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MARLAND HOME IMPROVEMENT TEST QUESTIONS AND CORRECT ANSWERS 2025/2026 LATEST EXAM//GRADED A+
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Define home improvement - 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? - ANSWER-Yes Is work done on apartment complexes of more than 4 units considered home improvement? - ANSWER- No Is work done on individual condominium units considered home improvement? - ANSWER-Yes Is installation in a residence of alarm, awning or fire alarm considered home improvement? - ANSWER- Yes Is now removal or grass cutting home improvement? - ANSWER-No Define contractor - ANSWER-A person who performs or offers or agrees to perform a home improvement for an owner Define Subcontractor - 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 - ANSWER-A person who sells a home improvement Define Home Improvement contract - 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 - ANSWER-Owner, owner's agent , tenant or other person authorized to enter into a home improvement contract Define license - ANSWER-is either a contractor or salesperson license that is issued by the Home Improvement Commission. Does a handyman need a license? - ANSWER-Yes True or False: Home Improvement law does not apply if one of the parties is a government agency - ANSWER-True Work done a residence inside a military base is excluded from licensing requirements - ANSWER-True Can local jurisdictions issue home improvement lincenses - 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? - ANSWER-No, waiver is prohibited When was the commission established? - ANSWER- 1962 How Many commissioners are there? - 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? - 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? - ANSWER-bi-monthly. Meetings are open to the public.
What is the Home Improvement Guaranty Fund? - 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? - 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? - ANSWER-Actual Loss means the cost to correct or complete a home improvement that is inadequate, unworkmanlike or incomplete. How much can homeowners recover? - 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? - ANSWER-$100, How is the Fund maintained? - 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, How many days does the contractor have to respond to claims from a homeowner once it has been received by the commission? - ANSWER-Once the Commission receives a claim, it send a copy to the contractor who has 10 days to respond back to the Commission. Who is not eligible to collect from the Fund? - 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? - 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? - ANSWER-Date Contractors name, address, and MHIC number Consumer Notice Dates Description of work Deposit and Payment information What is Consumer Notice? - 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:
What are the provisions for advertising under home improvement law? - ANSWER-1) Advertising must contain name, and MHIC license number regardless of whether the advertisement is in print, radio or TV.
Lists exceptions to HI License - ANSWER-- Individual who works for a contractor or suib who is paid by salary and is not a salesperson
"Consumer goods" or "consumer services" mean - ANSWER-(1) good or services purchased, leased or rented primarily for personal, family or househol dpurposes; and (2) courses of instruction or training regardless of the purpose for which they are taken What does "Door to Door" sales mean - ANSWER-Door to door sales mean a sle, lease, or rental of consumer goods or consumer services under single or multiple contracts with a purchase price of $25 or more Check DOOR TO DOOR SALES - ANSWER-Pages 1 - 60 - 1 - 64 Ethic in Bidding - ANSWER-Good ethical conduct is necessary to maintain the integrity of the bidding process T or F - A good estimate will fall within 1 to 2 percent of actual construction costs - ANSWER-True Define Specifications - ANSWER-details that determine the type of materials or methods to be used in construction. if there is conflict between specs and applicable codes, you must follow the stricter of the 2 (The codes are the minimum requirements by law) Define contract - ANSWER-the agreement between you and owner Define bond - ANSWER-may be required as part of bid submittal (bid and performance bonds) Determine estimated costs using the QUANTITY TAKE OFF METHOD - ANSWER-After estimating materials and labor, the following are added:
Define work week - ANSWER-a period of 168 hours during a seven consecutive 24 hour period What are employment practices that FLSA does not regulate? - ANSWER-- vacation, holiday, severance, or sick pay
Substantial hearing or visual impairment Mental retardation specific learning disability Name laws that protect rights of employees - ANSWER-- David Bacon (prevailing wage)
does not increase the value of the property by 15%, then MD will not permit establishment of the mechanics lien. This does not apply to newly constructed building. Whats the deadline to file a lien? - ANSWER-No later than 180 days after last furnishing labor or materials What properties are subject to a lien? - ANSWER-Buildings Water,lines, sewers, drains, and street developments Machines, wharves and bridges Exemptions - the land of which the building is erected may not be subjected to a lien under this subtitles if prior to the establishment of the lien in accordance with this subtitle, legal title has been granted to a bona fide purchaser for value Filing of a petition constitutes notice to purchaser Notice to Owner by Sbcontractor - ANSWER-A subcontractor doing work or furnishing materials or both for or about a building other than a single family dwelling being erected on the owners land for his own residence is not entitled to a lien under this subtitle unless, within 120 days after doing work or furnishing the materials, the subcontractor gives written notice of an intention to claim a lien substantially in the form specified in subsection (b) of this section (See page 4-5) How to deliver a lien - ANSWER-Mail or personal delivery To file lien claim, time? - ANSWER-In order to establish a lien under this subtitle, a person entitled to lien shall filed proceedings in the court for the county where the land or any part of the land is located within 18- days after the work has been finished or the materials furnished. T or F - Is it the employers responsibility to understand the OSHA standards and quickly correct any violations? - ANSWER-True What is the advantage of establishing a safety program? - ANSWER-Putting together a safety program with these standards in mind can help maximize employee safety and prevent violations
List safety equipment - ANSWER-heard hats safety shoes/boots protective eye wear gloves fall protection hearing protection respirators protective coveralls face shields What is the requirement for EMERGENCY ACTION PLAN - ANSWER-If you have more than 10 employees, your plan must be in writing. if you have fewer than 10 you may communicate the plan orally to employees What does Emergency Action plan include - ANSWER-Reporting fire or other emergency Emergency evacuation Employees who remain for critical operations before evacuations Accounting for all employees after evacuation Employees performing rescue and medical duties ** The plan should also include the name and job title of the plan administrator OSHA Record keeping requirements - ANSWER-Every employer covered by OSHA who has more than 10 employees, except for employers in certain low hazard industries in the retail, finance, insurance, real estate and service sectors, must maintain 3 types of OSHA records: