Unlicensed contractors and unpermitted work

Signs of unpermitted work

Inspectors don’t research permits, but they notice:

• Garage conversions without proper egress, insulation or heat.
• Additions with different roof lines, foundations or wiring methods.
• Wiring run with extension cords or exposed cable.
• Plumbing with mixed materials and odd fittings.
• Square footage that doesn’t match county records.
• Newer windows, water heaters or HVAC with no permit sticker.

Ask the city or county building department for the permit history and compare it to the house.

California licensing basics

• A license is required for work on a single job worth $1,000 or more, including labor and materials. The threshold was $500 until 2025.
• Licenses are issued by the Contractors State License Board, by classification, such as B for general building, C-10 for electrical and C-36 for plumbing.
• Contractors must carry a bond and, if they have employees, workers’ compensation insurance.

Home improvement contract rules

• Down payment: no more than 10% of the contract price or $1,000, whichever is less.
• Progress payments shouldn’t get ahead of completed work.
• Homeowners have a three-business-day right to cancel most home improvement contracts signed at home, extended to five business days for people 65 and older.

Common scams

1. Door-to-door offers after storms or fires.
2. “Leftover materials” from a nearby job.
3. Pressure to pay in cash and skip permits.
4. Inspectors-for-hire who also offer to do the repairs. California law prohibits home inspectors from performing repairs on a property they inspected within the previous 12 months.