MICHIGAN RESIDENTIAL BUILDER LICENSING
2026 REVISION NOTES AND STRUCTURED
BUILDER LICENSING OVERVIEW GUIDE
◉ What types of people make up the Board of Residential Builders?
Answer: 4 Licensed residential builders
2 M&A contractors
3 members of the public
◉ What are the duties of the board of residential builders? (4)
Answer: 1. Interpretation of a license requirement
2. Aid in investigations
3. Set acceptable practice standards
4. Assess penalties for those who are licensed and are in violation of
rules
◉ What happens if the qualifying officer's license is revoked?
Answer: The entity's license is revoked as well.
◉ How can a foreign entity get a license? Answer: Only if authorized
by the Corporations and Securities Commission.
,◉ Non residents must file this to be considered for a license.
Answer: An Irrevocable consent to service of process
◉ T or F, Builders must maintain a place of business in the state they
operate in. Answer: True
◉ T of F, Contractors must maintain an accurate set of
books/records open to inspection by the department (LARA).
Answer: True
◉ If the department inquires, licensees must submit ___________
_____________ ___________ showing licensee's current financial status,
and must do so within 30 days of inquiry. Answer: sworn financial
statements
◉ T or F, Advertising must not misrepresent material facts. Answer:
True
◉ Licensee shall include ____________, _______________, and ________________
in all advertising Answer: name, license number, and actual business
address
◉ Is it legal to pay money or give gifts to customers in exchange for
the use of their home as a model for potential clients? Answer: No.
, ◉ All agreements between builders and customers should be in
writing and signed. (T or F). All changes require ___________
____________ added to the contract. Answer: True, change orders
◉ Licensee violations include:
1. _________________ without legal excuse of contract
2. ______________ of funds/property
3. willful _____________ from or ______________ of plans/specs without
authorization of owner
4. Willful ___________ of building laws
5. Failure to deliver entire _______________.
6. If a _______________ fails to pay money received to the contractor.
7. _____________ or _______________ an unlicensed person
8. Allowing a _____________ to be used by an unlicensed individual.
9. Accepting a _____________, ______________, or _______________ by a
salesperson
10. becoming _______________
11. poor ____________ Answer: 1. Abandonment
2. Diversion
3. Departure, disregard
4. Violation
5. Agreement/contract
6. salesperson
2026 REVISION NOTES AND STRUCTURED
BUILDER LICENSING OVERVIEW GUIDE
◉ What types of people make up the Board of Residential Builders?
Answer: 4 Licensed residential builders
2 M&A contractors
3 members of the public
◉ What are the duties of the board of residential builders? (4)
Answer: 1. Interpretation of a license requirement
2. Aid in investigations
3. Set acceptable practice standards
4. Assess penalties for those who are licensed and are in violation of
rules
◉ What happens if the qualifying officer's license is revoked?
Answer: The entity's license is revoked as well.
◉ How can a foreign entity get a license? Answer: Only if authorized
by the Corporations and Securities Commission.
,◉ Non residents must file this to be considered for a license.
Answer: An Irrevocable consent to service of process
◉ T or F, Builders must maintain a place of business in the state they
operate in. Answer: True
◉ T of F, Contractors must maintain an accurate set of
books/records open to inspection by the department (LARA).
Answer: True
◉ If the department inquires, licensees must submit ___________
_____________ ___________ showing licensee's current financial status,
and must do so within 30 days of inquiry. Answer: sworn financial
statements
◉ T or F, Advertising must not misrepresent material facts. Answer:
True
◉ Licensee shall include ____________, _______________, and ________________
in all advertising Answer: name, license number, and actual business
address
◉ Is it legal to pay money or give gifts to customers in exchange for
the use of their home as a model for potential clients? Answer: No.
, ◉ All agreements between builders and customers should be in
writing and signed. (T or F). All changes require ___________
____________ added to the contract. Answer: True, change orders
◉ Licensee violations include:
1. _________________ without legal excuse of contract
2. ______________ of funds/property
3. willful _____________ from or ______________ of plans/specs without
authorization of owner
4. Willful ___________ of building laws
5. Failure to deliver entire _______________.
6. If a _______________ fails to pay money received to the contractor.
7. _____________ or _______________ an unlicensed person
8. Allowing a _____________ to be used by an unlicensed individual.
9. Accepting a _____________, ______________, or _______________ by a
salesperson
10. becoming _______________
11. poor ____________ Answer: 1. Abandonment
2. Diversion
3. Departure, disregard
4. Violation
5. Agreement/contract
6. salesperson
