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RESIDENTIAL BUILDER’S SALESPERSON EXAM – REAL ESTATE &
CONSTRUCTION LICENSING | 2026/2027 PRACTICE
QUESTIONS WITH VERIFIED ANSWERS AND RATIONALES .
A builder's salesperson may be licensed to sell residential construction services on behalf of
how many sponsoring builders or M&A contractors simultaneously?
A. Unlimited number, provided each builder is licensed
B. Up to three (3) sponsoring builders with department approval
C. Only one (1) sponsoring builder or M&A contractor
D. Two (2) sponsoring builders if they are related entities
[CORRECT] C
Rationale: Under the licensing regulatory framework, a builder's salesperson may be licensed
to only one (1) sponsoring licensed residential builder or Maintenance & Alteration (M&A)
contractor at any time. This exclusive sponsorship requirement ensures accountability and
prevents conflicts of interest. The salesperson must obtain their license and pocket ID card
before commencing any sales activities on behalf of the sponsoring builder.
Question 2 — Multiple-Choice
Before a newly licensed builder's salesperson may begin soliciting or selling residential
construction services, which of the following must occur?
A. The sponsoring builder must file a certificate of insurance with the department
B. The salesperson must receive both the license and pocket ID card
C. The salesperson must complete 40 hours of continuing education
D. The sponsoring builder must post a $50,000 performance bond
[CORRECT] B
Rationale: A builder's salesperson must receive their license and pocket ID card before
beginning any sales activities. This is a fundamental licensing requirement that ensures the
salesperson is properly credentialed and identifiable to consumers. Selling without possession
, 2
of both documents constitutes unlicensed activity and may result in disciplinary action against
both the salesperson and the sponsoring builder.
Question 3 — True/False
A builder's salesperson may perform limited sales activities under a pending license
application while waiting for the official license and pocket ID to be issued.
A. True
B. False
[CORRECT] B (False)
Rationale: A builder's salesperson is prohibited from engaging in any sales activities until they
have physically received both their license and pocket ID card from the licensing department.
There is no provisional or pending status that authorizes sales activity. This strict requirement
protects consumers from dealing with unlicensed individuals and ensures proper regulatory
oversight.
Question 4 — Multiple-Choice
A builder's salesperson license expires on December 31, 2026. If the salesperson wishes to
renew without reapplying as a new applicant, by what date must renewal be completed?
A. December 31, 2026
B. January 30, 2027 (30 days after expiration)
C. March 1, 2027 (60 days after expiration)
D. December 31, 2029 (3 years after expiration)
[CORRECT] C
Rationale: Licensees have a 60-day window after expiration to renew their license before
being required to reapply as a new applicant with additional fees. The 60-day grace period
allows for administrative delays while maintaining regulatory compliance. After this window
closes, the individual must submit a completely new application, potentially including re-
examination requirements.
Question 5 — Multiple-Choice
, 3
If a builder's salesperson allows their license to remain expired for more than three (3) years,
what consequence applies?
A. Automatic license reinstatement upon payment of triple fees
B. License is permanently revoked without appeal
C. The licensing examination must be retaken
D. A 90-day probationary period is imposed
[CORRECT] C
Rationale: If a builder's salesperson license remains expired for more than three (3) years, the
licensee must retake and pass the licensing examination to be reinstated. This requirement
ensures that individuals returning to practice after extended absence demonstrate current
competency in regulatory knowledge, consumer protection laws, and construction business
practices.
Question 6 — True/False
A builder's salesperson must notify the department of a change of residential address within
30 days of the change.
A. True
B. False
[CORRECT] A (True)
Rationale: Licensees are required to report any change of address to the licensing department
within 30 days. This ensures the department maintains current contact information for
regulatory correspondence, complaint notifications, and license renewal reminders. Failure to
report address changes promptly may result in missed communications and potential
compliance violations.
Question 7 — Multiple-Choice
A builder's salesperson is terminated by their sponsoring builder on March 1. According to
regulatory requirements, within how many days must the employer return the salesperson's
wall license to the department?
, 4
A. 2 business days
B. 5 days
C. 10 days
D. 30 days
[CORRECT] B
Rationale: Upon termination of a builder's salesperson, the employer has 5 days to return the
salesperson's wall license to the licensing department, typically via certified mail. This
requirement ensures proper tracking of license status and prevents terminated salespersons
from continuing to display or use licenses they no longer hold validly. The 5-day timeframe
balances administrative practicality with regulatory accountability.
Question 8 — True/False
An expired builder's salesperson license that is not being renewed must be returned to the
licensing department, as the license remains property of the department.
A. True
B. False
[CORRECT] A (True)
Rationale: An expired license that is not being renewed must be returned to the licensing
department because the license is the property of the department, not the individual
licensee. This requirement ensures proper inventory control, prevents fraudulent use of
expired credentials, and maintains the integrity of the licensing system. Licensees should not
retain, display, or destroy expired licenses.
Question 9 — Multiple-Choice
The Residential Builder's licensing regulatory body is housed within which state department?
A. Department of Consumer Protection and Business Services
B. Department of Labor and Economic Opportunity
C. Department of Licensing and Regulatory Affairs (LARA)
RESIDENTIAL BUILDER’S SALESPERSON EXAM – REAL ESTATE &
CONSTRUCTION LICENSING | 2026/2027 PRACTICE
QUESTIONS WITH VERIFIED ANSWERS AND RATIONALES .
A builder's salesperson may be licensed to sell residential construction services on behalf of
how many sponsoring builders or M&A contractors simultaneously?
A. Unlimited number, provided each builder is licensed
B. Up to three (3) sponsoring builders with department approval
C. Only one (1) sponsoring builder or M&A contractor
D. Two (2) sponsoring builders if they are related entities
[CORRECT] C
Rationale: Under the licensing regulatory framework, a builder's salesperson may be licensed
to only one (1) sponsoring licensed residential builder or Maintenance & Alteration (M&A)
contractor at any time. This exclusive sponsorship requirement ensures accountability and
prevents conflicts of interest. The salesperson must obtain their license and pocket ID card
before commencing any sales activities on behalf of the sponsoring builder.
Question 2 — Multiple-Choice
Before a newly licensed builder's salesperson may begin soliciting or selling residential
construction services, which of the following must occur?
A. The sponsoring builder must file a certificate of insurance with the department
B. The salesperson must receive both the license and pocket ID card
C. The salesperson must complete 40 hours of continuing education
D. The sponsoring builder must post a $50,000 performance bond
[CORRECT] B
Rationale: A builder's salesperson must receive their license and pocket ID card before
beginning any sales activities. This is a fundamental licensing requirement that ensures the
salesperson is properly credentialed and identifiable to consumers. Selling without possession
, 2
of both documents constitutes unlicensed activity and may result in disciplinary action against
both the salesperson and the sponsoring builder.
Question 3 — True/False
A builder's salesperson may perform limited sales activities under a pending license
application while waiting for the official license and pocket ID to be issued.
A. True
B. False
[CORRECT] B (False)
Rationale: A builder's salesperson is prohibited from engaging in any sales activities until they
have physically received both their license and pocket ID card from the licensing department.
There is no provisional or pending status that authorizes sales activity. This strict requirement
protects consumers from dealing with unlicensed individuals and ensures proper regulatory
oversight.
Question 4 — Multiple-Choice
A builder's salesperson license expires on December 31, 2026. If the salesperson wishes to
renew without reapplying as a new applicant, by what date must renewal be completed?
A. December 31, 2026
B. January 30, 2027 (30 days after expiration)
C. March 1, 2027 (60 days after expiration)
D. December 31, 2029 (3 years after expiration)
[CORRECT] C
Rationale: Licensees have a 60-day window after expiration to renew their license before
being required to reapply as a new applicant with additional fees. The 60-day grace period
allows for administrative delays while maintaining regulatory compliance. After this window
closes, the individual must submit a completely new application, potentially including re-
examination requirements.
Question 5 — Multiple-Choice
, 3
If a builder's salesperson allows their license to remain expired for more than three (3) years,
what consequence applies?
A. Automatic license reinstatement upon payment of triple fees
B. License is permanently revoked without appeal
C. The licensing examination must be retaken
D. A 90-day probationary period is imposed
[CORRECT] C
Rationale: If a builder's salesperson license remains expired for more than three (3) years, the
licensee must retake and pass the licensing examination to be reinstated. This requirement
ensures that individuals returning to practice after extended absence demonstrate current
competency in regulatory knowledge, consumer protection laws, and construction business
practices.
Question 6 — True/False
A builder's salesperson must notify the department of a change of residential address within
30 days of the change.
A. True
B. False
[CORRECT] A (True)
Rationale: Licensees are required to report any change of address to the licensing department
within 30 days. This ensures the department maintains current contact information for
regulatory correspondence, complaint notifications, and license renewal reminders. Failure to
report address changes promptly may result in missed communications and potential
compliance violations.
Question 7 — Multiple-Choice
A builder's salesperson is terminated by their sponsoring builder on March 1. According to
regulatory requirements, within how many days must the employer return the salesperson's
wall license to the department?
, 4
A. 2 business days
B. 5 days
C. 10 days
D. 30 days
[CORRECT] B
Rationale: Upon termination of a builder's salesperson, the employer has 5 days to return the
salesperson's wall license to the licensing department, typically via certified mail. This
requirement ensures proper tracking of license status and prevents terminated salespersons
from continuing to display or use licenses they no longer hold validly. The 5-day timeframe
balances administrative practicality with regulatory accountability.
Question 8 — True/False
An expired builder's salesperson license that is not being renewed must be returned to the
licensing department, as the license remains property of the department.
A. True
B. False
[CORRECT] A (True)
Rationale: An expired license that is not being renewed must be returned to the licensing
department because the license is the property of the department, not the individual
licensee. This requirement ensures proper inventory control, prevents fraudulent use of
expired credentials, and maintains the integrity of the licensing system. Licensees should not
retain, display, or destroy expired licenses.
Question 9 — Multiple-Choice
The Residential Builder's licensing regulatory body is housed within which state department?
A. Department of Consumer Protection and Business Services
B. Department of Labor and Economic Opportunity
C. Department of Licensing and Regulatory Affairs (LARA)
