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Maryland Home Improvement Exam | 2025 Test Bank with 180+ Questions & Answers | Contractor Licensing, OSHA, Estimating, Business Law | University of Maryland

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This document contains over 180 fully answered and updated practice questions for the Maryland Home Improvement License Exam (MHIC) for the 2025/2026 testing year. Designed to closely mirror the actual exam structure, this study resource covers all key topics required for passing the MHIC exam, including contractor regulations, licensing requirements, business and labor law, insurance, OSHA compliance, estimating methods, lien laws, and more. Each question is paired with the correct answer and concise explanation, making this a powerful tool for exam preparation, revision, and practical understanding of Maryland’s legal and professional standards for home improvement contractors. It also includes detailed content on the Guaranty Fund, mold remediation law, advertising regulations, subcontractor roles, employment law, and construction safety practices—critical knowledge areas for any aspiring licensed contractor in Maryland. This document is especially relevant for: Home Improvement Contractor applicants preparing for the MHIC licensing exam Trade school students studying construction business management or residential contracting Construction managers and subcontractors seeking MHIC compliance understanding Entrepreneurs starting a construction or renovation business in Maryland Business law students with a focus on construction and licensing regulations Vocational training programs in general contracting, OSHA safety, or project estimating Whether you're aiming to become a licensed contractor or deepening your professional knowledge, this comprehensive guide provides a clear and structured approach to mastering the material. Keywords: MHIC exam 2025, Maryland contractor license, home improvement test, subcontractor licensing, Guaranty Fund, contractor insurance, OSHA Maryland, contract law, lien rights, construction estimating, bid bonds, performance bonds, mold remediation law, business law construction, project overhead, home renovation law, licensing requirements Maryland, Maryland Department of Labor, residential contractor exam, OSHA safety standards

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Maryland Home Improvement Test
2025/2026 Exam Questions and Correct
Answers | New Update



Define home improvement - 🧠 ANSWER ✔✔The addition, alteration,

conversion, improvement, modernization, remodeling, repair or

replacement of a building or part of a building that is used or was designed

to be used as a residence or dwelling place or structure adjacent to that

building or an improvement to land adjacent to that building

Is a building of a swimming pool, deck, pier or porch included in Home

Improvement? - 🧠 ANSWER ✔✔Yes


Is work done on apartment complexes of more than 4 units considered

home improvement? - 🧠 ANSWER ✔✔No


Is work done on individual condominium units considered home

improvement? - 🧠 ANSWER ✔✔Yes

,Is installation in a residence of alarm, awning or fire alarm considered

home improvement? - 🧠 ANSWER ✔✔Yes


Is now removal or grass cutting home improvement? - 🧠 ANSWER ✔✔No


Define contractor - 🧠 ANSWER ✔✔A person who performs or offers or

agrees to perform a home improvement for an owner


Define Subcontractor - 🧠 ANSWER ✔✔A subcontractor enters into

contracts with contractors or other subcontractors to perform home

improvement. A subcontractor is not authorized to enter into agreement

directly with the owner


Define salesperson - 🧠 ANSWER ✔✔A person who sells a home

improvement


Define Home Improvement contract - 🧠 ANSWER ✔✔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 - 🧠 ANSWER ✔✔Owner, owner's agent , tenant or other

person authorized to enter into a home improvement contract

,Define license - 🧠 ANSWER ✔✔is either a contractor or salesperson

license that is issued by the Home Improvement Commission.


Does a handyman need a license? - 🧠 ANSWER ✔✔Yes


True or False: Home Improvement law does not apply if one of the parties

is a government agency - 🧠 ANSWER ✔✔True


Work done a residence inside a military base is excluded from licensing

requirements - 🧠 ANSWER ✔✔True


Can local jurisdictions issue home improvement lincenses - 🧠 ANSWER

✔✔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? - 🧠

ANSWER ✔✔No, waiver is prohibited


When was the commission established? - 🧠 ANSWER ✔✔1962


How Many commissioners are there? - 🧠 ANSWER ✔✔9 (4 must have

experience in the business of home improvement; 4 are members of the




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, general public that represent cosumers; and 1 must have experience in

banking and finance)

What is the most important role of the Commissioners? - 🧠 ANSWER

✔✔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? - 🧠 ANSWER ✔✔bi-monthly. Meetings are

open to the public.


What is the requirement for Commissioners? - 🧠 ANSWER ✔✔Must be a

resident of MD for at least 5 years


How long if the Commissioner's term? - 🧠 ANSWER ✔✔4 years


Where is the Commission's office? - 🧠 ANSWER ✔✔Baltimore, MD


Who appoints the Executive Director? - 🧠 ANSWER ✔✔The Secretary of

Department of Labor, Licensing and Regulation


What is the Executive Director responsible for? - 🧠 ANSWER ✔✔the daily

operations of the Commission and signs under the seal letters affirming the

licensing status of individuals for court proceedings. The Executive director

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