MHIC EXAM — 55 QUESTIONS WITH COMPLETE
SOLUTIONS (2025/2026)
Introduction
The Maryland Home Improvement Contractor (MHIC) Examination is the state-mandated
licensing test for any person or business that offers home-improvement services to Maryland
consumers. The 2025/2026 exam blueprint stresses:
• Maryland Home Improvement Law and MHIC regulations
• Contracting, consumer-protection, and complaint-resolution rules
• Permitting, building-code, and inspection obligations
• Estimating, financial, and project-management duties
• Jobsite safety, OSHA basics, and environmental disposal
The 55 original items below mirror the live test in scope, rigor, and reading level. Each question
includes four plausible options, the single best answer, and a concise rationale aligned with
2025 statutes, COMAR, and national best-practice standards. Mastery of this set prepares
candidates to pass the MHIC examination on the first attempt and to practice lawfully and
profitably in Maryland.
Question 1
Under Maryland Home Improvement Law, which of the following activities requires an MHIC
license?
A. Installing a central vacuum system in a new-construction single-family home
B. Replacing a kitchen faucet for a neighbor as a favor without charge
C. Painting the interior of an existing townhouse for $2,800
D. Cleaning gutters on a commercial office building for $1,500
Answer: C. Painting the interior of an existing townhouse for $2,800
Rationale: Any home-improvement work performed for consideration on existing residential
structures in Maryland requires licensing. Painting an existing townhouse for compensation (C)
is classic home-improvement work. New-construction work (A) is exempt, gratuitous favors (B)
lack consideration, and commercial buildings (D) fall outside the residential scope of the MHIC
law.
Question 2
A homeowner can cancel a home-improvement contract without penalty under the Door-to-
Door Sales Act if the cancellation notice is post-marked no later than:
A. Midnight of the third business day after signing
B. 5:00 p.m. on the second calendar day after signing
pg. 1
,C. Midnight of the seventh business day after signing
D. Within 72 hours excluding weekends and holidays
Answer: A. Midnight of the third business day after signing
Rationale: Maryland adopts the federal 3-business-day cooling-off rule for in-home sales.
Option B shortens the window incorrectly, C confuses with other state laws, and D is an outdated
72-hour rule that does not account for business-day definition.
Question 3
Which contract clause is prohibited by Maryland Home Improvement regulations?
A. A clause requiring binding arbitration in Montgomery County
B. A clause waiving the homeowner’s right to a jury trial
C. A clause allowing the contractor to recover attorney’s fees if he prevails
D. A clause requiring the homeowner to obtain building permits
Answer: B. A clause waiving the homeowner’s right to a jury trial
Rationale: Maryland law voids any contract provision that waives substantive consumer
rights, including jury-trial rights. Arbitration clauses (A) are permissible if fair, attorney-fee
clauses (C) are allowed if mutual, and permit responsibility (D) can be contractually assigned if
clear.
Question 4
An MHIC licensee must include which information on every advertisement?
A. The licensee’s full home address
B. The words “Licensed Maryland Home Improvement Contractor”
C. The MHIC license number
D. Proof of insurance coverage limits
Answer: C. The MHIC license number
Rationale: COMAR 09.01.07 requires the license number in all ads—print, digital, vehicle, yard
signs, etc. Full home address (A) is not required, the exact legal phrase (B) is unnecessary, and
insurance limits (D) are not advertising mandates.
Question 5
A contractor finishes a $12,000 deck project and the homeowner refuses the final $3,000
payment, claiming unsatisfactory workmanship. The contractor wants to file a mechanic’s lien.
The latest date to record the lien is:
A. 90 days after the last day labor or materials were furnished
B. 120 days after substantial completion
C. 1 year after the contract was signed
D. 3 years after the homeowner’s final payment was due
Answer: A. 90 days after the last day labor or materials were furnished
Rationale: Maryland Courts & Judicial Proceedings Code § 9-105 sets a 90-day deadline from
pg. 2
, last work. The 120-day rule (B) applies in some states but not MD. One-year (C) and three-year
(D) windows are for other civil actions, not liens.
Question 6
Under OSHA 1926 Subpart M, fall protection is required for workers at heights of:
A. 4 feet or more in all residential construction
B. 6 feet or more in most construction activities
C. 10 feet or more when using ladders
D. 15 feet or more during roofing work
Answer: B. 6 feet or more in most construction activities
Rationale: Federal OSHA mandates 6-ft trigger for fall protection in general construction
(Subpart M). The 4-ft rule (A) applies to shipyards, 10 ft (C) is outdated, and 15 ft (D) is not
recognised under current federal standards.
Question 7
Which environmental certification is most appropriate for a contractor disposing of old
ductwork containing lead-based paint?
A. RRP (Renovation, Repair, Painting) firm certification
B. EPA Universal Waste license
C. Maryland Lead Abatement Supervisor certificate
D. OSHA 40-hour HAZWOPER card
Answer: A. RRP (Renovation, Repair, Painting) firm certification
Rationale: Disturbing >6 ft² of painted surface in pre-1978 homes triggers RRP rules,
including firm certification, certified renovators, and containment. Lead abatement (C) is for
intentional removal, Universal Waste (B) covers batteries/lighting, and HAZWOPER (D) is for
uncontrolled hazardous waste sites.
Question 8
A cost-plus contract should always include which clause to protect the homeowner?
A. A guaranteed maximum price (GMP) cap
B. A waiver of all change-order approvals
C. A clause allowing the contractor to bill for overhead without receipts
D. A provision that permits 25 % markup on all subcontractor invoices
Answer: A. A guaranteed maximum price (GMP) cap
Rationale: A GMP limits the owner’s exposure while still allowing cost transparency. Waiving
change-order approval (B) invites overruns, billing without receipts (C) lacks accountability, and
uncapped markups (D) erode consumer protection.
Question 9
pg. 3
SOLUTIONS (2025/2026)
Introduction
The Maryland Home Improvement Contractor (MHIC) Examination is the state-mandated
licensing test for any person or business that offers home-improvement services to Maryland
consumers. The 2025/2026 exam blueprint stresses:
• Maryland Home Improvement Law and MHIC regulations
• Contracting, consumer-protection, and complaint-resolution rules
• Permitting, building-code, and inspection obligations
• Estimating, financial, and project-management duties
• Jobsite safety, OSHA basics, and environmental disposal
The 55 original items below mirror the live test in scope, rigor, and reading level. Each question
includes four plausible options, the single best answer, and a concise rationale aligned with
2025 statutes, COMAR, and national best-practice standards. Mastery of this set prepares
candidates to pass the MHIC examination on the first attempt and to practice lawfully and
profitably in Maryland.
Question 1
Under Maryland Home Improvement Law, which of the following activities requires an MHIC
license?
A. Installing a central vacuum system in a new-construction single-family home
B. Replacing a kitchen faucet for a neighbor as a favor without charge
C. Painting the interior of an existing townhouse for $2,800
D. Cleaning gutters on a commercial office building for $1,500
Answer: C. Painting the interior of an existing townhouse for $2,800
Rationale: Any home-improvement work performed for consideration on existing residential
structures in Maryland requires licensing. Painting an existing townhouse for compensation (C)
is classic home-improvement work. New-construction work (A) is exempt, gratuitous favors (B)
lack consideration, and commercial buildings (D) fall outside the residential scope of the MHIC
law.
Question 2
A homeowner can cancel a home-improvement contract without penalty under the Door-to-
Door Sales Act if the cancellation notice is post-marked no later than:
A. Midnight of the third business day after signing
B. 5:00 p.m. on the second calendar day after signing
pg. 1
,C. Midnight of the seventh business day after signing
D. Within 72 hours excluding weekends and holidays
Answer: A. Midnight of the third business day after signing
Rationale: Maryland adopts the federal 3-business-day cooling-off rule for in-home sales.
Option B shortens the window incorrectly, C confuses with other state laws, and D is an outdated
72-hour rule that does not account for business-day definition.
Question 3
Which contract clause is prohibited by Maryland Home Improvement regulations?
A. A clause requiring binding arbitration in Montgomery County
B. A clause waiving the homeowner’s right to a jury trial
C. A clause allowing the contractor to recover attorney’s fees if he prevails
D. A clause requiring the homeowner to obtain building permits
Answer: B. A clause waiving the homeowner’s right to a jury trial
Rationale: Maryland law voids any contract provision that waives substantive consumer
rights, including jury-trial rights. Arbitration clauses (A) are permissible if fair, attorney-fee
clauses (C) are allowed if mutual, and permit responsibility (D) can be contractually assigned if
clear.
Question 4
An MHIC licensee must include which information on every advertisement?
A. The licensee’s full home address
B. The words “Licensed Maryland Home Improvement Contractor”
C. The MHIC license number
D. Proof of insurance coverage limits
Answer: C. The MHIC license number
Rationale: COMAR 09.01.07 requires the license number in all ads—print, digital, vehicle, yard
signs, etc. Full home address (A) is not required, the exact legal phrase (B) is unnecessary, and
insurance limits (D) are not advertising mandates.
Question 5
A contractor finishes a $12,000 deck project and the homeowner refuses the final $3,000
payment, claiming unsatisfactory workmanship. The contractor wants to file a mechanic’s lien.
The latest date to record the lien is:
A. 90 days after the last day labor or materials were furnished
B. 120 days after substantial completion
C. 1 year after the contract was signed
D. 3 years after the homeowner’s final payment was due
Answer: A. 90 days after the last day labor or materials were furnished
Rationale: Maryland Courts & Judicial Proceedings Code § 9-105 sets a 90-day deadline from
pg. 2
, last work. The 120-day rule (B) applies in some states but not MD. One-year (C) and three-year
(D) windows are for other civil actions, not liens.
Question 6
Under OSHA 1926 Subpart M, fall protection is required for workers at heights of:
A. 4 feet or more in all residential construction
B. 6 feet or more in most construction activities
C. 10 feet or more when using ladders
D. 15 feet or more during roofing work
Answer: B. 6 feet or more in most construction activities
Rationale: Federal OSHA mandates 6-ft trigger for fall protection in general construction
(Subpart M). The 4-ft rule (A) applies to shipyards, 10 ft (C) is outdated, and 15 ft (D) is not
recognised under current federal standards.
Question 7
Which environmental certification is most appropriate for a contractor disposing of old
ductwork containing lead-based paint?
A. RRP (Renovation, Repair, Painting) firm certification
B. EPA Universal Waste license
C. Maryland Lead Abatement Supervisor certificate
D. OSHA 40-hour HAZWOPER card
Answer: A. RRP (Renovation, Repair, Painting) firm certification
Rationale: Disturbing >6 ft² of painted surface in pre-1978 homes triggers RRP rules,
including firm certification, certified renovators, and containment. Lead abatement (C) is for
intentional removal, Universal Waste (B) covers batteries/lighting, and HAZWOPER (D) is for
uncontrolled hazardous waste sites.
Question 8
A cost-plus contract should always include which clause to protect the homeowner?
A. A guaranteed maximum price (GMP) cap
B. A waiver of all change-order approvals
C. A clause allowing the contractor to bill for overhead without receipts
D. A provision that permits 25 % markup on all subcontractor invoices
Answer: A. A guaranteed maximum price (GMP) cap
Rationale: A GMP limits the owner’s exposure while still allowing cost transparency. Waiving
change-order approval (B) invites overruns, billing without receipts (C) lacks accountability, and
uncapped markups (D) erode consumer protection.
Question 9
pg. 3
