Michigan Residential Builder's License
Question and answers rated A+
2025/2026
What is the 1st offense penalty for engaging in the practice of residential building without a license? -
correct answer ✔Not less than $5K and not more than $25K and/or 1 year
What is the penalty for engaging in the practice of residential building, resulting in a death? - correct
answer ✔Not less than $5K and not more than $50K and/or 4 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 of the individual builder's license? - correct answer ✔$195
After receiving your residential builder's license, what are the only trades that are not covered by your
license? - correct answer ✔-Plumbing
-Electrical
-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, what must you do? - correct answer ✔Present 2 forms of ID
How should you schedule your test with PSI? - correct answer ✔-Online
,-Mail
-Phone/Fax
When will you receive your test score? - correct answer ✔Immediately following the completion of the
test
What are the 2 parts of the Residential Builder's Exam? - correct answer ✔-Business & Law
-Practice & Trade
How long will you have to complete the Practice & Trade portion of the exam? - correct answer ✔180
mins
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 lumbar a floor joist has to be to span a certain distance
Which topics will be covered on the Practice & Trade portion of the exam? - correct answer ✔-
Carpentry
-Roofing
-Insulation
Do you need a Residential Builder's License to work on commercial projects? - correct answer ✔No
Where does the most fraud occur? - correct answer ✔The residential market
,As a builder, your license falls under the regulation of what? - correct answer ✔-Rules by the director &
board
-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
license/registration in the occupation in which the board monitors
-3 members of the general public
Under the definition of occupation 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 completing a hearing, shall assess a penalty(ies)? - correct answer ✔The Board
If you fail to renew your license/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 them? - correct answer ✔-Cease & desist order
-Formal complaint
-Citation
How many days after the administrative law hearings examiner hears the report, must a determination
of penalties 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
-Suspension of license
What does a residential structure mean? - correct answer ✔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
When can an employee other than the listed salesperson make a sale? - correct answer ✔When it's
occasional and incidental to the person's principle employment
Why would someone be allowed to operate without a residential builder's license? - correct answer ✔-
They are an authorized representative of the US 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
Beginning the license cycle after Dec 21st, 2007, the department shall issue the license of a residential
builder and residential maintenance and alteration contractor for a period of how many years 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
How is the salesperson license changed when the salesperson desires to change employment from 1
residential builder to another? - correct answer ✔-License will be forwarded to the department
-An application for transfer is made
-New license under the new employer will be issued
Question and answers rated A+
2025/2026
What is the 1st offense penalty for engaging in the practice of residential building without a license? -
correct answer ✔Not less than $5K and not more than $25K and/or 1 year
What is the penalty for engaging in the practice of residential building, resulting in a death? - correct
answer ✔Not less than $5K and not more than $50K and/or 4 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 of the individual builder's license? - correct answer ✔$195
After receiving your residential builder's license, what are the only trades that are not covered by your
license? - correct answer ✔-Plumbing
-Electrical
-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, what must you do? - correct answer ✔Present 2 forms of ID
How should you schedule your test with PSI? - correct answer ✔-Online
-Phone/Fax
When will you receive your test score? - correct answer ✔Immediately following the completion of the
test
What are the 2 parts of the Residential Builder's Exam? - correct answer ✔-Business & Law
-Practice & Trade
How long will you have to complete the Practice & Trade portion of the exam? - correct answer ✔180
mins
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 lumbar a floor joist has to be to span a certain distance
Which topics will be covered on the Practice & Trade portion of the exam? - correct answer ✔-
Carpentry
-Roofing
-Insulation
Do you need a Residential Builder's License to work on commercial projects? - correct answer ✔No
Where does the most fraud occur? - correct answer ✔The residential market
,As a builder, your license falls under the regulation of what? - correct answer ✔-Rules by the director &
board
-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
license/registration in the occupation in which the board monitors
-3 members of the general public
Under the definition of occupation 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 completing a hearing, shall assess a penalty(ies)? - correct answer ✔The Board
If you fail to renew your license/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 them? - correct answer ✔-Cease & desist order
-Formal complaint
-Citation
How many days after the administrative law hearings examiner hears the report, must a determination
of penalties 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
-Suspension of license
What does a residential structure mean? - correct answer ✔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
When can an employee other than the listed salesperson make a sale? - correct answer ✔When it's
occasional and incidental to the person's principle employment
Why would someone be allowed to operate without a residential builder's license? - correct answer ✔-
They are an authorized representative of the US 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
Beginning the license cycle after Dec 21st, 2007, the department shall issue the license of a residential
builder and residential maintenance and alteration contractor for a period of how many years 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
How is the salesperson license changed when the salesperson desires to change employment from 1
residential builder to another? - correct answer ✔-License will be forwarded to the department
-An application for transfer is made
-New license under the new employer will be issued
