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§4.03 Contractor’s License Law—Prohibited Acts

Lesson 4:
Home Repair & Licensing

The Contractor’s License Law prohibits numerous acts, e.g.:

  • Securing a contract for home improvement goods or services that is for $5000 or less by an interest in real property, except by a mechanics’ lien. [B&PC §7159.2(a).]
  • Requiring a subcontractor, supplier, or employee to waive any lien rights. [See B&PC §7034(b)) (as operative July 1, 2012); CC §§8122–8138 (waiver of rights, as operative July 1, 2012)
  • Willful and deliberate violations of state or local law relating to building permits; there is a rebuttable presumption that construction performed without a permit is a willful and deliberate violation. [B&PC §7090.]
  • Breach of contract. [B&PC §7113.]
  • Failure to comply with the Contractor’s License Law, department rules and regulations, or Pub Cont C §7106. [B&PC §7115.]
  • Any willful or fraudulent act that substantially injures another. [B&PC §7116.]
  • A willful failure to complete a construction project with reasonable diligence, causing material injury to another. [B&PC §7119.]
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