Builders Exam Question and answers
rated A+ 2025/2026
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
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
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
Before you may test you must - correct answer ✔present two valid forms of identification
In order to schedule your test with PSI you may - correct answer ✔Schedule online, by mail, fax or
phone
When will you receive your test score? - correct answer ✔as soon as you complete the test
,What are the 2 parts of the Residential Builder Examination? - correct answer ✔Business and Law
examination/Practice and Trade examination
How long will you have to complete the Practice and Trade portion of the exam? - correct answer
✔180 Minutes
What is a quick asset ratio? - correct answer ✔1 to 1
Under the Carpentry section of the test, what does a "span table" tell us? - correct answer ✔what
species and what grade of lumber a floor joist has to be to span a certain distance
Which of the following topics will be covered on the exam? - correct answer ✔Carpentry, Roofing,
Insulation
Which is NOT a reason that you need a residential business license? - 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 licence 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 ✔6 individuals that have a
licence or registration in the occupation in which the board monitors 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 answer ✔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 answer ✔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 a
citation
How many days after the adminstrative law hearings examiner hears the report, must a determination
of penalites be made by the board? - correct answer ✔60 days
What is a compliance conference? - correct answer ✔a meeting where the respondent meets with the
department to discuss the complaint against them
What is a possible penalty for operating without a residential builder's license? - correct answer ✔a
placement of a limitation on the license, probation, and suspension of the license
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? - 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
Which of the following is a reason 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 matinence and alteration of
that rental property, and 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
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 the 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
When the board issues the findings of a verified complaint - correct answer ✔the department shall
post on its website any final order of the board and the date it was issued,
the posting shall occur within 30 days after the final order is issued, and
the department shall annually post on its website the number of final orders to the board
rated A+ 2025/2026
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
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
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
Before you may test you must - correct answer ✔present two valid forms of identification
In order to schedule your test with PSI you may - correct answer ✔Schedule online, by mail, fax or
phone
When will you receive your test score? - correct answer ✔as soon as you complete the test
,What are the 2 parts of the Residential Builder Examination? - correct answer ✔Business and Law
examination/Practice and Trade examination
How long will you have to complete the Practice and Trade portion of the exam? - correct answer
✔180 Minutes
What is a quick asset ratio? - correct answer ✔1 to 1
Under the Carpentry section of the test, what does a "span table" tell us? - correct answer ✔what
species and what grade of lumber a floor joist has to be to span a certain distance
Which of the following topics will be covered on the exam? - correct answer ✔Carpentry, Roofing,
Insulation
Which is NOT a reason that you need a residential business license? - 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 licence 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 ✔6 individuals that have a
licence or registration in the occupation in which the board monitors 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 answer ✔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 answer ✔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 a
citation
How many days after the adminstrative law hearings examiner hears the report, must a determination
of penalites be made by the board? - correct answer ✔60 days
What is a compliance conference? - correct answer ✔a meeting where the respondent meets with the
department to discuss the complaint against them
What is a possible penalty for operating without a residential builder's license? - correct answer ✔a
placement of a limitation on the license, probation, and suspension of the license
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? - 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
Which of the following is a reason 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 matinence and alteration of
that rental property, and 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
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 the 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
When the board issues the findings of a verified complaint - correct answer ✔the department shall
post on its website any final order of the board and the date it was issued,
the posting shall occur within 30 days after the final order is issued, and
the department shall annually post on its website the number of final orders to the board
