MICHIGAN RESIDENTIAL BUILDER LICENSING
2026 FINAL REVIEW PACK COMPLETE
QUESTION SET AND CORE CONCEPT
SUMMARY
◉ Salesperson. Answer: An employee or agent of a licensed builder
or licensed M&A Contractor who sells, solicits, or contracts for
compensation/commission.
◉ State Defined When you need a license. Answer: Includes
commissioned salespeople, contractors who refer customers for a
fee, and staff in model homes selling products for installation on
behalf of the builder.
◉ Fines for practicing without a license. Answer: $500 fine,
misdemeanor, and 90 days in prison.
◉ LARA. Answer: Department of Licensing and Regulatory Affairs,
overseeing agencies and commissions promoting business growth
while safeguarding Michigan citizens' health and safety.
◉ Board of Residential Builders. Answer: Comprising 9 members: 6
builders (4 residential, 2 M&A), and 3 from the general public
(including 1 residential building inspector).
, ◉ Bureau of Commercial Services. Answer: Supporting
administrative needs of the board and director, with the Licensing
Division known as the Builder's Unit.
◉ Article 2. Answer: Involves the Director appointed by the
governor to investigate licensees and qualify new applicants.
◉ License Renewal. Answer: Must be applied for before or on the
expiration date, including the license fee and meeting renewal
requirements.
◉ License Limitations. Answer: May be imposed if a hearing is
requested, with the board deciding on renewal requests within 30
days.
◉ Department Complaint Process. Answer: Allows any person or
entity to file a complaint for alleged law violations, triggering an
investigation and potential actions like formal complaints or
citations.
◉ Respondent. Answer: The person against whom a complaint is
filed, subject to investigation and potential penalties as per Michigan
licensing laws.
2026 FINAL REVIEW PACK COMPLETE
QUESTION SET AND CORE CONCEPT
SUMMARY
◉ Salesperson. Answer: An employee or agent of a licensed builder
or licensed M&A Contractor who sells, solicits, or contracts for
compensation/commission.
◉ State Defined When you need a license. Answer: Includes
commissioned salespeople, contractors who refer customers for a
fee, and staff in model homes selling products for installation on
behalf of the builder.
◉ Fines for practicing without a license. Answer: $500 fine,
misdemeanor, and 90 days in prison.
◉ LARA. Answer: Department of Licensing and Regulatory Affairs,
overseeing agencies and commissions promoting business growth
while safeguarding Michigan citizens' health and safety.
◉ Board of Residential Builders. Answer: Comprising 9 members: 6
builders (4 residential, 2 M&A), and 3 from the general public
(including 1 residential building inspector).
, ◉ Bureau of Commercial Services. Answer: Supporting
administrative needs of the board and director, with the Licensing
Division known as the Builder's Unit.
◉ Article 2. Answer: Involves the Director appointed by the
governor to investigate licensees and qualify new applicants.
◉ License Renewal. Answer: Must be applied for before or on the
expiration date, including the license fee and meeting renewal
requirements.
◉ License Limitations. Answer: May be imposed if a hearing is
requested, with the board deciding on renewal requests within 30
days.
◉ Department Complaint Process. Answer: Allows any person or
entity to file a complaint for alleged law violations, triggering an
investigation and potential actions like formal complaints or
citations.
◉ Respondent. Answer: The person against whom a complaint is
filed, subject to investigation and potential penalties as per Michigan
licensing laws.
