Residential Builder’s Salesperson Practice Exam –
Questions & Answers | Latest Update 2026 | 100% Pass
Guarantee | Exam Prep
1. What is a lump sum agreement in the context of residential construction
contracts?
A contract where a fixed total price is agreed upon for the entire
project.
A contract that allows for open-ended costs based on actual
expenses.
A contract that requires payment only upon project completion.
A contract that specifies payment based on hourly labor rates.
2. What is the term for a contract based on a fixed price per unit of work
completed, such as price per square foot?
Time and materials contract
Cost-plus contract
Unit price contract
Fixed-price contract
3. What is the required number of days for a telemarketer or seller to check the
National Do Not Call Registry?
31 days
60 days
7 days
14 days
,4. When the total price of a bid is over ___, the contractor must be licensed.
$1000
$250
$273
$500
5. What is the time frame for a licensee to notify the Department about a
change of address?
10 days
5 days
30 days
15 days
6. Describe the importance of notifying a contractor in writing when a
salesperson terminates their employment.
It helps the salesperson avoid legal repercussions.
Notifying in writing provides a formal record of the termination and
ensures clarity in communication.
It is only necessary if the contractor requests it.
It allows the salesperson to leave without any obligations.
7. Describe the significance of overhead costs in the context of residential
construction projects.
Overhead costs are solely determined by labor expenses.
Overhead costs are only related to materials used in construction.
, Overhead costs are essential for covering administrative expenses
that support the construction process.
Overhead costs are irrelevant to project budgeting.
8. What is the name of the document that material suppliers and subcontractors
must sign before a contractor can receive a draw or progress payment?
Lien waiver
Payment invoice
Construction permit
Contract agreement
9. What must salespeople obtain before they can legally begin selling
residential properties?
A license and pocket ID card
A warranty agreement
A construction loan
A sales contract
10. What type of violation are you committing when you fail to include a
material fact or make false or misleading advertising statements?
Conflict of interest
Improper brokerage commission
Improper delivery of instruments
Misrepresentation
, 11. A person registering a complaint to the board against a builder must do so
within:
60 days of the sale
90 days
12 months of the purchase
6 years of completion, or occupancy, whichever occurs later
12. Which federal law established a national Do Not Call Registry?
Telephone Solicitation Act
CAN-SPAM Act
Telephone Consumer Protection Act
Telephone Do Not Call Registry Act
13. If a builder is found to be in violation of fair housing laws by refusing to sell a
home to a family with children, what legal implications could they face?
They could face legal action for discrimination and be required to
pay damages or fines.
They could be exempt from penalties due to a lack of knowledge.
They could be required to undergo additional training without
penalties.
They could lose their construction license immediately.
14. If a contractor discovers significant structural issues while remodeling an
older home, how would a cost-plus contract benefit them in this situation?
It prevents the contractor from making any changes to the original
contract terms.
Questions & Answers | Latest Update 2026 | 100% Pass
Guarantee | Exam Prep
1. What is a lump sum agreement in the context of residential construction
contracts?
A contract where a fixed total price is agreed upon for the entire
project.
A contract that allows for open-ended costs based on actual
expenses.
A contract that requires payment only upon project completion.
A contract that specifies payment based on hourly labor rates.
2. What is the term for a contract based on a fixed price per unit of work
completed, such as price per square foot?
Time and materials contract
Cost-plus contract
Unit price contract
Fixed-price contract
3. What is the required number of days for a telemarketer or seller to check the
National Do Not Call Registry?
31 days
60 days
7 days
14 days
,4. When the total price of a bid is over ___, the contractor must be licensed.
$1000
$250
$273
$500
5. What is the time frame for a licensee to notify the Department about a
change of address?
10 days
5 days
30 days
15 days
6. Describe the importance of notifying a contractor in writing when a
salesperson terminates their employment.
It helps the salesperson avoid legal repercussions.
Notifying in writing provides a formal record of the termination and
ensures clarity in communication.
It is only necessary if the contractor requests it.
It allows the salesperson to leave without any obligations.
7. Describe the significance of overhead costs in the context of residential
construction projects.
Overhead costs are solely determined by labor expenses.
Overhead costs are only related to materials used in construction.
, Overhead costs are essential for covering administrative expenses
that support the construction process.
Overhead costs are irrelevant to project budgeting.
8. What is the name of the document that material suppliers and subcontractors
must sign before a contractor can receive a draw or progress payment?
Lien waiver
Payment invoice
Construction permit
Contract agreement
9. What must salespeople obtain before they can legally begin selling
residential properties?
A license and pocket ID card
A warranty agreement
A construction loan
A sales contract
10. What type of violation are you committing when you fail to include a
material fact or make false or misleading advertising statements?
Conflict of interest
Improper brokerage commission
Improper delivery of instruments
Misrepresentation
, 11. A person registering a complaint to the board against a builder must do so
within:
60 days of the sale
90 days
12 months of the purchase
6 years of completion, or occupancy, whichever occurs later
12. Which federal law established a national Do Not Call Registry?
Telephone Solicitation Act
CAN-SPAM Act
Telephone Consumer Protection Act
Telephone Do Not Call Registry Act
13. If a builder is found to be in violation of fair housing laws by refusing to sell a
home to a family with children, what legal implications could they face?
They could face legal action for discrimination and be required to
pay damages or fines.
They could be exempt from penalties due to a lack of knowledge.
They could be required to undergo additional training without
penalties.
They could lose their construction license immediately.
14. If a contractor discovers significant structural issues while remodeling an
older home, how would a cost-plus contract benefit them in this situation?
It prevents the contractor from making any changes to the original
contract terms.
