MICHIGAN BUILDERS
LICENSE PRACTICE EXAM QBANK WITH
Q&A 2026/2027 LATEST UPDATE
Where does most fraud occur? - ✔✔✔✔✔✔-in the
residential market
As a builder, your licence falls under the regulation of -
✔ ✔✔✔✔✔-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? - ✔
✔✔✔✔✔-4 residential builders, 2 M + A contractors, and
3 members of the general public
1 | Page
,Under the definition of occupational code, what does the
word "limitation" refer to? - ✔✔✔✔✔✔-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? -
✔✔✔✔✔✔- 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? - ✔✔✔✔✔✔-
residential structure
An employee other than the listed salesperson may make a
sale when - ✔✔✔✔✔✔-An employee other than the listed
salesperson may make a sale when
2 | Page
,Which of the following is a reason that someone would be
allowed to operate without a residential business license? -
✔ ✔✔✔✔✔-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
Which of the following is NOT a possible penalty for
operating without a residential builder's license? -
✔✔✔✔✔✔- a fine of $50,000
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? - ✔✔✔✔✔✔-3 years
After receiving your initial residential builder's license,
how many hours of continuing competency are required
within the next 3 years? - ✔✔✔✔✔✔-21 hours
3 | Page
, If a salesperson desires to change employment from one
residential builder or maintenance and alteration contractor
to another - ✔✔✔✔✔✔-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
What is the penalty for engaging in the practice of
residential builders license, resulting in a death? -
✔✔✔✔✔✔- 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"? -
✔✔✔✔✔✔-Your personal address
After receiving your residential builder's license, what are
the only trades not covered by your license - ✔✔✔✔✔✔-
Plumbing, electrical, and HVAC
4 | Page
LICENSE PRACTICE EXAM QBANK WITH
Q&A 2026/2027 LATEST UPDATE
Where does most fraud occur? - ✔✔✔✔✔✔-in the
residential market
As a builder, your licence falls under the regulation of -
✔ ✔✔✔✔✔-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? - ✔
✔✔✔✔✔-4 residential builders, 2 M + A contractors, and
3 members of the general public
1 | Page
,Under the definition of occupational code, what does the
word "limitation" refer to? - ✔✔✔✔✔✔-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? -
✔✔✔✔✔✔- 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? - ✔✔✔✔✔✔-
residential structure
An employee other than the listed salesperson may make a
sale when - ✔✔✔✔✔✔-An employee other than the listed
salesperson may make a sale when
2 | Page
,Which of the following is a reason that someone would be
allowed to operate without a residential business license? -
✔ ✔✔✔✔✔-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
Which of the following is NOT a possible penalty for
operating without a residential builder's license? -
✔✔✔✔✔✔- a fine of $50,000
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? - ✔✔✔✔✔✔-3 years
After receiving your initial residential builder's license,
how many hours of continuing competency are required
within the next 3 years? - ✔✔✔✔✔✔-21 hours
3 | Page
, If a salesperson desires to change employment from one
residential builder or maintenance and alteration contractor
to another - ✔✔✔✔✔✔-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
What is the penalty for engaging in the practice of
residential builders license, resulting in a death? -
✔✔✔✔✔✔- 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"? -
✔✔✔✔✔✔-Your personal address
After receiving your residential builder's license, what are
the only trades not covered by your license - ✔✔✔✔✔✔-
Plumbing, electrical, and HVAC
4 | Page
