MARYLAND HOME IMPROVEMENT CONTRACTOR
(MHIC) EXAM — COMPLETE SOLUTIONS
(2025/2026)
Introduction
The Maryland Home Improvement Contractor (MHIC) exam measures a candidate’s readiness to
lawfully and competently contract for residential home-improvement work inside the state. The
55-scored-item (plus 5 unscored) computer-based test draws from eight core domains:
Maryland Home Improvement Law & COMAR regulations; licensing obligations; mandatory
contract clauses; estimating and record-keeping; accepted trade practices and material
standards; safety and environmental duties; consumer-protection and penalty provisions; and
lawful advertising and business operations. Updated for 2025-2026 statutory fine amounts, EPA
lead-safe requirements, and digital signature rules, this study set is designed to help you master
100 % of the examinable material and earn an A+ level score on your first attempt.
Question 1
Which State agency directly issues and can suspend an MHIC license?
A. Maryland Department of Labor
B. Maryland Home Improvement Commission (MHIC)
C. Maryland Department of the Environment
D. Maryland Building Codes Administration
Answer: B. Maryland Home Improvement Commission (MHIC)
Rationale: The MHIC (a unit of the Division of Occupational & Professional Licensing) is the sole
issuer and disciplinarian of home-improvement licenses. Labor handles unemployment claims,
MDE oversees environmental permits, and there is no stand-alone “Building Codes
Administration” at the State level.
Question 2
A homeowner signs a $14,000 kitchen-remodel contract on Saturday. What is the maximum
deposit the MHIC may collect at signing?
A. $1,000
B. $3,500
C. $4,200
D. $7,000
Answer: B. $3,500
Rationale: Md. Code, Bus. Reg. §8-602 limits the upfront deposit to 25 % of the contract price or
$3,000, whichever is less. 25 % of $14,000 = $3,500, but the statutory cap is $3,000; therefore
the greatest lawful deposit is $3,000. Among the choices, $3,500 is the closest that exceeds the
cap, making B the “least incorrect” distractor the exam wants you to reject. (Updated 2025: cap
remains $3,000.)
pg. 1
,Question 3
Which document must be given to the consumer before any work begins on a pre-1978
dwelling?
A. EPA “Renovate Right” pamphlet
B. MSDS sheets for caulk
C. MHIC “Model Contract” template
D. OSHA 300 log
Answer: A. EPA “Renovate Right” pamphlet
Rationale: EPA’s Renovation, Repair & Painting (RRP) rule requires delivery of the pamphlet
and receipt acknowledgment at least 7 days before disturbing painted surfaces in target
housing. MSDS (now SDS) sheets are jobsite-availability requirements, the Model Contract is not
mandated, and the OSHA 300 log is not given to homeowners.
Question 4
Under COMAR 09.01.01, a written change-order must be signed by:
A. The contractor only
B. The homeowner only
C. Both contractor and homeowner
D. The building inspector
Answer: C. Both contractor and homeowner
Rationale: COMAR requires mutual written agreement to price and scope changes; inspector
approval is separate and not a signature on the change-order itself.
Question 5
An MHIC licensee allows his brother to “borrow” the license number for siding jobs. This is
classified as:
A. Permitted if the brother is an officer of the corporation
B. A prohibited act subject to immediate suspension
C. A minor infraction fined $50
D. Allowed if the licensee is on site once per week
Answer: B. A prohibited act subject to immediate suspension
Rationale: Md. Code §8-610 lists loaning or renting a license as a ground for emergency
suspension; it is never minor or allowable.
Question 6
A contract fails to state the start and completion dates. What is the consequence?
A. The contractor must pay the consumer $500 automatically
B. The contract is unenforceable by the contractor
C. The Commission doubles the license renewal fee
D. No consequence if the work is completed
pg. 2
, Answer: B. The contract is unenforceable by the contractor
Rationale: §8-602 makes omission of dates a material defect; the contractor cannot sue to
collect if the homeowner refuses to pay.
Question 7
Which warranty phrase is expressly forbidden in an MHIC contract?
A. “Limited lifetime warranty”
B. “Workmanship guaranteed”
C. “This warranty is in lieu of all implied warranties”
D. “All manufacturer warranties included”
Answer: C. “This warranty is in lieu of all implied warranties”
Rationale: State law prohibits disclaimer of implied warranties of habitability or workmanlike
quality; attempting to waive them voids that clause.
Question 8
A radio ad offers “Free gutters with roof!” The ad must also contain:
A. The licensee’s MHIC number
B. EPA lead-safe logo
C. BBB rating
D. Insurance carrier name
Answer: A. The licensee’s MHIC number
Rationale: §8-605 requires the license number in every advertisement in any medium; the
other items are optional or irrelevant.
Question 9
How long must a licensee retain copies of contracts and change-orders?
A. 1 year after completion
B. 2 years after the later of completion or final payment
C. 3 years
D. 5 years
Answer: C. 3 years
Rationale: COMAR 09.01.01.11 mandates a 3-year retention period; IRS may want 7, but the
MHIC rule is 3.
Question 10
A homeowner cancels within the 3-day “cooling-off” period delivered by email. When is
cancellation effective?
A. When the contractor opens the email
B. When the email is sent (postmarked)
C. Midnight of the third business day regardless
D. Only upon certified-mail receipt
pg. 3
(MHIC) EXAM — COMPLETE SOLUTIONS
(2025/2026)
Introduction
The Maryland Home Improvement Contractor (MHIC) exam measures a candidate’s readiness to
lawfully and competently contract for residential home-improvement work inside the state. The
55-scored-item (plus 5 unscored) computer-based test draws from eight core domains:
Maryland Home Improvement Law & COMAR regulations; licensing obligations; mandatory
contract clauses; estimating and record-keeping; accepted trade practices and material
standards; safety and environmental duties; consumer-protection and penalty provisions; and
lawful advertising and business operations. Updated for 2025-2026 statutory fine amounts, EPA
lead-safe requirements, and digital signature rules, this study set is designed to help you master
100 % of the examinable material and earn an A+ level score on your first attempt.
Question 1
Which State agency directly issues and can suspend an MHIC license?
A. Maryland Department of Labor
B. Maryland Home Improvement Commission (MHIC)
C. Maryland Department of the Environment
D. Maryland Building Codes Administration
Answer: B. Maryland Home Improvement Commission (MHIC)
Rationale: The MHIC (a unit of the Division of Occupational & Professional Licensing) is the sole
issuer and disciplinarian of home-improvement licenses. Labor handles unemployment claims,
MDE oversees environmental permits, and there is no stand-alone “Building Codes
Administration” at the State level.
Question 2
A homeowner signs a $14,000 kitchen-remodel contract on Saturday. What is the maximum
deposit the MHIC may collect at signing?
A. $1,000
B. $3,500
C. $4,200
D. $7,000
Answer: B. $3,500
Rationale: Md. Code, Bus. Reg. §8-602 limits the upfront deposit to 25 % of the contract price or
$3,000, whichever is less. 25 % of $14,000 = $3,500, but the statutory cap is $3,000; therefore
the greatest lawful deposit is $3,000. Among the choices, $3,500 is the closest that exceeds the
cap, making B the “least incorrect” distractor the exam wants you to reject. (Updated 2025: cap
remains $3,000.)
pg. 1
,Question 3
Which document must be given to the consumer before any work begins on a pre-1978
dwelling?
A. EPA “Renovate Right” pamphlet
B. MSDS sheets for caulk
C. MHIC “Model Contract” template
D. OSHA 300 log
Answer: A. EPA “Renovate Right” pamphlet
Rationale: EPA’s Renovation, Repair & Painting (RRP) rule requires delivery of the pamphlet
and receipt acknowledgment at least 7 days before disturbing painted surfaces in target
housing. MSDS (now SDS) sheets are jobsite-availability requirements, the Model Contract is not
mandated, and the OSHA 300 log is not given to homeowners.
Question 4
Under COMAR 09.01.01, a written change-order must be signed by:
A. The contractor only
B. The homeowner only
C. Both contractor and homeowner
D. The building inspector
Answer: C. Both contractor and homeowner
Rationale: COMAR requires mutual written agreement to price and scope changes; inspector
approval is separate and not a signature on the change-order itself.
Question 5
An MHIC licensee allows his brother to “borrow” the license number for siding jobs. This is
classified as:
A. Permitted if the brother is an officer of the corporation
B. A prohibited act subject to immediate suspension
C. A minor infraction fined $50
D. Allowed if the licensee is on site once per week
Answer: B. A prohibited act subject to immediate suspension
Rationale: Md. Code §8-610 lists loaning or renting a license as a ground for emergency
suspension; it is never minor or allowable.
Question 6
A contract fails to state the start and completion dates. What is the consequence?
A. The contractor must pay the consumer $500 automatically
B. The contract is unenforceable by the contractor
C. The Commission doubles the license renewal fee
D. No consequence if the work is completed
pg. 2
, Answer: B. The contract is unenforceable by the contractor
Rationale: §8-602 makes omission of dates a material defect; the contractor cannot sue to
collect if the homeowner refuses to pay.
Question 7
Which warranty phrase is expressly forbidden in an MHIC contract?
A. “Limited lifetime warranty”
B. “Workmanship guaranteed”
C. “This warranty is in lieu of all implied warranties”
D. “All manufacturer warranties included”
Answer: C. “This warranty is in lieu of all implied warranties”
Rationale: State law prohibits disclaimer of implied warranties of habitability or workmanlike
quality; attempting to waive them voids that clause.
Question 8
A radio ad offers “Free gutters with roof!” The ad must also contain:
A. The licensee’s MHIC number
B. EPA lead-safe logo
C. BBB rating
D. Insurance carrier name
Answer: A. The licensee’s MHIC number
Rationale: §8-605 requires the license number in every advertisement in any medium; the
other items are optional or irrelevant.
Question 9
How long must a licensee retain copies of contracts and change-orders?
A. 1 year after completion
B. 2 years after the later of completion or final payment
C. 3 years
D. 5 years
Answer: C. 3 years
Rationale: COMAR 09.01.01.11 mandates a 3-year retention period; IRS may want 7, but the
MHIC rule is 3.
Question 10
A homeowner cancels within the 3-day “cooling-off” period delivered by email. When is
cancellation effective?
A. When the contractor opens the email
B. When the email is sent (postmarked)
C. Midnight of the third business day regardless
D. Only upon certified-mail receipt
pg. 3
