MARYLAND HOME IMPROVEMENT TEST EXAM
QUESTIONS AND CORRECT ANSWERS|ACCURATE ACTUAL
EXAM WITH FREQUENTLY TESTED QUESTIONS AND
STUDY GUIDE|500+ QUESTIONS|ALREADY GRADED
A+|GUARANTEED PASS|LATEST UPDATE 2025.
How many days does the contractor have to respond to claims from a homeowner once it has
been received by the commission? - CORRECT ANSWER Once the Commission receives a
claim, it send a copy to the contractor who has 10 days to respond back to the Commission.
Who is not eligible to collect from the Fund? - CORRECT ANSWER Spouse, relative, or
employee of the contractor, or an officer of the corporation. Similarly, an owner may only
receive compensation if she/he resides in the house where the work was performed or does not
own more than 3 residences.
What happens to the license of the contractor after a claim has been paid? - CORRECT
ANSWER The licensed is suspended, unless the commission determines that contractor did not
know the wrongful conduct or it could had not been avoided
What is required in a home Improvement contract? - CORRECT ANSWER Date
Contractors name, address, and MHIC number
Consumer Notice
Dates
Description of work
Deposit and Payment information
What is Consumer Notice? - CORRECT ANSWER It provides phone of the Commission and
states that "each contractor and subcontractor must hold a current MHIC license and anyone can
ask MHIC about a contractor"
The contract also needs to inform homeowners of the following:
1) Formal mediation disputes between homeowners and contractors are available through the
Commission
2) The Commission administers the Fund which can compensate owners for certain actual losses
caused by acts or omissions of licensed contractors
3) The homeowner may request that the contractor purchase a performance bond for additional
protections against losses not covered by the Fund
What is the maximum a contractor may ask for downpayment? - CORRECT ANSWER 1/3 of
the contract
How long does a homeowner have to rescind a contract? - CORRECT ANSWER 3 days after
signing, and notification must be in writing.
,Who can make changes to a home improvement contract? - CORRECT ANSWER Only the
contractor is authorized to make changes for a homeowner. The commission recommends
changes to be in writing.
True or False: Before the performance of a home improvement coontract, the owner shall be
given a copy of the home improvement contract signed by the contractor - CORRECT
ANSWER TRUE
What is cancellation under Door to Door Sales Act - CORRECT ANSWER The Door to Door
sales act gives consumers certain rights, including the right to cancel the contract without any
penalty or obligation, by sending a notice of cancellation to the seller by midnight of the fifth
business day following the sale, or the seventh business day of the buyer is at least 65 years old.
If the homeowner cancels the contract, contractor must return the deposit within 10 business
days following receipt of cancellation.
What is the NOTICE OF CANCELLATION requirement for Door to Door Sales Act? -
CORRECT ANSWER Each contract must include Notice of Cancellation attached to the
contract and contractor must obtain a signed written acknowledgement that the buyer has been
informed of his/her cancellation rights. The information must include where to send the
cancellation notice, by which date. If this information is not included or given to homeowner, the
buyer may cancel in any manner and by any means.
Notice of cancellation - good available to buyer - CORRECT ANSWER If goods are made
available to the contractor and the contractor does not pick them up within 20 days of the date of
your notice, you may dispose of the goods without any further obligation
When is a Home Improvement Job NOT covered? - CORRECT ANSWER The Door to Door
sales act does NOT cover a home improvement project made:
1) pursuant to prior negotiations at a retail business with a fixed permanent location where
consumer goods are exhibited or consumer services are offered for sale on a continuing bases
2) In which the buyer has initiated contact and the goods or services are needed to meet a bona
fide personal emergency of the buyer and the buyer gives the seller a separate dated and signed
personal statement in the buyers handwriting that describes the situation that required immediate
remedy and expressly acknowledges and waives rights to cancel the sale, and the seller in good
faith makes a substantial beginning of the performance of the contract
Who enforces Door to Door sales act? - CORRECT ANSWER Attorney General of MD
How many contractors can a salesperson represent? - CORRECT ANSWER 2 max, but may
only represent ONE at the time of sale.
What happens if a salesperson leaves a contractor's team? - CORRECT ANSWER The
contractor is responsible for notifying the commission
,What are the provisions for advertising under home improvement law? - CORRECT ANSWER
1) Advertising must contain name, and MHIC license number regardless of whether the
advertisement is in print, radio or TV.
2) The advertisement cannot be false, deceptive or misleading
For example: if advertisement contains a price which does not include all costs of items
necessary for the proper function or appearance of the product, this must be clearly stated.
Likewise, any limitation to what will be supplied at the advertised price shall be stated clearly
next to the statement; if delivery or installation charges ar extra, the advertisement shall disclose
the fact.
Vehicles and MIHC - Where is the license number to be displayed? - CORRECT ANSWER
both sides of all vehicles
What is the penalty for acting as a contractor or salesperson without a license in MD? -
CORRECT ANSWER guilty individuals may be incarcerated for 6 months and fined yup to
$1000. For subsequent convictions 2 years in jail and up to $5000 fine.
When was mold remediation act established? - CORRECT ANSWER MD Mold Remediation
Act was established in 2008 to protect the public, improve indoor air quality, and to promote
professional standards.
What does the Mold remediation Act require? - CORRECT ANSWER Each company that
provides mold remediation services must be licensed, and each employee who provides the
service must be certified.
What is mold? - CORRECT ANSWER Mold means an organism of the class fungi that causes
disintegration of organic matter and produces spores, as well as the spores, hyphae,, and
mycotoxins that are produced by mold.
What is mold remediation? - CORRECT ANSWER Removal, cleaning, sanitizing, demolition,
or other treatment of mold or mod contaminated matter that was not intended to be grown at that
location.
What is the insurance requirements for mold remediation? - CORRECT ANSWER GL in the
amount of at leat $1,000,000
Is installing HVAC or AC system home improvement? - CORRECT ANSWER No
Lists exceptions to HI License - CORRECT ANSWER - Individual who works for a contractor
or suib who is paid by salary and is not a salesperson
- A celrical employee, retail clerk, to a licensed contractor
- A solicitor for a contractor who calls an owner by phone only
- An architect, electriciam, plumber, HVAC contrator (who is reuired by state to meet standards
of competency in their profession)
- a licensed secuity system tecitian under Title 18 of the Business Occupations Article
, - A licensed Marine contracor under Title 17, Subtitle 3
The commission may issue a license to an applicant who has violated 8-601 if - CORRECT
ANSWER 1 year has passed since the conviction
What is term of license - CORRECT ANSWER unless a license is renewed for a 2 year term as
provided in this section, the license expires:
- If the Sec staggers the term of the licenses, on the date that the Secretary set
- If the Sec does not stagger the licenses, on the first June 30 that comes after the effective date
of the license in an odd number year
How long does a licensee have to notify the Commission of change in business ownership or
control - CORRECT ANSWER 10 days
How many people in a Hearing Board - CORRECT ANSWER 3
Decision of Hearing Board - CORRECT ANSWER Decision of the Hearing Board shall be:
- by majority of votes
- in writing
- submitted to the Commission
Unless, within 15 days after the hearing board submitted its decision to the Commission, the
Commission or a member of the Commission finds that a full hearing by the Commission is
required: - CORRECT ANSWER - the decision of the Board is final
- The decision is a final decision of the Commission
- a party who is aggrieved by the decision may take an appeal provided in 8-314
How long after being denied after a hearing can a peson reapply for license - CORRECT
ANSWER 6 months
What are the conditions for an owner to put a claim against the Fund? - CORRECT ANSWER -
Resides in the home as to which the claim is made
- Does not own more than 3 residences
- Limitation period - a claim shall be made against the fund whitin 3 years after the claimant
discovers it, or by use of ordinary diligence, should have discovered the loss or damage
Inducements - Tangibel items for advertisement - CORRECT ANSWER To advertise or to
promote sales, a contractor or salesperson may give to a propestive customer a tangible item if
the cost to the contractor does not exceed $25
Miss-representation - A person MAY NOT make a false promise that is likely to influence,
persuade or induce in connection with a home improvement contract - CORRECT ANSWER
True
Violations: Failure to include name or license number in advertisement - CORRECT ANSWER
First $100; Subsequent $300
QUESTIONS AND CORRECT ANSWERS|ACCURATE ACTUAL
EXAM WITH FREQUENTLY TESTED QUESTIONS AND
STUDY GUIDE|500+ QUESTIONS|ALREADY GRADED
A+|GUARANTEED PASS|LATEST UPDATE 2025.
How many days does the contractor have to respond to claims from a homeowner once it has
been received by the commission? - CORRECT ANSWER Once the Commission receives a
claim, it send a copy to the contractor who has 10 days to respond back to the Commission.
Who is not eligible to collect from the Fund? - CORRECT ANSWER Spouse, relative, or
employee of the contractor, or an officer of the corporation. Similarly, an owner may only
receive compensation if she/he resides in the house where the work was performed or does not
own more than 3 residences.
What happens to the license of the contractor after a claim has been paid? - CORRECT
ANSWER The licensed is suspended, unless the commission determines that contractor did not
know the wrongful conduct or it could had not been avoided
What is required in a home Improvement contract? - CORRECT ANSWER Date
Contractors name, address, and MHIC number
Consumer Notice
Dates
Description of work
Deposit and Payment information
What is Consumer Notice? - CORRECT ANSWER It provides phone of the Commission and
states that "each contractor and subcontractor must hold a current MHIC license and anyone can
ask MHIC about a contractor"
The contract also needs to inform homeowners of the following:
1) Formal mediation disputes between homeowners and contractors are available through the
Commission
2) The Commission administers the Fund which can compensate owners for certain actual losses
caused by acts or omissions of licensed contractors
3) The homeowner may request that the contractor purchase a performance bond for additional
protections against losses not covered by the Fund
What is the maximum a contractor may ask for downpayment? - CORRECT ANSWER 1/3 of
the contract
How long does a homeowner have to rescind a contract? - CORRECT ANSWER 3 days after
signing, and notification must be in writing.
,Who can make changes to a home improvement contract? - CORRECT ANSWER Only the
contractor is authorized to make changes for a homeowner. The commission recommends
changes to be in writing.
True or False: Before the performance of a home improvement coontract, the owner shall be
given a copy of the home improvement contract signed by the contractor - CORRECT
ANSWER TRUE
What is cancellation under Door to Door Sales Act - CORRECT ANSWER The Door to Door
sales act gives consumers certain rights, including the right to cancel the contract without any
penalty or obligation, by sending a notice of cancellation to the seller by midnight of the fifth
business day following the sale, or the seventh business day of the buyer is at least 65 years old.
If the homeowner cancels the contract, contractor must return the deposit within 10 business
days following receipt of cancellation.
What is the NOTICE OF CANCELLATION requirement for Door to Door Sales Act? -
CORRECT ANSWER Each contract must include Notice of Cancellation attached to the
contract and contractor must obtain a signed written acknowledgement that the buyer has been
informed of his/her cancellation rights. The information must include where to send the
cancellation notice, by which date. If this information is not included or given to homeowner, the
buyer may cancel in any manner and by any means.
Notice of cancellation - good available to buyer - CORRECT ANSWER If goods are made
available to the contractor and the contractor does not pick them up within 20 days of the date of
your notice, you may dispose of the goods without any further obligation
When is a Home Improvement Job NOT covered? - CORRECT ANSWER The Door to Door
sales act does NOT cover a home improvement project made:
1) pursuant to prior negotiations at a retail business with a fixed permanent location where
consumer goods are exhibited or consumer services are offered for sale on a continuing bases
2) In which the buyer has initiated contact and the goods or services are needed to meet a bona
fide personal emergency of the buyer and the buyer gives the seller a separate dated and signed
personal statement in the buyers handwriting that describes the situation that required immediate
remedy and expressly acknowledges and waives rights to cancel the sale, and the seller in good
faith makes a substantial beginning of the performance of the contract
Who enforces Door to Door sales act? - CORRECT ANSWER Attorney General of MD
How many contractors can a salesperson represent? - CORRECT ANSWER 2 max, but may
only represent ONE at the time of sale.
What happens if a salesperson leaves a contractor's team? - CORRECT ANSWER The
contractor is responsible for notifying the commission
,What are the provisions for advertising under home improvement law? - CORRECT ANSWER
1) Advertising must contain name, and MHIC license number regardless of whether the
advertisement is in print, radio or TV.
2) The advertisement cannot be false, deceptive or misleading
For example: if advertisement contains a price which does not include all costs of items
necessary for the proper function or appearance of the product, this must be clearly stated.
Likewise, any limitation to what will be supplied at the advertised price shall be stated clearly
next to the statement; if delivery or installation charges ar extra, the advertisement shall disclose
the fact.
Vehicles and MIHC - Where is the license number to be displayed? - CORRECT ANSWER
both sides of all vehicles
What is the penalty for acting as a contractor or salesperson without a license in MD? -
CORRECT ANSWER guilty individuals may be incarcerated for 6 months and fined yup to
$1000. For subsequent convictions 2 years in jail and up to $5000 fine.
When was mold remediation act established? - CORRECT ANSWER MD Mold Remediation
Act was established in 2008 to protect the public, improve indoor air quality, and to promote
professional standards.
What does the Mold remediation Act require? - CORRECT ANSWER Each company that
provides mold remediation services must be licensed, and each employee who provides the
service must be certified.
What is mold? - CORRECT ANSWER Mold means an organism of the class fungi that causes
disintegration of organic matter and produces spores, as well as the spores, hyphae,, and
mycotoxins that are produced by mold.
What is mold remediation? - CORRECT ANSWER Removal, cleaning, sanitizing, demolition,
or other treatment of mold or mod contaminated matter that was not intended to be grown at that
location.
What is the insurance requirements for mold remediation? - CORRECT ANSWER GL in the
amount of at leat $1,000,000
Is installing HVAC or AC system home improvement? - CORRECT ANSWER No
Lists exceptions to HI License - CORRECT ANSWER - Individual who works for a contractor
or suib who is paid by salary and is not a salesperson
- A celrical employee, retail clerk, to a licensed contractor
- A solicitor for a contractor who calls an owner by phone only
- An architect, electriciam, plumber, HVAC contrator (who is reuired by state to meet standards
of competency in their profession)
- a licensed secuity system tecitian under Title 18 of the Business Occupations Article
, - A licensed Marine contracor under Title 17, Subtitle 3
The commission may issue a license to an applicant who has violated 8-601 if - CORRECT
ANSWER 1 year has passed since the conviction
What is term of license - CORRECT ANSWER unless a license is renewed for a 2 year term as
provided in this section, the license expires:
- If the Sec staggers the term of the licenses, on the date that the Secretary set
- If the Sec does not stagger the licenses, on the first June 30 that comes after the effective date
of the license in an odd number year
How long does a licensee have to notify the Commission of change in business ownership or
control - CORRECT ANSWER 10 days
How many people in a Hearing Board - CORRECT ANSWER 3
Decision of Hearing Board - CORRECT ANSWER Decision of the Hearing Board shall be:
- by majority of votes
- in writing
- submitted to the Commission
Unless, within 15 days after the hearing board submitted its decision to the Commission, the
Commission or a member of the Commission finds that a full hearing by the Commission is
required: - CORRECT ANSWER - the decision of the Board is final
- The decision is a final decision of the Commission
- a party who is aggrieved by the decision may take an appeal provided in 8-314
How long after being denied after a hearing can a peson reapply for license - CORRECT
ANSWER 6 months
What are the conditions for an owner to put a claim against the Fund? - CORRECT ANSWER -
Resides in the home as to which the claim is made
- Does not own more than 3 residences
- Limitation period - a claim shall be made against the fund whitin 3 years after the claimant
discovers it, or by use of ordinary diligence, should have discovered the loss or damage
Inducements - Tangibel items for advertisement - CORRECT ANSWER To advertise or to
promote sales, a contractor or salesperson may give to a propestive customer a tangible item if
the cost to the contractor does not exceed $25
Miss-representation - A person MAY NOT make a false promise that is likely to influence,
persuade or induce in connection with a home improvement contract - CORRECT ANSWER
True
Violations: Failure to include name or license number in advertisement - CORRECT ANSWER
First $100; Subsequent $300
