MARYLAND HOME IMPROVEMENT SALESPERSON
EXAM 2026 |150 Multiple Choice Questions with Rationales
| latest update
SECTION 1: MARYLAND HOME IMPROVEMENT LAW
— LICENSING AND REGULATION
1. Which Maryland agency is responsible for licensing and regulating home improvement
contractors and salespersons?
A. Maryland Department of Commerce B. Maryland Department of Labor C. Maryland Home
Improvement Commission (MHIC) (correct answer) D. Maryland Department of Housing
and Community Development
Rationale: The Maryland Home Improvement Commission (MHIC) is the state agency
responsible for licensing and regulating home improvement contractors and salespersons under
the Maryland Home Improvement Law (Business Regulation Article, Title 8). The MHIC is
housed within the Maryland Department of Labor and administers the licensing, complaint, and
guaranty fund programs.
2. Under Maryland law, a home improvement salesperson license is required for any
person who:
A. Works as an interior designer for homeowners B. Sells new construction homes for a builder
C. Sells or negotiates home improvement contracts on behalf of a licensed contractor
(correct answer) D. Provides landscaping services directly to homeowners
Rationale: Maryland Business Regulation Article §8-301 requires a home improvement
salesperson license for any individual who sells or solicits home improvement contracts on
behalf of a licensed home improvement contractor. The salesperson license is separate from the
contractor license and requires meeting specific education, examination, and registration
requirements.
3. What is the minimum age requirement to obtain a Maryland home improvement
salesperson license?
,A. 16 years old B. 17 years old C. 18 years old (correct answer) D. 21 years old
Rationale: Maryland Business Regulation Article §8-302 requires that applicants for a home
improvement salesperson license be at least 18 years of age. This reflects the legal age of
majority in Maryland and the capacity to enter into binding contracts and conduct business
transactions on behalf of licensed contractors.
4. Under Maryland law, a home improvement salesperson must be sponsored by:
A. The Maryland Home Improvement Commission B. Any licensed real estate broker in
Maryland C. A licensed Maryland home improvement contractor (correct answer) D. A
licensed general contractor with at least five years of experience
Rationale: Maryland law requires that a home improvement salesperson be sponsored by and
work under a licensed Maryland home improvement contractor. The sponsoring contractor is
responsible for the salesperson's conduct in the performance of home improvement sales
activities. A salesperson may not operate independently without a sponsoring contractor.
5. How long is a Maryland home improvement salesperson license valid?
A. One year B. Two years C. Two years, expiring on the last day of the licensee's birth
month (correct answer) D. Three years
Rationale: Maryland home improvement salesperson licenses are issued for a two-year period,
expiring on the last day of the licensee's birth month in the renewal year. This birthday-month
renewal system staggers renewals throughout the year for administrative efficiency. Licensees
must renew before their license expires to avoid a lapse in licensure.
6. Under Maryland law, which of the following is NOT a requirement for obtaining a home
improvement salesperson license?
A. Passing the Maryland home improvement salesperson examination B. Being sponsored by a
licensed Maryland home improvement contractor C. Completing a minimum of 500 hours of
apprenticeship under a licensed contractor (correct answer) D. Paying the required license
fee to the MHIC
Rationale: Maryland Business Regulation Article §8-302 does not require an apprenticeship
period for home improvement salesperson licensure. Requirements include: being at least 18
years old, passing the state licensing examination, having a sponsoring licensed contractor,
,paying the required fees, and meeting character requirements. An apprenticeship is not a
prerequisite for the salesperson license.
7. The Maryland Home Improvement Commission was established under which body of
Maryland law?
A. Maryland Real Property Article B. Maryland Labor and Employment Article C. Maryland
Business Regulation Article, Title 8 (correct answer) D. Maryland Annotated Code, Housing
Article
Rationale: The Maryland Home Improvement Law is codified in the Business Regulation Article,
Title 8 of the Annotated Code of Maryland. This title establishes the MHIC, defines home
improvement, sets licensing requirements, establishes the Guaranty Fund, and provides
consumer protections. All MHIC regulations are promulgated under the authority granted by
this title.
8. A Maryland home improvement salesperson who changes sponsoring contractors must:
A. Take a new examination before working for the new contractor B. Notify the MHIC
informally by phone within 30 days C. Apply to the MHIC to transfer the sponsorship to the
new contractor (correct answer) D. Allow the current license to expire and apply for a new
license
Rationale: When a Maryland home improvement salesperson changes sponsoring contractors,
they must apply to the MHIC to transfer their license to the new sponsoring contractor. A
salesperson may not sell home improvements on behalf of a contractor who is not their
designated sponsor. The transfer application must be submitted to the MHIC with any applicable
fees.
9. Under Maryland law, home improvement salespersons are prohibited from:
A. Negotiating contract terms with homeowners B. Discussing financing options available
through the contractor C. Collecting any payment from a homeowner on behalf of a
contractor (correct answer) D. Providing written estimates for home improvement work
Rationale: Maryland Business Regulation Article §8-602 prohibits home improvement
salespersons from collecting any payment (checks, cash, credit card payments) from
homeowners. All payments must be made directly to the licensed contractor. This prohibition
protects consumers from situations where salesperson-collected funds may not be properly
transmitted to the contractor for the work.
, 10. Under Maryland law, the MHIC may deny a home improvement salesperson license
application based on:
A. The applicant's educational level below a college degree B. The applicant's residence in
another state C. A prior conviction for fraud, theft, or other crimes of moral turpitude
(correct answer) D. The applicant's age being above 65 years
Rationale: Maryland Business Regulation Article §8-311 authorizes the MHIC to deny a license
application based on prior criminal convictions, particularly those involving fraud, theft,
dishonesty, or moral turpitude. The Commission evaluates the nature of the offense, its recency,
and evidence of rehabilitation. Prior criminal history does not automatically disqualify an
applicant but is a significant factor in the Commission's fitness determination.
SECTION 2: DEFINITION OF HOME IMPROVEMENT
11. Under Maryland law, "home improvement" is defined as:
A. Any construction work performed by a licensed contractor B. Only interior renovations to
residential properties C. Any alteration, remodeling, repair, or replacement of a building
used as a residence (correct answer) D. Only work on buildings with a value exceeding $500
Rationale: Maryland Business Regulation Article §8-101 defines "home improvement" broadly
to include any alteration, remodeling, repair, renovation, restoration, or replacement of a
building or part thereof that is used or intended to be used as a residence, including work on
structures adjacent to the residence. The definition encompasses both interior and exterior work.
12. Which of the following is generally EXCLUDED from Maryland's definition of "home
improvement"?
A. Replacing a roof on a single-family home B. Installing a new bathroom in a residence C.
Construction of a new residence from the ground up (correct answer) D. Remodeling a
kitchen in an existing home
Rationale: Maryland Business Regulation Article §8-101 excludes new home construction
(building a new residence from the ground up) from the definition of home improvement. New
home construction is governed by separate licensing and regulatory frameworks. Home
improvement law applies to alterations, repairs, and improvements to existing residential
structures, not to original construction.
EXAM 2026 |150 Multiple Choice Questions with Rationales
| latest update
SECTION 1: MARYLAND HOME IMPROVEMENT LAW
— LICENSING AND REGULATION
1. Which Maryland agency is responsible for licensing and regulating home improvement
contractors and salespersons?
A. Maryland Department of Commerce B. Maryland Department of Labor C. Maryland Home
Improvement Commission (MHIC) (correct answer) D. Maryland Department of Housing
and Community Development
Rationale: The Maryland Home Improvement Commission (MHIC) is the state agency
responsible for licensing and regulating home improvement contractors and salespersons under
the Maryland Home Improvement Law (Business Regulation Article, Title 8). The MHIC is
housed within the Maryland Department of Labor and administers the licensing, complaint, and
guaranty fund programs.
2. Under Maryland law, a home improvement salesperson license is required for any
person who:
A. Works as an interior designer for homeowners B. Sells new construction homes for a builder
C. Sells or negotiates home improvement contracts on behalf of a licensed contractor
(correct answer) D. Provides landscaping services directly to homeowners
Rationale: Maryland Business Regulation Article §8-301 requires a home improvement
salesperson license for any individual who sells or solicits home improvement contracts on
behalf of a licensed home improvement contractor. The salesperson license is separate from the
contractor license and requires meeting specific education, examination, and registration
requirements.
3. What is the minimum age requirement to obtain a Maryland home improvement
salesperson license?
,A. 16 years old B. 17 years old C. 18 years old (correct answer) D. 21 years old
Rationale: Maryland Business Regulation Article §8-302 requires that applicants for a home
improvement salesperson license be at least 18 years of age. This reflects the legal age of
majority in Maryland and the capacity to enter into binding contracts and conduct business
transactions on behalf of licensed contractors.
4. Under Maryland law, a home improvement salesperson must be sponsored by:
A. The Maryland Home Improvement Commission B. Any licensed real estate broker in
Maryland C. A licensed Maryland home improvement contractor (correct answer) D. A
licensed general contractor with at least five years of experience
Rationale: Maryland law requires that a home improvement salesperson be sponsored by and
work under a licensed Maryland home improvement contractor. The sponsoring contractor is
responsible for the salesperson's conduct in the performance of home improvement sales
activities. A salesperson may not operate independently without a sponsoring contractor.
5. How long is a Maryland home improvement salesperson license valid?
A. One year B. Two years C. Two years, expiring on the last day of the licensee's birth
month (correct answer) D. Three years
Rationale: Maryland home improvement salesperson licenses are issued for a two-year period,
expiring on the last day of the licensee's birth month in the renewal year. This birthday-month
renewal system staggers renewals throughout the year for administrative efficiency. Licensees
must renew before their license expires to avoid a lapse in licensure.
6. Under Maryland law, which of the following is NOT a requirement for obtaining a home
improvement salesperson license?
A. Passing the Maryland home improvement salesperson examination B. Being sponsored by a
licensed Maryland home improvement contractor C. Completing a minimum of 500 hours of
apprenticeship under a licensed contractor (correct answer) D. Paying the required license
fee to the MHIC
Rationale: Maryland Business Regulation Article §8-302 does not require an apprenticeship
period for home improvement salesperson licensure. Requirements include: being at least 18
years old, passing the state licensing examination, having a sponsoring licensed contractor,
,paying the required fees, and meeting character requirements. An apprenticeship is not a
prerequisite for the salesperson license.
7. The Maryland Home Improvement Commission was established under which body of
Maryland law?
A. Maryland Real Property Article B. Maryland Labor and Employment Article C. Maryland
Business Regulation Article, Title 8 (correct answer) D. Maryland Annotated Code, Housing
Article
Rationale: The Maryland Home Improvement Law is codified in the Business Regulation Article,
Title 8 of the Annotated Code of Maryland. This title establishes the MHIC, defines home
improvement, sets licensing requirements, establishes the Guaranty Fund, and provides
consumer protections. All MHIC regulations are promulgated under the authority granted by
this title.
8. A Maryland home improvement salesperson who changes sponsoring contractors must:
A. Take a new examination before working for the new contractor B. Notify the MHIC
informally by phone within 30 days C. Apply to the MHIC to transfer the sponsorship to the
new contractor (correct answer) D. Allow the current license to expire and apply for a new
license
Rationale: When a Maryland home improvement salesperson changes sponsoring contractors,
they must apply to the MHIC to transfer their license to the new sponsoring contractor. A
salesperson may not sell home improvements on behalf of a contractor who is not their
designated sponsor. The transfer application must be submitted to the MHIC with any applicable
fees.
9. Under Maryland law, home improvement salespersons are prohibited from:
A. Negotiating contract terms with homeowners B. Discussing financing options available
through the contractor C. Collecting any payment from a homeowner on behalf of a
contractor (correct answer) D. Providing written estimates for home improvement work
Rationale: Maryland Business Regulation Article §8-602 prohibits home improvement
salespersons from collecting any payment (checks, cash, credit card payments) from
homeowners. All payments must be made directly to the licensed contractor. This prohibition
protects consumers from situations where salesperson-collected funds may not be properly
transmitted to the contractor for the work.
, 10. Under Maryland law, the MHIC may deny a home improvement salesperson license
application based on:
A. The applicant's educational level below a college degree B. The applicant's residence in
another state C. A prior conviction for fraud, theft, or other crimes of moral turpitude
(correct answer) D. The applicant's age being above 65 years
Rationale: Maryland Business Regulation Article §8-311 authorizes the MHIC to deny a license
application based on prior criminal convictions, particularly those involving fraud, theft,
dishonesty, or moral turpitude. The Commission evaluates the nature of the offense, its recency,
and evidence of rehabilitation. Prior criminal history does not automatically disqualify an
applicant but is a significant factor in the Commission's fitness determination.
SECTION 2: DEFINITION OF HOME IMPROVEMENT
11. Under Maryland law, "home improvement" is defined as:
A. Any construction work performed by a licensed contractor B. Only interior renovations to
residential properties C. Any alteration, remodeling, repair, or replacement of a building
used as a residence (correct answer) D. Only work on buildings with a value exceeding $500
Rationale: Maryland Business Regulation Article §8-101 defines "home improvement" broadly
to include any alteration, remodeling, repair, renovation, restoration, or replacement of a
building or part thereof that is used or intended to be used as a residence, including work on
structures adjacent to the residence. The definition encompasses both interior and exterior work.
12. Which of the following is generally EXCLUDED from Maryland's definition of "home
improvement"?
A. Replacing a roof on a single-family home B. Installing a new bathroom in a residence C.
Construction of a new residence from the ground up (correct answer) D. Remodeling a
kitchen in an existing home
Rationale: Maryland Business Regulation Article §8-101 excludes new home construction
(building a new residence from the ground up) from the definition of home improvement. New
home construction is governed by separate licensing and regulatory frameworks. Home
improvement law applies to alterations, repairs, and improvements to existing residential
structures, not to original construction.
