If a construction project is secured by an unlicensed salesperson, what is the status of the contract?

When a construction project is secured by an unlicensed salesperson, the contract is deemed unenforceable. This is because state laws often require that certain professionals, including real estate salespersons and builders, have licenses to protect consumers and ensure that individuals have met the necessary qualifications and standards to perform their duties.

In such cases, the law does not recognize the validity of the agreement made by an unlicensed individual, which means that if disputes arise, the contract cannot be legally enforced in a court of law. This principle serves to deter unlicensed activity and uphold the regulatory framework that governs the profession, ensuring that only qualified and licensed individuals engage in or facilitate such transactions.