Michigan Builders License Exam Study Guide Q&A Latest Updated

Michigan Builders License Exam Study Guide Q&A Latest Updated What is the first offense penalty for engaging in the practice of residential building without a license? - CORRECT ANSWER-Not less than $5,000 and not more than $25,000 and/or one year in prison. Subsequent violations can extend the prison time to up to 2 years. What is the penalty for engaging in the practice of residential builders license, resulting in a death? - CORRECT ANSWER-Not less than $5,000 and not more than $25,000 and/or four years in prison On your individual builder's license application, what should you write as your "business address"? - CORRECT ANSWER-Your personal address What is the cost for the individual builder's license? - CORRECT ANSWER-$195 After receiving your residential builder's license, what are the only trades not covered by your license? - CORRECT ANSWER-Plumbing, electrical, and HVAC Who is the TESTING company for the State of Michigan? - CORRECT ANSWER-PSI What is the name of the department that regulates your license? - CORRECT ANSWER-LARA What are the 2 parts of the Residential Builder Examination? - CORRECT ANSWERBusiness and Law examination/Practice and Trade examination What is a good quick asset ratio? - CORRECT ANSWER-1 to 1 Under the Carpentry section of the test, what does a "span table" tell us? - CORRECT 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? It allows you to be able to file a lein on property It allows you to pull a residential permit It allows you to file a lawsuit if necessary It allows you to work on commercial properties - CORRECT ANSWER-It allows you to work on commercial properties Where does most fraud occur? - CORRECT ANSWER-In the residential market As a builder, your license falls under the regulation of: - CORRECT ANSWER-Both rules by the director and board as well as laws of the state of Michigan What is the make up of the 9 members of the board? - CORRECT ANSWER-4 residential builders, 2 M + A contractors, and 3 members of the general public Under the definition of occupational code, what does the word "limitation" refer to? - CORRECT ANSWER-A condition, stricture, restraint or probation attached to a license relative to the scope of practice Who, upon completion of a hearing, shall assess a penalty or penalties? - CORRECT ANSWER-The Board If you fail to renew your license or registration on or before the expiration date, how many days do you have to resubmit with the proper payment and late fee? - CORRECT ANSWER-60 days When the department is investigating a complaint and finds evidence of a violation, what actions can be brought against the respondent? - CORRECT ANSWER-A cease and desist order, a formal complaint, and/or a citation How many days after the administrative law hearings examiner hears the report, must a determination of penalties be made by the board? - CORRECT ANSWER-60 days What is a compliance conference? - CORRECT ANSWER-A meeting where ONLY the respondent meets with the department to discuss the complaint against them Which of the following terms means a premise used or intended to be used for a residential purpose and related facilities appurtenant to the premises used or intended to be used as an adjunct of residential occupancy? - CORRECT ANSWER-Residential structure An employee other than the listed salesperson may make a sale when: - CORRECT ANSWER-It is occasional and incidental to the person's principal employment The following are reasons that someone would be allowed to operate without a residential business license: - CORRECT ANSWER-- They are an authorized representative of the United States government - They are the owner of a rental property with reference to the maintenance and alteration of that rental property - An owner of property with reference to a structure on the property for the owner's own use and occupancy Beginning the license cycle after December 21, 2007, the department shall issue the license of a residential builder and residential maintenance and alteration contractor for a period of how many years in durat