Residen al Builder's Salesperson Prac ce Exam
latest 2026 update
In a typical construc on loan, the interest rate is locked for the en re term of the loan.
True
Both company overhead and project overhead should be accounted for in a projects
es mate.
True
Salespeople shall not begin selling un l they receive their license and pocket ID card.
True
A material breach of contract is the most serious of contract breaches.
True
If a sale was ini ated and completed by a salesperson at a person's home, the customer has
a right to cancel that contract within __________days.
3
If a contract is nego ated on the premise of price per square foot of material installed, this
would be a ____________
Unit Price contract
Costs that a contractor incurs such as administra ve costs to service the project while under
construc on are called _________
Company Overhead
Company overhead can include
Office expenses, facility maintenance expense, electrical expenses
A complete list of all of the materials and items of work that would be required to complete
a project are ____
Quan ty survey (take off)
Can an unlicensed contractor who is required to be licensed impose a lien against a
homeowner?
No
, Public Act 299 provides for licensing and the right to engage in business as _______
A salesperson, residen al builder, and M&A contractor
If a salesperson doesn't intend to renew their license a6er it has expired, do they have to
return it to the Department?
Yes
Typically ____________________ are hired by mortgage companies and lenders to
represent their interest in closing a loan.
Title Companies
An explicit warranty made by a manufacturer or seller is an Implied Warranty
False
If a customer is listed on the Na onal Do-Not-Call Registry, but there is an established
business rela onship, a seller can s ll call within _____________ months of the consumers
last purchase, delivery or payment.
18
If a contract is a lump sum agreement, that means every dollar over budget means a dollar
in your pocket.
False
A line on a blueprint drawing with a scale of 1/4" per foot will
Be longer than the line on a print with a scale of 1/8"
Contractors convicted of fraudulent use of contract funds are guilty of a _____
Felony
If a homeowner intends to construct a 300 square foot shed on their own property, must
they apply for a permit?
Yes
Costs that are incurred by a contractor that do not directly relate to produc on, such as the
cost incurred for insuring the project, are called ___________
Project Overhead
Indirect labor costs, such as employee health insurance, worker compensa on insurance and
matching of the employees Social Security and Medicare contribu on, is some mes referred
to as _______
Labor Burden
latest 2026 update
In a typical construc on loan, the interest rate is locked for the en re term of the loan.
True
Both company overhead and project overhead should be accounted for in a projects
es mate.
True
Salespeople shall not begin selling un l they receive their license and pocket ID card.
True
A material breach of contract is the most serious of contract breaches.
True
If a sale was ini ated and completed by a salesperson at a person's home, the customer has
a right to cancel that contract within __________days.
3
If a contract is nego ated on the premise of price per square foot of material installed, this
would be a ____________
Unit Price contract
Costs that a contractor incurs such as administra ve costs to service the project while under
construc on are called _________
Company Overhead
Company overhead can include
Office expenses, facility maintenance expense, electrical expenses
A complete list of all of the materials and items of work that would be required to complete
a project are ____
Quan ty survey (take off)
Can an unlicensed contractor who is required to be licensed impose a lien against a
homeowner?
No
, Public Act 299 provides for licensing and the right to engage in business as _______
A salesperson, residen al builder, and M&A contractor
If a salesperson doesn't intend to renew their license a6er it has expired, do they have to
return it to the Department?
Yes
Typically ____________________ are hired by mortgage companies and lenders to
represent their interest in closing a loan.
Title Companies
An explicit warranty made by a manufacturer or seller is an Implied Warranty
False
If a customer is listed on the Na onal Do-Not-Call Registry, but there is an established
business rela onship, a seller can s ll call within _____________ months of the consumers
last purchase, delivery or payment.
18
If a contract is a lump sum agreement, that means every dollar over budget means a dollar
in your pocket.
False
A line on a blueprint drawing with a scale of 1/4" per foot will
Be longer than the line on a print with a scale of 1/8"
Contractors convicted of fraudulent use of contract funds are guilty of a _____
Felony
If a homeowner intends to construct a 300 square foot shed on their own property, must
they apply for a permit?
Yes
Costs that are incurred by a contractor that do not directly relate to produc on, such as the
cost incurred for insuring the project, are called ___________
Project Overhead
Indirect labor costs, such as employee health insurance, worker compensa on insurance and
matching of the employees Social Security and Medicare contribu on, is some mes referred
to as _______
Labor Burden
