HOME IMPROVEMENT EXAM QUESTIONS
WITH CORRECT ANSWERS 2025
PassingVmarkVforVexamV(%)V-VCORRECTVANSWERV-70%
TimeVrequiredVtoVretakeVexam,VifVfailedV-VCORRECTVANSWERV-
MinimumV30VdaysVfollowingVtheVfirstVfailure.
AfterVeachVsubsequentVfailure,VwaitV60Vdays.
HowVlongVareVexamVscoresVvalidVfor?V-VCORRECTVANSWERV-2Vyears
ActualVlossV-VCORRECTVANSWERV--
VTheVcostVtoVcorrectVorVcompleteVaVhomeVimprovementVthatVisVinadequateVorVincomplete.
-
VHomeownersVmayVrecoverVupVtoV$20,000VperVcontract,VnotVtoVexceedVtheVamountVpaidVtoVtheVco
ntractor.
TheVGuarantyVFundV-VCORRECTVANSWERV-
ProtectsVhomeownersVwhoVhireVlicensedVhomeVimprovementVcontractorsVagainstVactualVlossVcau
sedVbyVincomplete,Vincorrect,VorVunworkmanlikeVjob.
TheVGuarantyVFundVcanVawardVhowVmuchVforVeachVclaimV-VCORRECTVANSWERV-
TheVmaximumVamountVawardedVfromVtheVFundVisV$100,000.VIfVseveralVclaimants,VthenVeachVpers
onVwillVreceiveVanVequalVamount.
HowVisVtheVGuarantyVFundVmaintained?V-VCORRECTVANSWERV--
VTheVfundVisVmaintainedVthroughVassessmentsVpaidVbyVcontractors.V
-V$100VassessmentVfeeVtoVtheVFundVwhenVapplyingVforVtheVlicense.
-VTheyVmayVchargeV$50VtoVeachVcontractorVifVtheVamountVofVtheVFundVfallsVbelowV$250,000.
-VTheVCommissionVmayVnotVassessVcontractorsVmoreVthanV$150VperVcalendarVyear.
, RequirementsVforVaVMHICVcontractV-VCORRECTVANSWERV--
VContractVmustVcontainVContractor'sVname,Vaddress,VandVMHICVLicenseV#
-VIfVsalespersonVwasVinvolved,VincludeVtheirVnameVandVLicenseV#
MHICVContractVconsumerVnoticeV-VCORRECTVANSWERV-
ContractVmustVcontainVaVnoticeVthatVgivesVtelephoneV#VofVtheVCommissionVandVstates,
"eachVcontractorVandVsubcontractorVmustVholdVaVcurrentVMHICVlicenseVandVanyoneVcanVaskVMHIC
VaboutVaVcontractorVorVsubcontractor."
MHICVContractVneedsVtoVinformVhomeownersVofVtheseVprotectionsV-VCORRECTVANSWERV--
VFormalVmediationVofVdisputesVb/wVhomeownerVandVcontractorsVisVavailableVthroughVtheVMaryla
ndVHomeVImprovementVCommission.V
-
VMarylandVHomeVImprovementVCommissionVadministersVtheVGuarantyVFund,VwhichVmayVcompen
sateVhomeownersVforVcertainVactsVofVomissions.
-
VAVhomeownerVmayVrequestVaVcontractorVpurchaseVaVperformanceVbondVforVadditionalVprotectio
nsVnotVcoveredVbyVtheVGuarantyVFund.
DepositsVandVPaymentsV-VCORRECTVANSWERV-
AVcontractorVcannotVacceptVmoreVthanV1/3VofVtheVcontractVpriceVasVaVdepositVandVmayVnotVaccept
VanyVpaymentVuntilVtheVcontractVisVsigned.
MarylandVDoor-to-doorVSalesVActV(contractVcancelation)V-VCORRECTVANSWERV-
IfVaVhomeownerVcancelsVaVcontract,VtheVcontractorVmustVreturnVtheVhomeowner'sVdepositVwithin
V10VbusinessVdaysVfollowingVtheVreceipt.
SampleVNoticeVofVCancellationV(1-12)V-VCORRECTVANSWERV-SeeVbookVpageV1-12
WITH CORRECT ANSWERS 2025
PassingVmarkVforVexamV(%)V-VCORRECTVANSWERV-70%
TimeVrequiredVtoVretakeVexam,VifVfailedV-VCORRECTVANSWERV-
MinimumV30VdaysVfollowingVtheVfirstVfailure.
AfterVeachVsubsequentVfailure,VwaitV60Vdays.
HowVlongVareVexamVscoresVvalidVfor?V-VCORRECTVANSWERV-2Vyears
ActualVlossV-VCORRECTVANSWERV--
VTheVcostVtoVcorrectVorVcompleteVaVhomeVimprovementVthatVisVinadequateVorVincomplete.
-
VHomeownersVmayVrecoverVupVtoV$20,000VperVcontract,VnotVtoVexceedVtheVamountVpaidVtoVtheVco
ntractor.
TheVGuarantyVFundV-VCORRECTVANSWERV-
ProtectsVhomeownersVwhoVhireVlicensedVhomeVimprovementVcontractorsVagainstVactualVlossVcau
sedVbyVincomplete,Vincorrect,VorVunworkmanlikeVjob.
TheVGuarantyVFundVcanVawardVhowVmuchVforVeachVclaimV-VCORRECTVANSWERV-
TheVmaximumVamountVawardedVfromVtheVFundVisV$100,000.VIfVseveralVclaimants,VthenVeachVpers
onVwillVreceiveVanVequalVamount.
HowVisVtheVGuarantyVFundVmaintained?V-VCORRECTVANSWERV--
VTheVfundVisVmaintainedVthroughVassessmentsVpaidVbyVcontractors.V
-V$100VassessmentVfeeVtoVtheVFundVwhenVapplyingVforVtheVlicense.
-VTheyVmayVchargeV$50VtoVeachVcontractorVifVtheVamountVofVtheVFundVfallsVbelowV$250,000.
-VTheVCommissionVmayVnotVassessVcontractorsVmoreVthanV$150VperVcalendarVyear.
, RequirementsVforVaVMHICVcontractV-VCORRECTVANSWERV--
VContractVmustVcontainVContractor'sVname,Vaddress,VandVMHICVLicenseV#
-VIfVsalespersonVwasVinvolved,VincludeVtheirVnameVandVLicenseV#
MHICVContractVconsumerVnoticeV-VCORRECTVANSWERV-
ContractVmustVcontainVaVnoticeVthatVgivesVtelephoneV#VofVtheVCommissionVandVstates,
"eachVcontractorVandVsubcontractorVmustVholdVaVcurrentVMHICVlicenseVandVanyoneVcanVaskVMHIC
VaboutVaVcontractorVorVsubcontractor."
MHICVContractVneedsVtoVinformVhomeownersVofVtheseVprotectionsV-VCORRECTVANSWERV--
VFormalVmediationVofVdisputesVb/wVhomeownerVandVcontractorsVisVavailableVthroughVtheVMaryla
ndVHomeVImprovementVCommission.V
-
VMarylandVHomeVImprovementVCommissionVadministersVtheVGuarantyVFund,VwhichVmayVcompen
sateVhomeownersVforVcertainVactsVofVomissions.
-
VAVhomeownerVmayVrequestVaVcontractorVpurchaseVaVperformanceVbondVforVadditionalVprotectio
nsVnotVcoveredVbyVtheVGuarantyVFund.
DepositsVandVPaymentsV-VCORRECTVANSWERV-
AVcontractorVcannotVacceptVmoreVthanV1/3VofVtheVcontractVpriceVasVaVdepositVandVmayVnotVaccept
VanyVpaymentVuntilVtheVcontractVisVsigned.
MarylandVDoor-to-doorVSalesVActV(contractVcancelation)V-VCORRECTVANSWERV-
IfVaVhomeownerVcancelsVaVcontract,VtheVcontractorVmustVreturnVtheVhomeowner'sVdepositVwithin
V10VbusinessVdaysVfollowingVtheVreceipt.
SampleVNoticeVofVCancellationV(1-12)V-VCORRECTVANSWERV-SeeVbookVpageV1-12