MICHIGAN BUILDERS LICENSE EXAM | QUESTIONS AND ANSWERS | VERIFIED
ANSWERS GRADED A+ | LATEST EXAM
What is the first offense penalty for engaging in the practice of residential
building without a license?- CORRECT ANSWER -Not less than $5,000 and
not more than $25,000 and/or one year in prison. Subsequent violations can
extend the prison time to up to 2 years.
What is the penalty for engaging in the practice of residential builders license,
resulting in a death?- CORRECT ANSWER -Not less than $5,000 and not
more than $25,000 and/or four years in prison
On your individual builder's license application, what should you write as your
"business
address"?- CORRECT ANSWER -Your personal address
What is the cost for the individual builder's license?- CORRECT ANSWER -
$195
After receiving your residential builder's license, what are the only trades not
covered by your license?- CORRECT ANSWER -Plumbing, electrical, and
HVAC
Who is the TESTING company for the State of Michigan?- CORRECT
ANSWER -PSI
What is the name of the department that regulates your license?- CORRECT
ANSWER -LARA
,What are the 2 parts of the Residential Builder Examination?- CORRECT
ANSWER -Business and Law examination/Practice and Trade examination
What is a good quick asset ratio?- CORRECT ANSWER -1 to 1
Under the Carpentry section of the test, what does a "span table" tell us? correct
answers What species and what grade of lumber a floor joist has to be to span a
certain distance
Which is NOT a reason that you need a residential business license? It allows
you to be able to file a lein on property
It allows you to pull a residential permit
It allows you to file a lawsuit if necessary
It allows you to work on commercial properties- CORRECT ANSWER -It
allows you to work on
commercial properties
Where does most fraud occur?- CORRECT ANSWER -In the 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 -4
residential builders, 2 M + A contractors, 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 probation
attached to a license relative to the scope of practice
,Who, upon completion of a hearing, shall assess a penalty or penalties? correct
answers 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 answers 60 days
When the department is investigating a complaint and finds evidence of a
violation, what actions can be brought against the respondent?- CORRECT
ANSWER -A cease and desist order, a formal complaint, and/or 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
ONLY the respondent meets with the department to discuss the complaint
against them
Which of the following terms means a premise used or intended to be used for a
residential 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 - It is occasional and incidental to the person's principal
employment
The following are reasons that someone would be allowed to operate without a
residential business license:- CORRECT ANSWER -- They are an authorized
representative of the United States government
- They are the owner of a rental property with reference to the maintenance
and alteration of that rental property
, - An owner of property with reference to a structure on the property for the
owner's 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 builder's 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 alteration contractor to another:- CORRECT ANSWER -The
license shall be forwarded to the department, an application will be made for a
transfer, and a new license under the salesperson's new employer will be issued
Regarding workmanship, how long does a client have to file a "verified
complaint"? - CORRECT ANSWER -18 months from the completion of work
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 department shall conduct a review upon notice that a licensee has violated
the asbestos abatement contractors licensing act. What are the possible
consequences for for this violation?- CORRECT ANSWER -The department
may suspend or revoke that person's license and fines may be issued
ANSWERS GRADED A+ | LATEST EXAM
What is the first offense penalty for engaging in the practice of residential
building without a license?- CORRECT ANSWER -Not less than $5,000 and
not more than $25,000 and/or one year in prison. Subsequent violations can
extend the prison time to up to 2 years.
What is the penalty for engaging in the practice of residential builders license,
resulting in a death?- CORRECT ANSWER -Not less than $5,000 and not
more than $25,000 and/or four years in prison
On your individual builder's license application, what should you write as your
"business
address"?- CORRECT ANSWER -Your personal address
What is the cost for the individual builder's license?- CORRECT ANSWER -
$195
After receiving your residential builder's license, what are the only trades not
covered by your license?- CORRECT ANSWER -Plumbing, electrical, and
HVAC
Who is the TESTING company for the State of Michigan?- CORRECT
ANSWER -PSI
What is the name of the department that regulates your license?- CORRECT
ANSWER -LARA
,What are the 2 parts of the Residential Builder Examination?- CORRECT
ANSWER -Business and Law examination/Practice and Trade examination
What is a good quick asset ratio?- CORRECT ANSWER -1 to 1
Under the Carpentry section of the test, what does a "span table" tell us? correct
answers What species and what grade of lumber a floor joist has to be to span a
certain distance
Which is NOT a reason that you need a residential business license? It allows
you to be able to file a lein on property
It allows you to pull a residential permit
It allows you to file a lawsuit if necessary
It allows you to work on commercial properties- CORRECT ANSWER -It
allows you to work on
commercial properties
Where does most fraud occur?- CORRECT ANSWER -In the 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 -4
residential builders, 2 M + A contractors, 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 probation
attached to a license relative to the scope of practice
,Who, upon completion of a hearing, shall assess a penalty or penalties? correct
answers 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 answers 60 days
When the department is investigating a complaint and finds evidence of a
violation, what actions can be brought against the respondent?- CORRECT
ANSWER -A cease and desist order, a formal complaint, and/or 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
ONLY the respondent meets with the department to discuss the complaint
against them
Which of the following terms means a premise used or intended to be used for a
residential 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 - It is occasional and incidental to the person's principal
employment
The following are reasons that someone would be allowed to operate without a
residential business license:- CORRECT ANSWER -- They are an authorized
representative of the United States government
- They are the owner of a rental property with reference to the maintenance
and alteration of that rental property
, - An owner of property with reference to a structure on the property for the
owner's 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 builder's 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 alteration contractor to another:- CORRECT ANSWER -The
license shall be forwarded to the department, an application will be made for a
transfer, and a new license under the salesperson's new employer will be issued
Regarding workmanship, how long does a client have to file a "verified
complaint"? - CORRECT ANSWER -18 months from the completion of work
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 department shall conduct a review upon notice that a licensee has violated
the asbestos abatement contractors licensing act. What are the possible
consequences for for this violation?- CORRECT ANSWER -The department
may suspend or revoke that person's license and fines may be issued
