Michigan Residential Builder Licensing practice exam with 100% correct answers already graded A+

M&A contractors include: A = Carpentry B = Concrete D = Excavation G = Insulation Work I = Masonry J = Painting & Decorating K = Siding M = Roofing If more than one office is used for work, the branch office must be __________ Licensed The one who obtains the residential builder's license is called a _____________ ____________ Qualifying Officer First Offense for practicing without a license Misdemeanor fine of $5,000 - $25,000 or prison for not more than 1 year, or both. Second offense for practicing without a license Misdemeanor fine of $5,000 - $25,000 or prison for not more than 2 years, or both. Death or serious injury Felony fine of $5,000 - $25,000 or prison for not more than 4 years, or both. Define a Residential Builder A person or entity who is involved in the construction of a residential structure or a combination residential and commercial structure. Define M&A contractor Person who for a fixed sum/price other than wages for personal labor for the repair, alteration, or addition/improvement to residential/commercial or residential structure. Salesperson employee of agent other than a qualifying officer who sells business for the contractor. who reissues licenses for salespeople? LARA (The Department) Which types of trade work require a different type of license other than the resi license? Plumbing, Electrical, and Mechanical. Who issues the license? LARA How is the director of LARA appointed? by the governor What types of people make up the Board of Residential Builders? 4 Licensed residential builders 2 M&A contractors 3 members of the public What are the duties of the board of residential builders? (4) 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? The entity's license is revoked as well. How can a foreign entity get a license? Only if authorized by the Corporations and Securities Commission. Non residents must file this to be considered for a license. An Irrevocable consent to service of process T or F, Builders must maintain a place of business in the state they operate in. True T of F, Contractors must maintain an accurate set of books/records open to inspection by the department (LARA). True If the department inquires, licensees must submit ___________ _____________ ___________ showing licensee's current financial status, and must do so within 30 days of inquiry. sworn financial statements T or F, Advertising must not misrepresent material facts. True Licensee shall include ____________, _______________, and ________________ in all advertising 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? No. All agreements between builders and customers should be in writing and signed. (T or F). All changes require ___________ ____________ added to the contract. 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 ____________ 1. Abandonment 2. Diversion 3. Departure, disregard 4. Violation 5. Agreement/contract 6. salesperson 7. Aiding, abetting 8. license 9. commission, bonus, consideration 10. Insolvent (filing for bankruptcy) 11. Workmanship Other violations of license 1 _________ in obtaining license 2 _____________ in practicing an occupation 3 _______________ of a rule of conduct 4 _______ of good moral character 5 commit of acts of gross ______________ 6 Practice in false ______________ 7 demonstrate ________________ 8 fail to __________ with subpeona 9 fail to respond to __________ 10 fail to comply with final __________ issued by the board. 1. Fraud 2. Fraud 3. Violation 4. Lack 5. Negligence 6. Advertising 7. Incompetence 8. comply 9. citation 10. Order Complain against a build must be made within ____ months after completion, occupancy, or purchase, whichever occurs later. 18 Complaint will be lodged with the ______________. department (LARA) the department of attorney general, the department, a board, or any other person may file a complaint with or WITHOUT a complaint from the _________ public Upon receipt of a building inspection report issued to the department by a state or local building enforcement official, which report verifies or confirms the nature of the complaint, department will send by certified mail a copy of the complaint to both the ________________ and _________________. complaintent, licensee (called an arbitration clause). This avoids the use of courts to settle claims in order to save both the contractor and customer money.