A homeowner hires an unlicensed individual to perform $8,000 worth of electrical work. The work fails inspection. Under Arizona law, what recourse does the homeowner have through ROC?
Correct Answer
B) No recourse through ROC for unlicensed work
ROC cannot provide restitution through the Recovery Fund for work performed by unlicensed individuals, as they are not licensed contractors.
Why This Is the Correct Answer
The Arizona Residential Contractors Recovery Fund is exclusively available when the offending party is a licensed ROC contractor. Because the individual who performed the work is unlicensed, ROC has no jurisdiction and the Fund cannot be tapped. The homeowner's only recourse is through civil courts.
Why the Other Options Are Wrong
Option A: Restitution only for permit fees
Option A ('Restitution only for permit fees') is incorrect. ROC does not provide any form of restitution — even limited to permit fees — when the work was performed by an unlicensed individual. The Recovery Fund simply does not apply.
Option C: Full restitution through the Residential Contractors Recovery Fund
Option C ('Full restitution through the Residential Contractors Recovery Fund') is incorrect. The Recovery Fund requires that the contractor be licensed with ROC. An unlicensed person is outside ROC's authority entirely, so full restitution through the Fund is not available.
Option D: Partial restitution up to $2,500
Option D ('Partial restitution up to $2,500') is incorrect. There is no partial restitution mechanism through ROC for unlicensed work. The $2,500 figure does not correspond to any Arizona ROC rule, and the Fund cannot be accessed in this scenario at all.
Memory Technique
No license = No ROC safety net. Think of the Recovery Fund as a members-only club — only licensed contractors are members, so only work done by licensed contractors is covered.
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Under Arizona law, a contractor completes a $35,000 home addition on March 15th. The final payment of $5,000 becomes due April 1st but remains unpaid. If the contractor files a lien on July 20th, what is the status of this lien?
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According to A.R.S. Title 32, what is the penalty range for a first-time unlicensed contracting violation in Arizona?