MICHIGAN RESIDENTIAL
BUILDERS EXAM PSI
COMPLETE QUESTIONS WITH
100% VERIFIED ANSWERS AND
EXPLANATIONS 2026/2027
What is the first offense penalty for engaging in the practice of residential building
without a license? - ANSWER-Not less than $5,000 and not more than $25,000
and/or one year in prison.
What is the penalty for engaging in the practice of residential builders license,
resulting in a death? - ANSWER-Not less than $5,000 and not more than $25,000
and/or four years in prison.
What should you write as your 'business address' on your individual builder's
license application? - ANSWER-Your personal address.
What is the cost for the individual builder's license? - ANSWER-$195.
, What are the only trades not covered by your residential builder's license? -
ANSWER-Plumbing, electrical, and 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.
What are the two parts of the Residential Builder Examination? - ANSWER-
Business and Law examination / Practice and Trade examination.
What is a good quick asset ratio? - ANSWER-1 to 1.
What does a 'span table' tell us under the Carpentry section of the test? -
ANSWER-What species and what grade of lumber a floor joist has to be to span a
certain distance.
Which is NOT a reason that you need a residential business license? - ANSWER-It
allows you to work on commercial properties.
Where does most fraud occur? - ANSWER-In the residential market.
Under what regulations does your builder's license fall? - ANSWER-Both rules by
the director and board as well as laws of the state of Michigan.
BUILDERS EXAM PSI
COMPLETE QUESTIONS WITH
100% VERIFIED ANSWERS AND
EXPLANATIONS 2026/2027
What is the first offense penalty for engaging in the practice of residential building
without a license? - ANSWER-Not less than $5,000 and not more than $25,000
and/or one year in prison.
What is the penalty for engaging in the practice of residential builders license,
resulting in a death? - ANSWER-Not less than $5,000 and not more than $25,000
and/or four years in prison.
What should you write as your 'business address' on your individual builder's
license application? - ANSWER-Your personal address.
What is the cost for the individual builder's license? - ANSWER-$195.
, What are the only trades not covered by your residential builder's license? -
ANSWER-Plumbing, electrical, and 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.
What are the two parts of the Residential Builder Examination? - ANSWER-
Business and Law examination / Practice and Trade examination.
What is a good quick asset ratio? - ANSWER-1 to 1.
What does a 'span table' tell us under the Carpentry section of the test? -
ANSWER-What species and what grade of lumber a floor joist has to be to span a
certain distance.
Which is NOT a reason that you need a residential business license? - ANSWER-It
allows you to work on commercial properties.
Where does most fraud occur? - ANSWER-In the residential market.
Under what regulations does your builder's license fall? - ANSWER-Both rules by
the director and board as well as laws of the state of Michigan.
