and a clear communication plan. If a builder takes more than 10% of the price up front, Florida law requires them to apply for permits within 30 days and start work within 90 days after permits are issued. If something goes wrong later, Florida’s construction defect process requires a written notice at least 60 days before you can sue.

Step 1: Verify the license, and the right kind

Look the builder up on DBPR’s license search, not just their website. Florida Statute 489.105 sets three main contractor categories:

License type	What it covers
Residential contractor	One-, two-, or three-family homes up to two habitable stories (above no more than one uninhabitable story), plus accessory structures
Building contractor	Commercial buildings and residential buildings up to three stories
General contractor	Unlimited as to the type of work

A “certified” contractor can work anywhere in Florida. A “registered” contractor is licensed only for the local jurisdiction that issued the registration, so make sure it covers your county.

Match the names: the license should belong to the company you’re signing with, or its licensed qualifying agent should be listed. If the name on the contract doesn’t match any license, stop and ask why.
Check status and history: the license should be current and active. DBPR’s lookup can also show public discipline.
Check the business: look up the company on Sunbiz, Florida’s Division of Corporations site, to confirm it’s active and see who its officers are.

Step 2: Confirm insurance and workers’ comp

Ask for a certificate of general liability insurance, and ask the insurer, not the builder, to send it to you. In Florida’s construction industry, employers with one or more employees must carry workers’ compensation, and that includes owners who are corporate officers or LLC members unless they hold an exemption. You can check both on the Division of Workers’ Compensation’s Proof of Coverage database and Exemption Search. This matters to you as an absentee owner, because an injured, uninsured worker on your lot is a problem you don’t want to inherit.

Also settle who carries builder’s risk insurance on the structure during construction. It’s often the builder on a lot-and-build project, but get it in writing. See Florida homeowners insurance for the policy you’ll need at closing.

Step 3: Check the track record from a distance

Court records: search the county clerk’s online records for lawsuits involving the builder.
Liens on past clients’ homes: search the county’s official records for claims of lien that name the builder as the contractor. Repeated liens from unpaid subcontractors are one of the clearest warning signs, because under Florida’s lien law those subs can come after the owner’s property. See protecting yourself from construction liens.
Permit history: most Central Florida counties have online permit portals. You can see how many homes the builder has permitted locally, and whether their permits tend to close out or sit open.
References you choose: ask for recent clients who built on their own lots, ideally ones who were also out of state, and call them. Ask how communication went and whether they got any notices to owner from unpaid subcontractors.
A live look: ask for a video walkthrough of a home they’re building now, or have your inspector or a trusted local person visit one.

Step 4: Read the contract like you won’t be there

Have a Florida real estate or construction attorney review the contract before you sign. When you’re remote, the contract does work that your presence would otherwise do. Look for:

Price structure: a fixed price, or cost-plus with a cap. Be clear on what each allowance covers, like flooring and fixtures, and what happens if you go over.
Payment schedule: payments tied to completed, inspected stages, not calendar dates, with lien releases required before each payment. See construction loans and draw schedules.
Change orders: written and signed, with the price and schedule impact stated, before the work is done. Email approval is fine if the contract says so.
Communication: a set schedule for photo or video updates and site meetings, and who your contact is. See overseeing the build remotely.
Schedule and delays: a target completion date, what counts as an excused delay (weather, hurricanes, material shortages), and what happens if the job stalls.
Warranty and closeout: what the builder warrants and for how long, and what final documents you get, including the certificate of occupancy and final lien releases. See closing out and moving in.
Termination and disputes: how either side can end the contract, and whether disputes go to court, mediation, or arbitration.

Florida also requires specific notices in residential construction contracts. They’re a quick way to tell whether a builder follows the rules:

Construction lien notice (713.015): for direct contracts over $2,500 on homes of up to four units. It must be printed in at least 12-point, capitalized, boldface type, on the first page or a separate page you sign and date.
Recovery Fund notice (489.1425): for residential work where labor and materials exceed $2,500. It tells you about the Florida Homeowners’ Construction Recovery Fund, which may pay a limited amount if a licensed contractor’s violations cost you money.
Construction defect notice (558.005): a statement that defect claims go through Chapter 558’s notice-and-repair process.

Deposits: what Florida law says

Lot-and-build contracts (489.126): if a contractor receives more than 10% of the contract price up front, they must apply for the needed permits within 30 days of payment, and start work within 90 days after the permits are issued. The exceptions are a just cause for delay, a refund, or your written agreement to a longer period. Taking the money for personal use and failing to refund it within 30 days of a written demand can be a crime.
Builder communities (501.1375): builders who sell 10 or more one- or two-family homes a year must hold deposits of up to 10% of the price in escrow with a bank, title insurer, Florida attorney, or licensed broker, unless you waive that right in writing. Read your contract for a waiver line before you sign it.

Keep deposits as small as the builder will accept, and never pay in cash or to an individual instead of the company.

If something goes wrong

Construction defects (Chapter 558): before suing over a defect, you must serve a written notice of claim at least 60 days before filing. The builder can inspect within 30 days and must respond in writing within 45 days with an offer to repair, an offer to pay, both, or a dispute. You then have 45 days to accept or reject an offer in writing.
Time limits (95.11): a claim over the construction of a home generally must be filed within 4 years of the certificate of occupancy or completion. For latent defects, it runs from when the defect was or should have been discovered. In any case, the outer limit is 7 years from that same starting point.
Licensing complaints: you can file a complaint with DBPR against a licensed contractor, and in some cases apply to the Recovery Fund.

Red flags

A license that doesn’t match the company name, or a “registered” license for a different county
Pressure to sign fast, a large cash deposit, or payment to a personal account
A contract missing the Florida lien law and Recovery Fund notices
Reluctance to give you lien releases, insurance certificates, or contact with past clients
Suggestions that you pull the permit as owner-builder while they do the work

That last one deserves emphasis. An owner-builder permit puts the legal responsibility on you, and you can’t legally hire an unlicensed person to run the job. See Florida building permits. For more on budgeting, see the cost to build a house in Central Florida and new construction buyer mistakes.

Frequently Asked Questions

Use the DBPR license search. Confirm the license is active, matches the company you’re hiring, is the right type for your project, and is either certified statewide or registered in your county.

In the construction industry, employers with one or more employees must carry it, unless an officer holds a valid exemption. You can check on the state’s Proof of Coverage and Exemption Search tools.

There’s no fixed cap, but if a contractor takes more than 10% of the price up front, they must apply for permits within 30 days and start work within 90 days after permits are issued, unless there’s just cause, a refund, or your written agreement.

For work over $2,500, a construction lien law notice and a Homeowners’ Construction Recovery Fund notice. Written contracts should also include a notice about Chapter 558’s construction defect process.

Serve the builder a written notice of claim under Chapter 558 at least 60 days before filing suit. The builder can inspect and must respond within 45 days. Claims generally must be filed within 4 years, and no later than 7 years after completion.

Sources

This article is for general informational purposes only and isn’t financial, legal, insurance, or tax advice – for guidance specific to your situation, talk to a licensed professional.

Vetting and Hiring a Florida Builder When You Live Out of State