relative wants to use my house address for california contractors license

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relative is getting insurance payout on their house for repair.  Mortgage lender wants repairs done by licensed contractor and will inspect repairs before signing off on the payout.  Relative doesn't want to hand over this whole check to some random contractor and rather do the repairs himself (relative is very Handy person).  Relative asked if they can sign up for a contractors license using my address since they cant use their own.
My immediate reaction is "hell no" but I'm curious since I know next to nothing regarding contractor licenses and such... what all can go wrong that can come back and bite me if I said yes?
 

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It is one exam.    Plus some other requirements such as a surety bond, fee, fingerprinting, and another (open book) exam. ... (more)

jerosen (Sep. 11, 2016 @ 11:05a) |

The test is a joke.  Anybody with a pulse and some sort of construction knowledge *should* fly through.  Now we know tha... (more)

lotusgardener (Sep. 14, 2016 @ 9:43a) |

turned it was like a land lord agreement form that I gave permission for them to base their business at my house. I fel... (more)

nwill002 (Oct. 04, 2016 @ 7:38p) |

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nwill002 said:   relative is getting insurance payout on their house for repair.  Mortgage lender wants repairs done by licensed contractor and will inspect repairs before signing off on the payout.  Relative doesn't want to hand over this whole check to some random contractor and rather do the repairs himself (relative is very Handy person).  Relative asked if they can sign up for a contractors license using my address since they cant use their own.
My immediate reaction is "hell no" but I'm curious since I know next to nothing regarding contractor licenses and such... what all can go wrong that can come back and bite me if I said yes?

  Your immediate reaction sounds entirely right to me. 

what state?

Fraud is one thing that can go wrong (or right, depending on your perspective).

Resale may be another is unlicensed repairs are made or made poorly.

rufflesinc said:   what state?
  California

Do you have your Umbrella insurance up to date? If not, then don't do it. If yes, then DON'T do it..haha

Your relative should talk to his insurance adjuster about his plans to do some of the work himself.  When I had a substantial home insurance claim, I was able to put some sweat equity into the job and save a few bucks, and the insurance company paid me for my own time and materials.  I did demolition, debris removal, paint and trim, that sort of thing.

vadeltachi said:   Fraud is one thing that can go wrong (or right, depending on your perspective).

Resale may be another is unlicensed repairs are made or made poorly.

  Both valid concerns but they are for OP's relative.

I am trying to understand what exactly is OP's liability if relative uses his address to apply for a contractor's license. So far I cant see how this will affect OP.

Sounds like fraud to me.

Why can't your relative use his own address? Probably because they won't let him do repairs himself and he knows that. So he's trying to hide the fact that he's doing it by using another address. Knowingly being a party to that isn't a good idea for OP.

Relative can get an PO box for a few months.

nwill002 said:   relative is getting insurance payout on their house for repair.  Mortgage lender wants repairs done by licensed contractor and will inspect repairs before signing off on the payout.  Relative doesn't want to hand over this whole check to some random contractor and rather do the repairs himself (relative is very Handy person).  Relative asked if they can sign up for a contractors license using my address since they cant use their own.
My immediate reaction is "hell no" but I'm curious since I know next to nothing regarding contractor licenses and such... what all can go wrong that can come back and bite me if I said yes?

Worst case scenario?  Somebody goes to jail.

From the application:  "I certify under penalty of perjury under the laws of the State of California that all statements, answers, and representations made in this application, including all supplementary statements attached hereto, are true and accurate, and that I have reviewed the entire contents of this application.  (The definition of “perjury” is telling a lie while under oath.) I authorize the Franchise Tax Board to provide CSLB with required tax information pursuant to B&P Code Section 7145.5."
California Contractor's License Application 

California Penal Code imposes criminal liability for "All persons concerned in the commission of a crime, whether it be felony or misdemeanor, and whether they directly commit the act constituting the offense, or aid and abet in its commission, or, not being present, have advised and encouraged its commission..."  

jerosen said:   Probably because they won't let him do repairs himself and he knows that.
This seems ridiculous.  If a licensed contractor owns a home that sustains damage, he's not entitled to hire himself to make the repairs and get paid for his work by his insurance carrier?

I suspect there's some other unrelated reason OP's relative can't use his own address for obtaining a professional license - like back due child support, too many DWIs, registered as a sex offender, collecting welfare/unemployment/disability/food stamps, or some other crazy thing.

What the relative should do is first buy all the materials needed for the repairs, then hire a contractor who's willing to play ball and give relative a kick back.

Tell them to rent a mailbox somewhere and use that for a physical address, avoid USPS because of the P.O. Box, but UPS, mailboxes, etc. all should work.

panmet69 said:   Tell them to rent a mailbox somewhere and use that for a physical address, avoid USPS because of the P.O. Box, but UPS, mailboxes, etc. all should work.
No it won't.  

http://www.maildropsearch.com/  

Contractors have to pass the exams. Getting a license doesn't happen overnight.

margered said:   Contractors have to pass the exams. Getting a license doesn't happen overnight.
  
OP's relative might not have thought out his plan very well.

Or maybe they have no intention of getting a license and they might be  going to make up a fraudulent contractor name and go full in on the fraud.
 

margered said:   Contractors have to pass the exams. Getting a license doesn't happen overnight.Yeah, does not make sense.

margered said:   Contractors have to pass the exams. Getting a license doesn't happen overnight.
  To the contrary it does, one exam, done.

panmet69 said:   Tell them to rent a mailbox somewhere and use that for a physical address, avoid USPS because of the P.O. Box, but UPS, mailboxes, etc. all should work.
  Pretty sure the licensing jurisdiction will do an on-site inspection, zoning will have to approve address as commercial and a bond must be obtained. These requirements vary by state. It's not like you can just mail $50 to city hall and get a license.

atikovi said:   Pretty sure the licensing jurisdiction will do an on-site inspection, zoning will have to approve address as commercial and a bond must be obtained. These requirements vary by state.Address does not have to be commercial; zoning is not involved in who can be a contractor and who cannot.

xoneinax said:   
atikovi said:   Pretty sure the licensing jurisdiction will do an on-site inspection, zoning will have to approve address as commercial and a bond must be obtained. These requirements vary by state.
Address does not have to be commercial; zoning is not involved in who can be a contractor and who cannot.

  You mean I can get a contractors license out of my home and keep a backhoe and dump truck on my lawn? Neighbours would love that.

If he wants to do the repairs himself, his best option may be to find a licensed contractor who is willing to take say 20% of the proceeds to handle the permitting, inspection, etc and have your relative do the work, and keep 80% of the payout.

atikovi said:   
xoneinax said:   
atikovi said:   Pretty sure the licensing jurisdiction will do an on-site inspection, zoning will have to approve address as commercial and a bond must be obtained. These requirements vary by state.
Address does not have to be commercial; zoning is not involved in who can be a contractor and who cannot.

  You mean I can get a contractors license out of my home and keep a backhoe and dump truck on my lawn? Neighbours would love that.

  i know plently of contractors whose license's address (one man operation with the occasional sub) is just their home. The equipment you keep at your house is a different issue.

Back to the original question.

If it was me, I would tell my relative they can have mail sent to my place, that's not a problem. Don't care what kind of mail it is.

If you need me to do something that involves lying to officials... No.

scrouds said:   
If it was me, I would tell my relative they can have mail sent to my place, that's not a problem. Don't care what kind of mail it is.

 

are you sure ....? what if it's used as a drop for goods bought with stolen credit cards, or drugs ?

I'd tell the lender to shove it.
If they want to inspect repairs at their own cost, they can go right ahead.
If they want to apply the portion of the insurance check that wasn't spent on materials to the principal balance, I can live with that.
If they want to verify that I pulled the required permits, they can go right ahead.

But if they think they can dictate to me who works on my personal residence, they can consider themselves to be my former lender.
I'd credit card the materials, do the repairs, refinance the loan, and run the insurance check through the new lender before I'd put up with that.
 

rufflesinc said:   scrouds said:   
If it was me, I would tell my relative they can have mail sent to my place, that's not a problem. Don't care what kind of mail it is.

 

are you sure ....? what if it's used as a drop for goods bought with stolen credit cards, or drugs ?

I'll tell them to stop... Or cut me in.

atikovi said:   xoneinax said:   atikovi said:   Pretty sure the licensing jurisdiction will do an on-site inspection, zoning will have to approve address as commercial and a bond must be obtained. These requirements vary by state.
Address does not have to be commercial; zoning is not involved in who can be a contractor and who cannot.
You mean I can get a contractors license out of my home and keep a backhoe and dump truck on my lawn ?
Yep. Nope. Nope.

xoneinax said:   atikovi said:   Pretty sure the licensing jurisdiction will do an on-site inspection, zoning will have to approve address as commercial and a bond must be obtained. These requirements vary by state.Address does not have to be commercial; zoning is not involved in who can be a contractor and who cannot.

After the OP's address is used for a commercial business license, it will be permanently flagged as commercial on credit reports.

fattywallace said:   
margered said:   Contractors have to pass the exams. Getting a license doesn't happen overnight.
  To the contrary it does, one exam, done.

  
It is one exam.    Plus some other requirements such as a surety bond, fee, fingerprinting, and another (open book) exam.  And it takes more than a day to get it all done.   http://www.cslb.ca.gov/Contractors/Applicants/

And that one main exam isn't at all trivial for people not in the industry already.   And I'd bet a lot of people in the trades couldn't pass it without study.   They dont' all know random bits of building code by heart.

 

jerosen said:   
fattywallace said:   
margered said:   Contractors have to pass the exams. Getting a license doesn't happen overnight.
  To the contrary it does, one exam, done.

  
It is one exam.    Plus some other requirements such as a surety bond, fee, fingerprinting, and another (open book) exam.  And it takes more than a day to get it all done.   http://www.cslb.ca.gov/Contractors/Applicants/ 

And that one main exam isn't at all trivial for people not in the industry already.   And I'd bet a lot of people in the trades couldn't pass it without study.   They dont' all know random bits of building code by heart.

 

  
The test is a joke.  Anybody with a pulse and some sort of construction knowledge *should* fly through.  Now we know that doesn't happen, given the plethora of intensive study course available.

turned it was like a land lord agreement form that I gave permission for them to base their business at my house. I felt my liability with whatever they do would be pretty much zero as they were doing work on their own house (no possibility of lawsuits) so I agreed to do this but by then they already found another family member to agree to this arrangement.



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