California Real Estate Practice Exam

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What is the limit on the cost of work that can be done by an unlicensed contractor?

  1. More than $1000

  2. Less than $500

  3. Exactly $750

  4. No limit, as long as it is disclosed

The correct answer is: Less than $500

An unlicensed contractor is not legally allowed to perform work valued at more than $500. Option A is incorrect because it is stating that the limit is more than $1000, which is significantly higher than the actual limit. Option C is incorrect because it is stating an exact amount of $750, which is not accurate. Option D is incorrect because while there is no limit on the amount of work an unlicensed contractor can perform, it is still subject to disclosure and therefore not technically unlimited. The limit is specifically set at $500 to ensure safety and quality in the work being done.

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