Maryland Home Improvement Question and
Answer | A+ Verified Updated | Frequently
Tested
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 claim, it
send a copy to the contractor who has 10 days to respond back to the Commission.
Answer | A+ Verified Updated | Frequently
Tested
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 claim, it
send a copy to the contractor who has 10 days to respond back to the Commission.
