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

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Maryland Home Improvement TestDefine 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 wasdesigned to be used as aresidence or dwelling place or structure adjacent to that building or animprovement to land adjacent to that buildingIs a building of a swimming pool, deck, pier or porch included in Home Improvement?-correct answerYesIs work done on apartment complexes of more than 4 units considered home improvement?-correctanswer NoIs work done on individual condominium units considered home improvement?-correct answer YesIs installation in a residence of alarm, awning or fire alarm considered home improvement?-correctanswer YesIs now removal or grass cutting home improvement?-correct answer NoDefine contractor-correct answer A person who performs or offers or agrees to perform a homeimprovement for an ownerDefine Subcontractor-correct answer A subcontractor enters into contracts with contractors or othersubcontractors to perform home improvement. A subcontractor is not authorized to enter intoagreement directly with the ownerDefine salesperson-correct answer A person who sells a homeimprovement

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

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What is the most important role of the Commissioners?-correct answer To promulgate regulations forthe Commission. These regulations help the public better understand the Home Improvement Law andthe Commission's policiesHow 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 5yearsHow long if the Commissioner's term?-correct answer 4 yearsWhere is the Commission's office?-correct answer Baltimore, MDWho appoints the Executive Director?-correct answer The Secretary of Department of Labor, Licensingand RegulationWhat is the Executive Director responsible for?-correct answer the daily operations of the Commissionand signs under the seal letters affirming the licensing status of individuals for court proceedings. TheExecutive director is also responsible for compiling and maintaining a copy of the Commission's currentregulationsWhat do investigators do?-correct answer The Commission also employs investigators that review thecomplaints and Guaranty Fund claims that are received by the Commission. The investigators reviewcomplaints against licensed and unlicensed contractors and salespersons.If an investigator determines that a violation may have occurred, what actions can the Commissiontake?-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 toobtain a construction license from the Circuit Courts-correct answer TrueHow 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 thefirst time. After each subsequent failure a candidate must wait 60 days.What is the insurance requirement for contractor?-correct answer General Liability at least $50,000What is the Home Improvement Guaranty Fund?-correct answer One of the Commissions mostimportant function is to administer the Home Improvement Guaranty Fund. The fund compensateshomeowners 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 fromthe fund?-correct answer FALSE-if a homeowner hires an unlicensed contractor, the homeowner willNOT be eligible to collect money from the Fund.What is Actual Loss?-correct answer Actual Loss means the cost to correct or complete a homeimprovement that is inadequate, unworkmanlike or incomplete.How much can homeowners recover?-correct answer Homeowners may recover up to $20,000 percontract, though they are not eligible to recover more than the amount paid tothe contractor againstwhom the claim is based. Certain costs like: legal fees, interest, consequential damages are not coveredby the Fund.What is the max amount that can be awarded from the Guaranty Fund for the acts or omissions of acontractor?-correct answer $100,000How is the Fund maintained?-correct answer $100 by each contractor at the time of applying for alicense. The Commission may also assess each contractor a fee of $50 if the Fund falls below $250,000How many days does the contractor have to respond to claims from a homeowner once it has beenreceived by the commission?-correct answer Once the Commission receives a claim, it send a copy tothe 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 thecontractor, or an officer of the corporation. Similarly, an owner may only receive compensation ifshe/he resides in the house where the work was performed or does not own more than3 residences.What happens to the license of the contractor after a claim has been paid?-correct answer The licensedis suspended, unless the commission determines that contractor did not know the wrongful conduct orit could had not been avoidedWhatis required in a home Improvement contract?-correct answer DateContractors name, address, and MHIC numberConsumer NoticeDatesDescription of workDeposit and Payment informationWhat is Consumer Notice?-correct answer It provides phone of the Commission and states that "eachcontractor and subcontractor must hold a current MHIC license and anyone can ask MHIC about acontractor"The contract also needs to inform homeowners of the following:1) Formal mediation disputes between homeowners and contractors are available through theCommission2) The Commission administers the Fund which can compensate owners for certain actual losses causedby acts or omissions of licensed contractors3) The homeowner may request that the contractor purchase a performance bond for additionalprotections against losses not covered by the FundWhat is the maximum a contractor may ask for downpayment?-correct answer 1/3 of the contractHow long does a homeowner have to rescind a contract?-correct answer 3 days aftersigning, andnotification must be in writing.

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Who can make changes to a home improvement contract?-correct answer Only the contractor isauthorized 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 acopy of the home improvement contract signed by the contractor-correct answer TRUEWhat is cancellation under Door to Door Sales Act-correct answer The Door to Door salesact givesconsumers certain rights, including the right to cancel the contract without any penalty or obligation, bysending a notice of cancellation to the seller by midnight of the fifth business day following the sale, orthe seventh business day of thebuyer is at least 65 years old.If the homeowner cancels the contract, contractor must return the deposit within 10 business daysfollowing receipt of cancellation.What is the NOTICE OF CANCELLATION requirement for Door to Door Sales Act?-correct answer Eachcontract must include Notice of Cancellation attached to the contract and contractor must obtain asigned written acknowledgement that the buyer has been informed of his/her cancellation rights. Theinformation must include where to send the cancellation notice, by which date. If this information is notincluded 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 thecontractorand the contractor does not pick them up within 20 days of the date of your notice, you maydispose of the goods without any further obligationWhen is a Home Improvement Job NOT covered?-correct answer The Door to Door sales act does NOTcover a homeimprovement project made:1) pursuant to prior negotiations at a retail business with a fixed permanent location where consumergoods are exhibited or consumer services are offered for sale on a continuing bases2) In which the buyer has initiated contactand the goods or services are needed to meet a bona fidepersonal emergency of the buyer and the buyer gives the seller a separate dated and signed personalstatement in the buyers handwriting that describes the situation that required immediate remedy andexpressly acknowledges and waives rights to cancel the sale, and the seller in good faith makes asubstantial beginning of the performance of the contractWho enforces Door to Door sales act?-correct answer Attorney General of MD

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How many contractorscan a salesperson represent?-correct answer 2 max, but may only representONE at the time of sale.What happens if a salesperson leaves a contractor's team?-correct answer The contractor isresponsible for notifying the commissionWhat are the provisions for advertising under home improvement law?-correct answer 1) Advertisingmust contain name, and MHIC license number regardless of whether the advertisement is in print, radioor TV.2) The advertisement cannot be false, deceptive or misleadingForexample: if advertisement contains a price which does not include all costs of items necessary forthe proper function or appearance of the product, this must be clearly stated. Likewise, any limitation towhat will be supplied at the advertised price shall be stated clearly next to the statement; if delivery orinstallation 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 allvehiclesWhat is thepenalty for acting as a contractor or salesperson without a license in MD?-correct answerguilty individuals may be incarcerated for 6 months and fined yup to $1000. For subsequent convictions2 years in jail and up to $5000 fine.When was mold remediation act established?-correct answer MD Mold Remediation Act wasestablished in 2008 to protect the public, improve indoor air quality, and to promote professionalstandards.What does the Mold remediation Act require?-correct answer Each company thatprovides moldremediation 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 oforganic matter and produces spores, as well as the spores, hyphae,, and mycotoxins that are producedby mold.

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What is mold remediation?-correct answer Removal, cleaning, sanitizing, demolition, or othertreatment of mold or mod contaminated matter that was not intended to be grown at thatlocation.What is the insurance requirements for mold remediation?-correct answer GL in the amount of at leat$1,000,000Is installing HVAC or AC system home improvement?-correct answer NoLists exceptions to HI License-correct answer-Individualwho works for a contractor or suib who is paidby 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 ofcompetency in their profession)-a licensed secuity system tecitian under Title 18 of the Business Occupations Article-A licensed Marine contracor under Title 17, Subtitle 3The commission may issue alicense to an applicant who has violated 8-601 if-correct answer 1 year haspassed since the convictionWhat is term of license-correct answer unless a license is renewed for a 2 year term as provided in thissection, 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 thelicense in an odd number yearHow long does a licensee have to notify the Commission of change in business ownership or control-correct answer 10 daysHow many people in a Hearing Board-correct answer 3Decision of Hearing Board-correct answer Decision of the Hearing Board shall be:

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