Agents and property improvements – when repairs require a contractors license
It’s common for an agent to coordinate repairs on behalf of the owner when listing property for sale or lease. Agents who order or oversee maintenance or repair projects costing $500 or more are considered consultants, and subject to contractor licensing requirements issued by the California Department of Consumer Affairs Contractors State Licensing Board (CSLB).
Recent legislation
In 2013, contractor licensing requirements were expanded to require licensure for consultants to a home improvement contract. A consultant now includes any person who: provides or oversees a bid for a construction project; or arranges, schedules and oversees contractors and subcontractors in the completion of a construction project. [Business & Professions Code §7026.1(a)]
Included specifically are projects calling for repairing, remodeling, altering or modernizing residential property. [Bus & P C §7151]
Prior to 2013, a consultant was a person who, in a maintenance or repair project, did not undertake to “construct” anything. Thus, the person merely facilitating the cleanup, repair or maintenance of a property with contractors on behalf of the owner did not need to hold a contractors license. [The Fifth Day, LLC v. Bolotin (2009) 172 CA4th 939]
Today, the contractors license law requires real estate licensees and property managers who act as consultants to have a contractors license if the cost of the work involved totals $500 or more.
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