1
Alabama Home Builder Licensure Exam — 100 Practice Questions
Section 1: Licensing Law & Regulations (1–25)
1. What is the cost threshold that requires a residential home builder to be licensed in
Alabama?
A. $2,500
B. $5,000
C. $10,000
D. $25,000
Answer: C. The law defines a residential home builder as one who undertakes construction
when the cost of the undertaking exceeds $10,000 .
2. What is the cost threshold for a residential roofer license?
A. $1,000
B. $2,500
C. $5,000
D. $10,000
Answer: B. A residential roofer license is required when the cost of the undertaking exceeds
$2,500 .
3. How many members serve on the Alabama Home Builders Licensure Board?
A. 5
B. 7
C. 9
D. 12
Answer: C. The board has nine members: seven residential home builders, one building
official/inspector, and one consumer member .
4. How long must a board member have experience as a residential home builder?
A. 2 years
B. 3 years
C. 5 years
D. 10 years
Answer: C. Seven members must be residential home builders with at least five years'
experience .
5. What is the maximum administrative fine the board may levy per violation?
A. $1,000
B. $2,500
C. $5,000
D. $10,000
, 2
Answer: C. The board may levy and collect administrative fines not to exceed $5,000 for
each violation .
6. A residential home builder who does not have the required license may:
A. Still enforce contract provisions in court
B. Not bring or maintain any action to enforce contract provisions
C. File a lien but not sue
D. Operate if the homeowner consents
Answer: B. A builder without the required license shall not bring or maintain any action to
enforce contract provisions .
7. When did the requirement to comply with the Alabama Residential Building Code
begin?
A. January 1, 2025
B. October 1, 2025
C. January 1, 2027
D. October 1, 2024
Answer: C. Beginning January 1, 2027, residential home builders must comply with the
Alabama Residential Building Code .
8. Which of the following is NOT exempt from licensure under Alabama law?
A. Agricultural buildings
B. A person building their own residence
C. A person building a residence for sale
D. Design professionals
Answer: C. A person who constructs a residence for sale must be licensed. Building one's
own residence and agricultural buildings are exempt .
9. What is the maximum payment from the Homeowners' Recovery Fund based on?
A. The board sets the maximum by rule
B. $50,000 per licensee
C. $100,000 per transaction
D. Actual damages without limit
Answer: A. The board determines the maximum amount of payment by rule for claims
against one licensee and claims arising from the same transaction .
10. Each licensee may be required to pay what annual fee for the Homeowners' Recovery
Fund?
A. $25
B. $50
C. $60
D. $100
, 3
Answer: C. Each licensee may pay a fee not to exceed $60, no more than once a year .
11. A homeowner must file a consumer complaint within how many years of substantial
completion?
A. 2 years
B. 4 years
C. 6 years
D. 10 years
Answer: C. Consumer complaints must be submitted within six years of substantial
completion or taking possession .
12. What is the maximum time for filing a lien by an unpaid laborer after the last day
worked?
A. 30 days
B. Four months
C. Six months
D. One year
Answer: B. An unpaid journeyman or day laborer has four months to file a lien after the last
day worked .
13. Under Alabama Prompt Pay Law, when must a property owner pay a contractor after
receipt of a pay request?
A. 10 days
B. 20 days
C. 30 days
D. 45 days
Answer: C. The owner shall pay within 30 days of receipt of a pay request for actual labor
and materials performed .
14. If a designated qualifying representative leaves a licensed company, when must the
company have a replacement?
A. Within 7 days
B. Within 30 days
C. Within 45 days
D. Within 60 days
Answer: B. The company must have a replacement qualifying representative within 30 days .
15. When must the departing qualifying representative notify the board?
A. Immediately
B. Within 30 days
C. Within 45 days
D. Within 60 days
Alabama Home Builder Licensure Exam — 100 Practice Questions
Section 1: Licensing Law & Regulations (1–25)
1. What is the cost threshold that requires a residential home builder to be licensed in
Alabama?
A. $2,500
B. $5,000
C. $10,000
D. $25,000
Answer: C. The law defines a residential home builder as one who undertakes construction
when the cost of the undertaking exceeds $10,000 .
2. What is the cost threshold for a residential roofer license?
A. $1,000
B. $2,500
C. $5,000
D. $10,000
Answer: B. A residential roofer license is required when the cost of the undertaking exceeds
$2,500 .
3. How many members serve on the Alabama Home Builders Licensure Board?
A. 5
B. 7
C. 9
D. 12
Answer: C. The board has nine members: seven residential home builders, one building
official/inspector, and one consumer member .
4. How long must a board member have experience as a residential home builder?
A. 2 years
B. 3 years
C. 5 years
D. 10 years
Answer: C. Seven members must be residential home builders with at least five years'
experience .
5. What is the maximum administrative fine the board may levy per violation?
A. $1,000
B. $2,500
C. $5,000
D. $10,000
, 2
Answer: C. The board may levy and collect administrative fines not to exceed $5,000 for
each violation .
6. A residential home builder who does not have the required license may:
A. Still enforce contract provisions in court
B. Not bring or maintain any action to enforce contract provisions
C. File a lien but not sue
D. Operate if the homeowner consents
Answer: B. A builder without the required license shall not bring or maintain any action to
enforce contract provisions .
7. When did the requirement to comply with the Alabama Residential Building Code
begin?
A. January 1, 2025
B. October 1, 2025
C. January 1, 2027
D. October 1, 2024
Answer: C. Beginning January 1, 2027, residential home builders must comply with the
Alabama Residential Building Code .
8. Which of the following is NOT exempt from licensure under Alabama law?
A. Agricultural buildings
B. A person building their own residence
C. A person building a residence for sale
D. Design professionals
Answer: C. A person who constructs a residence for sale must be licensed. Building one's
own residence and agricultural buildings are exempt .
9. What is the maximum payment from the Homeowners' Recovery Fund based on?
A. The board sets the maximum by rule
B. $50,000 per licensee
C. $100,000 per transaction
D. Actual damages without limit
Answer: A. The board determines the maximum amount of payment by rule for claims
against one licensee and claims arising from the same transaction .
10. Each licensee may be required to pay what annual fee for the Homeowners' Recovery
Fund?
A. $25
B. $50
C. $60
D. $100
, 3
Answer: C. Each licensee may pay a fee not to exceed $60, no more than once a year .
11. A homeowner must file a consumer complaint within how many years of substantial
completion?
A. 2 years
B. 4 years
C. 6 years
D. 10 years
Answer: C. Consumer complaints must be submitted within six years of substantial
completion or taking possession .
12. What is the maximum time for filing a lien by an unpaid laborer after the last day
worked?
A. 30 days
B. Four months
C. Six months
D. One year
Answer: B. An unpaid journeyman or day laborer has four months to file a lien after the last
day worked .
13. Under Alabama Prompt Pay Law, when must a property owner pay a contractor after
receipt of a pay request?
A. 10 days
B. 20 days
C. 30 days
D. 45 days
Answer: C. The owner shall pay within 30 days of receipt of a pay request for actual labor
and materials performed .
14. If a designated qualifying representative leaves a licensed company, when must the
company have a replacement?
A. Within 7 days
B. Within 30 days
C. Within 45 days
D. Within 60 days
Answer: B. The company must have a replacement qualifying representative within 30 days .
15. When must the departing qualifying representative notify the board?
A. Immediately
B. Within 30 days
C. Within 45 days
D. Within 60 days
