Michigan Compiled Laws

Mich. Comp. Laws § 339.2401 (2026)

Definitions.

✓ current as of July 2026

Find cases: SyfertCases citing this section MI-LEGlegislature.mi.gov JustiaChapter on Justia CornellLII Search CasesGoogle Scholar

OCCUPATIONAL CODE

Act 299 of 1980

339.2401 Definitions.

Sec. 2401.

As used in this article:

(a) "Residential builder" means any of the following:

(i) A person engaged in the construction of a residential structure that, for a fixed sum, price, fee, percentage, valuable consideration, or other compensation, other than wages for personal labor only, undertakes with another or offers to undertake, or purports to have the capacity to undertake with another, for the erection, construction, replacement, repair, alteration, or addition to, subtraction from, improvement, wrecking of, or demolition of, a residential structure.

(ii) A person that manufactures, assembles, constructs, deals in, or distributes a residential structure that is prefabricated, preassembled, precut, packaged, or shell housing.

(iii) A person that erects a residential structure except for the person's own use and occupancy on the person's property.

(b) "Residential maintenance and alteration contractor" means a person that, for a fixed sum, price, fee, percentage, valuable consideration, or other compensation, other than wages for personal labor only, does any of the following:

(i) Undertakes with another for the repair, alteration, or addition to, subtraction from, improvement of, wrecking of, or demolition of a residential structure, or building of a garage, or laying of concrete on residential property.

(ii) Engages in the purchase, substantial rehabilitation or improvement, and resale of a residential structure or property and engages in that activity on the same structure more than twice in 1 calendar year, except in the following instances:

(A) If the work is for the person's own use and occupancy.

(B) If the rehabilitation or improvement work on the residential property or structure is contracted for, with, or hired entirely to be done and performed for the owner by a person licensed under this article.

(C) If work is performed by a person employed by the owner to perform work for which the person is licensed by the state.

(i) A detached 1- or 2-family dwelling and all related facilities appurtenant to that dwelling, used or intended to be used as an adjunct of residential occupancy.

(ii) A townhouse of not more than 3 stories above the grade plane in height with a separate means of egress and all related facilities appurtenant to that townhouse, used or intended to be used as an adjunct of residential occupancy.

(d) "Salesperson" means an employee or agent, other than a qualifying officer, of a licensed residential builder or residential maintenance and alteration contractor, who for a salary, wage, fee, percentage, commission, or other consideration, sells or attempts to sell, negotiates or attempts to negotiate, solicits for or attempts to solicit for, obtains or attempts to obtain a contract or commitment for, or furnishes or attempts or agrees to furnish, the goods and services of a residential builder or residential maintenance and alteration contractor, except an individual working for a licensed residential builder or residential maintenance and alteration contractor who makes sales that are occasional and incidental to the individual's principal employment.

(e) "Wages" means money paid or to be paid on an hourly or daily basis by an owner, lessor, or occupant of a residential structure as consideration for the performance of personal labor on the structure by an individual who does not perform or promise to perform the labor for any other fixed sum, price, fee, percentage, valuable consideration, or other compensation and who does not furnish or agree to furnish the material or supplies required to be used in the performance of the labor or an act described in subdivision (a) or (b).

History: 1980, Act 299, Imd. Eff. Oct. 21, 1980 ;-- Am. 1991, Act 166, Imd. Eff. Dec. 19, 1991 ;-- Am. 2020, Act 341, Imd. Eff. Dec. 30, 2020

Compiler's Notes:

For transfer of powers and duties of certain occupational functions, boards, and commissions from the Department of Licensing and Regulation to the Department of Commerce, see E.R.O. No. 1991-9, compiled at MCL 338.3501 of the Michigan Compiled Laws.

Enacting section 1 of Act 341 of 2020 provides:

"Enacting section 1. Section 2401 of the occupational code, 1980 PA 299, MCL 339.2401, as amended by this amendatory act, applies retroactively to January 1, 2019."

PopularName Notes:

Act 299

Notes of Decisions

Cited in 29 cases (3 in the last 5 years), 1982–2023 · leading case: Stokes v. Millen Roofing Co., 649 N.W.2d 371 (Mich. 2002).

Sort: Relevance Newest Treatment

Stokes v. Millen Roofing Co., 649 N.W.2d 371 (Mich. 2002). · cites it 6× “NOTES [1] MCL 339.2401 et seq. [2] This statute was amended while the case was being appealed.”

Liss v. Lewiston-Richards, Inc, 732 N.W.2d 514 (Mich. 2007). · cites it 6× “[17] MCL 339.2401. There are exemptions from licensure.”

G C Timmis & Co. v. Guardian Alarm Co., 662 N.W.2d 710 (Mich. 2003). “; MCL 339.2401 et seq. A common theme prevails throughout each of these articles — namely, that each article deals with a single or discrete group of identified professions.”

Karaus v. Bank of New York Mellon, 831 N.W.2d 897 (Mich. Ct. App. 2012). “The contract required by this section shall contain a statement, in type no smaller than that of the body of the contract, stating all of the following: (a) That a residential builder or a residential maintenance and alteration contractor is required to be licensed under article…”

Brown Plumbing & Heating, Inc v. Homeowner Constr. Lien Recovery Fund, 500 N.W.2d 733 (Mich. 1993). · cites it 4× “00, the department may delay payment until the total amount to be paid can be ascertained. If the total amount payable to subcontractors, suppliers, and laborers exceeds $75,000.”

People v. Brown, 610 N.W.2d 234 (Mich. Ct. App. 2000). “ng to act as a building contractor must designate one of its officers, partners, members, or managing agents as a “qualifying officer” who must meet certain licensing requirements and who “shall be responsible for exercising the supervision or control of the building or…”

Hartman & Eichhorn Bldg. Co., Inc. v. Dailey, 701 N.W.2d 749 (Mich. Ct. App. 2005). · cites it 2× “Accordingly, it is clear and unambiguous to me that the Legislature provided for equitable relief against the individual who actually engages in the conduct that violates the act in order to stop the conduct, while providing for financial remedies against the business that…”

HA Smith Lumber & Hardware Co. v. Decina, 670 N.W.2d 729 (Mich. Ct. App. 2003). “The Gobises also argued, under the Michigan residential builders act, MCL 339.2401 et seq., that Decina Co. could not recover compensation because it was not a licensed builder.”

Edgewood Dev. Inc. v. Landskroener, 684 N.W.2d 387 (Mich. Ct. App. 2004). “2412(1) of the Michigan residential builders act, MCL 339.2401 et seq., barred plaintiffs from bringing suit to recover compensation because plaintiff Edgewood Development, Inc.”

Utica Equip. Co. v. Ray W. Malow Co., 516 N.W.2d 99 (Mich. Ct. App. 1994). · cites it 4× “However, the court held that plaintiff was barred from collecting because it was not licensed under the Michigan residential builders act, MCL 339.2401 et seq.; MSA 18.425(2401) et seq.”

Horton v. Verhelle, 588 N.W.2d 144 (Mich. Ct. App. 1998). · cites it 6× “§ 339.2401 et seq.; MSA 18.425(2401) et seq.”

Stokes v. Millen Roofing Co., 627 N.W.2d 16 (Mich. Ct. App. 2001). “n Plaintiffs first argue that the trial court erred in granting equitable relief to defendant and in failing to dismiss all claims brought by defendant because the residential builders licensing act, MCL 339.2401 et seq., bars defendant’s claims.”

Show all 29 citing cases →

— Mich. Comp. Laws § 339.2401(a) — 5 cases

Liss v. Lewiston-Richards, Inc, 732 N.W.2d 514 (Mich. 2007). “[17] MCL 339.2401. There are exemptions from licensure.”

Brown Plumbing & Heating, Inc v. Homeowner Constr. Lien Recovery Fund, 500 N.W.2d 733 (Mich. 1993). “00, the department may delay payment until the total amount to be paid can be ascertained. If the total amount payable to subcontractors, suppliers, and laborers exceeds $75,000.”

Utica Equip. Co. v. Ray W. Malow Co., 516 N.W.2d 99 (Mich. Ct. App. 1994). “However, the court held that plaintiff was barred from collecting because it was not licensed under the Michigan residential builders act, MCL 339.2401 et seq.; MSA 18.425(2401) et seq.”

Brown Plumbing & Heating, Inc. v. Homeowner Constr. Lien Recovery Fund, 476 N.W.2d 657 (Mich. Ct. App. 1991).

Dillman & Upton Inc v. Thomas Paul Ward (Mich. Ct. App. 2020).

— Mich. Comp. Laws § 339.2401(b) — 8 cases

Horton v. Verhelle, 588 N.W.2d 144 (Mich. Ct. App. 1998). “§ 339.2401 et seq.; MSA 18.425(2401) et seq.”

San Marino Iron Inc v. Louis Haji (Mich. Ct. App. 2022).

Wojas v. Rosati, 452 N.W.2d 864 (Mich. Ct. App. 1990).

D San Marino Iron Inc v. Louis Haji (Mich. Ct. App. 2022).

G & H Customs LLC v. Kera Carter (Mich. Ct. App. 2019).

— Mich. Comp. Laws § 339.2401(b)(ii) — 1 case

Horton v. Verhelle, 588 N.W.2d 144 (Mich. Ct. App. 1998). “§ 339.2401 et seq.; MSA 18.425(2401) et seq.”

— Mich. Comp. Laws § 339.2401(c) — 2 cases

D San Marino Iron Inc v. Louis Haji (Mich. Ct. App. 2022).

— Mich. Comp. Laws § 339.2401(e) — 1 case

Wojas v. Rosati, 452 N.W.2d 864 (Mich. Ct. App. 1990).

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.