Residential Builder's Salesperson
EXAM STUDY GUIDE 2026/2027
ACCURATE QUESTIONS WITH
CORRECT DETAILED SOLUTIONS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. Residential Builder - ANSWER ✔ A person licensed to construct or alter
residential structures
2. Builder Salesperson - ANSWER ✔ Must work under a licensed residential
builder and cannot act independently
3. Michigan Occupational Code - ANSWER ✔ Law governing builders and
salespersons in Michigan
4. License Supervision - ANSWER ✔ Salesperson must be supervised by a
licensed builder
5. Floor Plan - ANSWER ✔ Top-down view of room layout
6. Door Symbol - ANSWER ✔ Arc showing door swing
7. Window Symbol - ANSWER ✔ Thin rectangle in wall
8. Dimensions - ANSWER ✔ Measurements shown on blueprints
9. Room Abbreviations - ANSWER ✔ BR=Bedroom BA=Bathroom
KIT=Kitchen LR=Living Room
,10.Stair Symbol - ANSWER ✔ Steps with directional arrow
11.Builder Responsibility - ANSWER ✔ Builder is legally responsible for
salesperson actions
12.Calculator Use - ANSWER ✔ Calculator is allowed on the exam
13.Basic Math - ANSWER ✔ Addition subtraction multiplication division
percentages
14.Contract Parties - ANSWER ✔ Buyer and licensed builder
15.Permit Awareness - ANSWER ✔ Salesperson should know permits exist
but not obtain them
16.Ethics - ANSWER ✔ Honest and fair dealing with consumers
17.In a typical construction loan, the interest rate is locked for the entire term of
the loan. - ANSWER ✔ True
18.Both company overhead and project overhead should be accounted for in a
projects estimate. - ANSWER ✔ True
19.Salespeople shall not begin selling until they receive their license and pocket
ID card. - ANSWER ✔ True
20.A material breach of contract is the most serious of contract breaches. -
ANSWER ✔ True
21.If a sale was initiated and completed by a salesperson at a person's home, the
customer has a right to cancel that contract within __________days. -
ANSWER ✔ 3
22.If a contract is negotiated on the premise of price per square foot of material
installed, this would be a ____________ - ANSWER ✔ Unit Price contract
,23.Costs that a contractor incurs such as administrative costs to service the
project while under construction are called _________ - ANSWER ✔
Company Overhead
24.Company overhead can include - ANSWER ✔ Office expenses, facility
maintenance expense, electrical expenses
25.A complete list of all of the materials and items of work that would be
required to complete a project are ____ - ANSWER ✔ Quantity survey
(take off)
26.Can an unlicensed contractor who is required to be licensed impose a lien
against a homeowner? - ANSWER ✔ No
27.A licensed salesman can work for how many builder or contractor at one
time? - ANSWER ✔ only one at a time
28.A company's assets should include all of the following except... - ANSWER
✔ Notes Payable
29.A debt owed to a supplier for goods or services purchased is called... -
ANSWER ✔ An account payable
30.A licensed builder can legally accept a job or contract from an unlicensed
salesperson... - ANSWER ✔ under no circumstances
31.A salespersons in violation of the Occupational Code may be... - ANSWER
✔ Fined and Imprisoned
32.A contempt of court citation can be issued against a builder who is the object
of a complaint. - ANSWER ✔ For willful refusal to cooperate in the
investigation of a complaint
33.A court order requiring a builder to present books an records to the Bureau
following a complaint is called - ANSWER ✔ subpoena
34.A lien claim is filed with the - ANSWER ✔ County register of deeds
, 35.A builder needs a loan from a bank. what is not acceptable as collateral -
ANSWER ✔ Accounts payable
36.A proper notification of change of address to the Department of licensing
and regulation (LARA) must be made within - ANSWER ✔ 30 days
37.A building contract can be cancelled - ANSWER ✔ by mutual agreement
38.A salesperson leaves the builder under whom he's licensed and enters the
employment of a new builder . What must the salesperson do... - ANSWER
✔ have his new employer apply to the board for transfer of the
salespersons license
39.Prior to serving notices/complaints, subcontractors, materials supplier, etc
should consider the effect of a _____or joint control. - ANSWER ✔
Payment bond or performance bond
40.During litigation, properly documented ______may be used to ascertain the
true impact, and determine damages and settlement. - ANSWER ✔ records
41.A subcontractor has _____ days in which to file a lawsuit to foreclose on a
lien. - ANSWER ✔ 90 days
42.After the lien foreclosure action is filed, but before 90 days have elapsed, the
owner may be given credit. Credit should be recorded, and at the time,
________may be granted. - ANSWER ✔ an extension
43.As a sole proprietor, you are ________to have an attorney represent you in
court - ANSWER ✔ Not required to but advised
44.Corporations are _____ an attorney represent them in court litigation
proceedings. - ANSWER ✔ Not required to but advised to hire
45.If a contractor or subcontractor fails to comply with statutory requirements,
he/she _____ file suit in court in order to resolve a dispute. - ANSWER ✔
is able to
EXAM STUDY GUIDE 2026/2027
ACCURATE QUESTIONS WITH
CORRECT DETAILED SOLUTIONS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. Residential Builder - ANSWER ✔ A person licensed to construct or alter
residential structures
2. Builder Salesperson - ANSWER ✔ Must work under a licensed residential
builder and cannot act independently
3. Michigan Occupational Code - ANSWER ✔ Law governing builders and
salespersons in Michigan
4. License Supervision - ANSWER ✔ Salesperson must be supervised by a
licensed builder
5. Floor Plan - ANSWER ✔ Top-down view of room layout
6. Door Symbol - ANSWER ✔ Arc showing door swing
7. Window Symbol - ANSWER ✔ Thin rectangle in wall
8. Dimensions - ANSWER ✔ Measurements shown on blueprints
9. Room Abbreviations - ANSWER ✔ BR=Bedroom BA=Bathroom
KIT=Kitchen LR=Living Room
,10.Stair Symbol - ANSWER ✔ Steps with directional arrow
11.Builder Responsibility - ANSWER ✔ Builder is legally responsible for
salesperson actions
12.Calculator Use - ANSWER ✔ Calculator is allowed on the exam
13.Basic Math - ANSWER ✔ Addition subtraction multiplication division
percentages
14.Contract Parties - ANSWER ✔ Buyer and licensed builder
15.Permit Awareness - ANSWER ✔ Salesperson should know permits exist
but not obtain them
16.Ethics - ANSWER ✔ Honest and fair dealing with consumers
17.In a typical construction loan, the interest rate is locked for the entire term of
the loan. - ANSWER ✔ True
18.Both company overhead and project overhead should be accounted for in a
projects estimate. - ANSWER ✔ True
19.Salespeople shall not begin selling until they receive their license and pocket
ID card. - ANSWER ✔ True
20.A material breach of contract is the most serious of contract breaches. -
ANSWER ✔ True
21.If a sale was initiated and completed by a salesperson at a person's home, the
customer has a right to cancel that contract within __________days. -
ANSWER ✔ 3
22.If a contract is negotiated on the premise of price per square foot of material
installed, this would be a ____________ - ANSWER ✔ Unit Price contract
,23.Costs that a contractor incurs such as administrative costs to service the
project while under construction are called _________ - ANSWER ✔
Company Overhead
24.Company overhead can include - ANSWER ✔ Office expenses, facility
maintenance expense, electrical expenses
25.A complete list of all of the materials and items of work that would be
required to complete a project are ____ - ANSWER ✔ Quantity survey
(take off)
26.Can an unlicensed contractor who is required to be licensed impose a lien
against a homeowner? - ANSWER ✔ No
27.A licensed salesman can work for how many builder or contractor at one
time? - ANSWER ✔ only one at a time
28.A company's assets should include all of the following except... - ANSWER
✔ Notes Payable
29.A debt owed to a supplier for goods or services purchased is called... -
ANSWER ✔ An account payable
30.A licensed builder can legally accept a job or contract from an unlicensed
salesperson... - ANSWER ✔ under no circumstances
31.A salespersons in violation of the Occupational Code may be... - ANSWER
✔ Fined and Imprisoned
32.A contempt of court citation can be issued against a builder who is the object
of a complaint. - ANSWER ✔ For willful refusal to cooperate in the
investigation of a complaint
33.A court order requiring a builder to present books an records to the Bureau
following a complaint is called - ANSWER ✔ subpoena
34.A lien claim is filed with the - ANSWER ✔ County register of deeds
, 35.A builder needs a loan from a bank. what is not acceptable as collateral -
ANSWER ✔ Accounts payable
36.A proper notification of change of address to the Department of licensing
and regulation (LARA) must be made within - ANSWER ✔ 30 days
37.A building contract can be cancelled - ANSWER ✔ by mutual agreement
38.A salesperson leaves the builder under whom he's licensed and enters the
employment of a new builder . What must the salesperson do... - ANSWER
✔ have his new employer apply to the board for transfer of the
salespersons license
39.Prior to serving notices/complaints, subcontractors, materials supplier, etc
should consider the effect of a _____or joint control. - ANSWER ✔
Payment bond or performance bond
40.During litigation, properly documented ______may be used to ascertain the
true impact, and determine damages and settlement. - ANSWER ✔ records
41.A subcontractor has _____ days in which to file a lawsuit to foreclose on a
lien. - ANSWER ✔ 90 days
42.After the lien foreclosure action is filed, but before 90 days have elapsed, the
owner may be given credit. Credit should be recorded, and at the time,
________may be granted. - ANSWER ✔ an extension
43.As a sole proprietor, you are ________to have an attorney represent you in
court - ANSWER ✔ Not required to but advised
44.Corporations are _____ an attorney represent them in court litigation
proceedings. - ANSWER ✔ Not required to but advised to hire
45.If a contractor or subcontractor fails to comply with statutory requirements,
he/she _____ file suit in court in order to resolve a dispute. - ANSWER ✔
is able to
