Michigan Residential Builders Exam
1/2 Question and answers 100%
correct 2025/2026
What is the first offense penalty for engaging in residential building without a license? - correct answer
✔A fine of not less than $5,000.00 or more than $25,000.00, or imprisonment for not more than 1 year,
or both.
What is the penalty for engaging in residential building without a license, resulting in a death? - correct
answer ✔A fine of not less than $5,000.00 or more than $25,000.00 or imprisonment for not more than
4 years, or both.
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 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 2 valid forms of ID.
In order to schedule your test with PSI you may ______. - correct answer ✔schedule online
schedule my mail
,schedule by phone or fax
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 ✔1:1
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 license 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 makeup of the 9 members of the board? - correct answer ✔There are 6 individuals with a
license or registration in the occupation that 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
When does your license expire? - correct answer ✔May 31st every 3 years
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 investigates a complaint and finds evidence of a violation, what actions can be
taken against the respondent? - correct answer ✔A cease and desist order.
A formal complaint.
A citation.
How many days after the administrative law hearings examiner hears the report must the board
determine penalties? - 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.
Which of the following is NOT a possible penalty for operating without a residential builder's license? -
correct answer ✔a fine of $50,000
Which of the following is a possible penalty for operating without a residential builder's license? -
correct answer ✔-Placement of a limitation on the license.
1/2 Question and answers 100%
correct 2025/2026
What is the first offense penalty for engaging in residential building without a license? - correct answer
✔A fine of not less than $5,000.00 or more than $25,000.00, or imprisonment for not more than 1 year,
or both.
What is the penalty for engaging in residential building without a license, resulting in a death? - correct
answer ✔A fine of not less than $5,000.00 or more than $25,000.00 or imprisonment for not more than
4 years, or both.
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 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 2 valid forms of ID.
In order to schedule your test with PSI you may ______. - correct answer ✔schedule online
schedule my mail
,schedule by phone or fax
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 ✔1:1
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 license 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 makeup of the 9 members of the board? - correct answer ✔There are 6 individuals with a
license or registration in the occupation that 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
When does your license expire? - correct answer ✔May 31st every 3 years
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 investigates a complaint and finds evidence of a violation, what actions can be
taken against the respondent? - correct answer ✔A cease and desist order.
A formal complaint.
A citation.
How many days after the administrative law hearings examiner hears the report must the board
determine penalties? - 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.
Which of the following is NOT a possible penalty for operating without a residential builder's license? -
correct answer ✔a fine of $50,000
Which of the following is a possible penalty for operating without a residential builder's license? -
correct answer ✔-Placement of a limitation on the license.
