CSLB Law & Business ExamBusiness Organization and LicensingHard
A licensed sole proprietor contractor dies unexpectedly while several jobs remain unfinished. Under CSLB rules, what is the general status of the license and the options for the personal representative of the estate?
- AThe license remains fully active indefinitely under the estate's name
- BThe license transfers automatically to any surviving business partner
- CThe license is automatically canceled with no option to complete pending contracts
- DThe personal representative may seek limited authority from CSLB to complete existing contracts while the estate settles
Show answer & explanationAnswer & explanation
Correct answer: D. The personal representative may seek limited authority from CSLB to complete existing contracts while the estate settles
Upon a sole owner licensee's death, the individual license terminates, but the personal representative of the estate may petition the CSLB for authorization to complete pending contracts using a qualifying individual while the estate is being settled, rather than the license continuing indefinitely or transferring automatically.
Why the other options are wrong
- A. A license does not remain indefinitely active after the sole owner's death.
- B. There is no automatic transfer to a partner since a sole proprietorship, by definition, has no such partner tied to the license.
- C. CSLB allows limited continuation to complete existing work, so outright cancellation with no options is incorrect.
Death of Sole Owner Licensee
When a sole proprietor licensee dies, the license terminates, but the estate's personal representative may seek CSLB authorization to complete pending contracts.
- Individual license does not survive the owner's death automatically
- Personal representative can request limited continuation authority
- A qualifying individual is still needed to complete work
Memory trick: 'Death ends the license, but not unfinished jobs.'