Michigan Builders License Exam Study Guide With complete solution Newest RATED A+ 2025/2026 RATED A+

Michigan Builders License Exam Study Guide With
complete solution Newest RATED A+ 2025/2026 RATED
A+
What is the first offense penalty for engaging in the practice of residential building without a
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license? - Correct Answers Not less than $5,000 and not more than $25,000 and/or one year in
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prison. Subsequent violations can extend the prison time to up to 2 years.
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Il` What is the penalty for engaging in the practice of residential builders license, resulting in a
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Il` death? - Correct Answers Not less than $5,000 and not more than $25,000 and/or four years in
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Il` prison



Il` On your individual builder's license application, what should you write as your "business
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Il` address"? - Correct Answers Your personal address Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` What is the cost for the individual builder's license? - Correct Answers $195
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Il` After receiving your residential builder's license, what are the only trades not covered by your
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Il` license? - Correct Answers Plumbing, electrical, and HVAC
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Il` Who is the TESTING company for the State of Michigan? - Correct Answers PSI
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Il` What is the name of the department that regulates your license? - Correct Answers LARA
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Il` What are the 2 parts of the Residential Builder Examination? - Correct Answers Business and
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Il` Law examination/Practice and Trade examination
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Il` What is a good quick asset ratio? - Correct Answers 1 to 1
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,Il` Under the Carpentry section of the test, what does a "span table" tell us? - Correct Answers
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Il` What species and what grade of lumber a floor joist has to be to span a certain distance
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Il` Which is NOT a reason that you need a residential business license?
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It allows you to be able to file a lein on property
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It allows you to pull a residential permit
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It allows you to file a lawsuit if necessary
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It allows you to work on commercial properties - Correct Answers It allows you to work on
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commercial properties
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Il` Where does most fraud occur? - Correct Answers In the residential market
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Il` As a builder, your license falls under the regulation of: - Correct Answers Both rules by the
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Il` director and board as well as laws of the state of Michigan Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` What is the make up of the 9 members of the board? - Correct Answers 4 residential builders, 2
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Il` M + A contractors, and 3 members of the general public
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Il` Under the definition of occupational code, what does the word "limitation" refer to? - Correct
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Il` Answers A condition, stricture, restraint or probation attached to a license relative to the scope
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Il` of practice Il`




Il` Who, upon completion of a hearing, shall assess a penalty or penalties? - Correct Answers The
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Il` Board



Il` If you fail to renew your license or registration on or before the expiration date, how many days do
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Il` you have to resubmit with the proper payment and late fee? - Correct Answers 60 days
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,Il` When the department is investigating a complaint and finds evidence of a violation, what actions
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Il` can be brought against the respondent? - Correct Answers A cease and desist order, a formal
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Il` complaint, and/or a citation Il` Il` Il`




Il` How many days after the administrative law hearings examiner hears the report, must a
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Il` determination of penalties be made by the board? - Correct Answers 60 days Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` What is a compliance conference? - Correct Answers A meeting where ONLY the respondent
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Il` meets with the department to discuss the complaint against them
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Il` Which of the following terms means a premise used or intended to be used for a residential
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Il` purpose and related facilities appurtenant to the premises used or intended to be used as an
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Il` adjunct of residential occupancy? - Correct Answers Residential structure
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Il` An employee other than the listed salesperson may make a sale when: - Correct Answers It is
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Il` occasional and incidental to the person's principal employment Il` Il` Il` Il` Il` Il` Il`




Il` The following are reasons that someone would be allowed to operate without a residential
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Il` business license: - Correct Answers - They are an authorized representative of the United States
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Il` government

- They are the owner of a rental property with reference to the maintenance and alteration of that
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rental property
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- An owner of property with reference to a structure on the property for the owner's own use and
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occupancy
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Il` Beginning the license cycle after December 21, 2007, the department shall issue the license of a
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Il` residential builder and residential maintenance and alteration contractor for a period of how
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Il` many years in duration? - Correct Answers 3 years
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, Il` After receiving your initial residential builder's license, how many hours of continuing
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Il` competency are required within the next 3 years? - Correct Answers 21 hours Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` If a salesperson desires to change employment from one residential builder or maintenance and
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Il` alteration contractor to another: - Correct Answers The license shall be forwarded to theIl` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` department, an application will be made for a transfer, and a new license under the salesperson's Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` new employer will be issued Il` Il` Il` Il`




Il` Regarding workmanship, how long does a client have to file a "verified complaint"? - Correct Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` Answers 18 months from the completion of work Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` If a licensed residential builder or licensed residential maintenance and alteration contractor
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Il` wishes to change the control or direction of the business, how long do they have to report that
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Il` change to the department? - Correct Answers 10 days Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` The department shall conduct a review upon notice that a licensee has violated the asbestos
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Il` abatement contractors licensing act. What are the possible consequences for for this violation? - Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` Correct Answers The department may suspend or revoke that person's license and fines may be
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Il` issued



Il` When the board issues the findings of a verified complaint: - Correct Answers - The department
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Il` shall post on its website any final order of the board and the date it was issued
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- The posting shall occur within 30 days after the final order is issued
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- The department shall annually post on its website the number of final orders to the board
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Il` According to the Administrative Rules, an application for a license shall include: - Correct Answers
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- The residence address of all individuals, partners, officers and/or members, as requested by
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Il` the department Il`




- The address of the principal place of business in Michigan
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