Michigan Builders License Exam Study Guide Questions with 100% Correct Answers

What is the first offense penalty for engaging in the practice of residential building without a license? Correct Answer Not less than $5,000 and not more than $25,000 and/or one year in prison. Subsequent violations can extend the prison time to up to 2 years. What is the penalty for engaging in the practice of residential builders license, resulting in a death? Correct Answer Not less than $5,000 and not more than $25,000 and/or four years in prison On your individual builder's license application, what should you write as your "business address"? Correct Answer Your personal address What is the cost for the individual builder's license? Correct Answer $195 After receiving your residential builder's license, what are the only trades not covered by your license? Correct Answer Plumbing, electrical, and HVAC Who is the TESTING company for the State of Michigan? Correct Answer PSI What is the name of the department that regulates your license? Correct Answer LARA What are the 2 parts of the Residential Builder Examination? Correct Answer Business and Law examination/Practice and Trade examination What is a good quick asset ratio? Correct Answer 1 to 1 Under the Carpentry section of the test, what does a "span table" tell us? Correct Answer What species and what grade of lumber a floor joist has to be to span a certain distance Which is NOT a reason that you need a residential business license? It allows you to be able to file a lein on property It allows you to pull a residential permit It allows you to file a lawsuit if necessary It allows you to work on commercial properties Correct Answer It allows you to work on commercial properties Where does most fraud occur? Correct Answer In the residential market As a builder, your license falls under the regulation of: Correct Answer Both rules by the director and board as well as laws of the state of Michigan