Maryland Home Improvement Exam Prep – Verified Questions and Accurate Answers Included.

1. Which of the following is a primary purpose of the Maryland Home
Improvement Commission (MHIC)?

A) To issue driver’s licenses to contractors
B) To resolve disputes between homeowners and contractors
C) To provide financial support for contractors
D) To regulate the price of home improvement services

Answer: B) To resolve disputes between homeowners and contractors
Rationale: The MHIC’s main role is to regulate and license contractors and assist with resolving
disputes related to home improvement work.



2. What is required before a contractor can legally perform home improvement
work in Maryland?

A) A business license
B) A building permit
C) An MHIC license
D) Proof of insurance

Answer: C) An MHIC license
Rationale: Home improvement contractors in Maryland must be licensed by the Maryland Home
Improvement Commission (MHIC) to legally perform work.



3. Which of the following best defines "home improvement" under Maryland
law?

A) Any construction work on residential properties
B) The addition, alteration, or repair of a building for residential purposes
C) Maintenance of a home’s exterior
D) Building a new home

Answer: B) The addition, alteration, or repair of a building for residential purposes
Rationale: Home improvement refers specifically to renovations, additions, repairs, or
alterations to an existing residential property.



4. How long is the term of an MHIC license?

,A) 1 year
B) 2 years
C) 3 years
D) 4 years

Answer: B) 2 years
Rationale: An MHIC license is typically valid for 2 years, after which it must be renewed.



5. What must a contractor do if they wish to make changes to their MHIC license
information?

A) Notify the client
B) Submit a new application to MHIC
C) Notify the MHIC within 30 days
D) Wait until the next renewal period

Answer: C) Notify the MHIC within 30 days
Rationale: Contractors must notify the MHIC within 30 days if there are changes to their
business name, address, or other contact details.



6. Which of the following is NOT a requirement to obtain an MHIC license?

A) Proof of experience in the field
B) Passing a written exam
C) Having a certain minimum capital investment
D) Providing proof of liability insurance

Answer: C) Having a certain minimum capital investment
Rationale: While experience and insurance are required, there is no specific capital investment
requirement for obtaining an MHIC license.



7. What does the MHIC require of a contractor before performing home
improvement work?

A) Provide a written contract with the homeowner
B) Obtain a building permit
C) Complete an apprenticeship program
D) File a tax return

, Answer: A) Provide a written contract with the homeowner
Rationale: Contractors are required by law to provide a written contract for any home
improvement work that exceeds $1,000.



8. Which of the following should a homeowner verify before hiring a home
improvement contractor in Maryland?

A) The contractor’s professional certifications
B) The contractor’s MHIC license
C) The contractor’s credit score
D) The contractor’s previous tax returns

Answer: B) The contractor’s MHIC license
Rationale: Homeowners should verify that the contractor holds a valid MHIC license before
hiring them for home improvement work.



9. Which of the following is required for a home improvement contract to be
legally binding in Maryland?

A) It must be notarized
B) It must be in writing
C) It must include a deposit of at least 50%
D) It must be approved by the MHIC

Answer: B) It must be in writing
Rationale: A written contract is required by Maryland law for any home improvement work
costing over $1,000.



10. Which of the following is NOT an example of "home improvement" work
covered by the MHIC?

A) Installing a new deck
B) Installing a fence
C) Building a new home
D) Renovating a kitchen

Answer: C) Building a new home
Rationale: Home improvement work applies to renovations and repairs to existing homes, not
the construction of new homes.