Maryland Home Improvement PSI Exam Study Guide Questions with Correct Answers, A+

A Home Improvement Contractor is a person who offers to 1. perform repairs for a homeowner 2. construct a new home for a homeowner 3. sell supplies or equipment to a "do-it-yourself" homeowner 4. alter plumbing lines to accommodate new appliances - 1. perform repairs for a homeowner What is the MAXIMUM deposit permitted for a project with a total contract price of $1,500? 1. $150 2. $500 3. $750 4. $1,500 - 2. $500 What is the MAXIMUM amount that a home improvement contractor may pay to a homeowner for referring a client to the contractor? 1. $100 2. $1,000 3. 10% of the contract amount 4. The contractor is NOT permitted to compensate the homeowner for referrals - 4. The contractor is NOT permitted to compensate the homeowner for referrals All of the following are exempt from licensing under the Home Improvement Law EXCEPT: 1. licensed architect 2. fence contractor 3. salesperson for a licensed plumbing contractor 4. Licensed security systems technician - 2. fence contractor An applicant was denied a license after a hearing. When may the applicant reapply? 1. 30 days 2. 60 days 3. 6 months 4. 1 year - 3. 6 months What license is required for a telephone salesperson that works as an independent contractor for a home improvement contractor? 1. Salesperson 2. Contractor 3. Subcontractor 4. No license is required - 4. No license is required The Home Improvement Commission holds a hearing to determine the status of an individual's application for licensure. The Commission MUST notify the applicant of its decision within: 1. 10 days after the hearing 2. 30 days after the hearing 3. 60 days after the hearing 4. 180 days after the hearing - 3. 60 days after the hearing A homeowner cancels a $1,000 door-to-door contract 2 days after signing the contract. The MAXIMUM service fee that may be collected by the contractor is: 1. Nothing. No service fee may be collected 2. $25 3. $50 4. $100 - 1. Nothing. No service fee may be collected