Homeowners and property developers often look beyond state lines when hiring contractors or architects. Sometimes it is due to cost, availability, specialized expertise, or a trusted referral. But when a project involves parties from different states—such as a homeowner in Florida hiring a contractor based in New York—legal complications can arise quickly. One of the most common questions is: “I live in one state, my contractor is in another, and now I have legal challenges. How do I proceed? Which state’s laws apply?” Understanding jurisdiction, licensing rules, contract terms, and dispute-resolution options is crucial before taking the next step.

Licensing Conflicts and Compliance Issues

Contractors and architects are licensed at the state level. If a contractor performs work physically in Florida, or an architect provides stamped plans intended for use in Florida, they must generally hold a Florida license—regardless of where their business is based. The same applies in New York, where many trades and all architects are regulated.

If an out-of-state professional performs work without the required local license, several problems can occur:

• The professional may not legally enforce payment if they were not authorized to work in the state.
• The contract may be considered void in whole or part.
• The homeowner may face project delays, safety risks, or compliance failures.
• Local building departments may reject plans, inspections, or permits.

Florida and New York both impose penalties for unlicensed activity, including fines, the inability to sue for unpaid work, and in some circumstances criminal consequences. This can complicate disputes if the homeowner later needs legal recourse for defects or incomplete work.

Which State’s Laws Apply to the Dispute?

Determining which state’s laws govern the disagreement depends on several factors. Courts look at:

1. The contract’s governing law clause.
   Many contracts specify which state’s laws apply. If both parties agreed to this in writing, it is usually enforceable—unless it conflicts with mandatory licensing or consumer-protection laws.
2. Where the work was performed.
   If construction occurred in Florida, Florida has a strong interest in enforcing its own licensing, permitting, and consumer-protection rules—even if the contractor is from New York.
3. Where the parties are located and conduct business.
   Courts may look at where payments were made, where communications took place, and whether the contractor regularly conducts business in the homeowner’s state.
4. Public policy considerations.
   A court may disregard a contract’s choice-of-law clause if applying another state’s law would undermine local protections, such as Florida’s strict rules against unlicensed contracting.

In many cases involving Florida or New York property, the laws of the state where the real property is located will control the dispute.

Where Can You File a Lawsuit?

A homeowner may sue in the state where the project occurred because the contractor purposefully entered that state to do business. In some cases, the contractor may argue that disputes must be handled in their home state—especially if the contract includes a forum-selection clause. Courts weigh:

• Fairness to both parties
• Whether the contractor had meaningful ties to the project state
• Whether enforcing an out-of-state venue would harm consumer rights

Florida and New York courts often prioritize the location of the property and the governing licensing statutes, especially when the homeowner is the consumer.

Contract Terms That Matter in Multi-State Projects

If you are considering hiring an out-of-state professional—or are already in a dispute—review these essential terms:

• Choice of law clause (which state’s laws apply)
• Venue or jurisdiction clause (where disputes must be resolved)
• Licensing statements confirming the contractor or architect is legally authorized to work in your state
• Insurance requirements, which differ across states
• Scope of work and deliverables, including whether the professional will physically be present or work remotely
• Approval requirements for permits, inspections, and construction documents

Contracts lacking these terms often lead to confusion and litigation when problems arise.

Practical Steps If You Are Already Facing a Dispute

1. Check the contractor’s or architect’s licensing status in the state where the work was performed.
2. Review your contract for governing-law, dispute-resolution, and venue clauses.
3. Document all communications and project details.
4. Consult a construction law attorney in the state where the property is located; that state’s laws are likely to govern the dispute.
5. Do not stop or start work without confirming compliance with local building codes and licensing requirements.
6. If unlicensed activity occurred, you may have additional protections or remedies unavailable in a typical contract dispute.

Florida-Specific Considerations

• Florida Statutes Chapter 489 governs contractor licensing.
• Unlicensed contractors cannot enforce contracts and may face criminal penalties.
• Florida’s strong consumer-protection policies often override conflicting out-of-state contract clauses.

New York-Specific Considerations

• New York requires professional licenses for architects and many contractors.
• Each county or municipality may have separate licensing requirements for home improvement contracting.
• Courts evaluate jurisdiction based on where the work occurred and whether the out-of-state contractor did business in New York.

Hiring an out-of-state contractor or architect can be successful when handled correctly. But when disputes arise, questions of jurisdiction, licensing, and governing law become complicated quickly. The state where the property is located—particularly Florida and New York—usually has the strongest legal interest in the matter. Reviewing contract terms, confirming licensing, and seeking legal counsel early can help protect your rights and keep your project on track.

John Caravella Esq., is a construction attorney and formerly practicing project architect at The Law Office of John Caravella, P.C., representing architects, engineers, contractors, subcontractors, and owners in all phases of contract preparation, litigation, and arbitration across New York and Florida. He also serves as an arbitrator to the American Arbitration Association Construction Industry Panel. Mr. Caravella can be reached by email: John@LIConstructionLaw.com or (631) 608-1346.

The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.  Readers of this website should contact their attorney to obtain advice with respect to any particular legal matter.  No reader, user, or browser of this site should act or refrain from acting on the basis of information on this site without first seeking legal advice from counsel in the relevant jurisdiction.  Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation.  Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client relationship between the reader, user, or browser and website authors, contributors, contributing law firms, or committee members and their respective employers.

Resources
Florida Statutes Chapter 489 (Contractor Licensing)
Florida Building Code and Department of Business & Professional Regulation Guidance
New York Education Law Article 147 (Architecture Licensing)
New York City Administrative Code §20-386 (Home Improvement Contractor Licensing)
New York State Office of Professions: Architect Licensing Guidelines
American Institute of Architects (AIA) Contract Documents – Choice of Law and Venue Clauses Guidance
Restatement (Second) of Conflict of Laws – Governing Law Principles