Michigan Residential Builder Licensing Exam With
Correct Questions And Answers 2024/2025
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)
, Michigan Residential Builder Licensing Exam With
Correct Questions And Answers 2024/2025
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
, Michigan Residential Builder Licensing Exam With
Correct Questions And Answers 2024/2025
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)
Correct Questions And Answers 2024/2025
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)
, Michigan Residential Builder Licensing Exam With
Correct Questions And Answers 2024/2025
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
, Michigan Residential Builder Licensing Exam With
Correct Questions And Answers 2024/2025
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)
