builders license michigan 2025
questions with correct answers
penalty for engaging in practice of residential building without a license? - CORRECT ANSWER-✔✔✅not
less than $5000 and not more than $25,000 and/ or one year
whats the penalty for engaging in the practice of residential builders license resulting in a death? -
CORRECT ANSWER-✔✔✅not less than $5000 and not more than $25000 and/or 4 years
on individual builders license application what should you write as your business address? - CORRECT
ANSWER-✔✔✅your personal address
what is the cost for the individual builders license? - CORRECT ANSWER-✔✔✅$195
after receiving your builders license, what are the only trades not covered by it? - CORRECT ANSWER-
✔✔✅plumbing, electrical, hvac
who is the testing company for the state of michigan? - CORRECT ANSWER-✔✔✅PSI
what is the name of the dept that regulates your license? - CORRECT ANSWER-✔✔✅LARA
before the test you must? - CORRECT ANSWER-✔✔✅present 2 valid forms of identification
in order to schedule your test with PSI you may? - CORRECT ANSWER-✔✔✅schedule online, by mail, by
phone or fax
when will you recieve your test score? - CORRECT ANSWER-✔✔✅as soon as you complete the test
what are the 2 parts of the residential builders exam? - CORRECT ANSWER-✔✔✅Business and law/
practice and trade exam
,How long will you have to complete the practice and trade portion of the exam? - CORRECT ANSWER-
✔✔✅180 minutes
what is the quick asset ratio? - CORRECT ANSWER-✔✔✅1 to 1
Under the Carpentry section of the test, what does a "span table" tell us? - CORRECT ANSWER-
✔✔✅what species and what grade of lumber a floor joist has to be to span a certain distance
what of the following topics will be on covered in the exam? - CORRECT ANSWER-✔✔✅carpentry,
roofing, insulation
which is not a reason you need a residential builders license? - CORRECT ANSWER-✔✔✅it allows you to
work on commercial projects
where does most fraud occur? - CORRECT ANSWER-✔✔✅residential market
as a builder your license falls under the regulation of? - CORRECT ANSWER-✔✔✅both rules by the
director and board as well as laws of the state of michigan
what is the make up of the 9 members of the board? - CORRECT ANSWER-✔✔✅6 individuals that have
a license or registration in the occupation in which the board monitors and 3 members of the general
public
under the definition of occupational code, what does the word "limitation" refer to? - CORRECT
ANSWER-✔✔✅a condition, stricture, restraint or problem attached to a license relative to the scope of
practice?
Who, upon completion of a hearing, shall assess a penalty or penalties? - CORRECT ANSWER-✔✔✅the
board
,If you fail to renew your license or registration on or before the expiration date, how many days do you
have to resubmit with the proper payment and late fee? - CORRECT ANSWER-✔✔✅60 days
when the dept is investigating a complaint and finds evidence of a violation, what actions can be
brought against the correspondent? - CORRECT ANSWER-✔✔✅a cease and desist order, a formal
complaint, a citation
how many days after the administrative law hearings examiner hears the report, must a determination
of penalties be made by the board? - CORRECT ANSWER-✔✔✅60 days
what is a compliance conference? - CORRECT ANSWER-✔✔✅a meeting where the respondent meets
with the department to discuss the complaint against them
which of the following is not a penalty for operating without a residential builders license? - CORRECT
ANSWER-✔✔✅a fine of $50,000
which of the following terms means a premise used or intended to be used for a residence purpose and
related facilities appurtenant to the premises used or intended to be used as an adjunct of residential
occupancy? - CORRECT ANSWER-✔✔✅residential structure
An employee other than the listed salesperson may make a sale when? - CORRECT ANSWER-✔✔✅is it
occasional and incidental to the persons principal employment
which of the following is a reason that someone would be allowed to operate without a residential
builders license? - CORRECT ANSWER-✔✔✅-they are an authorized representative of the U.S. govt
-they are the owner of the rental property with references to the maintenance and altercation of that
rental property
- an owner of the property with reference to a structure on the property for the owners own use and
occupancy
Beginning the license cycle after December 21, 2007, the department shall issue the license of a
residential builder and residential maintenance and alteration contractor for a period of how many
years in duration? - CORRECT ANSWER-✔✔✅3 years
, after receiving your initial residential builders. license, how many hours of continuing competency are
required within. the next 3 years? - CORRECT ANSWER-✔✔✅21 hours
if a salesperson desires to change employment from one residential builder or maintenance and
altercation contractor to another? - CORRECT ANSWER-✔✔✅the license shall be forwarded to the dept,
an application will be made for a transfer and a new license under the salespersons new employer will
be issued
Regarding workmanship, how long does a client have to file a "verified complaint"? - CORRECT ANSWER-
✔✔✅18 months
If a licensed residential builder or licensed residential maintenance and alteration contractor wishes to
change the control or direction of the business, how long do they have to report that change to the
department? - CORRECT ANSWER-✔✔✅10 days
the dept shall conduct a review upon notice that the licensee has violated the asbestos abatement
contractors licensing act, what are the possible consequences for this violation? - CORRECT ANSWER-
✔✔✅the dept may suspend or revoke that persons license and fines may be issued
When the board issues the findings of a verified complaint, what happens? - CORRECT ANSWER-✔✔✅-
the dept shall post on its website any final order of the board and the date it was issued
- the posting shall occur within 30 days after the final order is issued
- the dept shall annually post on its website the number of final orders of the board
according to the administrative rules, an application for a license shall include? - CORRECT ANSWER-
✔✔✅-the residence address of. all individuals, partners, officers, and /or members, as requested by the
dept
-the address of the principal place of business in michigan
upon final order of license suspension or revocation, the licensee shall surrender the license to the dept
within how many days of the date of suspension or revocation? - CORRECT ANSWER-✔✔✅10 days
questions with correct answers
penalty for engaging in practice of residential building without a license? - CORRECT ANSWER-✔✔✅not
less than $5000 and not more than $25,000 and/ or one year
whats the penalty for engaging in the practice of residential builders license resulting in a death? -
CORRECT ANSWER-✔✔✅not less than $5000 and not more than $25000 and/or 4 years
on individual builders license application what should you write as your business address? - CORRECT
ANSWER-✔✔✅your personal address
what is the cost for the individual builders license? - CORRECT ANSWER-✔✔✅$195
after receiving your builders license, what are the only trades not covered by it? - CORRECT ANSWER-
✔✔✅plumbing, electrical, hvac
who is the testing company for the state of michigan? - CORRECT ANSWER-✔✔✅PSI
what is the name of the dept that regulates your license? - CORRECT ANSWER-✔✔✅LARA
before the test you must? - CORRECT ANSWER-✔✔✅present 2 valid forms of identification
in order to schedule your test with PSI you may? - CORRECT ANSWER-✔✔✅schedule online, by mail, by
phone or fax
when will you recieve your test score? - CORRECT ANSWER-✔✔✅as soon as you complete the test
what are the 2 parts of the residential builders exam? - CORRECT ANSWER-✔✔✅Business and law/
practice and trade exam
,How long will you have to complete the practice and trade portion of the exam? - CORRECT ANSWER-
✔✔✅180 minutes
what is the quick asset ratio? - CORRECT ANSWER-✔✔✅1 to 1
Under the Carpentry section of the test, what does a "span table" tell us? - CORRECT ANSWER-
✔✔✅what species and what grade of lumber a floor joist has to be to span a certain distance
what of the following topics will be on covered in the exam? - CORRECT ANSWER-✔✔✅carpentry,
roofing, insulation
which is not a reason you need a residential builders license? - CORRECT ANSWER-✔✔✅it allows you to
work on commercial projects
where does most fraud occur? - CORRECT ANSWER-✔✔✅residential market
as a builder your license falls under the regulation of? - CORRECT ANSWER-✔✔✅both rules by the
director and board as well as laws of the state of michigan
what is the make up of the 9 members of the board? - CORRECT ANSWER-✔✔✅6 individuals that have
a license or registration in the occupation in which the board monitors and 3 members of the general
public
under the definition of occupational code, what does the word "limitation" refer to? - CORRECT
ANSWER-✔✔✅a condition, stricture, restraint or problem attached to a license relative to the scope of
practice?
Who, upon completion of a hearing, shall assess a penalty or penalties? - CORRECT ANSWER-✔✔✅the
board
,If you fail to renew your license or registration on or before the expiration date, how many days do you
have to resubmit with the proper payment and late fee? - CORRECT ANSWER-✔✔✅60 days
when the dept is investigating a complaint and finds evidence of a violation, what actions can be
brought against the correspondent? - CORRECT ANSWER-✔✔✅a cease and desist order, a formal
complaint, a citation
how many days after the administrative law hearings examiner hears the report, must a determination
of penalties be made by the board? - CORRECT ANSWER-✔✔✅60 days
what is a compliance conference? - CORRECT ANSWER-✔✔✅a meeting where the respondent meets
with the department to discuss the complaint against them
which of the following is not a penalty for operating without a residential builders license? - CORRECT
ANSWER-✔✔✅a fine of $50,000
which of the following terms means a premise used or intended to be used for a residence purpose and
related facilities appurtenant to the premises used or intended to be used as an adjunct of residential
occupancy? - CORRECT ANSWER-✔✔✅residential structure
An employee other than the listed salesperson may make a sale when? - CORRECT ANSWER-✔✔✅is it
occasional and incidental to the persons principal employment
which of the following is a reason that someone would be allowed to operate without a residential
builders license? - CORRECT ANSWER-✔✔✅-they are an authorized representative of the U.S. govt
-they are the owner of the rental property with references to the maintenance and altercation of that
rental property
- an owner of the property with reference to a structure on the property for the owners own use and
occupancy
Beginning the license cycle after December 21, 2007, the department shall issue the license of a
residential builder and residential maintenance and alteration contractor for a period of how many
years in duration? - CORRECT ANSWER-✔✔✅3 years
, after receiving your initial residential builders. license, how many hours of continuing competency are
required within. the next 3 years? - CORRECT ANSWER-✔✔✅21 hours
if a salesperson desires to change employment from one residential builder or maintenance and
altercation contractor to another? - CORRECT ANSWER-✔✔✅the license shall be forwarded to the dept,
an application will be made for a transfer and a new license under the salespersons new employer will
be issued
Regarding workmanship, how long does a client have to file a "verified complaint"? - CORRECT ANSWER-
✔✔✅18 months
If a licensed residential builder or licensed residential maintenance and alteration contractor wishes to
change the control or direction of the business, how long do they have to report that change to the
department? - CORRECT ANSWER-✔✔✅10 days
the dept shall conduct a review upon notice that the licensee has violated the asbestos abatement
contractors licensing act, what are the possible consequences for this violation? - CORRECT ANSWER-
✔✔✅the dept may suspend or revoke that persons license and fines may be issued
When the board issues the findings of a verified complaint, what happens? - CORRECT ANSWER-✔✔✅-
the dept shall post on its website any final order of the board and the date it was issued
- the posting shall occur within 30 days after the final order is issued
- the dept shall annually post on its website the number of final orders of the board
according to the administrative rules, an application for a license shall include? - CORRECT ANSWER-
✔✔✅-the residence address of. all individuals, partners, officers, and /or members, as requested by the
dept
-the address of the principal place of business in michigan
upon final order of license suspension or revocation, the licensee shall surrender the license to the dept
within how many days of the date of suspension or revocation? - CORRECT ANSWER-✔✔✅10 days
