Michigan Residential Builder Licensing
Exam 2024 rated A
M&A contractors include: - A = Carpentry
B = Concrete
D = Excavation
G = Insulation Work
I = Masonry
J = Painting & Decorating
K = Siding
M = Roofing
If more than one office is used for work, the branch office must be __________ -
Licensed
The one who obtains the residential builder's license is called a _____________
____________ - Qualifying Officer
First Offense for practicing without a license - Misdemeanor fine of $5,000 -
$25,000
or prison for not more than 1 year, or both.
,Michigan Residential Builder Licensing
Exam 2024 rated A
Second offense for practicing without a license - Misdemeanor fine of $5,000 -
$25,000
or prison for not more than 2 years, or both.
Death or serious injury - Felony fine of $5,000 - $25,000 or prison for not more
than 4 years, or both.
Define a Residential Builder - A person or entity who is involved in the
construction of a residential structure or a combination residential and
commercial structure.
Define M&A contractor - Person who for a fixed sum/price other than wages for
personal labor for the repair, alteration, or addition/improvement to
residential/commercial or residential structure.
Salesperson - employee of agent other than a qualifying officer who sells business
for the contractor.
who reissues licenses for salespeople? - LARA (The Department)
,Michigan Residential Builder Licensing
Exam 2024 rated A
Which types of trade work require a different type of license other than the resi
license? - Plumbing, Electrical, and Mechanical.
Who issues the license? - LARA
How is the director of LARA appointed? - by the governor
What types of people make up the Board of Residential Builders? - 4 Licensed
residential builders
2 M&A contractors
3 members of the public
What are the duties of the board of residential builders? (4) - 1. Interpretation of a
license requirement
2. Aid in investigations
3. Set acceptable practice standards
4. Assess penalties for those who are licensed and are in violation of rules
, Michigan Residential Builder Licensing
Exam 2024 rated A
What happens if the qualifying officer's license is revoked? - The entity's license is
revoked as well.
How can a foreign entity get a license? - Only if authorized by the Corporations
and Securities Commission.
Non residents must file this to be considered for a license. - An Irrevocable
consent to service of process
T or F, Builders must maintain a place of business in the state they operate in. -
True
T of F, Contractors must maintain an accurate set of books/records open to
inspection by the department (LARA). - True
If the department inquires, licensees must submit ___________ _____________
___________ showing licensee's current financial status, and must do so within
30 days of inquiry. - sworn financial statements
T or F, Advertising must not misrepresent material facts. - True
Exam 2024 rated A
M&A contractors include: - A = Carpentry
B = Concrete
D = Excavation
G = Insulation Work
I = Masonry
J = Painting & Decorating
K = Siding
M = Roofing
If more than one office is used for work, the branch office must be __________ -
Licensed
The one who obtains the residential builder's license is called a _____________
____________ - Qualifying Officer
First Offense for practicing without a license - Misdemeanor fine of $5,000 -
$25,000
or prison for not more than 1 year, or both.
,Michigan Residential Builder Licensing
Exam 2024 rated A
Second offense for practicing without a license - Misdemeanor fine of $5,000 -
$25,000
or prison for not more than 2 years, or both.
Death or serious injury - Felony fine of $5,000 - $25,000 or prison for not more
than 4 years, or both.
Define a Residential Builder - A person or entity who is involved in the
construction of a residential structure or a combination residential and
commercial structure.
Define M&A contractor - Person who for a fixed sum/price other than wages for
personal labor for the repair, alteration, or addition/improvement to
residential/commercial or residential structure.
Salesperson - employee of agent other than a qualifying officer who sells business
for the contractor.
who reissues licenses for salespeople? - LARA (The Department)
,Michigan Residential Builder Licensing
Exam 2024 rated A
Which types of trade work require a different type of license other than the resi
license? - Plumbing, Electrical, and Mechanical.
Who issues the license? - LARA
How is the director of LARA appointed? - by the governor
What types of people make up the Board of Residential Builders? - 4 Licensed
residential builders
2 M&A contractors
3 members of the public
What are the duties of the board of residential builders? (4) - 1. Interpretation of a
license requirement
2. Aid in investigations
3. Set acceptable practice standards
4. Assess penalties for those who are licensed and are in violation of rules
, Michigan Residential Builder Licensing
Exam 2024 rated A
What happens if the qualifying officer's license is revoked? - The entity's license is
revoked as well.
How can a foreign entity get a license? - Only if authorized by the Corporations
and Securities Commission.
Non residents must file this to be considered for a license. - An Irrevocable
consent to service of process
T or F, Builders must maintain a place of business in the state they operate in. -
True
T of F, Contractors must maintain an accurate set of books/records open to
inspection by the department (LARA). - True
If the department inquires, licensees must submit ___________ _____________
___________ showing licensee's current financial status, and must do so within
30 days of inquiry. - sworn financial statements
T or F, Advertising must not misrepresent material facts. - True
