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Online Law Newsletter: Real Estate Law

Unlicensed Contractor Cannot Sue for Breach of Contract

California Business and Professions Code Section 7031 bars an unlicensed contractor from maintaining a lawsuit "for the collection of compensation for the performance of any act or contract for which a license is required."

In other words, an unlicensed contractor must rely on the willingness of the landowner to pay the contracted for fees. In the event of a dispute over non-payment, the courts, which strictly enforce this rule, will grant a summary judgment against the unpaid and unlicensed contractor. Similar statutes may exist in other states.


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