MICHIGAN RESIDENTIAL 2025
BUILDER LICENSING EXAM
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
A buyer has the right to cancel a home solicitation sale until _________ of the
___________ business day. - ANSWERS-midnight, third
QUESTION 2
Notice of commencement - ANSWERS-Announces that work is about to begin on
a home building or remodeling project.
QUESTION 3
What does a notice of commencement contain? (3) - ANSWERS-1. A legal
description of the property
2. Name and address of the owner or lessee of the property
3. Name and address of the contractor.
QUESTION 4
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, MICHIGAN RESIDENTIAL 2025
BUILDER LICENSING EXAM
What does a notice of commencement indicate? (3) - ANSWERS-1. Where the
work is being done
2. Where subcontractors, suppliers, and laborer workers are to send their bills for
payment.
3. Who the responsible parties are in the contract.
QUESTION 5
What does a homeowner do with a notice of commencement? - ANSWERS-1.
Provides a copy of the form within 10 days to any subcontractor, supplier, or
laborer on the job who requests a copy
2. If homeowner doesn't live on property, they must post a copy of the form in a
conspicuous manner.
3. Keep a copy for his/her records
QUESTION 6
What does a sub, laborer, or supplier do with a notice of commencement? (3) -
ANSWERS-1. Use info to determine where to submit bills for payment
2. Use it to determine the responsible party if it becomes necessary to file a lien
3. Use the information to determine how to file a claim of lien
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2
, MICHIGAN RESIDENTIAL 2025
BUILDER LICENSING EXAM
QUESTION 7
Notice of Furnishing - ANSWERS-A notice to the owner and to the contractor
showing that a particular individual or entity is providing improvements to real
property.
QUESTION 8
Who sends a notice of furnishing? - ANSWERS-subcontractors, suppliers, or
laborers
QUESTION 9
What must be included in a notice of furnishing? (3) - ANSWERS-1. Name and
address of the party who contracted with the subs and supplier (contractor)
2. Description of the type of work performed
3. Names and addresses of potential lien claimants, subcontractors, suppliers, and
laborers.
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, MICHIGAN RESIDENTIAL 2025
BUILDER LICENSING EXAM
QUESTION 10
When should a notice of furnishing be sent? - ANSWERS-provide the notice of
furnishing within 20 days of the first date of work and/or delivery of materials.
Laborers have 30 days from the date that wages are contractually due.
QUESTION 11
Proof of Service of Notice of Furnishing - ANSWERS-Notarized form which
verifies that the notice of furnishing was sent to the appropriate individual.
QUESTION 12
Why is a Proof of Service of Notice of Furnishing necessary? - ANSWERS-If a
claim of lien is filed later, this document will be needed in order to prove the sub,
laborer, or supplier gave proper notice of what work or supplies were provided on
the job.
QUESTION 13
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4
BUILDER LICENSING EXAM
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
A buyer has the right to cancel a home solicitation sale until _________ of the
___________ business day. - ANSWERS-midnight, third
QUESTION 2
Notice of commencement - ANSWERS-Announces that work is about to begin on
a home building or remodeling project.
QUESTION 3
What does a notice of commencement contain? (3) - ANSWERS-1. A legal
description of the property
2. Name and address of the owner or lessee of the property
3. Name and address of the contractor.
QUESTION 4
END OF
PAGE
1
, MICHIGAN RESIDENTIAL 2025
BUILDER LICENSING EXAM
What does a notice of commencement indicate? (3) - ANSWERS-1. Where the
work is being done
2. Where subcontractors, suppliers, and laborer workers are to send their bills for
payment.
3. Who the responsible parties are in the contract.
QUESTION 5
What does a homeowner do with a notice of commencement? - ANSWERS-1.
Provides a copy of the form within 10 days to any subcontractor, supplier, or
laborer on the job who requests a copy
2. If homeowner doesn't live on property, they must post a copy of the form in a
conspicuous manner.
3. Keep a copy for his/her records
QUESTION 6
What does a sub, laborer, or supplier do with a notice of commencement? (3) -
ANSWERS-1. Use info to determine where to submit bills for payment
2. Use it to determine the responsible party if it becomes necessary to file a lien
3. Use the information to determine how to file a claim of lien
END OF
PAGE
2
, MICHIGAN RESIDENTIAL 2025
BUILDER LICENSING EXAM
QUESTION 7
Notice of Furnishing - ANSWERS-A notice to the owner and to the contractor
showing that a particular individual or entity is providing improvements to real
property.
QUESTION 8
Who sends a notice of furnishing? - ANSWERS-subcontractors, suppliers, or
laborers
QUESTION 9
What must be included in a notice of furnishing? (3) - ANSWERS-1. Name and
address of the party who contracted with the subs and supplier (contractor)
2. Description of the type of work performed
3. Names and addresses of potential lien claimants, subcontractors, suppliers, and
laborers.
END OF
PAGE
3
, MICHIGAN RESIDENTIAL 2025
BUILDER LICENSING EXAM
QUESTION 10
When should a notice of furnishing be sent? - ANSWERS-provide the notice of
furnishing within 20 days of the first date of work and/or delivery of materials.
Laborers have 30 days from the date that wages are contractually due.
QUESTION 11
Proof of Service of Notice of Furnishing - ANSWERS-Notarized form which
verifies that the notice of furnishing was sent to the appropriate individual.
QUESTION 12
Why is a Proof of Service of Notice of Furnishing necessary? - ANSWERS-If a
claim of lien is filed later, this document will be needed in order to prove the sub,
laborer, or supplier gave proper notice of what work or supplies were provided on
the job.
QUESTION 13
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PAGE
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