MHIC E XAM PRE P · 2026/2027 E D ITION
Maryland Home
Improvement
Commission
Eighty-five exam-style practice questions with detailed,
statute-specific rationales — covering MHIC law, licensing,
contracts, consumer protection, financial responsibility,
prohibited practices, and enforcement — aligned with the
Maryland Home Improvement Commission examination
content outline.
85 Questions · 6 Sections · Complete Answer Rationales
Cognitive Mix: 35% Recall · 45% Application · 20% Analysis
Style Mix: 70% Scenario-Based · 30% Direct Recall
M A R Y L A N D L I C E N S I N G E X A M I N A T I O N P R E PA R A T I O N
,MHIC EXAM PREP | PRACTICE QUESTIONS AND STUDY GUIDE 2026/2027 EDITION
Maryland Home Improvement Commission (MHIC) Exam Prep
Practice Questions and Study Guide | 2026/2027 Edition | 85 Questions with Complete Rationales
Section 1: MHIC Law and Regulatory Framework
Maryland Business Regulation Article, Title 8 | Commission Authority, Definitions and Jurisdiction | Questions 1-15
Q1: Under the Maryland Home Improvement Law (Business Regulation Article, Title 8), which of
the following activities constitutes "home improvement"?
A. Constructing a new single-family residence from the ground up on a vacant lot
B. Planting trees and shrubs and installing lawn irrigation in a residential yard
C. Constructing a new attached two-car garage onto an existing owner-occupied residence
[CORRECT]
D. Selling carpet to a homeowner from a retail showroom without providing installation
services
Correct Answer: C
Rationale: Business Regulation 8-101 expressly includes the construction or improvement of a
driveway, walkway, patio, porch, or garage in connection with residential real property within the
definition of home improvement, so option C qualifies. Option A is excluded because building a new
home from the ground up is new construction, not home improvement. Option B is excluded because
landscaping and lawn care are specifically outside the statutory definition. Option D is excluded
because a person who only furnishes or sells materials without fabricating or installing them is not
performing a home improvement.
Q2: A contractor is deciding which services require an MHIC license. Which of the following is
NOT considered "home improvement" under Business Regulation 8-101?
A. Replacing the roof of an owner-occupied residence
B. Installing storm windows and canvas awnings on a residence
C. Converting an unfinished basement into a finished family room
D. Building a brand-new custom home from the ground up [CORRECT]
Correct Answer: D
Rationale: Roof replacement, installation of storm windows and awnings, and basement finishing are
all specifically covered activities because they involve repair, replacement, modernization, or
improvement of existing residential real property. Constructing a new home from the ground up is
expressly excluded from the definition of home improvement and instead falls under new construction,
which the MHIC does not license. Candidates who memorize the exclusions from 8-101 (new
construction, landscaping, sale of materials without installation, and owner-performed work)
consistently score better on definition questions like this one.
Maryland Home Improvement Commission - Licensing Examination Preparation 1
,MHIC EXAM PREP | PRACTICE QUESTIONS AND STUDY GUIDE 2026/2027 EDITION
Q3: A homeowner pays a neighbor $8,000 to remodel her kitchen. The neighbor, who has never
contracted before and does not advertise, refuses to obtain an MHIC license, telling the homeowner
that he is "not a business." Which statement is accurate?
A. The neighbor must be licensed because the law applies to any person who performs a home
improvement for compensation, regardless of whether contracting is his regular business, the
size of the job, or how often he performs such work [CORRECT]
B. No license is required because the neighbor performs home improvement work only
occasionally
C. No license is required because the job price is under $10,000
D. No license is required because the neighbor did not advertise his services to the public
Correct Answer: A
Rationale: Business Regulation 8-101 defines a home improvement contractor as a person who
performs or offers to perform a home improvement for another and for compensation; the statute
contains no dollar threshold, frequency-of-work exception, or advertising requirement. A one-time,
cash-paying customer is still "another" and the $8,000 is still "compensation." Options B, C, and D
describe common misconceptions that the MHIC hearing docket proves wrong every year.
Q4: A carpenter distributes written bids to homeowners for kitchen remodels but has not yet
performed any home improvement work. Under Business Regulation 8-101, which statement is
accurate?
A. A license is required only after a contract is signed and physical work begins
B. The carpenter must be licensed before offering to perform, because the definition of a
home improvement contractor includes a person who "offers to perform" home improvements
for compensation [CORRECT]
C. Bidding activities are exempt from licensure because they involve no physical labor
D. A license is required only if the bids submitted exceed $5,000 each
Correct Answer: B
Rationale: The statutory phrase "performs or offers to perform" means that soliciting, bidding, and
negotiating home improvement work for compensation triggers the licensure requirement before any
hammer swings. ReportLab-style logic fails here: the General Assembly deliberately used "offers" so
that unlicensed operators cannot solicit contracts and then scramble for a license after winning the job.
Options A, C, and D all ignore the "offers to perform" language and the absence of any dollar threshold
in Title 8.
Maryland Home Improvement Commission - Licensing Examination Preparation 2
, MHIC EXAM PREP | PRACTICE QUESTIONS AND STUDY GUIDE 2026/2027 EDITION
Q5: A door-to-door canvasser pitches roof replacements for a licensed contractor, negotiates
contract terms with homeowners, collects signed agreements, and is paid a commission on each
sale. Under MHIC law, how is this person properly classified?
A. A subcontractor, because he performs services in the field on behalf of the contractor
B. An employee who is exempt from any Commission registration because he carries no tools
C. A home improvement contractor, because he negotiates the entire contract
D. A salesperson, who must be registered with the Commission before offering to negotiate
home improvement contracts on behalf of a contractor [CORRECT]
Correct Answer: D
Rationale: A salesperson under Title 8 is a person who, for compensation, negotiates or offers to
negotiate a home improvement contract on behalf of a contractor, which is exactly what a
commission-based canvasser does. Registration with the MHIC is mandatory before the salesperson
offers or negotiates contracts, and the registration must be maintained during the two-year cycle.
Option A is wrong because a subcontractor performs construction work, not contract negotiation;
Option B is wrong because employees who negotiate contracts are not exempt; Option C is wrong
because acting as a salesperson for a contractor is distinct from being the licensed contractor.
Q6: Which of the following correctly describes the composition of the Maryland Home
Improvement Commission?
A. Five members, all of whom must be licensed home improvement contractors
B. Nine members appointed by the Secretary of the Department of Labor
C. Seven members appointed by the Governor with the advice and consent of the Senate,
including at least three consumer members [CORRECT]
D. Seven members, all of whom must be active, licensed home improvement contractors
Correct Answer: C
Rationale: Business Regulation 8-202 provides that the Commission consists of seven members
appointed by the Governor with the advice and consent of the Senate, and at least three of the members
must be consumer members, with the remaining seats filled by members knowledgeable in the home
improvement field. The consumer-member requirement is a recurring exam point because it reflects
the consumer-protection purpose of Title 8. Options A and D are wrong on both the number and the
all-contractor composition, and Option B is wrong because the Governor, not the Secretary of Labor,
makes the appointments.
Maryland Home Improvement Commission - Licensing Examination Preparation 3
Maryland Home
Improvement
Commission
Eighty-five exam-style practice questions with detailed,
statute-specific rationales — covering MHIC law, licensing,
contracts, consumer protection, financial responsibility,
prohibited practices, and enforcement — aligned with the
Maryland Home Improvement Commission examination
content outline.
85 Questions · 6 Sections · Complete Answer Rationales
Cognitive Mix: 35% Recall · 45% Application · 20% Analysis
Style Mix: 70% Scenario-Based · 30% Direct Recall
M A R Y L A N D L I C E N S I N G E X A M I N A T I O N P R E PA R A T I O N
,MHIC EXAM PREP | PRACTICE QUESTIONS AND STUDY GUIDE 2026/2027 EDITION
Maryland Home Improvement Commission (MHIC) Exam Prep
Practice Questions and Study Guide | 2026/2027 Edition | 85 Questions with Complete Rationales
Section 1: MHIC Law and Regulatory Framework
Maryland Business Regulation Article, Title 8 | Commission Authority, Definitions and Jurisdiction | Questions 1-15
Q1: Under the Maryland Home Improvement Law (Business Regulation Article, Title 8), which of
the following activities constitutes "home improvement"?
A. Constructing a new single-family residence from the ground up on a vacant lot
B. Planting trees and shrubs and installing lawn irrigation in a residential yard
C. Constructing a new attached two-car garage onto an existing owner-occupied residence
[CORRECT]
D. Selling carpet to a homeowner from a retail showroom without providing installation
services
Correct Answer: C
Rationale: Business Regulation 8-101 expressly includes the construction or improvement of a
driveway, walkway, patio, porch, or garage in connection with residential real property within the
definition of home improvement, so option C qualifies. Option A is excluded because building a new
home from the ground up is new construction, not home improvement. Option B is excluded because
landscaping and lawn care are specifically outside the statutory definition. Option D is excluded
because a person who only furnishes or sells materials without fabricating or installing them is not
performing a home improvement.
Q2: A contractor is deciding which services require an MHIC license. Which of the following is
NOT considered "home improvement" under Business Regulation 8-101?
A. Replacing the roof of an owner-occupied residence
B. Installing storm windows and canvas awnings on a residence
C. Converting an unfinished basement into a finished family room
D. Building a brand-new custom home from the ground up [CORRECT]
Correct Answer: D
Rationale: Roof replacement, installation of storm windows and awnings, and basement finishing are
all specifically covered activities because they involve repair, replacement, modernization, or
improvement of existing residential real property. Constructing a new home from the ground up is
expressly excluded from the definition of home improvement and instead falls under new construction,
which the MHIC does not license. Candidates who memorize the exclusions from 8-101 (new
construction, landscaping, sale of materials without installation, and owner-performed work)
consistently score better on definition questions like this one.
Maryland Home Improvement Commission - Licensing Examination Preparation 1
,MHIC EXAM PREP | PRACTICE QUESTIONS AND STUDY GUIDE 2026/2027 EDITION
Q3: A homeowner pays a neighbor $8,000 to remodel her kitchen. The neighbor, who has never
contracted before and does not advertise, refuses to obtain an MHIC license, telling the homeowner
that he is "not a business." Which statement is accurate?
A. The neighbor must be licensed because the law applies to any person who performs a home
improvement for compensation, regardless of whether contracting is his regular business, the
size of the job, or how often he performs such work [CORRECT]
B. No license is required because the neighbor performs home improvement work only
occasionally
C. No license is required because the job price is under $10,000
D. No license is required because the neighbor did not advertise his services to the public
Correct Answer: A
Rationale: Business Regulation 8-101 defines a home improvement contractor as a person who
performs or offers to perform a home improvement for another and for compensation; the statute
contains no dollar threshold, frequency-of-work exception, or advertising requirement. A one-time,
cash-paying customer is still "another" and the $8,000 is still "compensation." Options B, C, and D
describe common misconceptions that the MHIC hearing docket proves wrong every year.
Q4: A carpenter distributes written bids to homeowners for kitchen remodels but has not yet
performed any home improvement work. Under Business Regulation 8-101, which statement is
accurate?
A. A license is required only after a contract is signed and physical work begins
B. The carpenter must be licensed before offering to perform, because the definition of a
home improvement contractor includes a person who "offers to perform" home improvements
for compensation [CORRECT]
C. Bidding activities are exempt from licensure because they involve no physical labor
D. A license is required only if the bids submitted exceed $5,000 each
Correct Answer: B
Rationale: The statutory phrase "performs or offers to perform" means that soliciting, bidding, and
negotiating home improvement work for compensation triggers the licensure requirement before any
hammer swings. ReportLab-style logic fails here: the General Assembly deliberately used "offers" so
that unlicensed operators cannot solicit contracts and then scramble for a license after winning the job.
Options A, C, and D all ignore the "offers to perform" language and the absence of any dollar threshold
in Title 8.
Maryland Home Improvement Commission - Licensing Examination Preparation 2
, MHIC EXAM PREP | PRACTICE QUESTIONS AND STUDY GUIDE 2026/2027 EDITION
Q5: A door-to-door canvasser pitches roof replacements for a licensed contractor, negotiates
contract terms with homeowners, collects signed agreements, and is paid a commission on each
sale. Under MHIC law, how is this person properly classified?
A. A subcontractor, because he performs services in the field on behalf of the contractor
B. An employee who is exempt from any Commission registration because he carries no tools
C. A home improvement contractor, because he negotiates the entire contract
D. A salesperson, who must be registered with the Commission before offering to negotiate
home improvement contracts on behalf of a contractor [CORRECT]
Correct Answer: D
Rationale: A salesperson under Title 8 is a person who, for compensation, negotiates or offers to
negotiate a home improvement contract on behalf of a contractor, which is exactly what a
commission-based canvasser does. Registration with the MHIC is mandatory before the salesperson
offers or negotiates contracts, and the registration must be maintained during the two-year cycle.
Option A is wrong because a subcontractor performs construction work, not contract negotiation;
Option B is wrong because employees who negotiate contracts are not exempt; Option C is wrong
because acting as a salesperson for a contractor is distinct from being the licensed contractor.
Q6: Which of the following correctly describes the composition of the Maryland Home
Improvement Commission?
A. Five members, all of whom must be licensed home improvement contractors
B. Nine members appointed by the Secretary of the Department of Labor
C. Seven members appointed by the Governor with the advice and consent of the Senate,
including at least three consumer members [CORRECT]
D. Seven members, all of whom must be active, licensed home improvement contractors
Correct Answer: C
Rationale: Business Regulation 8-202 provides that the Commission consists of seven members
appointed by the Governor with the advice and consent of the Senate, and at least three of the members
must be consumer members, with the remaining seats filled by members knowledgeable in the home
improvement field. The consumer-member requirement is a recurring exam point because it reflects
the consumer-protection purpose of Title 8. Options A and D are wrong on both the number and the
all-contractor composition, and Option B is wrong because the Governor, not the Secretary of Labor,
makes the appointments.
Maryland Home Improvement Commission - Licensing Examination Preparation 3
