MICHIGAN RESIDENTIAL BUILDER'S LICENSE TEST BANK|800+ QUESTIONS AND
ANSWERS, 100% CORRECT| A+ RATED SOLUTION GUIDE| LATEST
Question 1
What is the legal penalty for a first-offense conviction of engaging in the practice of residential
building, or maintenance and alteration contracting, without a license?
A) A fine of $500 and 90 days in jail.
B) A fine of $1,000 to $5,000 and 6 months in jail.
C) A fine of not less than $5,000 and not more than $25,000, and/or 1 year of imprisonment.
D) A fine of not less than $10,000 and 2 years of imprisonment.
E) Only a permanent ban from applying for a license in the future.
Correct Answer: C) Not less than $5,000 and not more than
25,000∧¿∨1 yearofimprisonment .∗Rationale :UnderMichiganlaw ,unlicensedresidentialconstructionistreatedas
5,000) and significant jail time (up to 1 year) for the first offense to deter individuals from
bypassing the safety and competency standards required by the Occupational Code.
Question 2
If an unlicensed individual engages in residential building and the resulting work or lack of
licensure is associated with a site-related death, what is the maximum penalty?
A) A fine of $25,000 and 2 years in prison.
B) A fine of not less than $5,000 and not more than $50,000, and/or 4 years of imprisonment.
C) Life imprisonment and a $100,000 fine.
D) A mandatory 10-year prison sentence.
E) A fine of $5,000 and 90 days in jail.
Correct Answer: B) Not less than $5,000 and not more than $50,000 and/or 4 years of
imprisonment.
Rationale: When unlicensed activity leads to a fatality, the charge is elevated to a felony.
The financial penalty ceiling doubles to $50,000 and the potential prison time increases to 4
years, reflecting the severity of the harm caused to the public by the unauthorized practice.
Question 3
When completing an individual builder's license application, what must be provided as the
, 2
"business address"?
A) The address of the nearest LARA office.
B) The address of the primary project site.
C) Your personal residence address.
D) A PO Box located within the county of operation.
E) The address of the local building department.
Correct Answer: C) Your personal address
Rationale: For an individual license (as opposed to a corporation or LLC), the state requires
the personal address of the applicant to be listed as the business address. This ensures that
the Department has a reliable physical location for serving legal documents, notices of
complaints, and official correspondence directly to the licensee.
Question 4
What is the current total cost required by the State of Michigan for an individual residential
builder’s license?
A) $100
B) $150
C) $195
D) $250
E) $500
Correct Answer: C) $195
Rationale: The $195 fee is established under the State License Fee Act. This fee covers the
administrative costs of processing the application and the initial licensure period. It is
important to note that this is separate from the testing fees paid to the third-party testing
agency.
Question 5
A Michigan Residential Builder’s License is comprehensive, but it excludes certain specialized
trades. Which of the following trades are NOT covered by this license?
A) Roofing, Siding, and Insulation.
B) Carpentry, Concrete, and Excavation.
, 3
C) Plumbing, Electrical, and HVAC.
D) Painting, Tiling, and Drywall.
E) Masonry, Demolition, and Landscaping.
Correct Answer: C) Plumbing, Electrical, and HVAC.
Rationale: Plumbing, electrical, and mechanical (HVAC) work are regulated under separate
statutes and boards in Michigan. Even a licensed Residential Builder must hire separate
master-level licensees for these trades or hold those specific licenses themselves to perform
that work legally.
Question 6
Which company is currently contracted by the State of Michigan to administer the Residential
Builder’s Exam?
A) Pearson VUE
B) Prometric
C) PSI
D) ACT
E) Kaplan
Correct Answer: C) PSI
Rationale: PSI Services LLC is the exclusive provider for skilled trades testing for the State
of Michigan. They manage the testing centers, the scheduling of exams, and the delivery of
the Practice & Trade and Business & Law portions of the builder's exam.
Question 7
What is the specific name of the state department responsible for the regulation and oversight of
the Michigan Builders License?
A) The Department of State
B) The Department of Commerce
C) LARA (Licensing and Regulatory Affairs)
D) The Department of Natural Resources
E) The Department of Treasury
, 4
Correct Answer: C) LARA
Rationale: LARA is the umbrella agency that oversees professional licensing in Michigan.
Within LARA, the Bureau of Professional Licensing and the Bureau of Construction Codes
work together to ensure builders meet all statutory requirements and adhere to state safety
codes.
Question 8
What is a mandatory requirement for an applicant to be allowed to sit for the licensing exam at a
PSI testing center?
A) Proof of $1,000,000 in liability insurance.
B) Presentation of two forms of valid identification.
C) A letter of recommendation from a current licensee.
D) A notarized copy of their high school diploma.
E) A copy of their most recent tax return.
Correct Answer: B) Present 2 forms of ID
Rationale: To prevent fraud and ensure that the person taking the exam is the actual
applicant, PSI requires two forms of identification. Usually, this involves one government-
issued photo ID (like a driver's license) and a secondary form of ID (like a credit card or
social security card) with a matching signature.
Question 9
Through which methods can an applicant schedule their examination with the state testing
provider, PSI?
A) Only in person at the LARA office.
B) Only via a written letter to the Governor.
C) Online, Mail, or Phone/Fax.
D) Only through a licensed pre-licensure school.
E) By visiting any local Secretary of State branch.
Correct Answer: C) Online, Mail, or Phone/Fax.
Rationale: PSI provides multiple channels for scheduling to accommodate different levels of
ANSWERS, 100% CORRECT| A+ RATED SOLUTION GUIDE| LATEST
Question 1
What is the legal penalty for a first-offense conviction of engaging in the practice of residential
building, or maintenance and alteration contracting, without a license?
A) A fine of $500 and 90 days in jail.
B) A fine of $1,000 to $5,000 and 6 months in jail.
C) A fine of not less than $5,000 and not more than $25,000, and/or 1 year of imprisonment.
D) A fine of not less than $10,000 and 2 years of imprisonment.
E) Only a permanent ban from applying for a license in the future.
Correct Answer: C) Not less than $5,000 and not more than
25,000∧¿∨1 yearofimprisonment .∗Rationale :UnderMichiganlaw ,unlicensedresidentialconstructionistreatedas
5,000) and significant jail time (up to 1 year) for the first offense to deter individuals from
bypassing the safety and competency standards required by the Occupational Code.
Question 2
If an unlicensed individual engages in residential building and the resulting work or lack of
licensure is associated with a site-related death, what is the maximum penalty?
A) A fine of $25,000 and 2 years in prison.
B) A fine of not less than $5,000 and not more than $50,000, and/or 4 years of imprisonment.
C) Life imprisonment and a $100,000 fine.
D) A mandatory 10-year prison sentence.
E) A fine of $5,000 and 90 days in jail.
Correct Answer: B) Not less than $5,000 and not more than $50,000 and/or 4 years of
imprisonment.
Rationale: When unlicensed activity leads to a fatality, the charge is elevated to a felony.
The financial penalty ceiling doubles to $50,000 and the potential prison time increases to 4
years, reflecting the severity of the harm caused to the public by the unauthorized practice.
Question 3
When completing an individual builder's license application, what must be provided as the
, 2
"business address"?
A) The address of the nearest LARA office.
B) The address of the primary project site.
C) Your personal residence address.
D) A PO Box located within the county of operation.
E) The address of the local building department.
Correct Answer: C) Your personal address
Rationale: For an individual license (as opposed to a corporation or LLC), the state requires
the personal address of the applicant to be listed as the business address. This ensures that
the Department has a reliable physical location for serving legal documents, notices of
complaints, and official correspondence directly to the licensee.
Question 4
What is the current total cost required by the State of Michigan for an individual residential
builder’s license?
A) $100
B) $150
C) $195
D) $250
E) $500
Correct Answer: C) $195
Rationale: The $195 fee is established under the State License Fee Act. This fee covers the
administrative costs of processing the application and the initial licensure period. It is
important to note that this is separate from the testing fees paid to the third-party testing
agency.
Question 5
A Michigan Residential Builder’s License is comprehensive, but it excludes certain specialized
trades. Which of the following trades are NOT covered by this license?
A) Roofing, Siding, and Insulation.
B) Carpentry, Concrete, and Excavation.
, 3
C) Plumbing, Electrical, and HVAC.
D) Painting, Tiling, and Drywall.
E) Masonry, Demolition, and Landscaping.
Correct Answer: C) Plumbing, Electrical, and HVAC.
Rationale: Plumbing, electrical, and mechanical (HVAC) work are regulated under separate
statutes and boards in Michigan. Even a licensed Residential Builder must hire separate
master-level licensees for these trades or hold those specific licenses themselves to perform
that work legally.
Question 6
Which company is currently contracted by the State of Michigan to administer the Residential
Builder’s Exam?
A) Pearson VUE
B) Prometric
C) PSI
D) ACT
E) Kaplan
Correct Answer: C) PSI
Rationale: PSI Services LLC is the exclusive provider for skilled trades testing for the State
of Michigan. They manage the testing centers, the scheduling of exams, and the delivery of
the Practice & Trade and Business & Law portions of the builder's exam.
Question 7
What is the specific name of the state department responsible for the regulation and oversight of
the Michigan Builders License?
A) The Department of State
B) The Department of Commerce
C) LARA (Licensing and Regulatory Affairs)
D) The Department of Natural Resources
E) The Department of Treasury
, 4
Correct Answer: C) LARA
Rationale: LARA is the umbrella agency that oversees professional licensing in Michigan.
Within LARA, the Bureau of Professional Licensing and the Bureau of Construction Codes
work together to ensure builders meet all statutory requirements and adhere to state safety
codes.
Question 8
What is a mandatory requirement for an applicant to be allowed to sit for the licensing exam at a
PSI testing center?
A) Proof of $1,000,000 in liability insurance.
B) Presentation of two forms of valid identification.
C) A letter of recommendation from a current licensee.
D) A notarized copy of their high school diploma.
E) A copy of their most recent tax return.
Correct Answer: B) Present 2 forms of ID
Rationale: To prevent fraud and ensure that the person taking the exam is the actual
applicant, PSI requires two forms of identification. Usually, this involves one government-
issued photo ID (like a driver's license) and a secondary form of ID (like a credit card or
social security card) with a matching signature.
Question 9
Through which methods can an applicant schedule their examination with the state testing
provider, PSI?
A) Only in person at the LARA office.
B) Only via a written letter to the Governor.
C) Online, Mail, or Phone/Fax.
D) Only through a licensed pre-licensure school.
E) By visiting any local Secretary of State branch.
Correct Answer: C) Online, Mail, or Phone/Fax.
Rationale: PSI provides multiple channels for scheduling to accommodate different levels of
