Builders License Exam |Questions
with 100% Correct Answers
What does LARA consist of - ANSWER director, appointed by governor. remember
that a license can be issued with limitation
the board of residential builder and M&A contractors consist of - ANSWER 4 members
that have builder license, 2 M&A contractors and 3 members represent the public
which are not licensed.
they serve 4 years at a time
the board duties shall include - ANSWER interpretation of a license,
furnishing of aid in an investigation promulgation of rules (set the
rules)
assessing penalties against licenses who are found responsible.
license for a non-living entity purpose - ANSWER a license may be issued to a
corporation, partnership, etc...we can make the corporation a builder (so when your
sued they will not follow you personally, ppl will sue corporation in this case). the
,corporation must be managed by a qualifying officer that has a builder license. if the
qualifying officer for the corporation lost the license, therefore the corporation loses the
license.
non-resident license - ANSWER the department will license someone who is not a
resident in Michigan. they need 60 hours and do the exam and if pass you can.
however you need to have an office and a business location in Michigan.
the non-resident shall file an irrevocable consent to service. this is done to make it
easy to sue someone who lives out of state. the person who is filing the lawsuit let the
state know and the state notifies the builder. if builder does not show up the they lose
the case.
place of business - ANSWER you should have a place of business which could be at
home but not a PO BOX. if you move you let the department know.
if you need a branch office you let them know as well and they will approve you and
you are all set.
books and records - ANSWER in regards of books and records the department can ask
to be investigated for some reason.
if the department ask for financial statement, how long do you have until you provide it
to them - ANSWER 30 days until you provide a sown financial statement. (this is in case
you had a complaint that you did not finish a job, then the statement show where the
money went, how much you received, ect.
Advertising - ANSWER a builder may not misrepresent facts.
for advertising, you need the legal name as it appears on the license, the #,
the business address, those are mandatory.
if the real estate advertising for your new home, then they can advertise under their
name.
, you may not offer ppl money, bonus or gift and tell them to use their model as a
show room.
homeowner can be use a reference but without any return because they are not
your salespeople.
purchase and sales agreements - ANSWER anytime we sign a sign a contract with
consumers, make sure ppl get a copy and any changes must be reflected by
writing (called amendment)
license violation - ANSWER -abandonment of a job without a legal excuse.
-diversion of funds or property (take a deposit, spend half on the job and other half on
something else, that is illegal
-failure to account for or remit money: you got the money but you are not producing.
-willful violation of the building laws: you do not want to violate the codes
-willful violation departure from a disregard of plans or specification: without the owner
consent you decide to give her vinyl instead of hardwood.
-Failure to deliver to the purchaser the entire agreement: if you do not deliver
the contract to the homeowner.
-failure to notify the department within 10 days of any changes in the director of a
business
-salesperson fail to pay over immediately (he should give the deposit right away to
the builder)
-aiding or abetting an unlicensed person to evade this article (allowing someone to
use ur license)
-acceptance of a commission ( salesperson receiving money or bonus from a person
other than the residential builder)
-becoming insolvent: you collect money and not paying your bills, you do not pay
suppliers or subcontractor, therefore filling bankruptcy in this case is not a solution, this
is a violation of license and you could lose it.
-poor workmanship: you do a lousy job, then they can hold this against you.
with 100% Correct Answers
What does LARA consist of - ANSWER director, appointed by governor. remember
that a license can be issued with limitation
the board of residential builder and M&A contractors consist of - ANSWER 4 members
that have builder license, 2 M&A contractors and 3 members represent the public
which are not licensed.
they serve 4 years at a time
the board duties shall include - ANSWER interpretation of a license,
furnishing of aid in an investigation promulgation of rules (set the
rules)
assessing penalties against licenses who are found responsible.
license for a non-living entity purpose - ANSWER a license may be issued to a
corporation, partnership, etc...we can make the corporation a builder (so when your
sued they will not follow you personally, ppl will sue corporation in this case). the
,corporation must be managed by a qualifying officer that has a builder license. if the
qualifying officer for the corporation lost the license, therefore the corporation loses the
license.
non-resident license - ANSWER the department will license someone who is not a
resident in Michigan. they need 60 hours and do the exam and if pass you can.
however you need to have an office and a business location in Michigan.
the non-resident shall file an irrevocable consent to service. this is done to make it
easy to sue someone who lives out of state. the person who is filing the lawsuit let the
state know and the state notifies the builder. if builder does not show up the they lose
the case.
place of business - ANSWER you should have a place of business which could be at
home but not a PO BOX. if you move you let the department know.
if you need a branch office you let them know as well and they will approve you and
you are all set.
books and records - ANSWER in regards of books and records the department can ask
to be investigated for some reason.
if the department ask for financial statement, how long do you have until you provide it
to them - ANSWER 30 days until you provide a sown financial statement. (this is in case
you had a complaint that you did not finish a job, then the statement show where the
money went, how much you received, ect.
Advertising - ANSWER a builder may not misrepresent facts.
for advertising, you need the legal name as it appears on the license, the #,
the business address, those are mandatory.
if the real estate advertising for your new home, then they can advertise under their
name.
, you may not offer ppl money, bonus or gift and tell them to use their model as a
show room.
homeowner can be use a reference but without any return because they are not
your salespeople.
purchase and sales agreements - ANSWER anytime we sign a sign a contract with
consumers, make sure ppl get a copy and any changes must be reflected by
writing (called amendment)
license violation - ANSWER -abandonment of a job without a legal excuse.
-diversion of funds or property (take a deposit, spend half on the job and other half on
something else, that is illegal
-failure to account for or remit money: you got the money but you are not producing.
-willful violation of the building laws: you do not want to violate the codes
-willful violation departure from a disregard of plans or specification: without the owner
consent you decide to give her vinyl instead of hardwood.
-Failure to deliver to the purchaser the entire agreement: if you do not deliver
the contract to the homeowner.
-failure to notify the department within 10 days of any changes in the director of a
business
-salesperson fail to pay over immediately (he should give the deposit right away to
the builder)
-aiding or abetting an unlicensed person to evade this article (allowing someone to
use ur license)
-acceptance of a commission ( salesperson receiving money or bonus from a person
other than the residential builder)
-becoming insolvent: you collect money and not paying your bills, you do not pay
suppliers or subcontractor, therefore filling bankruptcy in this case is not a solution, this
is a violation of license and you could lose it.
-poor workmanship: you do a lousy job, then they can hold this against you.
