1
MICHIGAN BUILDERS LICENSE EXAM STUDY
GUIDE EXAM AND COMPLETE CORRECT
DETAILED ANSWERS |ALREADY GRADED A+
LATEST UPDATE | 2024-2025
What is the first offense penalty for engaging in the practice of residential building without a
license?
Ans- 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.
Quiz: What is the penalty for engaging in the practice of residential builders license,
resulting in a death?
Ans- Not less than $5,000 and not more than $25,000 and/or four years in prison
Quiz: On your individual builder's license application, what should you write as your
"business address"?
Ans- Your personal address
Quiz: What is the cost for the individual builder's license?
Ans- $195
Quiz: After receiving your residential builder's license, what are the only trades not
covered by your license?
o
o
Thank You for Choosing Us!
© 2024 TestTrackers o Resources & Updates: [Testtrackers - Stuvia US]
o Customer Support: o Your Success is Our Mission!
[+254707240657]
, 2
Ans- Plumbing, electrical, and HVAC
Quiz: Who is the TESTING company for the State of Michigan?
Ans- PSI
Quiz: What is the name of the department that regulates your license?
Ans- LARA
Quiz: What are the 2 parts of the Residential Builder Examination?
Ans- Business and Law examination/Practice and Trade examination
Quiz: What is a good quick asset ratio?
Ans- 1 to 1
Quiz: Under the Carpentry section of the test, what does a "span table" tell us?
Ans- What species and what grade of lumber a floor joist has to be to span a certain
distance
Quiz: 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
o
o
Thank You for Choosing Us!
© 2024 TestTrackers o Resources & Updates: [Testtrackers - Stuvia US]
o Customer Support: o Your Success is Our Mission!
[+254707240657]
, 3
It allows you to work on commercial properties
Ans- It allows you to work on commercial properties
Quiz: Where does most fraud occur?
Ans- In the residential market
Quiz: As a builder, your license falls under the regulation of:
Ans- Both rules by the director and board as well as laws of the state of Michigan
Quiz: What is the make up of the 9 members of the board?
Ans- 4 residential builders, 2 M + A contractors, and 3 members of the general public
Quiz: Under the definition of occupational code, what does the word "limitation" refer to?
Ans- A condition, stricture, restraint or probation attached to a license relative to the
scope of practice
Quiz: Who, upon completion of a hearing, shall assess a penalty or penalties?
Ans- The Board
Quiz: 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?
o
o
Thank You for Choosing Us!
© 2024 TestTrackers o Resources & Updates: [Testtrackers - Stuvia US]
o Customer Support: o Your Success is Our Mission!
[+254707240657]
, 4
Ans- 60 days
Quiz: When the department is investigating a complaint and finds evidence of a violation,
what actions can be brought against the respondent?
Ans- A cease and desist order, a formal complaint, and/or a citation
Quiz: How many days after the administrative law hearings examiner hears the report,
must a determination of penalties be made by the board?
Ans- 60 days
Quiz: What is a compliance conference?
Ans- A meeting where ONLY the respondent meets with the department to discuss
the complaint against them
Quiz: 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?
Ans- Residential structure
Quiz: An employee other than the listed salesperson may make a sale when:
Ans- It is occasional and incidental to the person's principal employment
o
o
Thank You for Choosing Us!
© 2024 TestTrackers o Resources & Updates: [Testtrackers - Stuvia US]
o Customer Support: o Your Success is Our Mission!
[+254707240657]
MICHIGAN BUILDERS LICENSE EXAM STUDY
GUIDE EXAM AND COMPLETE CORRECT
DETAILED ANSWERS |ALREADY GRADED A+
LATEST UPDATE | 2024-2025
What is the first offense penalty for engaging in the practice of residential building without a
license?
Ans- 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.
Quiz: What is the penalty for engaging in the practice of residential builders license,
resulting in a death?
Ans- Not less than $5,000 and not more than $25,000 and/or four years in prison
Quiz: On your individual builder's license application, what should you write as your
"business address"?
Ans- Your personal address
Quiz: What is the cost for the individual builder's license?
Ans- $195
Quiz: After receiving your residential builder's license, what are the only trades not
covered by your license?
o
o
Thank You for Choosing Us!
© 2024 TestTrackers o Resources & Updates: [Testtrackers - Stuvia US]
o Customer Support: o Your Success is Our Mission!
[+254707240657]
, 2
Ans- Plumbing, electrical, and HVAC
Quiz: Who is the TESTING company for the State of Michigan?
Ans- PSI
Quiz: What is the name of the department that regulates your license?
Ans- LARA
Quiz: What are the 2 parts of the Residential Builder Examination?
Ans- Business and Law examination/Practice and Trade examination
Quiz: What is a good quick asset ratio?
Ans- 1 to 1
Quiz: Under the Carpentry section of the test, what does a "span table" tell us?
Ans- What species and what grade of lumber a floor joist has to be to span a certain
distance
Quiz: 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
o
o
Thank You for Choosing Us!
© 2024 TestTrackers o Resources & Updates: [Testtrackers - Stuvia US]
o Customer Support: o Your Success is Our Mission!
[+254707240657]
, 3
It allows you to work on commercial properties
Ans- It allows you to work on commercial properties
Quiz: Where does most fraud occur?
Ans- In the residential market
Quiz: As a builder, your license falls under the regulation of:
Ans- Both rules by the director and board as well as laws of the state of Michigan
Quiz: What is the make up of the 9 members of the board?
Ans- 4 residential builders, 2 M + A contractors, and 3 members of the general public
Quiz: Under the definition of occupational code, what does the word "limitation" refer to?
Ans- A condition, stricture, restraint or probation attached to a license relative to the
scope of practice
Quiz: Who, upon completion of a hearing, shall assess a penalty or penalties?
Ans- The Board
Quiz: 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?
o
o
Thank You for Choosing Us!
© 2024 TestTrackers o Resources & Updates: [Testtrackers - Stuvia US]
o Customer Support: o Your Success is Our Mission!
[+254707240657]
, 4
Ans- 60 days
Quiz: When the department is investigating a complaint and finds evidence of a violation,
what actions can be brought against the respondent?
Ans- A cease and desist order, a formal complaint, and/or a citation
Quiz: How many days after the administrative law hearings examiner hears the report,
must a determination of penalties be made by the board?
Ans- 60 days
Quiz: What is a compliance conference?
Ans- A meeting where ONLY the respondent meets with the department to discuss
the complaint against them
Quiz: 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?
Ans- Residential structure
Quiz: An employee other than the listed salesperson may make a sale when:
Ans- It is occasional and incidental to the person's principal employment
o
o
Thank You for Choosing Us!
© 2024 TestTrackers o Resources & Updates: [Testtrackers - Stuvia US]
o Customer Support: o Your Success is Our Mission!
[+254707240657]
