Maryland Home Improvement Salesperson Exam 2026/2027 MHIC –
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SECTION 1: MARYLAND HOME IMPROVEMENT LAW (BUSINESS REGULATION ARTICLE
TITLE 8) (Q1–Q12)
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Question 1
Under Maryland Business Regulation Article §8-101, which of the following activities is
defined as a "home improvement" requiring MHIC licensure?
A. Construction of a new single-family residence on a vacant lot in Montgomery County
B. Replacement of a roof on an existing residential dwelling in Baltimore County
C. Painting of a commercial office building in Prince George's County
D. Landscaping of a municipal park in Anne Arundel County
Correct Answer: B
Rationale:
Business Regulation Article §8-101 defines "home improvement" as the repair,
replacement, remodeling, alteration, conversion, modernization, or addition to any
residential dwelling or structure adjacent to a dwelling. Roof replacement on an existing
residence qualifies. New home construction (Option A) is specifically excluded from the
definition. Commercial (Option C) and municipal (Option D) projects are not residential
and do not fall under MHIC jurisdiction.
Question 2
A salesperson in Montgomery County wants to obtain a Maryland Home Improvement
Salesperson license. Under §8-601, which of the following is a mandatory qualification
requirement?
,A. Completion of a 4-year college degree in business administration
B. At least 18 years of age and sponsorship by a licensed home improvement contractor
C. Prior ownership of a construction company for at least 2 years
D. Completion of a state-approved apprenticeship program in carpentry
Correct Answer: B
Rationale:
§8-601 requires that a salesperson license applicant be at least 18 years of age and be
sponsored by a licensed home improvement contractor in good standing. A college
degree (Option A), prior business ownership (Option C), and apprenticeship completion
(Option D) are not statutory requirements. The sponsorship requirement ensures that
salespersons operate under the supervision and accountability of a licensed contractor.
Question 3
A licensed contractor in Howard County performs a kitchen remodel for $35,000. The
homeowner pays a 75% deposit upfront. Under §8-301, which statement accurately
reflects the legal payment schedule requirements?
A. The contractor may require any deposit amount as long as it is specified in the
written contract
B. The contractor may not require a deposit exceeding one-third of the total contract
price
C. The contractor may require up to 50% deposit for projects exceeding $25,000
D. The contractor may require full payment before work begins if the homeowner agrees
in writing
Correct Answer: B
Rationale:
§8-301 prohibits contractors from requiring a deposit exceeding one-third of the total
contract price before work begins. This protects consumers from excessive upfront
payments. Any deposit above this limit (Options A, C, D) violates the statute, regardless
,of contract terms or homeowner agreement. The remaining payments must be tied to
completion milestones or time-based schedules.
Question 4
Under §8-201, which of the following is NOT a ground for the Maryland Home
Improvement Commission to deny, suspend, or revoke a contractor's license?
A. Fraud or misrepresentation in obtaining the license
B. Abandonment of a home improvement contract without legal excuse
C. Failure to maintain a current business telephone number
D. Diversion of funds received for a home improvement project
Correct Answer: C
Rationale:
§8-201 establishes specific grounds for disciplinary action, including fraud (Option A),
abandonment (Option B), and diversion of funds (Option D). While maintaining accurate
contact information is a best practice, failure to maintain a current telephone number
(Option C) is not a statutory ground for license denial, suspension, or revocation. The
Commission focuses on substantive violations affecting consumer protection.
Question 5
A homeowner in Carroll County enters into a written contract for a $12,000 deck
installation. The contract is signed on a Saturday. Under §8-501 and the Maryland
Door-to-Door Sales Act, when does the homeowner's 3-day right of rescission expire?
A. Midnight on Monday (the next business day)
B. Midnight on Tuesday (three business days from Saturday)
C. Midnight on Wednesday (three calendar days from Saturday)
D. The right of rescission does not apply because the contract was signed at the
contractor's place of business
Correct Answer: B
, Rationale:
The 3-day right of rescission under §8-501 and the Door-to-Door Sales Act provides
three business days to cancel a contract signed at the consumer's residence or at a
location other than the seller's permanent place of business. Saturday is not a business
day for rescission purposes; the period begins Monday and expires at midnight
Wednesday (three business days: Monday, Tuesday, Wednesday). Option A is too short.
Option C incorrectly uses calendar days. Option D is incorrect because the right applies
to contracts signed at the consumer's residence regardless of the contractor's business
location.
Question 6
Under §8-101, which of the following projects is EXCLUDED from the definition of "home
improvement" and does not require MHIC licensure?
A. Installation of a swimming pool in a residential backyard
B. Construction of a new detached garage on an existing residential property
C. New construction of a single-family dwelling on a previously undeveloped lot
D. Replacement of a residential HVAC system
Correct Answer: C
Rationale:
§8-101 specifically excludes "new home construction" from the definition of home
improvement. New construction of a single-family dwelling on undeveloped land (Option
C) falls outside MHIC jurisdiction. Installation of a swimming pool (Option A), detached
garage construction (Option B), and HVAC replacement (Option D) all constitute home
improvements on existing residential properties and require MHIC licensure.
Question 7
A contractor in Prince George's County fails to complete a $25,000 bathroom remodel
after receiving full payment. The contractor declares bankruptcy and cannot be located.
The homeowner files a claim with the MHIC Guaranty Fund. Under §8-601.1, what is the
Complete Exam Questions with Detailed Rationales | 100% Verified –
Pass Guaranteed – A+ Graded
──────────────────────────────
SECTION 1: MARYLAND HOME IMPROVEMENT LAW (BUSINESS REGULATION ARTICLE
TITLE 8) (Q1–Q12)
──────────────────────────────
Question 1
Under Maryland Business Regulation Article §8-101, which of the following activities is
defined as a "home improvement" requiring MHIC licensure?
A. Construction of a new single-family residence on a vacant lot in Montgomery County
B. Replacement of a roof on an existing residential dwelling in Baltimore County
C. Painting of a commercial office building in Prince George's County
D. Landscaping of a municipal park in Anne Arundel County
Correct Answer: B
Rationale:
Business Regulation Article §8-101 defines "home improvement" as the repair,
replacement, remodeling, alteration, conversion, modernization, or addition to any
residential dwelling or structure adjacent to a dwelling. Roof replacement on an existing
residence qualifies. New home construction (Option A) is specifically excluded from the
definition. Commercial (Option C) and municipal (Option D) projects are not residential
and do not fall under MHIC jurisdiction.
Question 2
A salesperson in Montgomery County wants to obtain a Maryland Home Improvement
Salesperson license. Under §8-601, which of the following is a mandatory qualification
requirement?
,A. Completion of a 4-year college degree in business administration
B. At least 18 years of age and sponsorship by a licensed home improvement contractor
C. Prior ownership of a construction company for at least 2 years
D. Completion of a state-approved apprenticeship program in carpentry
Correct Answer: B
Rationale:
§8-601 requires that a salesperson license applicant be at least 18 years of age and be
sponsored by a licensed home improvement contractor in good standing. A college
degree (Option A), prior business ownership (Option C), and apprenticeship completion
(Option D) are not statutory requirements. The sponsorship requirement ensures that
salespersons operate under the supervision and accountability of a licensed contractor.
Question 3
A licensed contractor in Howard County performs a kitchen remodel for $35,000. The
homeowner pays a 75% deposit upfront. Under §8-301, which statement accurately
reflects the legal payment schedule requirements?
A. The contractor may require any deposit amount as long as it is specified in the
written contract
B. The contractor may not require a deposit exceeding one-third of the total contract
price
C. The contractor may require up to 50% deposit for projects exceeding $25,000
D. The contractor may require full payment before work begins if the homeowner agrees
in writing
Correct Answer: B
Rationale:
§8-301 prohibits contractors from requiring a deposit exceeding one-third of the total
contract price before work begins. This protects consumers from excessive upfront
payments. Any deposit above this limit (Options A, C, D) violates the statute, regardless
,of contract terms or homeowner agreement. The remaining payments must be tied to
completion milestones or time-based schedules.
Question 4
Under §8-201, which of the following is NOT a ground for the Maryland Home
Improvement Commission to deny, suspend, or revoke a contractor's license?
A. Fraud or misrepresentation in obtaining the license
B. Abandonment of a home improvement contract without legal excuse
C. Failure to maintain a current business telephone number
D. Diversion of funds received for a home improvement project
Correct Answer: C
Rationale:
§8-201 establishes specific grounds for disciplinary action, including fraud (Option A),
abandonment (Option B), and diversion of funds (Option D). While maintaining accurate
contact information is a best practice, failure to maintain a current telephone number
(Option C) is not a statutory ground for license denial, suspension, or revocation. The
Commission focuses on substantive violations affecting consumer protection.
Question 5
A homeowner in Carroll County enters into a written contract for a $12,000 deck
installation. The contract is signed on a Saturday. Under §8-501 and the Maryland
Door-to-Door Sales Act, when does the homeowner's 3-day right of rescission expire?
A. Midnight on Monday (the next business day)
B. Midnight on Tuesday (three business days from Saturday)
C. Midnight on Wednesday (three calendar days from Saturday)
D. The right of rescission does not apply because the contract was signed at the
contractor's place of business
Correct Answer: B
, Rationale:
The 3-day right of rescission under §8-501 and the Door-to-Door Sales Act provides
three business days to cancel a contract signed at the consumer's residence or at a
location other than the seller's permanent place of business. Saturday is not a business
day for rescission purposes; the period begins Monday and expires at midnight
Wednesday (three business days: Monday, Tuesday, Wednesday). Option A is too short.
Option C incorrectly uses calendar days. Option D is incorrect because the right applies
to contracts signed at the consumer's residence regardless of the contractor's business
location.
Question 6
Under §8-101, which of the following projects is EXCLUDED from the definition of "home
improvement" and does not require MHIC licensure?
A. Installation of a swimming pool in a residential backyard
B. Construction of a new detached garage on an existing residential property
C. New construction of a single-family dwelling on a previously undeveloped lot
D. Replacement of a residential HVAC system
Correct Answer: C
Rationale:
§8-101 specifically excludes "new home construction" from the definition of home
improvement. New construction of a single-family dwelling on undeveloped land (Option
C) falls outside MHIC jurisdiction. Installation of a swimming pool (Option A), detached
garage construction (Option B), and HVAC replacement (Option D) all constitute home
improvements on existing residential properties and require MHIC licensure.
Question 7
A contractor in Prince George's County fails to complete a $25,000 bathroom remodel
after receiving full payment. The contractor declares bankruptcy and cannot be located.
The homeowner files a claim with the MHIC Guaranty Fund. Under §8-601.1, what is the
