Maryland Home Improvement Practice Exam with Answers (194 Solved Questions)

Name: Maryland Home Improvement Practice Exam with Answers (194 Solved Questions)
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Maryland Home Improvement Test
Define home improvement - correct answer The addition, alteration, conversion, improvement,
modernization, remodeling, repair or replacement of a building or part of a building that is used or was
designed to be used as a residence or dwelling place or structure adjacent to that building or an
improvement to land adjacent to that building
Is a building of a swimming pool, deck, pier or porch included in Home Improvement? - correct answer
Yes
Is work done on apartment complexes of more than 4 units considered home improvement? - correct
answer No
Is work done on individual condominium units considered home improvement? - correct answer Yes
Is installation in a residence of alarm, awning or fire alarm considered home improvement? - correct
answer Yes
Is now removal or grass cutting home improvement? - correct answer No
Define contractor - correct answer A person who performs or offers or agrees to perform a home
improvement for an owner
Define Subcontractor - correct answer A subcontractor enters into contracts with contractors or other
subcontractors to perform home improvement. A subcontractor is not authorized to enter into
agreement directly with the owner
Define salesperson - correct answer A person who sells a home improvement

Define Home Improvement contract - correct answer An agrement between a homeowner and a
contractor to perform a home improvement. The law requires contracts to be in writing and be signed
by the parties to the agreement.
Define Owner - correct answer Owner, owner's agent , tenant or other person authorized to enter into a
home improvement contract
Define license - correct answer is either a contractor or salesperson license that is issued by the Home
Improvement Commission.
Does a handyman need a license? - correct answer Yes
True or False: Home Improvement law does not apply if one of the parties is a government agency -
correct answer True
Work done a residence inside a military base is excluded from licensing requirements - correct answer
True
Can local jurisdictions issue home improvement lincenses - correct answer No, only MD Home
Improvement Commission is authorized to issue a license to solicit, sell, or perform home improvement
services in Maryland
Can two or more individuals (such as homeowner and contractor) lawfully agree to ignore the Home
Improvement licensing requirement? - correct answer No, waiver is prohibited
When was the commission established? - correct answer 1962
How Many commissioners are there? - correct answer 9 (4 must have experience in the business of
home improvement; 4 are members of the general public that represent cosumers; and 1 must have
experience in banking and finance)

What is the most important role of the Commissioners? - correct answer To promulgate regulations for
the Commission. These regulations help the public better understand the Home Improvement Law and
the Commission's policies
How often are the meetings? - correct answer bi-monthly. Meetings are open to the public.
What is the requirement for Commissioners? - correct answer Must be a resident of MD for at least 5
years
How long if the Commissioner's term? - correct answer 4 years
Where is the Commission's office? - correct answer Baltimore, MD
Who appoints the Executive Director? - correct answer The Secretary of Department of Labor, Licensing
and Regulation
What is the Executive Director responsible for? - correct answer the daily operations of the Commission
and signs under the seal letters affirming the licensing status of individuals for court proceedings. The
Executive director is also responsible for compiling and maintaining a copy of the Commission's current
regulations
What do investigators do? - correct answer The Commission also employs investigators that review the
complaints and Guaranty Fund claims that are received by the Commission. The investigators review
complaints against licensed and unlicensed contractors and salespersons.
If an investigator determines that a violation may have occurred, what actions can the Commission
take? - correct answer The Commission may take disciplinary action which may include reprimand,
monetary fine or suspension or revocation of the license.
True or False: An individual who holds a home improvement license as a contractor is NOT required to
obtain a construction license from the Circuit Courts - correct answer True
How long are exams valid for? - correct answer 2 years

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If a candidate fails the exam, how long must he/she wait before retaking it? - correct answer 30 days the
first time. After each subsequent failure a candidate must wait 60 days.
What is the insurance requirement for contractor? - correct answer General Liability at least $50,000
What is the Home Improvement Guaranty Fund? - correct answer One of the Commissions most
important function is to administer the Home Improvement Guaranty Fund. The fund compensates
homeowners for the actual loss caused by the acts or omissions of a licensed contractor.
True or False: Is a homeowner hires an unlicensed contractor he/she is eligible to collect money from
the fund? - correct answer FALSE - if a homeowner hires an unlicensed contractor, the homeowner will
NOT be eligible to collect money from the Fund.
What is Actual Loss? - correct answer Actual Loss means the cost to correct or complete a home
improvement that is inadequate, unworkmanlike or incomplete.
How much can homeowners recover? - correct answer Homeowners may recover up to $20,000 per
contract, though they are not eligible to recover more than the amount paid to the contractor against
whom the claim is based. Certain costs like: legal fees, interest, consequential damages are not covered
by the Fund.
What is the max amount that can be awarded from the Guaranty Fund for the acts or omissions of a
contractor? - correct answer $100,000
How is the Fund maintained? - correct answer $100 by each contractor at the time of applying for a
license. The Commission may also assess each contractor a fee of $50 if the Fund falls below $250,000
How many days does the contractor have to respond to claims from a homeowner once it has been
received by the commission? - correct answer Once the Commission receives a claim, it send a copy to
the contractor who has 10 days to respond back to the Commission.

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Who is not eligible to collect from the Fund? - correct answer Spouse, relative, or employee of the
contractor, or an officer of the corporation. Similarly, an owner may only receive compensation if
she/he resides in the house where the work was performed or does not own more than 3 residences.
What happens to the license of the contractor after a claim has been paid? - correct answer The licensed
is suspended, unless the commission determines that contractor did not know the wrongful conduct or
it could had not been avoided
What is required in a home Improvement contract? - correct answer Date
Contractors name, address, and MHIC number
Consumer Notice
Dates
Description of work
Deposit and Payment information
What is Consumer Notice? - correct answer It provides phone of the Commission and states that "each
contractor and subcontractor must hold a current MHIC license and anyone can ask MHIC about a
contractor"
The contract also needs to inform homeowners of the following:
1) Formal mediation disputes between homeowners and contractors are available through the
Commission
2) The Commission administers the Fund which can compensate owners for certain actual losses caused
by acts or omissions of licensed contractors
3) The homeowner may request that the contractor purchase a performance bond for additional
protections against losses not covered by the Fund
What is the maximum a contractor may ask for downpayment? - correct answer 1/3 of the contract
How long does a homeowner have to rescind a contract? - correct answer 3 days after signing, and
notification must be in writing.

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Who can make changes to a home improvement contract? - correct answer Only the contractor is
authorized to make changes for a homeowner. The commission recommends changes to be in writing.
True or False: Before the performance of a home improvement coontract, the owner shall be given a
copy of the home improvement contract signed by the contractor - correct answer TRUE
What is cancellation under Door to Door Sales Act - correct answer The Door to Door sales act gives
consumers certain rights, including the right to cancel the contract without any penalty or obligation, by
sending a notice of cancellation to the seller by midnight of the fifth business day following the sale, or
the seventh business day of the buyer is at least 65 years old.
If the homeowner cancels the contract, contractor must return the deposit within 10 business days
following receipt of cancellation.
What is the NOTICE OF CANCELLATION requirement for Door to Door Sales Act? - correct answer Each
contract must include Notice of Cancellation attached to the contract and contractor must obtain a
signed written acknowledgement that the buyer has been informed of his/her cancellation rights. The
information must include where to send the cancellation notice, by which date. If this information is not
included or given to homeowner, the buyer may cancel in any manner and by any means.
Notice of cancellation - good available to buyer - correct answer If goods are made available to the
contractor and the contractor does not pick them up within 20 days of the date of your notice, you may
dispose of the goods without any further obligation
When is a Home Improvement Job NOT covered? - correct answer The Door to Door sales act does NOT
cover a home improvement project made:
1) pursuant to prior negotiations at a retail business with a fixed permanent location where consumer
goods are exhibited or consumer services are offered for sale on a continuing bases
2) In which the buyer has initiated contact and the goods or services are needed to meet a bona fide
personal emergency of the buyer and the buyer gives the seller a separate dated and signed personal
statement in the buyers handwriting that describes the situation that required immediate remedy and
expressly acknowledges and waives rights to cancel the sale, and the seller in good faith makes a
substantial beginning of the performance of the contract
Who enforces Door to Door sales act? - correct answer Attorney General of MD

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How many contractors can a salesperson represent? - correct answer 2 max, but may only represent
ONE at the time of sale.
What happens if a salesperson leaves a contractor's team? - correct answer The contractor is
responsible for notifying the commission
What are the provisions for advertising under home improvement law? - correct answer 1) Advertising
must contain name, and MHIC license number regardless of whether the advertisement is in print, radio
or TV.
2) The advertisement cannot be false, deceptive or misleading
For example: if advertisement contains a price which does not include all costs of items necessary for
the proper function or appearance of the product, this must be clearly stated. Likewise, any limitation to
what will be supplied at the advertised price shall be stated clearly next to the statement; if delivery or
installation charges ar extra, the advertisement shall disclose the fact.
Vehicles and MIHC - Where is the license number to be displayed? - correct answer both sides of all
vehicles
What is the penalty for acting as a contractor or salesperson without a license in MD? - correct answer
guilty individuals may be incarcerated for 6 months and fined yup to $1000. For subsequent convictions
2 years in jail and up to $5000 fine.
When was mold remediation act established? - correct answer MD Mold Remediation Act was
established in 2008 to protect the public, improve indoor air quality, and to promote professional
standards.
What does the Mold remediation Act require? - correct answer Each company that provides mold
remediation services must be licensed, and each employee who provides the service must be certified.
What is mold? - correct answer Mold means an organism of the class fungi that causes disintegration of
organic matter and produces spores, as well as the spores, hyphae,, and mycotoxins that are produced
by mold.

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What is mold remediation? - correct answer Removal, cleaning, sanitizing, demolition, or other
treatment of mold or mod contaminated matter that was not intended to be grown at that location.
What is the insurance requirements for mold remediation? - correct answer GL in the amount of at leat
$1,000,000
Is installing HVAC or AC system home improvement? - correct answer No
Lists exceptions to HI License - correct answer - Individual who works for a contractor or suib who is paid
by salary and is not a salesperson
- A celrical employee, retail clerk, to a licensed contractor
- A solicitor for a contractor who calls an owner by phone only
- An architect, electriciam, plumber, HVAC contrator (who is reuired by state to meet standards of
competency in their profession)
- a licensed secuity system tecitian under Title 18 of the Business Occupations Article
- A licensed Marine contracor under Title 17, Subtitle 3
The commission may issue a license to an applicant who has violated 8-601 if - correct answer 1 year has
passed since the conviction
What is term of license - correct answer unless a license is renewed for a 2 year term as provided in this
section, the license expires:
- If the Sec staggers the term of the licenses, on the date that the Secretary set
- If the Sec does not stagger the licenses, on the first June 30 that comes after the effective date of the
license in an odd number year
How long does a licensee have to notify the Commission of change in business ownership or control -
correct answer 10 days
How many people in a Hearing Board - correct answer 3
Decision of Hearing Board - correct answer Decision of the Hearing Board shall be:

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