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California Unlicensed Roofing Contractor Demand Letter

Under B&P Code 7031, you can recover ALL money paid to an unlicensed contractor - even if the work was completed satisfactorily. This is California's most powerful homeowner protection.

100%
Full Refund
$15,000
Criminal Penalty
C-39
Required License

💰 The Most Powerful Homeowner Protection in California

Under B&P 7031(b), unlicensed contractors must return ALL compensation received - regardless of whether the work was satisfactory. This is an almost absolute rule with very limited exceptions.

✎ Fill In Your Information

Demand Letter - Unlicensed Contractor (B&P 7031)
[Today's Date]
VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED

[Contractor Name]
[Contractor Address]
Re: DEMAND FOR FULL REFUND - UNLICENSED CONTRACTOR
Property: [Your Property Address]
Dear [Contractor Name]:
I have discovered that you performed roofing work at my property located at [Your Property Address] without a valid California contractor's license. A search of the Contractors State License Board (CSLB) database confirms that you do not hold a valid C-39 Roofing Contractor license, as required by law for roofing work over $500.
I paid you a total of [Total Amount Paid] on [Payment Dates] for the following work:
[Description of work performed]
LEGAL BASIS - MANDATORY DISGORGEMENT: Under California Business & Professions Code Section 7031(b):
"...a person who utilizes the services of an unlicensed contractor may bring an action in any court of competent jurisdiction in this state to recover all compensation paid to the unlicensed contractor for performance of any act or contract."
This statute has been consistently interpreted by California courts to require full disgorgement of all compensation paid to unlicensed contractors, regardless of the quality of work performed. The California Supreme Court in Hydrotech Systems, Ltd. v. Oasis Waterpark (1991) 52 Cal.3d 988 confirmed that unlicensed contractors cannot retain any compensation.
DEMAND: I hereby demand that you return the full sum of [Total Amount Paid] within fourteen (14) days of your receipt of this letter.
NOTICE OF INTENT: If you fail to comply with this demand, I will:
- File a civil lawsuit to recover all compensation paid, plus attorney's fees and costs
- Report your unlicensed contracting activity to the CSLB for criminal prosecution under B&P Code Section 7028 (misdemeanor punishable by up to $15,000 fine and/or imprisonment)
- Report this matter to the District Attorney's office
Please contact me immediately to arrange payment.
Sincerely,



_________________________________
[Your Name]
Enclosures:
- CSLB license search results showing no valid license
- Copies of payment records
- Copy of contract or written agreement (if any)

📋 Instructions

How to Verify License Status

  1. Go to cslb.ca.gov
  2. Click "Check a License"
  3. Search by name, business name, or license number
  4. Print the results page showing no valid license
  5. Check if license was expired, suspended, or never existed

✔ This is Almost Absolute

Unlike most legal claims, the right to recover from unlicensed contractors is nearly absolute. The contractor cannot argue that the work was good, or that you got value. If they weren't licensed, they must return ALL money paid.

Limited Exception

There is a very narrow "substantial compliance" exception that applies only if the contractor can prove ALL of the following:

  • They were licensed at some point during the work
  • The lapse was not willful
  • They acted reasonably and in good faith
  • They did not know or could not have known they were unlicensed

This exception rarely applies and the burden is entirely on the contractor.

⚖ Legal Basis

📚

B&P Code Section 7031(b) - Disgorgement

"A person who utilizes the services of an unlicensed contractor may bring an action... to recover ALL compensation paid to the unlicensed contractor for performance of any act or contract." Courts have held this applies regardless of work quality.

📚

B&P Code Section 7031(a) - No Right to Sue

Unlicensed contractors cannot sue to collect payment or enforce any contract. Even if you still owe money, they cannot legally collect it.

📚

B&P Code Section 7028 - Criminal Penalties

Operating as a contractor without a license is a misdemeanor punishable by fine up to $15,000 and/or imprisonment. First offense: up to 6 months. Subsequent: up to 1 year.

⚠ C-39 License Required

In California, ANY roofing work over $500 requires a C-39 Roofing Contractor license. A general contractor (B license) can only do roofing if it's incidental to a larger project. Handymen cannot do roofing work regardless of the amount.

💰 Available Remedies

Civil Recovery

  • Full refund of all money paid
  • Attorney's fees if you hire a lawyer
  • Court costs
  • Additional damages if work was also defective

Criminal Consequences for Contractor

  • Misdemeanor prosecution
  • Fine up to $15,000 per violation
  • Possible jail time (6 months to 1 year)
  • CSLB Statewide Investigative Fraud Team (SWIFT)

Small Claims Court

For claims up to $12,500, Small Claims Court is fast and affordable. No attorney needed. File at your local courthouse.

Need Help with Recovery?

Get a 30-minute strategy session with a California construction attorney.

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