Utah General Contractors - Business and Law Practice Exam

A homeowner who constructs three residential structures over five years is exempt from licensing requirements. Is this true or false?

1. True

2. False

3. Depends on the structure type

4. Only if the structures are seasonal

The correct answer is: True

The assertion that a homeowner who constructs three residential structures over five years is exempt from licensing requirements is indeed true. In Utah, there is a provision that allows homeowners to act as their own general contractor for specific projects without needing a contractor's license, provided they comply with certain criteria. This exemption typically applies when a homeowner is acting on their own property and not for commercial purposes. It is important to understand that licensing exemptions are generally aimed at individuals who undertake small-scale residential projects as part of personal ownership rather than engaging in a business for profit. The regulation helps to distinguish between private homeowners who may occasionally build their own homes and professional contractors who should be licensed to ensure compliance with safety and building codes. While context about structure types or seasonal use may appear to influence licensing requirements, the fundamental rule focuses on the number of personal residential structures built within a certain timeframe. In this case, the homeowner's activities fall within the stated exemption, making the assertion true. Overall, the correct answer aligns with the established rules about homeowner exemptions in Utah, emphasizing that an individual can construct a limited number of residences over a designated period without necessitating a contractor's license.