Home Improvement EXAM with 100% correct answers already graded A+ 2024.

Passing mark for exam (%) 70% Time required to retake exam, if failed Minimum 30 days following the first failure. After each subsequent failure, wait 60 days. How long are exam scores valid for? 2 years Actual loss - The cost to correct or complete a home improvement that is inadequate or incomplete. - Homeowners may recover up to $20,000 per contract, not to exceed the amount paid to the contractor. The Guaranty Fund Protects homeowners who hire licensed home improvement contractors against actual loss caused by incomplete, incorrect, or unworkmanlike job. The Guaranty Fund can award how much for each claim The maximum amount awarded from the Fund is $100,000. If several claimants, then each person will receive an equal amount. How is the Guaranty Fund maintained? - The fund is maintained through assessments paid by contractors. - $100 assessment fee to the Fund when applying for the license. - They may charge $50 to each contractor if the amount of the Fund falls below $250,000. - The Commission may not assess contractors more than $150 per calendar year. Requirements for a MHIC contract - Contract must contain Contractor's name, address, and MHIC License # - If salesperson was involved, include their name and License # MHIC Contract consumer notice Contract must contain a notice that gives telephone # of the Commission and states, "each contractor and subcontractor must hold a current MHIC license and anyone can ask MHIC about a contractor or subcontractor." MHIC Contract needs to inform homeowners of these protections - Formal mediation of disputes b/w homeowner and contractors is available through the Maryland Home Improvement Commission. - Maryland Home Improvement Commission administers the Guaranty Fund, which may compensate homeowners for certain acts of omissions. - A homeowner may request a contractor purchase a performance bond for additional protections not covered by the Guaranty Fund. Deposits and Payments A contractor cannot accept more than 1/3 of the contract price as a deposit and may not accept any payment until the contract is signed. Maryland Door-to-door Sales Act (contract cancelation) If a homeowner cancels a contract, the contractor must return the homeowner's deposit within 10 business days following the receipt. Sample Notice of Cancellation (1-12) See book page 1-12 Home Improvement means, - the addition to or alteration, conversion, improvement, modernization, remodeling, repair, or replacement of a building or part of a building that is used or designed to be used as a residence or dwelling place or a structure adjacent to that building OR - an improvement to land adjacent to the building. Home Improvement includes, - construction, improvement, or replacement, on land adjacent to the building, of a driveway, fall-out shelter, fence, garage, landscaping, deck, pier, porch, or swimming pool - a shore erosion project, for a residential property - connection, installation, or replacement, in the building or structure, of a dishwasher, disposal, or refrigerator with an ice-maker to existing exposed household plumbing lines. - installation, in the building or structure, of an awning, fire alarm, or storm window - work done on individual condominium units Home Improvement does not include, - construction of a new home - work done to comply with a guarantee of completion for a new building project - work done on apartment buildings that contain four or more single-family units Scope of MHIC Title 8 (Scope of Title) see page 1-17...1-18. Authorized regulation- this title does not limit the power of a county or municipal corporation to regulate home improvement by having a system of inspections and permits. MHIC Membership Commission consists of 9 members appointed by the Governor w/ the advice of the Secretary. - 3 shall have experience in home improvement - 1 shall have experience in financing or business - 4 shall be consumer members **only 8 listed, Maryland has 1 person in both consumer and industry** MHIC Membership Qualifications - Each member of the Commission shall have been a resident of the State for at least 5 years. - may not, within 1 year of appointment, have had a financial interest i or have received compensation from a person regulated by the Commission. MHIC membership tenure and vacancies The term of a member is 4 years and begins on July 1st. MHIC Quorum and Voting - A majority of the Commission is a quorum. - The Commission may not act unless at least a majority of the authorized membership concur. MHIC Meetings - The Commission shall meet once every 2 months - They may hold meetings at the times and places in the State that it determines. - Commission shall have its office in Baltimore. MHIC Executive Director - Secretary appoints director - full time duty - is reimbursed for expenses under the Standard State Travel Regulations, as provided in the state budget MHIC Executive Director Duties - keep the official records of the Commission - keep the seal of the Commission MHIC Executive Director Staff - the director may employ a staff in accordance with the state budget - Investigative Staff: the director shall employ an investigative staff in accordance with the State budget. - Contractual experts: the director may contract with an expert, subject to the State budget, if the services of an expert are required in a particular case. Administration and Enforcement by Commission - Hearing and adjudication not a prerequisite to prosecution, - An administrative hearing and adjudication by the Commission is not a prerequisite to prosecution of a person. MHIC Records - Commission is required to keep records available for public inspection during office hours. - Fees: The Commission shall collect a fee of $1 per page for each copy of a document in the Commission office. MHIC Certification of Licensing Commission shall collect a fee of $1 for certifying under seal the licensing status of a person. MHIC Misc. Powers & Duties Commission may require applicant/licensee: - information reasonably related to the administration or enforcement of this title - production of financial records