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Exam (elaborations)

Maryland Home Improvement Contractor Exam Questions And Correct Answers With Rationales 2026 Updated

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a comprehensive set of 100 exam questions and correct answers for the Maryland Home Improvement Contractor (MHIC) licensing exam, including clear explanations and rationales. It covers key topics such as licensing requirements, contracts, deposits, bonding, insurance, advertising rules, penalties, and homeowner rights, making it ideal for thorough exam preparation and review for the 2026 exam.

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Maryland Home Improvement Contractor
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Maryland Home Improvement Contractor










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Institution
Maryland Home Improvement Contractor
Course
Maryland Home Improvement Contractor

Document information

Uploaded on
December 20, 2025
Number of pages
28
Written in
2025/2026
Type
Exam (elaborations)
Contains
Questions & answers

Subjects

  • maryland

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Maryland Home Improvement Contractor
Exam Questions And Correct Answers With
Rationales 2026 Updated

1. Which of the following requires a Maryland Home Improvement
Contractor license?
a. Painting a homeowner’s interior
b. Installing new cabinets in a kitchen
c. Repairing a broken window
d. All of the above
All home improvement activities for compensation require a
licensed contractor in Maryland.
2. How long is a Maryland Home Improvement Contractor license
valid before renewal?
a. 1 year
b. 2 years
c. 3 years
d. 5 years
Maryland home improvement licenses are issued for three-year
periods.
3. Which of the following is considered a home improvement under
Maryland law?

, a. Landscaping
b. Replacing a roof
c. Cleaning gutters
d. Interior painting of a single room
Structural improvements and exterior work typically fall under the
home improvement definition.
4. What is the minimum surety bond amount required for a
Maryland Home Improvement Contractor?
a. $5,000
b. $10,000
c. 20,000
d. 25,000
Maryland requires a $20,000 bond to protect consumers against
improper work.
5. A contractor must provide a written contract if the work exceeds:
a. $100
b. $500
c. $1,000
d. $2,500
Contracts over $500 require a written agreement in Maryland.
6. When must a contractor provide a copy of the contract to the
homeowner?
a. At the start of work
b. Before starting work
c. Within 7 days of completion
d. After final payment

, Maryland law requires delivery of the contract prior to
commencing work.
7. Which information must appear in a Maryland Home
Improvement Contract?
a. Contractor license number
b. Total cost of the job
c. Description of work to be performed
d. All of the above
All of these details are required to protect the homeowner and
ensure compliance.
8. Which of the following practices is illegal for a Maryland Home
Improvement Contractor?
a. Advertising services without a license
b. Failing to provide a written contract
c. Demanding more than 1/3 of the total price upfront for home
improvement work
d. All of the above
Maryland law prohibits unlicensed advertising, improper
contracts, and excessive upfront payments.
9. A Maryland Home Improvement Contractor may require an
upfront deposit of no more than:
a. 10%
b. 25%
c. 1/3 of the contract price
d. 50%
Maryland law caps upfront deposits at one-third of the total job
cost.

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