How to Check a Contractor's License in NC, and What to Do If a Job Goes Wrong

Caul Group Residential, brokered by eXp Realty

To check a North Carolina contractor's license, search the state board that covers the trade: general contractors, electricians, or plumbing and HVAC contractors each have their own free online lookup. If a job goes wrong, put the problem in writing to the contractor first, then file a complaint with that board, and know that the board can act on the license but usually cannot get your money back.

This guide is for owners getting a home ready to sell, sellers making repairs after a buyer's inspection, and buyers planning work on a new home. This is general information, not legal advice.

Which board licenses which trade

When a license is required

• General contractors: In NC, a general contractor needs a state license for a job of $40,000 or more (G.S. 87-1). Smaller jobs may not need this license.
• Electrical: The electrical board says it is against the law for an unlicensed person or company to do the business of electrical contracting.
• Plumbing and HVAC: People who contract to install, change or restore plumbing, heating, air conditioning or fire sprinkler systems need a state license. The plumbing board says minor repairs and service work do not.
• Local rules: Where no state license is needed, your town or county may have its own rules. Ask your local inspections office.

How to look up a license, step by step

1. Ask the contractor for the full business name and license number. Get it in writing.
2. Open the right board's lookup from the table above.
3. Search by license number or name.
4. Check that the name matches the company on your contract.
5. Check that the license is active, and that it covers the kind of work and the size of your job.
6. Save a screenshot with the date for your records.

The plumbing board warns that one contractor may not use another contractor's license. If the name on the license and the name on your contract do not match, ask why before you sign.

Before you hire

The plumbing and HVAC board's consumer tips suggest putting these in a written contract:

• The contractor's name, address, phone and license number
• Start and finish dates
• A detailed list of the work and materials, with brands and model numbers
• A payment schedule tied to stages of work
• That the contractor will pull all required permits
• That any change is written and signed
• Any warranty, in writing

Ask your town or county inspections office whether your job needs a permit. The contractor should get the permit, and you can ask to see it before work starts.

One more thing to know: building codes set minimum safety rules. Inspections check for code, not for how nice the work looks.

If you are selling

Repairs come up two times in most sales: before you list, and after the buyer's home inspection. A few tips:

• Use licensed trades for work that needs a license, like electrical, plumbing and HVAC.
• Keep the contract, invoices, permits and final inspection records together. A buyer may ask to see them.
• If you agreed to make repairs in your contract, give the buyer the receipts before closing.
• Think about what you will need to share on the NC Residential Property Disclosure Statement.

What to do when a job goes wrong

Step 1: Write to the contractor

Most problems get fixed this way. Describe the problem, add photos, and ask for a fix by a set date. Keep a copy. The plumbing board says to send complaints to the contractor in writing so you both have a record.

Step 2: Call your local inspections office about code problems

Local inspections offices enforce building codes on construction and can order code violations to be fixed (G.S. 160D-1104). They look at code issues, not quality or price disputes.

Step 3: File a complaint with the licensing board

• General contractors:NCLBGC complaints. The board takes complaints about licensed contractors, and about unlicensed contractors on jobs of $40,000 or more.
• Electrical:Electrical board complaints. Include the contract, payments, emails or texts, and photos.
• Plumbing and HVAC:Plumbing and HVAC board complaints. The board also takes complaints about unlicensed work that needs a license.

Know what a board can and cannot do. The boards act on the contractor's license. NCLBGC says it cannot make a contractor do repairs or pay you back, and it cannot fine them. When you file, you are a witness, not a party to the case.

Step 4: Look at money recovery options

• Talk it through in writing. A clear written deal is often the fastest path.
• Small claims court. In NC, magistrates hear small claims cases. The most you can ask for varies by county, from $5,000 to $10,000 (NC Judicial Branch).
• An NC attorney. For bigger losses, an attorney can explain your options and time limits.
• NC Department of Justice. You can file a home repair complaint with the NC DOJ Consumer Protection team or call 1-877-5-NO-SCAM in NC.
• Homeowners Recovery Fund. NCLBGC runs this as a last resort for homeowners who lost money because of a dishonest or incompetent general contractor. You must try other ways first, full recovery is not promised, and the board says it is usually not quick. See the NCLBGC consumer FAQ.

Frequently asked questions

How do I check if a contractor is licensed in NC?

Use the free lookup for the trade: the NCLBGC search for general contractors, the electrical board search for electricians, and the plumbing board search for plumbing, heating and air conditioning.

Does a contractor need a license for a small job in NC?

A general contractor needs a state license for jobs of $40,000 or more. Electrical work needs a licensed electrical contractor. Plumbing and HVAC installs need a license, but minor repairs and service work do not.

Can the licensing board make my contractor fix the work or pay me back?

Usually not. NCLBGC says it cannot require repairs or refunds and cannot fine a contractor. The board acts on the license.

Where do I complain about a contractor in NC?

Write to the contractor first. Then file with the board for that trade. You can also contact the NC Department of Justice Consumer Protection team.

What is the NC Homeowners Recovery Fund?

It is a last-resort fund run by NCLBGC for homeowners who lost money because of a dishonest or incompetent general contractor. You must try other ways to recover first, and full recovery is not guaranteed.

Can I take a contractor to small claims court in NC?

Yes, if the amount fits. The limit varies by county, from $5,000 to $10,000. A magistrate decides the case.

Does a passed inspection mean the work is good?

It means the work met the code items checked. Building codes are minimum safety rules, and inspections do not judge quality.

What repair records should I keep when I sell my home?

Keep the contract, invoices, permits, final inspection records and any warranties. A buyer may ask to see them.

Getting ready to sell?

• Get a home value estimate

We have been in real estate since 2001 and help sellers across the Triangle plan repairs before they list. See our seller FAQ, learn how we help sellers, contact us, or call (919) 263-7653.

We are the #1 Resale Team in the Triangle.