Michigan Residential Builder's License
2026 Questions and Answers
What is the 1st offense penalty for engaging in the practice of residential building
without a license? - Correct Answer -Not less than $5K and not more than $25K
and/or 1 year
What is the penalty for engaging in the practice of residential building, resulting in
a death? - Correct Answer -Not less than $5K and not more than $50K and/or 4
years
On your individual builder's license application, what should you write as your
"business address"? - Correct Answer -Your personal address
What is the cost of the individual builder's license? - Correct Answer -$195
After receiving your residential builder's license, what are the only trades that are
not covered by your license? - Correct Answer --Plumbing
-Electrical
-HVAC
©COPYRIGHT 2025 ALL RIGHTS RESERVED 1
,Who is the TESTING company for the State of Michigan? - Correct Answer -PSI
What is the name of the DEPARTMENT that regulates your license? - Correct
Answer -LARA
Before you may test, what must you do? - Correct Answer -Present 2 forms of ID
How should you schedule your test with PSI? - Correct Answer --Online
-Mail
-Phone/Fax
When will you receive your test score? - Correct Answer -Immediately following
the completion of the test
What are the 2 parts of the Residential Builder's Exam? - Correct Answer --
Business & Law
-Practice & Trade
How long will you have to complete the Practice & Trade portion of the exam? -
Correct Answer -180 mins
What is a quick asset ratio? - Correct Answer -1 to 1
©COPYRIGHT 2025 ALL RIGHTS RESERVED 2
,Under the carpentry section of the test, what does a "span table" tell us? - Correct
Answer -What species and what grade of lumbar a floor joist has to be to span a
certain distance
Which topics will be covered on the Practice & Trade portion of the exam? -
Correct Answer --Carpentry
-Roofing
-Insulation
Do you need a Residential Builder's License to work on commercial projects? -
Correct Answer -No
Where does the most fraud occur? - Correct Answer -The residential market
As a builder, your license falls under the regulation of what? - Correct Answer --
Rules by the director & board
-Laws of The State of Michigan
What is the make up of the 9 members of the board? - Correct Answer --6
individuals that have a license/registration in the occupation in which the board
monitors
-3 members of the general public
©COPYRIGHT 2025 ALL RIGHTS RESERVED 3
, Under the definition of occupation code, what does the word "limitation" refer to? -
Correct Answer -A condition, stricture, restraint or probation attached to a license
relative to the scope of practice
Who, upon completing a hearing, shall assess a penalty(ies)? - Correct Answer -
The Board
If you fail to renew your license/registration on or before the expiration date, how
many days do you have to resubmit with the proper payment and late fee? - Correct
Answer -60 Days
When the department is investigating a complaint and finds evidence of a
violation, what actions can be brought against them? - Correct Answer --Cease &
desist order
-Formal complaint
-Citation
How many days after the administrative law hearings examiner hears the report,
must a determination of penalties be made by the board? - Correct Answer -60
Days
What is a compliance conference? - Correct Answer -A meeting where the
respondent meets with the department to discuss the complaint against them
©COPYRIGHT 2025 ALL RIGHTS RESERVED 4
2026 Questions and Answers
What is the 1st offense penalty for engaging in the practice of residential building
without a license? - Correct Answer -Not less than $5K and not more than $25K
and/or 1 year
What is the penalty for engaging in the practice of residential building, resulting in
a death? - Correct Answer -Not less than $5K and not more than $50K and/or 4
years
On your individual builder's license application, what should you write as your
"business address"? - Correct Answer -Your personal address
What is the cost of the individual builder's license? - Correct Answer -$195
After receiving your residential builder's license, what are the only trades that are
not covered by your license? - Correct Answer --Plumbing
-Electrical
-HVAC
©COPYRIGHT 2025 ALL RIGHTS RESERVED 1
,Who is the TESTING company for the State of Michigan? - Correct Answer -PSI
What is the name of the DEPARTMENT that regulates your license? - Correct
Answer -LARA
Before you may test, what must you do? - Correct Answer -Present 2 forms of ID
How should you schedule your test with PSI? - Correct Answer --Online
-Phone/Fax
When will you receive your test score? - Correct Answer -Immediately following
the completion of the test
What are the 2 parts of the Residential Builder's Exam? - Correct Answer --
Business & Law
-Practice & Trade
How long will you have to complete the Practice & Trade portion of the exam? -
Correct Answer -180 mins
What is a quick asset ratio? - Correct Answer -1 to 1
©COPYRIGHT 2025 ALL RIGHTS RESERVED 2
,Under the carpentry section of the test, what does a "span table" tell us? - Correct
Answer -What species and what grade of lumbar a floor joist has to be to span a
certain distance
Which topics will be covered on the Practice & Trade portion of the exam? -
Correct Answer --Carpentry
-Roofing
-Insulation
Do you need a Residential Builder's License to work on commercial projects? -
Correct Answer -No
Where does the most fraud occur? - Correct Answer -The residential market
As a builder, your license falls under the regulation of what? - Correct Answer --
Rules by the director & board
-Laws of The State of Michigan
What is the make up of the 9 members of the board? - Correct Answer --6
individuals that have a license/registration in the occupation in which the board
monitors
-3 members of the general public
©COPYRIGHT 2025 ALL RIGHTS RESERVED 3
, Under the definition of occupation code, what does the word "limitation" refer to? -
Correct Answer -A condition, stricture, restraint or probation attached to a license
relative to the scope of practice
Who, upon completing a hearing, shall assess a penalty(ies)? - Correct Answer -
The Board
If you fail to renew your license/registration on or before the expiration date, how
many days do you have to resubmit with the proper payment and late fee? - Correct
Answer -60 Days
When the department is investigating a complaint and finds evidence of a
violation, what actions can be brought against them? - Correct Answer --Cease &
desist order
-Formal complaint
-Citation
How many days after the administrative law hearings examiner hears the report,
must a determination of penalties be made by the board? - Correct Answer -60
Days
What is a compliance conference? - Correct Answer -A meeting where the
respondent meets with the department to discuss the complaint against them
©COPYRIGHT 2025 ALL RIGHTS RESERVED 4
