'Alabama Home Builder Licensure 2025: Complete Business, Law & Project Management Practice Exam Guide'

The statement regarding written contracts for home builders that is true is that home builders licensed by the Alabama Home Builder Licensure Board are required to use written contracts. This requirement ensures that there is a formal agreement detailing the terms and conditions of the construction project, which is essential for protecting the interests of both the builder and the homeowner. Written contracts help to clarify expectations, responsibilities, and obligations, thereby minimizing the potential for disputes and misunderstandings that may arise during the project. By requiring written contracts, the Alabama Home Builder Licensure Board promotes professionalism and accountability within the home-building industry.

In contrast, while there are specific requirements regarding the content of contracts, there is no mandate that builders must use a contract specifically authored by the Board. Additionally, the notion that contracts are only necessary when the parties are not already well-acquainted undermines the significance and utility of having a formal agreement, regardless of personal relationships. Furthermore, assuming that builders can opt out of using contracts based on reputation dismisses the need for clear documentation in professional transactions.