MICHIGAN BUILDERS LICENSE EXAM
STUDY GUIDE GRADED A+
What Lis Lthe Lfirst Loffense Lpenalty Lfor Lengaging Lin Lthe Lpractice Lof Lresidential
Lbuilding Lwithout La Llicense? L- Lcorrect Lanswers L-Not Lless Lthan L$5,000 Land Lnot
Lmore Lthan L$25,000 Land/or Lone Lyear Lin Lprison. LSubsequent Lviolations Lcan
Lextend Lthe Lprison Ltime Lto Lup Lto L2 Lyears.
What Lis Lthe Lpenalty Lfor Lengaging Lin Lthe Lpractice Lof Lresidential Lbuilders Llicense,
Lresulting Lin La Ldeath? L- Lcorrect Lanswers L-Not Lless Lthan L$5,000 Land Lnot Lmore
Lthan L$25,000 Land/or Lfour Lyears Lin Lprison
On Lyour Lindividual Lbuilder's Llicense Lapplication, Lwhat Lshould Lyou Lwrite Las Lyour
L"business Laddress"? L- Lcorrect Lanswers L-Your Lpersonal Laddress
What Lis Lthe Lcost Lfor Lthe Lindividual Lbuilder's Llicense? L- Lcorrect Lanswers L-$195
,After Lreceiving Lyour Lresidential Lbuilder's Llicense, Lwhat Lare Lthe Lonly Ltrades Lnot
Lcovered Lby Lyour Llicense? L- Lcorrect Lanswers L-Plumbing, Lelectrical, Land LHVAC
Who Lis Lthe LTESTING Lcompany Lfor Lthe LState Lof LMichigan? L- Lcorrect Lanswers L-
PSI
What Lis Lthe Lname Lof Lthe Ldepartment Lthat Lregulates Lyour Llicense? L- Lcorrect
Lanswers L-LARA
What Lare Lthe L2 Lparts Lof Lthe LResidential LBuilder LExamination? L- Lcorrect Lanswers
L-Business Land LLaw Lexamination/Practice Land LTrade Lexamination
What Lis La Lgood Lquick Lasset Lratio? L- Lcorrect Lanswers L-1 Lto L1
Under Lthe LCarpentry Lsection Lof Lthe Ltest, Lwhat Ldoes La L"span Ltable" Ltell Lus? L-
Lcorrect Lanswers L-What Lspecies Land Lwhat Lgrade Lof Llumber La Lfloor Ljoist Lhas Lto
Lbe Lto Lspan La Lcertain Ldistance
Which Lis LNOT La Lreason Lthat Lyou Lneed La Lresidential Lbusiness Llicense?
It Lallows Lyou Lto Lbe Lable Lto Lfile La Llein Lon Lproperty
It Lallows Lyou Lto Lpull La Lresidential Lpermit
It Lallows Lyou Lto Lfile La Llawsuit Lif Lnecessary
It Lallows Lyou Lto Lwork Lon Lcommercial Lproperties L- Lcorrect Lanswers L-It Lallows
Lyou Lto Lwork Lon Lcommercial Lproperties
Where Ldoes Lmost Lfraud Loccur? L- Lcorrect Lanswers L-In Lthe Lresidential Lmarket
As La Lbuilder, Lyour Llicense Lfalls Lunder Lthe Lregulation Lof: L- Lcorrect Lanswers L-Both
Lrules Lby Lthe Ldirector Land Lboard Las Lwell Las Llaws Lof Lthe Lstate Lof LMichigan
What Lis Lthe Lmake Lup Lof Lthe L9 Lmembers Lof Lthe Lboard? L- Lcorrect Lanswers L-4
Lresidential Lbuilders, L2 LM L+ LA Lcontractors, Land L3 Lmembers Lof Lthe Lgeneral
Lpublic
Under Lthe Ldefinition Lof Loccupational Lcode, Lwhat Ldoes Lthe Lword L"limitation" Lrefer
Lto? L- Lcorrect Lanswers L-A Lcondition, Lstricture, Lrestraint Lor Lprobation Lattached Lto
La Llicense Lrelative Lto Lthe Lscope Lof Lpractice
Who, Lupon Lcompletion Lof La Lhearing, Lshall Lassess La Lpenalty Lor Lpenalties? L-
Lcorrect Lanswers L-The LBoard
If Lyou Lfail Lto Lrenew Lyour Llicense Lor Lregistration Lon Lor Lbefore Lthe Lexpiration
Ldate, Lhow Lmany Ldays Ldo Lyou Lhave Lto Lresubmit Lwith Lthe Lproper Lpayment Land
Llate Lfee? L- Lcorrect Lanswers L-60 Ldays
,When Lthe Ldepartment Lis Linvestigating La Lcomplaint Land Lfinds Levidence Lof La
Lviolation, Lwhat Lactions Lcan Lbe Lbrought Lagainst Lthe Lrespondent? L- Lcorrect
Lanswers L-A Lcease Land Ldesist Lorder, La Lformal Lcomplaint, Land/or La Lcitation
How Lmany Ldays Lafter Lthe Ladministrative Llaw Lhearings Lexaminer Lhears Lthe
Lreport, Lmust La Ldetermination Lof Lpenalties Lbe Lmade Lby Lthe Lboard? L- Lcorrect
Lanswers L-60 Ldays
What Lis La Lcompliance Lconference? L- Lcorrect Lanswers L-A Lmeeting Lwhere LONLY
Lthe Lrespondent Lmeets Lwith Lthe Ldepartment Lto Ldiscuss Lthe Lcomplaint Lagainst
Lthem
Which Lof Lthe Lfollowing Lterms Lmeans La Lpremise Lused Lor Lintended Lto Lbe Lused
Lfor La Lresidential Lpurpose Land Lrelated Lfacilities Lappurtenant Lto Lthe Lpremises
Lused Lor Lintended Lto Lbe Lused Las Lan Ladjunct Lof Lresidential Loccupancy? L-
Lcorrect Lanswers L-Residential Lstructure
An Lemployee Lother Lthan Lthe Llisted Lsalesperson Lmay Lmake La Lsale Lwhen: L-
Lcorrect Lanswers L-It Lis Loccasional Land Lincidental Lto Lthe Lperson's Lprincipal
Lemployment
The Lfollowing Lare Lreasons Lthat Lsomeone Lwould Lbe Lallowed Lto Loperate Lwithout La
Lresidential Lbusiness Llicense: L- Lcorrect Lanswers L-- LThey Lare Lan Lauthorized
Lrepresentative Lof Lthe LUnited LStates Lgovernment
- LThey Lare Lthe Lowner Lof La Lrental Lproperty Lwith Lreference Lto Lthe Lmaintenance
Land Lalteration Lof Lthat Lrental Lproperty
- LAn Lowner Lof Lproperty Lwith Lreference Lto La Lstructure Lon Lthe Lproperty Lfor Lthe
Lowner's Lown Luse Land Loccupancy
Beginning Lthe Llicense Lcycle Lafter LDecember L21, L2007, Lthe Ldepartment Lshall
Lissue Lthe Llicense Lof La Lresidential Lbuilder Land Lresidential Lmaintenance Land
Lalteration Lcontractor Lfor La Lperiod Lof Lhow Lmany Lyears Lin Lduration? L- Lcorrect
Lanswers L-3 Lyears
After Lreceiving Lyour Linitial Lresidential Lbuilder's Llicense, Lhow Lmany Lhours Lof
Lcontinuing Lcompetency Lare Lrequired Lwithin Lthe Lnext L3 Lyears? L- Lcorrect Lanswers
L-21 Lhours
If La Lsalesperson Ldesires Lto Lchange Lemployment Lfrom Lone Lresidential Lbuilder Lor
Lmaintenance Land Lalteration Lcontractor Lto Lanother: L- Lcorrect Lanswers L-The
Llicense Lshall Lbe Lforwarded Lto Lthe Ldepartment, Lan Lapplication Lwill Lbe Lmade Lfor
La Ltransfer, Land La Lnew Llicense Lunder Lthe Lsalesperson's Lnew Lemployer Lwill Lbe
Lissued
Regarding Lworkmanship, Lhow Llong Ldoes La Lclient Lhave Lto Lfile La L"verified
Lcomplaint"? L- Lcorrect Lanswers L-18 Lmonths Lfrom Lthe Lcompletion Lof Lwork
, If La Llicensed Lresidential Lbuilder Lor Llicensed Lresidential Lmaintenance Land
Lalteration Lcontractor Lwishes Lto Lchange Lthe Lcontrol Lor Ldirection Lof Lthe Lbusiness,
Lhow Llong Ldo Lthey Lhave Lto Lreport Lthat Lchange Lto Lthe Ldepartment? L- Lcorrect
Lanswers L-10 Ldays
The Ldepartment Lshall Lconduct La Lreview Lupon Lnotice Lthat La Llicensee Lhas
Lviolated Lthe Lasbestos Labatement Lcontractors Llicensing Lact. LWhat Lare Lthe
Lpossible Lconsequences Lfor Lfor Lthis Lviolation? L- Lcorrect Lanswers L-The
Ldepartment Lmay Lsuspend Lor Lrevoke Lthat Lperson's Llicense Land Lfines Lmay Lbe
Lissued
When Lthe Lboard Lissues Lthe Lfindings Lof La Lverified Lcomplaint: L- Lcorrect Lanswers
L-- LThe Ldepartment Lshall Lpost Lon Lits Lwebsite Lany Lfinal Lorder Lof Lthe Lboard Land
Lthe Ldate Lit Lwas Lissued
- LThe Lposting Lshall Loccur Lwithin L30 Ldays Lafter Lthe Lfinal Lorder Lis Lissued
- LThe Ldepartment Lshall Lannually Lpost Lon Lits Lwebsite Lthe Lnumber Lof Lfinal Lorders
Lto Lthe Lboard
According Lto Lthe LAdministrative LRules, Lan Lapplication Lfor La Llicense Lshall Linclude:
L- Lcorrect Lanswers L-- LThe Lresidence Laddress Lof Lall Lindividuals, Lpartners, Lofficers
Land/or Lmembers, Las Lrequested Lby Lthe Ldepartment
- LThe Laddress Lof Lthe Lprincipal Lplace Lof Lbusiness Lin LMichigan
Upon Lfinal Lorder Lof Llicense Lsuspension Lor Lrevocation, Lthe Llicensee Lshall
Lsurrender Lthe Llicense Lto Lthe Ldepartment Lwithin Lhow Lmany Ldays Lof Lthe Ldate Lof
Lsuspension Lor Lrevocation? L- Lcorrect Lanswers L-10 Ldays
According Lto LAdministrative Lrules, La Llicensee Lshall Linclude Lthe Lfollowing Lin Lall
Ladvertising: L- Lcorrect Lanswers L-- LThe Lname Lon Lthe Llicense
- LThe Llicense Lnumber
- LThe Lactual Lbusiness Laddress Las Lshown Lon Lthe Llicense
According Lto Lpurchase Land Lsale Lagreements, Lthe Lbuilder Lor Lcontractor Lshall
Lmake Lcertain Lthat Lthe Lwritten Lagreements Lclearly Lstate Lthe Lterms Lof Lthe
Ltransaction, Lincluding: L- Lcorrect Lanswers L-- LSpecifications Land Lcost
- LThe Ltype Land Lquality Lof Lmaterials
- LThe Ltype Land Lamount Lof Lwork Lto Lbe Ldone
The Ldepartment, Lafter Linvestigation, Lmay Lrequest La Llicensee Lto Lappear Lat Lsuch
L_________ Las Lis Lnecessary Lto Ldetermine Lwhether Lthere Lis Lcause Lfor Lcomplaint
Lwhich Lwould Lrequire La Lhearing Lon, Lor Ldismissal Lof, Lthe Lcomplaint. L- Lcorrect
Lanswers L-Investigative Lconference
A Lrespondent Lin La Lcomplaint Lmay Lbe Lrepresented Lby: L- Lcorrect Lanswers L-An
Lattorney Lor Lhis/her Lown Lself
STUDY GUIDE GRADED A+
What Lis Lthe Lfirst Loffense Lpenalty Lfor Lengaging Lin Lthe Lpractice Lof Lresidential
Lbuilding Lwithout La Llicense? L- Lcorrect Lanswers L-Not Lless Lthan L$5,000 Land Lnot
Lmore Lthan L$25,000 Land/or Lone Lyear Lin Lprison. LSubsequent Lviolations Lcan
Lextend Lthe Lprison Ltime Lto Lup Lto L2 Lyears.
What Lis Lthe Lpenalty Lfor Lengaging Lin Lthe Lpractice Lof Lresidential Lbuilders Llicense,
Lresulting Lin La Ldeath? L- Lcorrect Lanswers L-Not Lless Lthan L$5,000 Land Lnot Lmore
Lthan L$25,000 Land/or Lfour Lyears Lin Lprison
On Lyour Lindividual Lbuilder's Llicense Lapplication, Lwhat Lshould Lyou Lwrite Las Lyour
L"business Laddress"? L- Lcorrect Lanswers L-Your Lpersonal Laddress
What Lis Lthe Lcost Lfor Lthe Lindividual Lbuilder's Llicense? L- Lcorrect Lanswers L-$195
,After Lreceiving Lyour Lresidential Lbuilder's Llicense, Lwhat Lare Lthe Lonly Ltrades Lnot
Lcovered Lby Lyour Llicense? L- Lcorrect Lanswers L-Plumbing, Lelectrical, Land LHVAC
Who Lis Lthe LTESTING Lcompany Lfor Lthe LState Lof LMichigan? L- Lcorrect Lanswers L-
PSI
What Lis Lthe Lname Lof Lthe Ldepartment Lthat Lregulates Lyour Llicense? L- Lcorrect
Lanswers L-LARA
What Lare Lthe L2 Lparts Lof Lthe LResidential LBuilder LExamination? L- Lcorrect Lanswers
L-Business Land LLaw Lexamination/Practice Land LTrade Lexamination
What Lis La Lgood Lquick Lasset Lratio? L- Lcorrect Lanswers L-1 Lto L1
Under Lthe LCarpentry Lsection Lof Lthe Ltest, Lwhat Ldoes La L"span Ltable" Ltell Lus? L-
Lcorrect Lanswers L-What Lspecies Land Lwhat Lgrade Lof Llumber La Lfloor Ljoist Lhas Lto
Lbe Lto Lspan La Lcertain Ldistance
Which Lis LNOT La Lreason Lthat Lyou Lneed La Lresidential Lbusiness Llicense?
It Lallows Lyou Lto Lbe Lable Lto Lfile La Llein Lon Lproperty
It Lallows Lyou Lto Lpull La Lresidential Lpermit
It Lallows Lyou Lto Lfile La Llawsuit Lif Lnecessary
It Lallows Lyou Lto Lwork Lon Lcommercial Lproperties L- Lcorrect Lanswers L-It Lallows
Lyou Lto Lwork Lon Lcommercial Lproperties
Where Ldoes Lmost Lfraud Loccur? L- Lcorrect Lanswers L-In Lthe Lresidential Lmarket
As La Lbuilder, Lyour Llicense Lfalls Lunder Lthe Lregulation Lof: L- Lcorrect Lanswers L-Both
Lrules Lby Lthe Ldirector Land Lboard Las Lwell Las Llaws Lof Lthe Lstate Lof LMichigan
What Lis Lthe Lmake Lup Lof Lthe L9 Lmembers Lof Lthe Lboard? L- Lcorrect Lanswers L-4
Lresidential Lbuilders, L2 LM L+ LA Lcontractors, Land L3 Lmembers Lof Lthe Lgeneral
Lpublic
Under Lthe Ldefinition Lof Loccupational Lcode, Lwhat Ldoes Lthe Lword L"limitation" Lrefer
Lto? L- Lcorrect Lanswers L-A Lcondition, Lstricture, Lrestraint Lor Lprobation Lattached Lto
La Llicense Lrelative Lto Lthe Lscope Lof Lpractice
Who, Lupon Lcompletion Lof La Lhearing, Lshall Lassess La Lpenalty Lor Lpenalties? L-
Lcorrect Lanswers L-The LBoard
If Lyou Lfail Lto Lrenew Lyour Llicense Lor Lregistration Lon Lor Lbefore Lthe Lexpiration
Ldate, Lhow Lmany Ldays Ldo Lyou Lhave Lto Lresubmit Lwith Lthe Lproper Lpayment Land
Llate Lfee? L- Lcorrect Lanswers L-60 Ldays
,When Lthe Ldepartment Lis Linvestigating La Lcomplaint Land Lfinds Levidence Lof La
Lviolation, Lwhat Lactions Lcan Lbe Lbrought Lagainst Lthe Lrespondent? L- Lcorrect
Lanswers L-A Lcease Land Ldesist Lorder, La Lformal Lcomplaint, Land/or La Lcitation
How Lmany Ldays Lafter Lthe Ladministrative Llaw Lhearings Lexaminer Lhears Lthe
Lreport, Lmust La Ldetermination Lof Lpenalties Lbe Lmade Lby Lthe Lboard? L- Lcorrect
Lanswers L-60 Ldays
What Lis La Lcompliance Lconference? L- Lcorrect Lanswers L-A Lmeeting Lwhere LONLY
Lthe Lrespondent Lmeets Lwith Lthe Ldepartment Lto Ldiscuss Lthe Lcomplaint Lagainst
Lthem
Which Lof Lthe Lfollowing Lterms Lmeans La Lpremise Lused Lor Lintended Lto Lbe Lused
Lfor La Lresidential Lpurpose Land Lrelated Lfacilities Lappurtenant Lto Lthe Lpremises
Lused Lor Lintended Lto Lbe Lused Las Lan Ladjunct Lof Lresidential Loccupancy? L-
Lcorrect Lanswers L-Residential Lstructure
An Lemployee Lother Lthan Lthe Llisted Lsalesperson Lmay Lmake La Lsale Lwhen: L-
Lcorrect Lanswers L-It Lis Loccasional Land Lincidental Lto Lthe Lperson's Lprincipal
Lemployment
The Lfollowing Lare Lreasons Lthat Lsomeone Lwould Lbe Lallowed Lto Loperate Lwithout La
Lresidential Lbusiness Llicense: L- Lcorrect Lanswers L-- LThey Lare Lan Lauthorized
Lrepresentative Lof Lthe LUnited LStates Lgovernment
- LThey Lare Lthe Lowner Lof La Lrental Lproperty Lwith Lreference Lto Lthe Lmaintenance
Land Lalteration Lof Lthat Lrental Lproperty
- LAn Lowner Lof Lproperty Lwith Lreference Lto La Lstructure Lon Lthe Lproperty Lfor Lthe
Lowner's Lown Luse Land Loccupancy
Beginning Lthe Llicense Lcycle Lafter LDecember L21, L2007, Lthe Ldepartment Lshall
Lissue Lthe Llicense Lof La Lresidential Lbuilder Land Lresidential Lmaintenance Land
Lalteration Lcontractor Lfor La Lperiod Lof Lhow Lmany Lyears Lin Lduration? L- Lcorrect
Lanswers L-3 Lyears
After Lreceiving Lyour Linitial Lresidential Lbuilder's Llicense, Lhow Lmany Lhours Lof
Lcontinuing Lcompetency Lare Lrequired Lwithin Lthe Lnext L3 Lyears? L- Lcorrect Lanswers
L-21 Lhours
If La Lsalesperson Ldesires Lto Lchange Lemployment Lfrom Lone Lresidential Lbuilder Lor
Lmaintenance Land Lalteration Lcontractor Lto Lanother: L- Lcorrect Lanswers L-The
Llicense Lshall Lbe Lforwarded Lto Lthe Ldepartment, Lan Lapplication Lwill Lbe Lmade Lfor
La Ltransfer, Land La Lnew Llicense Lunder Lthe Lsalesperson's Lnew Lemployer Lwill Lbe
Lissued
Regarding Lworkmanship, Lhow Llong Ldoes La Lclient Lhave Lto Lfile La L"verified
Lcomplaint"? L- Lcorrect Lanswers L-18 Lmonths Lfrom Lthe Lcompletion Lof Lwork
, If La Llicensed Lresidential Lbuilder Lor Llicensed Lresidential Lmaintenance Land
Lalteration Lcontractor Lwishes Lto Lchange Lthe Lcontrol Lor Ldirection Lof Lthe Lbusiness,
Lhow Llong Ldo Lthey Lhave Lto Lreport Lthat Lchange Lto Lthe Ldepartment? L- Lcorrect
Lanswers L-10 Ldays
The Ldepartment Lshall Lconduct La Lreview Lupon Lnotice Lthat La Llicensee Lhas
Lviolated Lthe Lasbestos Labatement Lcontractors Llicensing Lact. LWhat Lare Lthe
Lpossible Lconsequences Lfor Lfor Lthis Lviolation? L- Lcorrect Lanswers L-The
Ldepartment Lmay Lsuspend Lor Lrevoke Lthat Lperson's Llicense Land Lfines Lmay Lbe
Lissued
When Lthe Lboard Lissues Lthe Lfindings Lof La Lverified Lcomplaint: L- Lcorrect Lanswers
L-- LThe Ldepartment Lshall Lpost Lon Lits Lwebsite Lany Lfinal Lorder Lof Lthe Lboard Land
Lthe Ldate Lit Lwas Lissued
- LThe Lposting Lshall Loccur Lwithin L30 Ldays Lafter Lthe Lfinal Lorder Lis Lissued
- LThe Ldepartment Lshall Lannually Lpost Lon Lits Lwebsite Lthe Lnumber Lof Lfinal Lorders
Lto Lthe Lboard
According Lto Lthe LAdministrative LRules, Lan Lapplication Lfor La Llicense Lshall Linclude:
L- Lcorrect Lanswers L-- LThe Lresidence Laddress Lof Lall Lindividuals, Lpartners, Lofficers
Land/or Lmembers, Las Lrequested Lby Lthe Ldepartment
- LThe Laddress Lof Lthe Lprincipal Lplace Lof Lbusiness Lin LMichigan
Upon Lfinal Lorder Lof Llicense Lsuspension Lor Lrevocation, Lthe Llicensee Lshall
Lsurrender Lthe Llicense Lto Lthe Ldepartment Lwithin Lhow Lmany Ldays Lof Lthe Ldate Lof
Lsuspension Lor Lrevocation? L- Lcorrect Lanswers L-10 Ldays
According Lto LAdministrative Lrules, La Llicensee Lshall Linclude Lthe Lfollowing Lin Lall
Ladvertising: L- Lcorrect Lanswers L-- LThe Lname Lon Lthe Llicense
- LThe Llicense Lnumber
- LThe Lactual Lbusiness Laddress Las Lshown Lon Lthe Llicense
According Lto Lpurchase Land Lsale Lagreements, Lthe Lbuilder Lor Lcontractor Lshall
Lmake Lcertain Lthat Lthe Lwritten Lagreements Lclearly Lstate Lthe Lterms Lof Lthe
Ltransaction, Lincluding: L- Lcorrect Lanswers L-- LSpecifications Land Lcost
- LThe Ltype Land Lquality Lof Lmaterials
- LThe Ltype Land Lamount Lof Lwork Lto Lbe Ldone
The Ldepartment, Lafter Linvestigation, Lmay Lrequest La Llicensee Lto Lappear Lat Lsuch
L_________ Las Lis Lnecessary Lto Ldetermine Lwhether Lthere Lis Lcause Lfor Lcomplaint
Lwhich Lwould Lrequire La Lhearing Lon, Lor Ldismissal Lof, Lthe Lcomplaint. L- Lcorrect
Lanswers L-Investigative Lconference
A Lrespondent Lin La Lcomplaint Lmay Lbe Lrepresented Lby: L- Lcorrect Lanswers L-An
Lattorney Lor Lhis/her Lown Lself
