Under Business and Professions Code Section 7159, Home Improvement Contractor (HIC) registration is required for contracts involving which of the following?
Correct Answer
C) Residential improvement projects exceeding $500 in combined labor and materials
Business and Professions Code Section 7159 requires HIC registration for any home improvement contract exceeding $500 in combined labor and materials on residential property. This applies to alterations, repairs, additions, or improvements to existing residential structures, not new construction.
Why This Is the Correct Answer
B&P Code Section 7159 requires HIC registration for any home improvement contract where the combined cost of labor and materials exceeds $500. This threshold applies to alterations, repairs, additions, and improvements to existing residential structures. The $500 threshold is the trigger, and it includes both labor and materials combined.
Why the Other Options Are Wrong
Option A: New construction of residential structures with more than four units
Section 7159 applies to improvements to existing residential structures, not new construction. New construction of any residential structure — regardless of unit count — falls outside HIC registration requirements and is governed by separate licensing provisions.
Option B: Any work on residential property regardless of value
'Any work on residential property regardless of value' is incorrect because the $500 threshold is a key element of Section 7159. Work valued at $500 or less does not trigger HIC registration. The value limit matters.
Option D: Only interior remodeling work on single-family homes
HIC registration is not limited to interior remodeling of single-family homes. It encompasses a wide range of residential improvement work — exterior, landscaping, roofing, etc. — on all types of existing residential structures that exceed the $500 threshold.
Memory Technique
HIC = Home Improvement = existing homes + over $500. Think 'HIC-ups start at $500' — below that, no registration needed. The $500 is both labor AND materials combined, not just one or the other.
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