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MARYLAND HOME IMPROVEMENT
EXAM QUESTIONS AND ANSWERS
100% PASS
Define home improvement - ANS The addition, alteration, conversion, improvement,
modernization, remodeling, repair or replacement of a building or part of a building that is used
or was designed to be used as a residence or dwelling place or structure adjacent to that
building or an improvement to land adjacent to that building
Is a building of a swimming pool, deck, pier or porch included in Home Improvement? -
ANS Yes
Is work done on apartment complexes of more than 4 units considered home improvement? -
ANS No
Is work done on individual condominium units considered home improvement? - ANS Yes
Is installation in a residence of alarm, awning or fire alarm considered home improvement? -
ANS Yes
Is now removal or grass cutting home improvement? - ANS No
Define contractor - ANS A person who performs or offers or agrees to perform a home
improvement for an owner
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Define Subcontractor - ANS A subcontractor enters into contracts with contractors or other
subcontractors to perform home improvement. A subcontractor is not authorized to enter into
agreement directly with the owner
Define salesperson - ANS A person who sells a home improvement
Define Home Improvement contract - ANS An agrement between a homeowner and a
contractor to perform a home improvement. The law requires contracts to be in writing and be
signed by the parties to the agreement.
Define Owner - ANS Owner, owner's agent , tenant or other person authorized to enter into
a home improvement contract
Define license - ANS is either a contractor or salesperson license that is issued by the Home
Improvement Commission.
Does a handyman need a license? - ANS Yes
True or False: Home Improvement law does not apply if one of the parties is a government
agency - ANS True
Work done a residence inside a military base is excluded from licensing requirements -
ANS True
Can local jurisdictions issue home improvement lincenses - ANS No, only MD Home
Improvement Commission is authorized to issue a license to solicit, sell, or perform home
improvement services in Maryland
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Can two or more individuals (such as homeowner and contractor) lawfully agree to ignore the
Home Improvement licensing requirement? - ANS No, waiver is prohibited
When was the commission established? - ANS 1962
How Many commissioners are there? - ANS 9 (4 must have experience in the business of
home improvement; 4 are members of the general public that represent cosumers; and 1 must
have experience in banking and finance)
What is the most important role of the Commissioners? - ANS To promulgate regulations for
the Commission. These regulations help the public better understand the Home Improvement
Law and the Commission's policies
How often are the meetings? - ANS bi-monthly. Meetings are open to the public.
What is the requirement for Commissioners? - ANS Must be a resident of MD for at least 5
years
How long if the Commissioner's term? - ANS 4 years
Where is the Commission's office? - ANS Baltimore, MD
Who appoints the Executive Director? - ANS The Secretary of Department of Labor, Licensing
and Regulation
What is the Executive Director responsible for? - ANS the daily operations of the Commission
and signs under the seal letters affirming the licensing status of individuals for court
proceedings. The Executive director is also responsible for compiling and maintaining a copy of
the Commission's current regulations
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What do investigators do? - ANS The Commission also employs investigators that review the
complaints and Guaranty Fund claims that are received by the Commission. The investigators
review complaints against licensed and unlicensed contractors and salespersons.
If an investigator determines that a violation may have occurred, what actions can the
Commission take? - ANS The Commission may take disciplinary action which may include
reprimand, monetary fine or suspension or revocation of the license.
True or False: An individual who holds a home improvement license as a contractor is NOT
required to obtain a construction license from the Circuit Courts - ANS True
How long are exams valid for? - ANS 2 years
If a candidate fails the exam, how long must he/she wait before retaking it? - ANS 30 days
the first time. After each subsequent failure a candidate must wait 60 days.
What is the insurance requirement for contractor? - ANS General Liability at least $50,000
What is the Home Improvement Guaranty Fund? - ANS One of the Commissions most
important function is to administer the Home Improvement Guaranty Fund. The fund
compensates homeowners for the actual loss caused by the acts or omissions of a licensed
contractor.
True or False: Is a homeowner hires an unlicensed contractor he/she is eligible to collect money
from the fund? - ANS FALSE - if a homeowner hires an unlicensed contractor, the
homeowner will NOT be eligible to collect money from the Fund.
What is Actual Loss? - ANS Actual Loss means the cost to correct or complete a home
improvement that is inadequate, unworkmanlike or incomplete.
MARYLAND HOME IMPROVEMENT
EXAM QUESTIONS AND ANSWERS
100% PASS
Define home improvement - ANS The addition, alteration, conversion, improvement,
modernization, remodeling, repair or replacement of a building or part of a building that is used
or was designed to be used as a residence or dwelling place or structure adjacent to that
building or an improvement to land adjacent to that building
Is a building of a swimming pool, deck, pier or porch included in Home Improvement? -
ANS Yes
Is work done on apartment complexes of more than 4 units considered home improvement? -
ANS No
Is work done on individual condominium units considered home improvement? - ANS Yes
Is installation in a residence of alarm, awning or fire alarm considered home improvement? -
ANS Yes
Is now removal or grass cutting home improvement? - ANS No
Define contractor - ANS A person who performs or offers or agrees to perform a home
improvement for an owner
, ©THESTAR 2025 ALL RIGHTS RESERVED
Define Subcontractor - ANS A subcontractor enters into contracts with contractors or other
subcontractors to perform home improvement. A subcontractor is not authorized to enter into
agreement directly with the owner
Define salesperson - ANS A person who sells a home improvement
Define Home Improvement contract - ANS An agrement between a homeowner and a
contractor to perform a home improvement. The law requires contracts to be in writing and be
signed by the parties to the agreement.
Define Owner - ANS Owner, owner's agent , tenant or other person authorized to enter into
a home improvement contract
Define license - ANS is either a contractor or salesperson license that is issued by the Home
Improvement Commission.
Does a handyman need a license? - ANS Yes
True or False: Home Improvement law does not apply if one of the parties is a government
agency - ANS True
Work done a residence inside a military base is excluded from licensing requirements -
ANS True
Can local jurisdictions issue home improvement lincenses - ANS No, only MD Home
Improvement Commission is authorized to issue a license to solicit, sell, or perform home
improvement services in Maryland
, ©THESTAR 2025 ALL RIGHTS RESERVED
Can two or more individuals (such as homeowner and contractor) lawfully agree to ignore the
Home Improvement licensing requirement? - ANS No, waiver is prohibited
When was the commission established? - ANS 1962
How Many commissioners are there? - ANS 9 (4 must have experience in the business of
home improvement; 4 are members of the general public that represent cosumers; and 1 must
have experience in banking and finance)
What is the most important role of the Commissioners? - ANS To promulgate regulations for
the Commission. These regulations help the public better understand the Home Improvement
Law and the Commission's policies
How often are the meetings? - ANS bi-monthly. Meetings are open to the public.
What is the requirement for Commissioners? - ANS Must be a resident of MD for at least 5
years
How long if the Commissioner's term? - ANS 4 years
Where is the Commission's office? - ANS Baltimore, MD
Who appoints the Executive Director? - ANS The Secretary of Department of Labor, Licensing
and Regulation
What is the Executive Director responsible for? - ANS the daily operations of the Commission
and signs under the seal letters affirming the licensing status of individuals for court
proceedings. The Executive director is also responsible for compiling and maintaining a copy of
the Commission's current regulations
, ©THESTAR 2025 ALL RIGHTS RESERVED
What do investigators do? - ANS The Commission also employs investigators that review the
complaints and Guaranty Fund claims that are received by the Commission. The investigators
review complaints against licensed and unlicensed contractors and salespersons.
If an investigator determines that a violation may have occurred, what actions can the
Commission take? - ANS The Commission may take disciplinary action which may include
reprimand, monetary fine or suspension or revocation of the license.
True or False: An individual who holds a home improvement license as a contractor is NOT
required to obtain a construction license from the Circuit Courts - ANS True
How long are exams valid for? - ANS 2 years
If a candidate fails the exam, how long must he/she wait before retaking it? - ANS 30 days
the first time. After each subsequent failure a candidate must wait 60 days.
What is the insurance requirement for contractor? - ANS General Liability at least $50,000
What is the Home Improvement Guaranty Fund? - ANS One of the Commissions most
important function is to administer the Home Improvement Guaranty Fund. The fund
compensates homeowners for the actual loss caused by the acts or omissions of a licensed
contractor.
True or False: Is a homeowner hires an unlicensed contractor he/she is eligible to collect money
from the fund? - ANS FALSE - if a homeowner hires an unlicensed contractor, the
homeowner will NOT be eligible to collect money from the Fund.
What is Actual Loss? - ANS Actual Loss means the cost to correct or complete a home
improvement that is inadequate, unworkmanlike or incomplete.
