MICHIGAN RESIDENTIAL BUILDERS EXAM PSI
COMPLETE QUESTIONS WITH 100% VERIFIED ANSWERS AND EXPLANATIONS
SECTION 1: LICENSING REQUIREMENTS & PENALTIES
1. What is the penalty for a first offense of engaging in the practice of residential building
without a license in Michigan?
A. Not less than $1,000 and not more than $5,000 and/or 30 days
B. Not less than $5,000 and not more than $25,000 and/or 1 year
(Correct)
C. Not less than $500 and not more than $1,000 and/or 90 days
D. Not less than $10,000 and not more than $50,000 and/or 2 years
Explanation: Under MCL 339.601(6)(a), a first offense for unlicensed residential building
practice is a misdemeanor with fines of $5,000 to $25,000 and/or up to one year imprisonment.
2. What is the penalty for a second offense of engaging in unlicensed residential building
practice in Michigan?
A. Not less than $1,000 and not more than $5,000 and/or 90 days
B. Not less than $5,000 and not more than $25,000 and/or 1 year
C. Not less than $10,000 and not more than $50,000 and/or 2 years
(Correct)
D. Not less than $25,000 and not more than $100,000 and/or 5 years
Explanation: Under MCL 339.601(6)(b), a second offense is a felony with fines of $10,000 to
$50,000 and/or up to 2 years imprisonment.
,3. What is the penalty for engaging in unlicensed residential building practice that results in
death or serious injury?
A. Fine up to $10,000 and/or 1 year
B. Fine up to $50,000 and/or 15 years
C. Fine not less than $5,000 and not more than $25,000 and/or 4 years
(Correct)
D. Fine not less than $10,000 and not more than $50,000 and/or 7 years
Explanation: Under MCL 339.601(6)(c), unlicensed practice causing death or serious injury is a
felony with fines of $5,000-$25,000 and/or up to 4 years imprisonment.
4. What agency regulates residential builder licenses in Michigan?
A. PSI Services LLC
B. Department of Transportation (MDOT)
C. Department of Licensing and Regulatory Affairs (LARA)
(Correct)
D. Michigan Occupational Safety and Health Administration (MIOSHA)
Explanation: LARA’s Bureau of Construction Codes oversees licensing for residential builders
and M&A contractors in Michigan.
5. Who is the testing company that administers the Michigan Residential Builder License Exam?
A. LARA
B. ICC
C. PSI
(Correct)
,D. Pearson VUE
Explanation: PSI Services LLC is the contracted testing company that administers the Michigan
Residential Builder License Exam under contract with LARA.
6. Under the Michigan Occupational Code, what does the word “limitation” refer to regarding a
license?
A. The geographic area where a licensee may work
B. The maximum dollar amount of projects allowed
C. A condition, structure, restraint, or probation attached to a license relative to scope of practice
(Correct)
D. The number of employees a licensee may supervise
Explanation: A limitation is a restriction placed on a license that defines the boundaries of the
licensee’s authorized practice.
7. What is the cost of the individual residential builder license in Michigan?
A. $150
B. $195
(Correct)
C. $250
D. $300
Explanation: The current fee for an individual residential builder license in Michigan is $195.
8. What is the cost of the residential builder company license in Michigan?
A. $150
B. $195
, C. $250
**(Correct)**
D. $350
Explanation: The current fee for a residential builder company license in Michigan is $250.
9. For how many years is a Michigan residential builder license valid before renewal?
A. 1 year
B. 2 years
C. 3 years
(Correct)
D. 5 years
Explanation: License cycles run every three years; beginning with the license cycle after
December 21, 2007, all licenses are issued for a 3-year duration.
10. Who must be listed as the qualifying officer on a residential builder company license?
A. Any employee of the company
B. The owner of the company
C. An individual who holds a valid residential builder license
(Correct)
D. A certified public accountant
Explanation: The qualifying officer must be a licensed residential builder who is responsible for
the construction operations of the company.
11. How many hours of continuing education are required for residential builders each three-year
license cycle?
COMPLETE QUESTIONS WITH 100% VERIFIED ANSWERS AND EXPLANATIONS
SECTION 1: LICENSING REQUIREMENTS & PENALTIES
1. What is the penalty for a first offense of engaging in the practice of residential building
without a license in Michigan?
A. Not less than $1,000 and not more than $5,000 and/or 30 days
B. Not less than $5,000 and not more than $25,000 and/or 1 year
(Correct)
C. Not less than $500 and not more than $1,000 and/or 90 days
D. Not less than $10,000 and not more than $50,000 and/or 2 years
Explanation: Under MCL 339.601(6)(a), a first offense for unlicensed residential building
practice is a misdemeanor with fines of $5,000 to $25,000 and/or up to one year imprisonment.
2. What is the penalty for a second offense of engaging in unlicensed residential building
practice in Michigan?
A. Not less than $1,000 and not more than $5,000 and/or 90 days
B. Not less than $5,000 and not more than $25,000 and/or 1 year
C. Not less than $10,000 and not more than $50,000 and/or 2 years
(Correct)
D. Not less than $25,000 and not more than $100,000 and/or 5 years
Explanation: Under MCL 339.601(6)(b), a second offense is a felony with fines of $10,000 to
$50,000 and/or up to 2 years imprisonment.
,3. What is the penalty for engaging in unlicensed residential building practice that results in
death or serious injury?
A. Fine up to $10,000 and/or 1 year
B. Fine up to $50,000 and/or 15 years
C. Fine not less than $5,000 and not more than $25,000 and/or 4 years
(Correct)
D. Fine not less than $10,000 and not more than $50,000 and/or 7 years
Explanation: Under MCL 339.601(6)(c), unlicensed practice causing death or serious injury is a
felony with fines of $5,000-$25,000 and/or up to 4 years imprisonment.
4. What agency regulates residential builder licenses in Michigan?
A. PSI Services LLC
B. Department of Transportation (MDOT)
C. Department of Licensing and Regulatory Affairs (LARA)
(Correct)
D. Michigan Occupational Safety and Health Administration (MIOSHA)
Explanation: LARA’s Bureau of Construction Codes oversees licensing for residential builders
and M&A contractors in Michigan.
5. Who is the testing company that administers the Michigan Residential Builder License Exam?
A. LARA
B. ICC
C. PSI
(Correct)
,D. Pearson VUE
Explanation: PSI Services LLC is the contracted testing company that administers the Michigan
Residential Builder License Exam under contract with LARA.
6. Under the Michigan Occupational Code, what does the word “limitation” refer to regarding a
license?
A. The geographic area where a licensee may work
B. The maximum dollar amount of projects allowed
C. A condition, structure, restraint, or probation attached to a license relative to scope of practice
(Correct)
D. The number of employees a licensee may supervise
Explanation: A limitation is a restriction placed on a license that defines the boundaries of the
licensee’s authorized practice.
7. What is the cost of the individual residential builder license in Michigan?
A. $150
B. $195
(Correct)
C. $250
D. $300
Explanation: The current fee for an individual residential builder license in Michigan is $195.
8. What is the cost of the residential builder company license in Michigan?
A. $150
B. $195
, C. $250
**(Correct)**
D. $350
Explanation: The current fee for a residential builder company license in Michigan is $250.
9. For how many years is a Michigan residential builder license valid before renewal?
A. 1 year
B. 2 years
C. 3 years
(Correct)
D. 5 years
Explanation: License cycles run every three years; beginning with the license cycle after
December 21, 2007, all licenses are issued for a 3-year duration.
10. Who must be listed as the qualifying officer on a residential builder company license?
A. Any employee of the company
B. The owner of the company
C. An individual who holds a valid residential builder license
(Correct)
D. A certified public accountant
Explanation: The qualifying officer must be a licensed residential builder who is responsible for
the construction operations of the company.
11. How many hours of continuing education are required for residential builders each three-year
license cycle?
