MARYBLAND HOME IMPROVEMENT EXAM QUESTION AND CORRECT ANSWERS/ACCRATE REAL EXAM WITH FREQUENTLY TESTED QUESTIONS. Define Home Improvement contract - correct answers-An agrement between a homeowner and a contractor to perform a home improvement. The la

MARYBLAND HOME IMPROVEMENT EXAM QUESTION AND CORRECT ANSWERS/ACCRATE REAL EXAM WITH FREQUENTLY TESTED QUESTIONS. Define Home Improvement contract - correct answers-An agrement between a homeowner and a contractor to perform a home improvement. The law requires contracts to be in writing and be signed by the parties to the agreement. Define Owner - correct answers-Owner, owner's agent , tenant or other person authorized to enter into a home improvement contract Define license - correct answers-is either a contractor or salesperson license that is issued by the Home Improvement Commission. Does a handyman need a license? - correct answers-Yes True or False: Home Improvement law does not apply if one of the parties is a government agency - correct answers-True Work done a residence inside a military base is excluded from licensing requirements - correct answers-True Can local jurisdictions issue home improvement lincenses - correct answers-No, only MD Home Improvement Commission is authorized to issue a license to solicit, sell, or perform home improvement services in Maryland Can two or more individuals (such as homeowner and contractor) lawfully agree to ignore the Home Improvement licensing requirement? - correct answers-No, waiver is prohibited When was the commission established? - correct answers-1962 How Many commissioners are there? - correct answers-9 (4 must have experience in the business of home improvement; 4 are members of the general public that represent cosumers; and 1 must have experience in banking and finance) What is the most important role of the Commissioners? - correct answers-To promulgate regulations for the Commission. These regulations help the public better understand the Home Improvement Law and the Commission's policies How often are the meetings? - correct answers-bi-monthly. Meetings are open to the public. What is the requirement for Commissioners? - correct answers-Must be a resident of MD for at least 5 years How long if the Commissioner's term? - correct answers-4 years Where is the Commission's office? - correct answers-Baltimore, MD Who appoints the Executive Director? - correct answers-The Secretary of Department of Labor, Licensing and Regulation What is the Executive Director responsible for? - correct answers-the daily operations of the Commission and signs under the seal letters affirming the licensing status of individuals for court proceedings. The Executive director is also responsible for compiling and maintaining a copy of the Commission's current regulations What do investigators do? - correct answers-The Commission also employs investigators that review the complaints and Guaranty Fund claims that are received by the Commission. The investigators review complaints against licensed and unlicensed contractors and salespersons. If an investigator determines that a violation may have occurred, what actions can the Commission take? - correct answers-The Commission may take disciplinary action which may include reprimand, monetary fine or suspension or revocation of the license. True or False: An individual who holds a home improvement license as a contractor is NOT required to obtain a construction license from the Circuit Courts - correct answers-True How long are exams valid for? - correct answers-2 years If a candidate fails the exam, how long must he/she wait before retaking it? - correct answers-30 days the first time. After each subsequent failure a candidate must wait 60 days. What is the insurance requirement for contractor? - correct answers-General Liability at least $50,000 What is the Home Improvement Guaranty Fund? - correct answers-One of the Commissions most important function is to administer the Home Improvement Guaranty Fund. The fund compensates homeowners for the actual loss caused by the acts or omissions of a licensed contractor. True or False: Is a homeowner hires an unlicensed contractor he/she is eligible to collect money from the fund? - correct answers-FALSE - if a homeowner hires an unlicensed contractor, the homeowner will NOT be eligible to collect money from the Fund. What is Actual Loss? - correct answers-Actual Loss means the cost to correct or complete a home improvement that is inadequate, unworkmanlike or incomplete. How much can homeowners recover? - correct answers-Homeowners may recover up to $20,000 per contract, though they are not eligible to recover more than the amount paid to the contractor against whom the claim is based. Certain costs like: legal fees, interest, consequential damages are not covered by the Fund. What is the max amount that can be awarded from the Guaranty Fund for the acts or omissions of a contractor? - correct answers-$100,000 How is the Fund maintained? - correct answers-$100 by each contractor at the time of applying for a license. The Commission may also assess each contractor a fee of $50 if the Fund falls below $250,000 How many days does the contractor have to respond to claims from a homeowner once it has been received by the commission? - correct answers-Once the Commission receives a claim, it send a copy to the contractor who has 10 days to respond back to the Commission. Who is not eligible to collect from the Fund? - correct answers-Spouse, relative, or employee of the contractor, or an officer of the corporation. Similarly, an owner may only receive compensation if she/he resides in the house where the work was performed or does not own more than 3 residences. What happens to the license of the contractor after a claim has been paid? - correct answersThe licensed is suspended, unless the commission determines that contractor did not know the wrongful conduct or it could had not been avoided What is required in a home Improvement contract? - correct answers-Date Contractors name, address, and MHIC number Consumer Notice Dates Description of work Deposit and Payment information What is Consumer Notice? - correct answers-It provides phone of the Commission and states that "each contractor and subcontractor must hold a current MHIC license and anyone can ask MHIC about a contractor