NYC HOME IMPROVEMENT
CONTRACTOR LICENSE
EXAMINATION QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2026
Q&A | INSTANT DOWNLOAD PDF
Core Domains
1. Licensing Requirements & Application Process
2. Home Improvement Contract Law & Consumer Protection
3. Business Practices, Estimating & Payments
4. Permits, Building Codes & Regulatory Compliance
5. Insurance, Bonding & Trust Fund Requirements
6. Safety Regulations & Lead-Safe Work Practices
7. Ethics, Professional Standards & Prohibited Practices
8. Enforcement, Penalties & License Maintenance
Introduction
The New York City Home Improvement Contractor License Examination
assesses the knowledge and skills required to operate legally and ethically
within the residential construction and remodeling industry. Administered by
the Department of Consumer and Worker Protection, the exam evaluates a
candidate's understanding of licensing rules, contract requirements,
consumer protection laws, permit obligations, insurance mandates, and
safety regulations. The test utilizes multiple-choice and scenario-based
,questions designed to test real-world application and critical decision-
making. Candidates must demonstrate mastery of foundational theory and
applied professional knowledge to protect consumers and uphold industry
standards.
SECTION ONE: QUESTIONS 1–100
1. Under the New York City Home Improvement Business Law, which of
the following activities is legally classified as "home improvement"?
A. Construction of a new single-family residence from the ground up
B. Interior painting performed as a standalone service
C. Installation of central heating and air conditioning systems in an existing
dwelling
D. Work performed on a building owned and controlled by the municipality
C. Installation of central heating and air conditioning systems in an
existing dwelling
RATIONALE: The law defines home improvement to include the
installation of central heating and air conditioning systems, central vacuum
cleaning systems, storm windows, awnings, and communication systems
within a residential or dwelling place. Construction of a new home and
standalone painting are explicitly excluded.
2. A homeowner hires a contractor to renovate a kitchen. The
contractor deposits the homeowner's advance payment into a personal
checking account rather than a trust account. Which legal requirement
has the contractor violated?
A. The three-day right of cancellation
B. The trust fund deposit requirement
C. The permit acquisition rule
D. The sales tax remittance rule
B. The trust fund deposit requirement
, RATIONALE: Contractors must deposit all payments received prior to
completion into a trust fund account or post a bond/contract of indemnity.
Commingling advance payments with personal funds violates this fiduciary
requirement.
3. Which of the following individuals is NOT required to obtain a Home
Improvement Contractor license?
A. A salesperson who solicits home improvement contracts on behalf of a
licensed contractor
B. A sole proprietor who performs home improvement work valued at $150
C. A corporate officer who owns 15% of a contracting company's stock
D. A subcontractor who performs remodeling work for a prime contractor
B. A sole proprietor who performs home improvement work valued at $150
RATIONALE: A person performing a job which is less than $200 does not
require a license. However, salespersons, corporate officers owning 10% or
more of stock, and subcontractors performing home improvement work must
be licensed.
4. A homeowner signs a home improvement contract on a Monday. By
what day must the contractor refrain from starting work to respect the
homeowner's right to cancel?
A. Tuesday at midnight
B. Wednesday at midnight
C. Thursday at midnight
D. Friday at midnight
C. Thursday at midnight
RATIONALE: The consumer has until midnight of the third business day
after signing the contract to cancel. If the contract is signed on Monday, the
three-day period extends through Thursday. No work and no money should
be paid until after this cancellation period.
, 5. What is the statutory definition of a "salesperson" under NYC Home
Improvement Law?
A. Any employee who performs manual labor on a home improvement project
B. Anyone who sells construction materials to a licensed contractor
C. Someone who negotiates or solicits a home improvement contract from an
owner or tenant
D. A licensed real estate agent who refers clients to contractors
C. Someone who negotiates or solicits a home improvement contract from
an owner or tenant
RATIONALE: A salesperson is someone who negotiates a home
improvement contract with a homeowner or tenant, or solicits a home
improvement contract from an owner or tenant. This role requires a separate
license.
6. A licensed home improvement contractor changes their business
address. Within how many days must they notify the Department of
Consumer and Worker Protection?
A. 5 days
B. 10 days
C. 15 days
D. 30 days
B. 10 days
RATIONALE: Within 10 days of any change of address, change of
ownership, or change of management, a licensee must notify DCA. Failure to
do so may result in penalties or license suspension.
7. Which of the following is NOT considered home improvement under
NYC law?
A. Replacing a garage door on a residential property
B. Installing a swimming pool in a homeowner's backyard
CONTRACTOR LICENSE
EXAMINATION QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2026
Q&A | INSTANT DOWNLOAD PDF
Core Domains
1. Licensing Requirements & Application Process
2. Home Improvement Contract Law & Consumer Protection
3. Business Practices, Estimating & Payments
4. Permits, Building Codes & Regulatory Compliance
5. Insurance, Bonding & Trust Fund Requirements
6. Safety Regulations & Lead-Safe Work Practices
7. Ethics, Professional Standards & Prohibited Practices
8. Enforcement, Penalties & License Maintenance
Introduction
The New York City Home Improvement Contractor License Examination
assesses the knowledge and skills required to operate legally and ethically
within the residential construction and remodeling industry. Administered by
the Department of Consumer and Worker Protection, the exam evaluates a
candidate's understanding of licensing rules, contract requirements,
consumer protection laws, permit obligations, insurance mandates, and
safety regulations. The test utilizes multiple-choice and scenario-based
,questions designed to test real-world application and critical decision-
making. Candidates must demonstrate mastery of foundational theory and
applied professional knowledge to protect consumers and uphold industry
standards.
SECTION ONE: QUESTIONS 1–100
1. Under the New York City Home Improvement Business Law, which of
the following activities is legally classified as "home improvement"?
A. Construction of a new single-family residence from the ground up
B. Interior painting performed as a standalone service
C. Installation of central heating and air conditioning systems in an existing
dwelling
D. Work performed on a building owned and controlled by the municipality
C. Installation of central heating and air conditioning systems in an
existing dwelling
RATIONALE: The law defines home improvement to include the
installation of central heating and air conditioning systems, central vacuum
cleaning systems, storm windows, awnings, and communication systems
within a residential or dwelling place. Construction of a new home and
standalone painting are explicitly excluded.
2. A homeowner hires a contractor to renovate a kitchen. The
contractor deposits the homeowner's advance payment into a personal
checking account rather than a trust account. Which legal requirement
has the contractor violated?
A. The three-day right of cancellation
B. The trust fund deposit requirement
C. The permit acquisition rule
D. The sales tax remittance rule
B. The trust fund deposit requirement
, RATIONALE: Contractors must deposit all payments received prior to
completion into a trust fund account or post a bond/contract of indemnity.
Commingling advance payments with personal funds violates this fiduciary
requirement.
3. Which of the following individuals is NOT required to obtain a Home
Improvement Contractor license?
A. A salesperson who solicits home improvement contracts on behalf of a
licensed contractor
B. A sole proprietor who performs home improvement work valued at $150
C. A corporate officer who owns 15% of a contracting company's stock
D. A subcontractor who performs remodeling work for a prime contractor
B. A sole proprietor who performs home improvement work valued at $150
RATIONALE: A person performing a job which is less than $200 does not
require a license. However, salespersons, corporate officers owning 10% or
more of stock, and subcontractors performing home improvement work must
be licensed.
4. A homeowner signs a home improvement contract on a Monday. By
what day must the contractor refrain from starting work to respect the
homeowner's right to cancel?
A. Tuesday at midnight
B. Wednesday at midnight
C. Thursday at midnight
D. Friday at midnight
C. Thursday at midnight
RATIONALE: The consumer has until midnight of the third business day
after signing the contract to cancel. If the contract is signed on Monday, the
three-day period extends through Thursday. No work and no money should
be paid until after this cancellation period.
, 5. What is the statutory definition of a "salesperson" under NYC Home
Improvement Law?
A. Any employee who performs manual labor on a home improvement project
B. Anyone who sells construction materials to a licensed contractor
C. Someone who negotiates or solicits a home improvement contract from an
owner or tenant
D. A licensed real estate agent who refers clients to contractors
C. Someone who negotiates or solicits a home improvement contract from
an owner or tenant
RATIONALE: A salesperson is someone who negotiates a home
improvement contract with a homeowner or tenant, or solicits a home
improvement contract from an owner or tenant. This role requires a separate
license.
6. A licensed home improvement contractor changes their business
address. Within how many days must they notify the Department of
Consumer and Worker Protection?
A. 5 days
B. 10 days
C. 15 days
D. 30 days
B. 10 days
RATIONALE: Within 10 days of any change of address, change of
ownership, or change of management, a licensee must notify DCA. Failure to
do so may result in penalties or license suspension.
7. Which of the following is NOT considered home improvement under
NYC law?
A. Replacing a garage door on a residential property
B. Installing a swimming pool in a homeowner's backyard
