Residential Builder's Salesperson Practice
Exam Questions With Complete
Solutions
1. Salespeople shall not begin selling until they receive their license and pocket ID card.
a. True
b. False
Answer: a
Explanation: It is a legal requirement for builder's salespeople to be licensed and in
possession of their official identification card before they can legally conduct any sales
activities .
2. A Salesperson may only be licensed to _____ builder or M&A contractor.
a. 1
b. 2
c. 3
d. Unlimited
, Answer: a
Explanation: A salesperson must be licensed under a specific sponsoring builder or
Maintenance & Alteration (M&A) contractor and cannot represent more than one at the
same time .
3. If a salesperson doesn't intend to renew their license after it has expired, do they have
to return it to the Department?
a. Yes
b. No
Answer: a
Explanation: The license, including the pocket ID card, is property of the licensing
department and must be returned upon expiration if not renewed .
4. A person who lets their license expire for more than _____ days must reapply and pay
additional fees.
a. 15 days
b. 30 days
c. 60 days
d. 90 days
Answer: c
Explanation: Allowing a license to lapse for more than 60 days triggers a reapplication
process with additional fees rather than a simple renewal .
5. If a license has been expired for more than ________, you must re-qualify by passing
the test again.
, a. 6 months
b. 1 year
c. 2 years
d. 3 years
Answer: d
Explanation: After a license has been expired for three years or more, it is considered
permanently lapsed, requiring retaking and passing the entire licensing examination .
6. If a contract is negotiated on the premise of price per square foot of material
installed, this would be a ____________.
a. Lump Sum contract
b. Unit Price contract
c. Cost Plus contract
d. Time and Materials contract
Answer: b
Explanation: A unit price contract establishes a fixed rate for a specific unit of work
(e.g., per square foot). The total cost is determined by the quantity of units used .
7. If a contract is a lump sum agreement, that means every dollar over budget means a
dollar in your pocket.
a. True
b. False
Answer: b
Explanation: In a lump sum contract, the builder assumes the risk of cost overruns.
Exceeding the budget does not mean extra profit for the builder .
Exam Questions With Complete
Solutions
1. Salespeople shall not begin selling until they receive their license and pocket ID card.
a. True
b. False
Answer: a
Explanation: It is a legal requirement for builder's salespeople to be licensed and in
possession of their official identification card before they can legally conduct any sales
activities .
2. A Salesperson may only be licensed to _____ builder or M&A contractor.
a. 1
b. 2
c. 3
d. Unlimited
, Answer: a
Explanation: A salesperson must be licensed under a specific sponsoring builder or
Maintenance & Alteration (M&A) contractor and cannot represent more than one at the
same time .
3. If a salesperson doesn't intend to renew their license after it has expired, do they have
to return it to the Department?
a. Yes
b. No
Answer: a
Explanation: The license, including the pocket ID card, is property of the licensing
department and must be returned upon expiration if not renewed .
4. A person who lets their license expire for more than _____ days must reapply and pay
additional fees.
a. 15 days
b. 30 days
c. 60 days
d. 90 days
Answer: c
Explanation: Allowing a license to lapse for more than 60 days triggers a reapplication
process with additional fees rather than a simple renewal .
5. If a license has been expired for more than ________, you must re-qualify by passing
the test again.
, a. 6 months
b. 1 year
c. 2 years
d. 3 years
Answer: d
Explanation: After a license has been expired for three years or more, it is considered
permanently lapsed, requiring retaking and passing the entire licensing examination .
6. If a contract is negotiated on the premise of price per square foot of material
installed, this would be a ____________.
a. Lump Sum contract
b. Unit Price contract
c. Cost Plus contract
d. Time and Materials contract
Answer: b
Explanation: A unit price contract establishes a fixed rate for a specific unit of work
(e.g., per square foot). The total cost is determined by the quantity of units used .
7. If a contract is a lump sum agreement, that means every dollar over budget means a
dollar in your pocket.
a. True
b. False
Answer: b
Explanation: In a lump sum contract, the builder assumes the risk of cost overruns.
Exceeding the budget does not mean extra profit for the builder .
