MARYLAND HOME IMPROVEMENT TEST 2024
COMPREHENSIVE QUESTIONS AND ANSWERS GRADED A+
LATEST UPDATE
Define home improvement - (correct answer) The addition, alteration, conversion,
improvement, modernization, remodeling, repair or replacement of a building or part of a
building that is used or was designed to be used as a residence or dwelling place or
structure adjacent to that building or an improvement to land adjacent to that building
Is a building of a swimming pool, deck, pier or porch included in Home Improvement? -
(correct answer) Yes
Is work done on apartment complexes of more than 4 units considered home
improvement? - (correct answer) No
Is work done on individual condominium units considered home improvement? -
(correct answer) Yes
Is installation in a residence of alarm, awning or fire alarm considered home
improvement? - (correct answer) Yes
Is now removal or grass cutting home improvement? - (correct answer) No
Define contractor - (correct answer) A person who performs or offers or agrees to
perform a home improvement for an owner
Define Subcontractor - (correct answer) A subcontractor enters into contracts with
contractors or other subcontractors to perform home improvement. A subcontractor is
not authorized to enter into agreement directly with the owner
Define salesperson - (correct answer) A person who sells a home improvement
Define Home Improvement contract - (correct answer) An agrement between a
homeowner and a contractor to perform a home improvement. The law requires
contracts to be in writing and be signed by the parties to the agreement.
Define Owner - (correct answer) Owner, owner's agent , tenant or other person
authorized to enter into a home improvement contract
Define license - (correct answer) is either a contractor or salesperson license that is
issued by the Home Improvement Commission.
Does a handyman need a license? - (correct answer) Yes
,True or False: Home Improvement law does not apply if one of the parties is a
government agency - (correct answer) True
Work done a residence inside a military base is excluded from licensing requirements -
(correct answer) True
Can local jurisdictions issue home improvement lincenses - (correct answer) No,
only MD Home Improvement Commission is authorized to issue a license to solicit, sell,
or perform home improvement services in Maryland
Can two or more individuals (such as homeowner and contractor) lawfully agree to
ignore the Home Improvement licensing requirement? - (correct answer) No, waiver
is prohibited
When was the commission established? - (correct answer) 1962
How Many commissioners are there? - (correct answer) 9 (4 must have experience
in the business of home improvement; 4 are members of the general public that
represent cosumers; and 1 must have experience in banking and finance)
What is the most important role of the Commissioners? - (correct answer) To
promulgate regulations for the Commission. These regulations help the public better
understand the Home Improvement Law and the Commission's policies
How often are the meetings? - (correct answer) bi-monthly. Meetings are open to
the public.
What is the requirement for Commissioners? - (correct answer) Must be a resident
of MD for at least 5 years
How long if the Commissioner's term? - (correct answer) 4 years
Where is the Commission's office? - (correct answer) Baltimore, MD
Who appoints the Executive Director? - (correct answer) The Secretary of
Department of Labor, Licensing and Regulation
What is the Executive Director responsible for? - (correct answer) the daily
operations of the Commission and signs under the seal letters affirming the licensing
status of individuals for court proceedings. The Executive director is also responsible for
compiling and maintaining a copy of the Commission's current regulations
What do investigators do? - (correct answer) The Commission also employs
investigators that review the complaints and Guaranty Fund claims that are received by
the Commission. The investigators review complaints against licensed and unlicensed
contractors and salespersons.
, If an investigator determines that a violation may have occurred, what actions can the
Commission take? - (correct answer) The Commission may take disciplinary action
which may include reprimand, monetary fine or suspension or revocation of the license.
True or False: An individual who holds a home improvement license as a contractor is
NOT required to obtain a construction license from the Circuit Courts - (correct
answer) True
How long are exams valid for? - (correct answer) 2 years
If a candidate fails the exam, how long must he/she wait before retaking it? - (correct
answer) 30 days the first time. After each subsequent failure a candidate must wait 60
days.
What is the insurance requirement for contractor? - (correct answer) General
Liability at least $50,000
What is the Home Improvement Guaranty Fund? - (correct answer) One of the
Commissions most important function is to administer the Home Improvement Guaranty
Fund. The fund compensates homeowners for the actual loss caused by the acts or
omissions of a licensed contractor.
True or False: Is a homeowner hires an unlicensed contractor he/she is eligible to
collect money from the fund? - (correct answer) FALSE - if a homeowner hires an
unlicensed contractor, the homeowner will NOT be eligible to collect money from the
Fund.
What is Actual Loss? - (correct answer) Actual Loss means the cost to correct or
complete a home improvement that is inadequate, unworkmanlike or incomplete.
How much can homeowners recover? - (correct answer) Homeowners may recover
up to $20,000 per contract, though they are not eligible to recover more than the
amount paid to the contractor against whom the claim is based. Certain costs like: legal
fees, interest, consequential damages are not covered by the Fund.
What is the max amount that can be awarded from the Guaranty Fund for the acts or
omissions of a contractor? - (correct answer) $100,000
How is the Fund maintained? - (correct answer) $100 by each contractor at the time
of applying for a license. The Commission may also assess each contractor a fee of $50
if the Fund falls below $250,000
How many days does the contractor have to respond to claims from a homeowner once
it has been received by the commission? - (correct answer) Once the Commission
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