UPDATE!!!!2025/2026|GUARANTEED PASS|GRADED
What is the 1st offense penalty for engaging in the practice of residential building without a
license? - ANSWER Not less than $5K and not more than $25K and/or 1 year
What is the penalty for engaging in the practice of residential building, resulting in a death? -
ANSWER Not less than $5K and not more than $50K and/or 4 years
On your individual builder's license application, what should you write as your "business
address"? - ANSWER Your personal address
What is the cost of the individual builder's license? - ANSWER $195
After receiving your residential builder's license, what are the only trades that are not
covered by your license? - ANSWER -Plumbing
-Electrical
-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
Before you may test, what must you do? - ANSWER Present 2 forms of ID
1
,How should you schedule your test with PSI? - ANSWER -Online
-Mail
-Phone/Fax
When will you receive your test score? - ANSWER Immediately following the
completion of the test
What are the 2 parts of the Residential Builder's Exam? - ANSWER -Business & Law
-Practice & Trade
How long will you have to complete the Practice & Trade portion of the exam? -
ANSWER 180 mins
What is a 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 lumbar a floor joist has to be to span a
certain distance
Which topics will be covered on the Practice & Trade portion of the exam? - ANSWER -
Carpentry
-Roofing
-Insulation
Do you need a Residential Builder's License to work on commercial projects? -
ANSWER No
Where does the most fraud occur? - ANSWER The residential market
2
,As a builder, your license falls under the regulation of what? - ANSWER -Rules by the
director & board
-Laws of The State of Michigan
What is the make up of the 9 members of the board? - ANSWER -6 individuals that
have a license/registration in the occupation in which the board monitors
-3 members of the general public
Under the definition of occupation 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 completing a hearing, shall assess a penalty(ies)? - ANSWER The Board
If you fail to renew your license/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 them? - ANSWER -Cease & desist order
-Formal complaint
-Citation
How many days after the administrative law hearings examiner hears the report, must a
determination of penalties be made by the board? - ANSWER 60 Days
What is a compliance conference? - ANSWER A meeting where the respondent meets
with the department to discuss the complaint against them
3
, What is a possible penalty for operating without a residential builder's license? -
ANSWER -A placement of a limitation on the license
-Probation
-Suspension of license
What does a residential structure mean? - ANSWER A premise used or intended to be
used for a residence purpose and related facilities appurtenant to the premises used or
intended to be used as an adjunct of residential occupancy
When can an employee other than the listed salesperson make a sale? -
ANSWER When it's occasional and incidental to the person's principle employment
Why would someone be allowed to operate without a residential builder's license? -
ANSWER -They are an authorized representative of the US Government
-They are the owner of a rental property with reference to the maintenance and alteration
of that rental property
-An owner of property with reference to a structure on the property for the owner's own
use and occupancy
Beginning the license cycle after Dec 21st, 2007, the department shall issue the license of a
residential builder and residential maintenance and alteration contractor for a period of how
many years duration? - ANSWER 3 years
After receiving your initial residential builder's license, how many hours of continuing
competency are required within the next 3 years? - ANSWER 21 hours
How is the salesperson license changed when the salesperson desires to change
employment from 1 residential builder to another? - ANSWER -License will be
forwarded to the department
-An application for transfer is made
-New license under the new employer will be issued
4
What is the 1st offense penalty for engaging in the practice of residential building without a
license? - ANSWER Not less than $5K and not more than $25K and/or 1 year
What is the penalty for engaging in the practice of residential building, resulting in a death? -
ANSWER Not less than $5K and not more than $50K and/or 4 years
On your individual builder's license application, what should you write as your "business
address"? - ANSWER Your personal address
What is the cost of the individual builder's license? - ANSWER $195
After receiving your residential builder's license, what are the only trades that are not
covered by your license? - ANSWER -Plumbing
-Electrical
-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
Before you may test, what must you do? - ANSWER Present 2 forms of ID
1
,How should you schedule your test with PSI? - ANSWER -Online
-Phone/Fax
When will you receive your test score? - ANSWER Immediately following the
completion of the test
What are the 2 parts of the Residential Builder's Exam? - ANSWER -Business & Law
-Practice & Trade
How long will you have to complete the Practice & Trade portion of the exam? -
ANSWER 180 mins
What is a 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 lumbar a floor joist has to be to span a
certain distance
Which topics will be covered on the Practice & Trade portion of the exam? - ANSWER -
Carpentry
-Roofing
-Insulation
Do you need a Residential Builder's License to work on commercial projects? -
ANSWER No
Where does the most fraud occur? - ANSWER The residential market
2
,As a builder, your license falls under the regulation of what? - ANSWER -Rules by the
director & board
-Laws of The State of Michigan
What is the make up of the 9 members of the board? - ANSWER -6 individuals that
have a license/registration in the occupation in which the board monitors
-3 members of the general public
Under the definition of occupation 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 completing a hearing, shall assess a penalty(ies)? - ANSWER The Board
If you fail to renew your license/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 them? - ANSWER -Cease & desist order
-Formal complaint
-Citation
How many days after the administrative law hearings examiner hears the report, must a
determination of penalties be made by the board? - ANSWER 60 Days
What is a compliance conference? - ANSWER A meeting where the respondent meets
with the department to discuss the complaint against them
3
, What is a possible penalty for operating without a residential builder's license? -
ANSWER -A placement of a limitation on the license
-Probation
-Suspension of license
What does a residential structure mean? - ANSWER A premise used or intended to be
used for a residence purpose and related facilities appurtenant to the premises used or
intended to be used as an adjunct of residential occupancy
When can an employee other than the listed salesperson make a sale? -
ANSWER When it's occasional and incidental to the person's principle employment
Why would someone be allowed to operate without a residential builder's license? -
ANSWER -They are an authorized representative of the US Government
-They are the owner of a rental property with reference to the maintenance and alteration
of that rental property
-An owner of property with reference to a structure on the property for the owner's own
use and occupancy
Beginning the license cycle after Dec 21st, 2007, the department shall issue the license of a
residential builder and residential maintenance and alteration contractor for a period of how
many years duration? - ANSWER 3 years
After receiving your initial residential builder's license, how many hours of continuing
competency are required within the next 3 years? - ANSWER 21 hours
How is the salesperson license changed when the salesperson desires to change
employment from 1 residential builder to another? - ANSWER -License will be
forwarded to the department
-An application for transfer is made
-New license under the new employer will be issued
4
