MARYLAND HOME IMPROVEMENT SALESPERSON EXAM
2026/2027 – 300 PRACTICE QUESTIONS & VERIFIED ANSWERS
| MHIC LICENSING TEST PREP, STUDY GUIDE & PASS
GUARANTEE (BRAND NEW!!)
1 The Maryland Home Improvement Commission (MHIC) is part of which state
department?
a. Department of Labor
b. Department of Commerce
c. Department of the Environment
d. Department of Assessments and Taxation
- Correct Answer- B
Rationale: MHIC operates under the Maryland Department of Labor, Licensing,
and Regulation (DLLR), which is under the Department of Commerce.
2 A home improvement salesperson license is required for any individual who:
a. Performs manual labor on a home improvement project
b. Solicits, negotiates, or sells home improvement contracts on behalf of a
licensed contractor
c. Owns a home improvement business
d. Subcontracts work to other trades
- Correct Answer- B
Rationale: A salesperson license is for individuals who sell or negotiate contracts
for home improvements, not for those who only perform labor.
1|Page
,3 Which of the following is NOT considered a home improvement under Maryland
law?
a. Roof repair
b. Installation of central air conditioning
c. New home construction on a vacant lot
d. Kitchen remodeling
- Correct Answer- C
Rationale: New home construction (building a house from the ground up) is not
considered a home improvement; it is new construction. Home improvement
refers to repairs, remodeling, alterations, or additions to existing structures.
4 The MHIC salesperson license must be renewed every:
a. 1 year
b. 2 years
c. 3 years
d. 4 years
- Correct Answer- B
Rationale: MHIC salesperson licenses are valid for two years and must be
renewed biennially.
5 A home improvement contract must include a notice of the buyer's right to
cancel within how many business days?
a. 1 business day
b. 2 business days
c. 3 business days
d. 5 business days
2|Page
,- Correct Answer- C
Rationale: Maryland law requires a three-business-day right of rescission for
home improvement contracts, unless the contract is for emergency repairs or the
consumer waives the right in writing.
6 A salesperson who changes employers (contractor) must:
a. Immediately notify the MHIC and obtain a new registration with the new
employer
b. Continue using the old registration until it expires
c. Apply for a new salesperson license
d. Only notify the new employer
- Correct Answer- A
Rationale: A salesperson license is tied to a specific contractor. Changing
employers requires updating the registration with MHIC; the salesperson must be
re-registered under the new contractor.
7 A home improvement contractor may demand a deposit that exceeds one-third
of the total contract price only if:
a. The materials are custom ordered
b. The buyer agrees in writing
c. The contractor has a surety bond
d. It is never allowed
- Correct Answer- D
Rationale: Maryland law limits deposits for home improvement contracts to no
more than one-third of the total contract price or $1,000, whichever is less, unless
specific exemptions apply. More than one-third is generally prohibited.
3|Page
, 8 The Maryland Home Improvement Commission has the authority to issue a
cease and desist order against:
a. Only licensed contractors
b. Only unlicensed individuals
c. Both licensed and unlicensed individuals practicing without a license or
violating the act
d. Only corporations
- Correct Answer- C
Rationale: MHIC can issue cease and desist orders to any person or business
violating the Home Improvement Law, whether licensed or not.
9 A salesperson who fails to renew their license before the expiration date may
renew within a grace period of:
a. 15 days
b. 30 days
c. 60 days
d. 90 days
- Correct Answer- B
Rationale: There is a 30-day grace period for renewal after the expiration date,
but a late fee applies.
10 A home improvement contract entered into by an unlicensed contractor is:
a. Voidable by the homeowner
b. Void ab initio (void from the beginning)
c. Enforceable only if the work is completed
d. Enforceable by the contractor
4|Page
2026/2027 – 300 PRACTICE QUESTIONS & VERIFIED ANSWERS
| MHIC LICENSING TEST PREP, STUDY GUIDE & PASS
GUARANTEE (BRAND NEW!!)
1 The Maryland Home Improvement Commission (MHIC) is part of which state
department?
a. Department of Labor
b. Department of Commerce
c. Department of the Environment
d. Department of Assessments and Taxation
- Correct Answer- B
Rationale: MHIC operates under the Maryland Department of Labor, Licensing,
and Regulation (DLLR), which is under the Department of Commerce.
2 A home improvement salesperson license is required for any individual who:
a. Performs manual labor on a home improvement project
b. Solicits, negotiates, or sells home improvement contracts on behalf of a
licensed contractor
c. Owns a home improvement business
d. Subcontracts work to other trades
- Correct Answer- B
Rationale: A salesperson license is for individuals who sell or negotiate contracts
for home improvements, not for those who only perform labor.
1|Page
,3 Which of the following is NOT considered a home improvement under Maryland
law?
a. Roof repair
b. Installation of central air conditioning
c. New home construction on a vacant lot
d. Kitchen remodeling
- Correct Answer- C
Rationale: New home construction (building a house from the ground up) is not
considered a home improvement; it is new construction. Home improvement
refers to repairs, remodeling, alterations, or additions to existing structures.
4 The MHIC salesperson license must be renewed every:
a. 1 year
b. 2 years
c. 3 years
d. 4 years
- Correct Answer- B
Rationale: MHIC salesperson licenses are valid for two years and must be
renewed biennially.
5 A home improvement contract must include a notice of the buyer's right to
cancel within how many business days?
a. 1 business day
b. 2 business days
c. 3 business days
d. 5 business days
2|Page
,- Correct Answer- C
Rationale: Maryland law requires a three-business-day right of rescission for
home improvement contracts, unless the contract is for emergency repairs or the
consumer waives the right in writing.
6 A salesperson who changes employers (contractor) must:
a. Immediately notify the MHIC and obtain a new registration with the new
employer
b. Continue using the old registration until it expires
c. Apply for a new salesperson license
d. Only notify the new employer
- Correct Answer- A
Rationale: A salesperson license is tied to a specific contractor. Changing
employers requires updating the registration with MHIC; the salesperson must be
re-registered under the new contractor.
7 A home improvement contractor may demand a deposit that exceeds one-third
of the total contract price only if:
a. The materials are custom ordered
b. The buyer agrees in writing
c. The contractor has a surety bond
d. It is never allowed
- Correct Answer- D
Rationale: Maryland law limits deposits for home improvement contracts to no
more than one-third of the total contract price or $1,000, whichever is less, unless
specific exemptions apply. More than one-third is generally prohibited.
3|Page
, 8 The Maryland Home Improvement Commission has the authority to issue a
cease and desist order against:
a. Only licensed contractors
b. Only unlicensed individuals
c. Both licensed and unlicensed individuals practicing without a license or
violating the act
d. Only corporations
- Correct Answer- C
Rationale: MHIC can issue cease and desist orders to any person or business
violating the Home Improvement Law, whether licensed or not.
9 A salesperson who fails to renew their license before the expiration date may
renew within a grace period of:
a. 15 days
b. 30 days
c. 60 days
d. 90 days
- Correct Answer- B
Rationale: There is a 30-day grace period for renewal after the expiration date,
but a late fee applies.
10 A home improvement contract entered into by an unlicensed contractor is:
a. Voidable by the homeowner
b. Void ab initio (void from the beginning)
c. Enforceable only if the work is completed
d. Enforceable by the contractor
4|Page
