Law targets house flippers

Flipping houses - buying them, making improvements and quickly selling them - is against the law in Washington unless you are a registered contractor, following a little-known law change effective last year.

The law requires flippers planning to make $500 or more in home improvements to either be a registered contractor, which requires thousands of dollars in collateral, or to own a property for more than a year before selling. It places the same requirement on people who build new houses speculatively, or without a specific buyer in mind.

Real estate investors are still coming to grips with the law, which took effect last year. They say many people don’t even know the law exists.

The state Department of Labor and Industries, which pressed for the law change, says the revision protects consumers and helps fight the “underground economy.”

Check out the story here .

We highlighted this topic Thursday, and several readers have e-mailed or called asking for more information. First, read an FAQ on the changes produced by the state Department of Labor and Industries here (.pdf document). Want more detail? Read the actual law, RCW 18.27, here .

What’s your take on this law? A necessary consumer-protection measure, an infringement on property rights, even a ploy by the building industry to cut down competition?

Hat tip: MetroSpokane, for pointing out an example of flipping.