Contracts & ExecutionQuestion 710 of 1632

Before soliciting home improvement contracts on behalf of a licensed contractor, a home improvement salesperson must:

a.Hold a separate contractor's licence in their own name
b.Pass both the law and the trade examinations first
c.Post a $15,000 bond in the salesperson's own name
d.Be registered with CSLB as a home improvement salesperson

Explanation

B&P §7153(a) makes it a misdemeanor to engage in the occupation of home improvement salesperson without a current and valid registration issued by the registrar at the time of the sales transaction, and §7154 requires the employing contractor to notify the registrar in writing before the salesperson begins work. The registration is not a licence: it authorises soliciting, selling, negotiating and executing contracts only for the licensed contractor or contractors behind it. (a) and (b) describe becoming a CONTRACTOR — the salesperson sits no trade or law examination and holds no licence. (c) borrows a bond from the licensing side and uses a superseded figure besides; the contractor's licence bond under B&P §7071.6 is $25,000, and a salesperson posts none. Note §7155.5: the salesperson's violations are cause for discipline against the contractor whether or not he knew of them.

Law Reference: Bus. & Prof. Code §7153(a), §7154, §7155.5; cf. §7071.6

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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)
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