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Is a property manager (California) exempt from contractor's license requirements when building for their employee?

Carmichael, CA |

Can a Real estate Broker (in the State of California) that is the property manager and who has employees that do repair and maintenance for a home owner that is an employee of the Broker when the work costs more than a 1000 dollars.

The home owner who is also a licensee and works for that broker. I was told that makes a difference.

I was told that there is a certain relationship of trust in legal terms where the homeowner gives the broker owner builder exemption.

Too complicated for me.

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Attorney answers 1


Generally, construction work with a value of more than $500 is supposed to be performed by a licensed contractor.
A homeowner can perform any construction work on his own home that he wants, without having a license. A homeowner can hire anyone he wants to perform construction work on his home, whether that person has a license or not. A homeowner that does that is putting himself at some risk, such as having someone get injured on his property, or having shoddy work performed, but that is the owner's problem.
The person performing work that requires a license is violating the law, and could be subject to prosecution, and would not be able to force the owner to pay him, if the owner chooses not to pay, so there is some risk to the non-licensed person also.
For your specific situation, the owner does not need a license and can hire his property manager to perform construction work. The property manager does have some risk in performing unlicensed construction work. If you get prosecuted for unlicensed contracting that could result in you losing your DRE license as well.

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