Maryland Home Improvement Actual
Questions and Answers 100% Correct
(A+) 2026
• Define home improvement -✓✓The addition, alteration, conversion, improvement,
modernization, remodeling, repair or replacement of a building or part of a building that
is used or was designed to be used as a residence or dwelling place or structure
adjacent to that building or an improvement to land adjacent to that building
• Is a building of a swimming pool, deck, pier or porch included in Home Improvement? -
✓✓Yes
• Is work done on apartment complexes of more than 4 units considered home
improvement? -✓✓No
• Is work done on individual condominium units considered home improvement? -
✓✓Yes
• Is installation in a residence of alarm, awning or fire alarm considered home
improvement? -✓✓Yes
• Is now removal or grass cutting home improvement? -✓✓No
• Define contractor -✓✓A person who performs or offers or agrees to perform a home
improvement for an owner
• Define Subcontractor -✓✓A subcontractor enters into contracts with contractors or
other subcontractors to perform home improvement. A subcontractor is not authorized
to enter into agreement directly with the owner
• Define salesperson -✓✓A person who sells a home improvement
• Define Home Improvement contract -✓✓An agrement between a homeowner and a
contractor to perform a home improvement. The law requires contracts to be in writing
and be signed by the parties to the agreement.
• Define Owner -✓✓Owner, owner's agent , tenant or other person authorized to enter
into a home improvement contract
• Define license -✓✓is either a contractor or salesperson license that is issued by the
Home Improvement Commission.
,• Does a handyman need a license? -✓✓Yes
• True or False: Home Improvement law does not apply if one of the parties is a
government agency -✓✓True
• Work done a residence inside a military base is excluded from licensing requirements -
✓✓True
• Can local jurisdictions issue home improvement lincenses -✓✓No, only MD Home
Improvement Commission is authorized to issue a license to solicit, sell, or perform
home improvement services in Maryland
• Can two or more individuals (such as homeowner and contractor) lawfully agree to
ignore the Home Improvement licensing requirement? -✓✓No, waiver is prohibited
• When was the commission established? -✓✓1962
• How Many commissioners are there? -✓✓9 (4 must have experience in the business
of home improvement; 4 are members of the general public that represent cosumers;
and 1 must have experience in banking and finance)
• What is the most important role of the Commissioners? -✓✓To promulgate regulations
for the Commission. These regulations help the public better understand the Home
Improvement Law and the Commission's policies
• How often are the meetings? -✓✓bi-monthly. Meetings are open to the public.
• What is the requirement for Commissioners? -✓✓Must be a resident of MD for at least
5 years
• How long if the Commissioner's term? -✓✓4 years
• Where is the Commission's office? -✓✓Baltimore, MD
• Who appoints the Executive Director? -✓✓The Secretary of Department of Labor,
Licensing and Regulation
• What is the Executive Director responsible for? -✓✓the daily operations of the
Commission and signs under the seal letters affirming the licensing status of individuals
for court proceedings. The Executive director is also responsible for compiling and
maintaining a copy of the Commission's current regulations
• What do investigators do? -✓✓The Commission also employs investigators that review
the complaints and Guaranty Fund claims that are received by the Commission. The
, investigators review complaints against licensed and unlicensed contractors and
salespersons.
• If an investigator determines that a violation may have occurred, what actions can the
Commission take? -✓✓The Commission may take disciplinary action which may include
reprimand, monetary fine or suspension or revocation of the license.
• True or False: An individual who holds a home improvement license as a contractor is
NOT required to obtain a construction license from the Circuit Courts -✓✓True
• How long are exams valid for? -✓✓2 years
• If a candidate fails the exam, how long must he/she wait before retaking it? -✓✓30
days the first time. After each subsequent failure a candidate must wait 60 days.
• What is the insurance requirement for contractor? -✓✓General Liability at least
$50,000
• What is the Home Improvement Guaranty Fund? -✓✓One of the Commissions most
important function is to administer the Home Improvement Guaranty Fund. The fund
compensates homeowners for the actual loss caused by the acts or omissions of a
licensed contractor.
• True or False: Is a homeowner hires an unlicensed contractor he/she is eligible to
collect money from the fund? -✓✓FALSE - if a homeowner hires an unlicensed
contractor, the homeowner will NOT be eligible to collect money from the Fund.
• What is Actual Loss? -✓✓Actual Loss means the cost to correct or complete a home
improvement that is inadequate, unworkmanlike or incomplete.
• How much can homeowners recover? -✓✓Homeowners may recover up to $20,000
per contract, though they are not eligible to recover more than the amount paid to the
contractor against whom the claim is based. Certain costs like: legal fees, interest,
consequential damages are not covered by the Fund.
• What is the max amount that can be awarded from the Guaranty Fund for the acts or
omissions of a contractor? -✓✓$100,000
• How is the Fund maintained? -✓✓$100 by each contractor at the time of applying for a
license. The Commission may also assess each contractor a fee of $50 if the Fund falls
below $250,000
• How many days does the contractor have to respond to claims from a homeowner
once it has been received by the commission? -✓✓Once the Commission receives a
Questions and Answers 100% Correct
(A+) 2026
• Define home improvement -✓✓The addition, alteration, conversion, improvement,
modernization, remodeling, repair or replacement of a building or part of a building that
is used or was designed to be used as a residence or dwelling place or structure
adjacent to that building or an improvement to land adjacent to that building
• Is a building of a swimming pool, deck, pier or porch included in Home Improvement? -
✓✓Yes
• Is work done on apartment complexes of more than 4 units considered home
improvement? -✓✓No
• Is work done on individual condominium units considered home improvement? -
✓✓Yes
• Is installation in a residence of alarm, awning or fire alarm considered home
improvement? -✓✓Yes
• Is now removal or grass cutting home improvement? -✓✓No
• Define contractor -✓✓A person who performs or offers or agrees to perform a home
improvement for an owner
• Define Subcontractor -✓✓A subcontractor enters into contracts with contractors or
other subcontractors to perform home improvement. A subcontractor is not authorized
to enter into agreement directly with the owner
• Define salesperson -✓✓A person who sells a home improvement
• Define Home Improvement contract -✓✓An agrement between a homeowner and a
contractor to perform a home improvement. The law requires contracts to be in writing
and be signed by the parties to the agreement.
• Define Owner -✓✓Owner, owner's agent , tenant or other person authorized to enter
into a home improvement contract
• Define license -✓✓is either a contractor or salesperson license that is issued by the
Home Improvement Commission.
,• Does a handyman need a license? -✓✓Yes
• True or False: Home Improvement law does not apply if one of the parties is a
government agency -✓✓True
• Work done a residence inside a military base is excluded from licensing requirements -
✓✓True
• Can local jurisdictions issue home improvement lincenses -✓✓No, only MD Home
Improvement Commission is authorized to issue a license to solicit, sell, or perform
home improvement services in Maryland
• Can two or more individuals (such as homeowner and contractor) lawfully agree to
ignore the Home Improvement licensing requirement? -✓✓No, waiver is prohibited
• When was the commission established? -✓✓1962
• How Many commissioners are there? -✓✓9 (4 must have experience in the business
of home improvement; 4 are members of the general public that represent cosumers;
and 1 must have experience in banking and finance)
• What is the most important role of the Commissioners? -✓✓To promulgate regulations
for the Commission. These regulations help the public better understand the Home
Improvement Law and the Commission's policies
• How often are the meetings? -✓✓bi-monthly. Meetings are open to the public.
• What is the requirement for Commissioners? -✓✓Must be a resident of MD for at least
5 years
• How long if the Commissioner's term? -✓✓4 years
• Where is the Commission's office? -✓✓Baltimore, MD
• Who appoints the Executive Director? -✓✓The Secretary of Department of Labor,
Licensing and Regulation
• What is the Executive Director responsible for? -✓✓the daily operations of the
Commission and signs under the seal letters affirming the licensing status of individuals
for court proceedings. The Executive director is also responsible for compiling and
maintaining a copy of the Commission's current regulations
• What do investigators do? -✓✓The Commission also employs investigators that review
the complaints and Guaranty Fund claims that are received by the Commission. The
, investigators review complaints against licensed and unlicensed contractors and
salespersons.
• If an investigator determines that a violation may have occurred, what actions can the
Commission take? -✓✓The Commission may take disciplinary action which may include
reprimand, monetary fine or suspension or revocation of the license.
• True or False: An individual who holds a home improvement license as a contractor is
NOT required to obtain a construction license from the Circuit Courts -✓✓True
• How long are exams valid for? -✓✓2 years
• If a candidate fails the exam, how long must he/she wait before retaking it? -✓✓30
days the first time. After each subsequent failure a candidate must wait 60 days.
• What is the insurance requirement for contractor? -✓✓General Liability at least
$50,000
• What is the Home Improvement Guaranty Fund? -✓✓One of the Commissions most
important function is to administer the Home Improvement Guaranty Fund. The fund
compensates homeowners for the actual loss caused by the acts or omissions of a
licensed contractor.
• True or False: Is a homeowner hires an unlicensed contractor he/she is eligible to
collect money from the fund? -✓✓FALSE - if a homeowner hires an unlicensed
contractor, the homeowner will NOT be eligible to collect money from the Fund.
• What is Actual Loss? -✓✓Actual Loss means the cost to correct or complete a home
improvement that is inadequate, unworkmanlike or incomplete.
• How much can homeowners recover? -✓✓Homeowners may recover up to $20,000
per contract, though they are not eligible to recover more than the amount paid to the
contractor against whom the claim is based. Certain costs like: legal fees, interest,
consequential damages are not covered by the Fund.
• What is the max amount that can be awarded from the Guaranty Fund for the acts or
omissions of a contractor? -✓✓$100,000
• How is the Fund maintained? -✓✓$100 by each contractor at the time of applying for a
license. The Commission may also assess each contractor a fee of $50 if the Fund falls
below $250,000
• How many days does the contractor have to respond to claims from a homeowner
once it has been received by the commission? -✓✓Once the Commission receives a
