©KAYLINHOFFMAN2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
Michigan Builders License Exam Practice
Questions and Answers
What is the first offense penalty for engaging in the practice of residential building without a license -
ANSWER✔✔-not less than $5,000 and not more than $25,000 and/or one year
What is the penalty for engaging in the practice of residential builders license, resulting in a death? -
ANSWER✔✔-not less than $5,000 and not more than $25,000 and/or four years
on your individual builder's license application, what should you write as your "business address"? -
ANSWER✔✔-Your personal address
After receiving your residential builder's license, what are the only trades not covered by your license -
ANSWER✔✔-Plumbing, electrical, and HVAC
What is a quick asset ratio? - ANSWER✔✔-1 to 1
Under the Carpentry section of the test, what does a "span table" tell us? - ANSWER✔✔-what species
and what grade of lumber a floor joist has to be to span a certain distance
Who, upon completion of a hearing, shall assess a penalty or penalties? - ANSWER✔✔-The Board
Page 1/32
, ©KAYLINHOFFMAN2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
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? - ANSWER✔✔-60 days
When the department is investigating a complaint and finds evidence of a violation, what actions can be
brought against the respondent? - ANSWER✔✔-a citation | a formal complaint | a cease and desist
order
How many days after the adminstrative law hearings examiner hears the report, must a determination of
penalites be made by the board? - ANSWER✔✔-60 days
What is a compliance conference? - ANSWER✔✔-a meeting where the respondent meets with the
department to discuss the complaint against them
Which is NOT a reason that you need a residential business license? - ANSWER✔✔-It allows you to work
on commercial properties
Where does most fraud occur? - ANSWER✔✔-in the residential market
As a builder, your licence falls under the regulation of - 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? - ANSWER✔✔-4 residential builders, 2 M + A
contractors, and 3 members of the general public
Page 2/32
, ©KAYLINHOFFMAN2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
Under the definition of occupational code, what does the word "limitation" refer to? - ANSWER✔✔-a
condition, stricture, restraint or probation attatched to a license relative to the scope of practice
Which of the following is NOT a possible penalty for operating without a residential builder's license? -
ANSWER✔✔-a fine of $50,000
Which of the following terms means a premise used or intended to be used for a residence purpose and
related facilities appurtenant to the premises used or intended to be used as an adjunct of residential
occupancy? - ANSWER✔✔-residential structure
An employee other than the listed salesperson may make a sale when - ANSWER✔✔-An employee other
than the listed salesperson may make a sale when
Which of the following is a reason that someone would be allowed to operate without a residential
business license? - 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
Page 3/32
, ©KAYLINHOFFMAN2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
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? - ANSWER✔✔-3 years
After receiving your initial residential builder's license, how many hours of continuing competency are
required within the next 3 years? - ANSWER✔✔-21 hours
If a salesperson desires to change employment from one residential builder or maintenance and
alteration contractor to another - 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"? - ANSWER✔✔-
Regarding workmanship, how long does a client have to file a "verified complaint"?
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? - ANSWER✔✔-10 days
The department shall conduct a review upon notice that the licensee has violated the asbestos
abatement contractors licensing act, what are the possible consequences for for this violation? -
ANSWER✔✔-the department may suspend or revoke that person's license and fines may be issued
Page 4/32
FIRST PUBLISH OCTOBER 2024
Michigan Builders License Exam Practice
Questions and Answers
What is the first offense penalty for engaging in the practice of residential building without a license -
ANSWER✔✔-not less than $5,000 and not more than $25,000 and/or one year
What is the penalty for engaging in the practice of residential builders license, resulting in a death? -
ANSWER✔✔-not less than $5,000 and not more than $25,000 and/or four years
on your individual builder's license application, what should you write as your "business address"? -
ANSWER✔✔-Your personal address
After receiving your residential builder's license, what are the only trades not covered by your license -
ANSWER✔✔-Plumbing, electrical, and HVAC
What is a quick asset ratio? - ANSWER✔✔-1 to 1
Under the Carpentry section of the test, what does a "span table" tell us? - ANSWER✔✔-what species
and what grade of lumber a floor joist has to be to span a certain distance
Who, upon completion of a hearing, shall assess a penalty or penalties? - ANSWER✔✔-The Board
Page 1/32
, ©KAYLINHOFFMAN2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
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? - ANSWER✔✔-60 days
When the department is investigating a complaint and finds evidence of a violation, what actions can be
brought against the respondent? - ANSWER✔✔-a citation | a formal complaint | a cease and desist
order
How many days after the adminstrative law hearings examiner hears the report, must a determination of
penalites be made by the board? - ANSWER✔✔-60 days
What is a compliance conference? - ANSWER✔✔-a meeting where the respondent meets with the
department to discuss the complaint against them
Which is NOT a reason that you need a residential business license? - ANSWER✔✔-It allows you to work
on commercial properties
Where does most fraud occur? - ANSWER✔✔-in the residential market
As a builder, your licence falls under the regulation of - 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? - ANSWER✔✔-4 residential builders, 2 M + A
contractors, and 3 members of the general public
Page 2/32
, ©KAYLINHOFFMAN2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
Under the definition of occupational code, what does the word "limitation" refer to? - ANSWER✔✔-a
condition, stricture, restraint or probation attatched to a license relative to the scope of practice
Which of the following is NOT a possible penalty for operating without a residential builder's license? -
ANSWER✔✔-a fine of $50,000
Which of the following terms means a premise used or intended to be used for a residence purpose and
related facilities appurtenant to the premises used or intended to be used as an adjunct of residential
occupancy? - ANSWER✔✔-residential structure
An employee other than the listed salesperson may make a sale when - ANSWER✔✔-An employee other
than the listed salesperson may make a sale when
Which of the following is a reason that someone would be allowed to operate without a residential
business license? - 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
Page 3/32
, ©KAYLINHOFFMAN2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
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? - ANSWER✔✔-3 years
After receiving your initial residential builder's license, how many hours of continuing competency are
required within the next 3 years? - ANSWER✔✔-21 hours
If a salesperson desires to change employment from one residential builder or maintenance and
alteration contractor to another - 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"? - ANSWER✔✔-
Regarding workmanship, how long does a client have to file a "verified complaint"?
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? - ANSWER✔✔-10 days
The department shall conduct a review upon notice that the licensee has violated the asbestos
abatement contractors licensing act, what are the possible consequences for for this violation? -
ANSWER✔✔-the department may suspend or revoke that person's license and fines may be issued
Page 4/32
