Payment of compensation; effect of loss of license

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    (a)    Except as otherwise provided in subsection (b) of this section, a contractor may not pay or otherwise compensate another person for performing or selling a home improvement unless:

        (1)    the person to be paid or compensated is licensed;

        (2)    the person to be paid or compensated is not subject to the licensing requirements of this title; or

        (3)    the transaction for which the consideration is to be paid is not subject to this title.

    (b)    After the expiration, suspension, or revocation of a license, a person:

        (1)    is not relieved of outstanding obligations; and

        (2)    may complete and be paid under a home improvement contract that is made but not performed on the date of the expiration, suspension, or revocation.


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