In a recent case of first impression decided by the Michigan Court of Appeals, it was decided that a builder was entitled to file suit seeking compensation from the owners of a home he constructed, even though he did not have his residential builder's license at the time the contract was signed.

The builder, who received his license shortly after construction began, argued that MCL 339.2412(1) simply requires that one become licensed "during the performance of the act or contract."

The court held that "The clear and unambiguous language of the statute imposes no requirement that a residential builder be licensed at the time the contract is signed in order to bring or maintain an action in a court of this state for the collection of compensation for the performance of the contract and, therefore, one may not legitimately append this requirement to the statute. In a word, because the statute does not require a residential builder to allege and prove that the builder was licensed at the time the contract was signed, neither may the courts."