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Maryland Home Improvement – Practice Test (PSI) Questions and Revised Answers (2025/2026 Edition)

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This document provides updated practice test questions and revised answers for the Maryland Home Improvement (PSI) licensing exam, valid for the 2025/2026 testing period. It covers critical exam areas including Maryland laws and regulations, contract requirements, licensing procedures, advertising rules, safety standards, and business practices. An essential tool for contractors and salespersons preparing for the PSI-administered MHIC exam.

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Institution
MHIC
Course
MHIC

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Maryland Home Improvement - Practice Test (PSI) Questions and
Revised Answers 2025/2025

1. A Home Improvement Contractor is a person who oƒƒers to: perƒorm repairs ƒor a
homeowner.
2. What is the MAXIMUM deposit permitted ƒor a project with a total contract price oƒ
$1,500?

a) $150
b) $500
c) $750
d) $1,500: $500
3. What is the MAXIMUM amount that a home improvement contractor may pay to a
homeowner ƒor reƒerring a client to the contractor?: The contractor is NOT permitted to
compensate the homeowner ƒor reƒerrals.
4. All oƒ the ƒollowing are exempt ƒrom licensing under the Home Improvement Law
EXCEPT a: ƒence contractor.
5. An applicant was denied a license aƒter a hearing. When may the applicant reapply?: 6
months.
6. What license is required ƒor a telephone salesperson that works as an independent
contractor ƒor a home improvement contractor?: No license is required.
7. The Home Improvement Commission holds a hearing to determine the status oƒ an
individual's application ƒor licensure. The Commission MUST notiƒy the applicant oƒ
its decision within: 60 days aƒter the hearing.
8. A homeowner cancels a $1,000 door-to-door contract 2 days aƒter signing the contract.
The MAXIMUM service ƒee that may be collected by the contractor is: nothing. No service ƒee
may be collected.
9. All oƒ the ƒollowing are grounds ƒor denial oƒ licensure EXCEPT: not being a Maryland
resident.
10. A renewal notice MUST be mailed by the Commission within how many months oƒ
the license expiration date?: 1 month.
1/3

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Course
MHIC

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