Arizona Contractor License Exam — All Questions
3 questions
The Arizona Residential Contractors' Recovery Fund can compensate an owner only when the owner:
- a.Is a commercial property owner on a large project
- b.Simply changed their mind about the project
- c.Contracted with a LICENSED residential contractor and was damaged by that contractor's failure to perform or a violation of the licensing law✓
- d.Is any homeowner, even one who hired an unlicensed handyman
The Residential Contractors' Recovery Fund reimburses an owner of a residential structure who was damaged by a licensed residential contractor's failure to perform or violation, when the owner cannot otherwise collect. It applies only to owners who used a licensed contractor.A.R.S. §32-1131 et seq. (Residential Contractors' Recovery Fund)
A homeowner hires an UNLICENSED person who takes a deposit and abandons the job. Can the homeowner recover from the Residential Contractors' Recovery Fund?
- a.Yes; the fund covers all contractors, licensed or not
- b.No; the Recovery Fund protects only owners who hired a licensed residential contractor✓
- c.Yes; the fund even doubles the award when the work was done unlicensed
- d.Only if the unlicensed person held a city business license
The Recovery Fund is funded by and tied to licensed contractors, so it does not cover work performed by an unlicensed person. This is a key reason Arizona urges owners to confirm a contractor's ROC license before hiring.A.R.S. §32-1132 (eligibility requires a licensed contractor)
How is the Arizona Residential Contractors' Recovery Fund financed?
- a.By assessments and fees paid by licensed residential contractors✓
- b.By a state sales tax on lumber and building materials
- c.By homeowners' association dues
- d.By federal construction grants
The fund is financed through assessments and fees paid by licensed residential contractors as part of licensure. Because the contractors themselves fund it, only owners who dealt with a licensed residential contractor can draw on it.A.R.S. §32-1132 (assessments funding the Recovery Fund)