California Contractors License Law Practice Exam

Can the license of a sole ownership be transferred to a family member?

1. Yes, to any family member

2. No, it is non-transferable

3. Yes, but only under certain conditions

4. Only to a spouse

The correct answer is: No, it is non-transferable

In the context of California Contractors License Law, the license of a sole ownership is classified as a personal license that is issued specifically to the individual who meets the requirements. This license is therefore considered non-transferable, meaning that it cannot be handed over to another person, regardless of their relationship to the licensee. Each contractor’s license is designed to reflect the qualifications, experience, and personal integrity of the holder, which are unique to that individual. While there are processes in place that allow for the formation of partnerships or corporate structures which could lead to some degree of continuity or transferability under certain circumstances, a sole ownership license cannot be transferred to anyone else directly. This emphasizes the personal nature of the license and suggests that if a family member wishes to operate as a contractor, they must apply for their own license, thereby fulfilling all necessary requirements independently. The limitations on transferability are meant to maintain the standards of the contracting profession, ensuring that only qualified individuals operate under a contractor's license in California.