Michigan Builders License Exam Study Guide
What is the first offense penalty for engaging in the practice of residential building
without a license? - 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? - 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"? - ANSWER - Your personal address
What is the cost for the individual builder's license? - ANSWER -
$195
,After receiving your residential builder's license, what are the only trades not
covered by your license? - ANSWER - Plumbing, electrical, and
HVAC
Who is the TESTING company for the State of Michigan? - ANSWER -
PSI
What is the name of the department that regulates your license? - ANSWER -
LARA
What are the 2 parts of the Residential Builder Examination? - ANSWER -
Business and Law examination/Practice and Trade examination
What is a good quick asset ratio? - ANSWER - 1 to 1
,Under the Carpentry section of the test, what does a "span table" tell us? -
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 - ANSWER - It
allows you to work on commercial properties
Where does most fraud occur? - ANSWER - In the residential
market
As a builder, your license falls under the regulation of: - ANSWER -
Both rules by the director and board as well as laws of the state of Michigan
, What is the make up of the 9 members of the board? - ANSWER -
4 residential builders, 2 M + A contractors, and 3 members of the general public
Under the definition of occupational code, what does the word "limitation" refer
to? - ANSWER - A condition, stricture, restraint or probation
attached to a license relative to the scope of practice
Who, upon completion of a hearing, shall assess a penalty or penalties? -
ANSWER - The Board
If you fail to renew your license or registration on or before the expiration date,
how many days do you have to resubmit with the proper payment and late fee? -
ANSWER - 60 days
When the department is investigating a complaint and finds evidence of a
violation, what actions can be brought against the respondent? - ANSWER -
A cease and desist order, a formal complaint, and/or a citation
What is the first offense penalty for engaging in the practice of residential building
without a license? - 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? - 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"? - ANSWER - Your personal address
What is the cost for the individual builder's license? - ANSWER -
$195
,After receiving your residential builder's license, what are the only trades not
covered by your license? - ANSWER - Plumbing, electrical, and
HVAC
Who is the TESTING company for the State of Michigan? - ANSWER -
PSI
What is the name of the department that regulates your license? - ANSWER -
LARA
What are the 2 parts of the Residential Builder Examination? - ANSWER -
Business and Law examination/Practice and Trade examination
What is a good quick asset ratio? - ANSWER - 1 to 1
,Under the Carpentry section of the test, what does a "span table" tell us? -
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 - ANSWER - It
allows you to work on commercial properties
Where does most fraud occur? - ANSWER - In the residential
market
As a builder, your license falls under the regulation of: - ANSWER -
Both rules by the director and board as well as laws of the state of Michigan
, What is the make up of the 9 members of the board? - ANSWER -
4 residential builders, 2 M + A contractors, and 3 members of the general public
Under the definition of occupational code, what does the word "limitation" refer
to? - ANSWER - A condition, stricture, restraint or probation
attached to a license relative to the scope of practice
Who, upon completion of a hearing, shall assess a penalty or penalties? -
ANSWER - The Board
If you fail to renew your license or registration on or before the expiration date,
how many days do you have to resubmit with the proper payment and late fee? -
ANSWER - 60 days
When the department is investigating a complaint and finds evidence of a
violation, what actions can be brought against the respondent? - ANSWER -
A cease and desist order, a formal complaint, and/or a citation
