Michigan Residential Builder Licensing
Exam 2025
1. M&A contractors include::
A = Carpentry
B = Concrete
D = Excavation
G = Insulation Work
I = Masonry
J = Painting & Decorating K = Siding
M = Roofing
2. If more than one office is used for work, the branch office must be
__________: Licensed
3. The one who obtains the residential builder's license is called a
_____________ ____________: Qualifying Officer
4. First Offense for practicing without a license: Misdemeanor fine of $5,000 -
$25,000 or prison for not more than 1
year, or both.
5. Second offense for practicing without a license: Misdemeanor fine of
$5,000 - $25,000 or prison for not more than 2 years, or both.
6. Death or serious injury: Felony fine of $5,000 - $25,000 or prison for not
more than 4 years, or both.
7. Define a Residential Builder: A person or entity who is involved in the
construction of a residential structure or a combination residential and
commercial structure.
8. Define M&A contractor: Person who for a fixed sum/price other than wages
for personal labor for the repair, alteration, or addition/improvement to
residential/commercial or residential structure.
9. Salesperson: employee of agent other than a qualifying officer who sells
business for the contractor.
10.who reissues licenses for salespeople?: LARA (The Department)
11.Which types of trade work require a different type of license other than
the resi license?: Plumbing, Electrical, and Mechanical.
12.Who issues the license?: LARA
13.How is the director of LARA appointed?: by the governor
14.What types of people make up the Board of Residential Builders?:
Michigan
, Michigan Residential Builder Licensing
Exam 2025
4 Licensed residential builders
2 M&A contractors
3 members of the public
15. What are the duties of the board of residential builders? (4):
1. Interpretation of a license requirement
2. Aid in investigations
3. Set acceptable practice standards
4. Assess penalties for those who are licensed and are in violation of rules
16.What happens if the qualifying officer's license is revoked?: The entity's
license is revoked as well.
17.How can a foreign entity get a license?: Only if authorized by the
Corporations and Securities Commission.
18.Non residents must file this to be considered for a license.: An
Irrevocable consent to service of process
19.T or F, Builders must maintain a place of business in the state they
operate in.: True
20.T of F, Contractors must maintain an accurate set of books/records open
to inspection by the department (LARA).: True
21.If the department inquires, licensees must submit ___________
_____________ ___________ showing licensee's current financial status,
and must do so within 30 days of inquiry.: sworn financial statements 22. T or
F, Advertising must not misrepresent material facts.: True
23.Licensee shall include ____________, _______________, and
________________ in all advertising: name, license number, and actual
business address
24.Is it legal to pay money or give gifts to customers in exchange for the
use of their home as a model for potential clients?: No.
25.All agreements between builders and customers should be in writing
and signed. (T or F). All changes require ___________ ____________
added to the contract.: True, change orders
26.Licensee violations include:
1. _________________ without legal excuse of contract
2. ______________ of funds/property
Michigan
Exam 2025
1. M&A contractors include::
A = Carpentry
B = Concrete
D = Excavation
G = Insulation Work
I = Masonry
J = Painting & Decorating K = Siding
M = Roofing
2. If more than one office is used for work, the branch office must be
__________: Licensed
3. The one who obtains the residential builder's license is called a
_____________ ____________: Qualifying Officer
4. First Offense for practicing without a license: Misdemeanor fine of $5,000 -
$25,000 or prison for not more than 1
year, or both.
5. Second offense for practicing without a license: Misdemeanor fine of
$5,000 - $25,000 or prison for not more than 2 years, or both.
6. Death or serious injury: Felony fine of $5,000 - $25,000 or prison for not
more than 4 years, or both.
7. Define a Residential Builder: A person or entity who is involved in the
construction of a residential structure or a combination residential and
commercial structure.
8. Define M&A contractor: Person who for a fixed sum/price other than wages
for personal labor for the repair, alteration, or addition/improvement to
residential/commercial or residential structure.
9. Salesperson: employee of agent other than a qualifying officer who sells
business for the contractor.
10.who reissues licenses for salespeople?: LARA (The Department)
11.Which types of trade work require a different type of license other than
the resi license?: Plumbing, Electrical, and Mechanical.
12.Who issues the license?: LARA
13.How is the director of LARA appointed?: by the governor
14.What types of people make up the Board of Residential Builders?:
Michigan
, Michigan Residential Builder Licensing
Exam 2025
4 Licensed residential builders
2 M&A contractors
3 members of the public
15. What are the duties of the board of residential builders? (4):
1. Interpretation of a license requirement
2. Aid in investigations
3. Set acceptable practice standards
4. Assess penalties for those who are licensed and are in violation of rules
16.What happens if the qualifying officer's license is revoked?: The entity's
license is revoked as well.
17.How can a foreign entity get a license?: Only if authorized by the
Corporations and Securities Commission.
18.Non residents must file this to be considered for a license.: An
Irrevocable consent to service of process
19.T or F, Builders must maintain a place of business in the state they
operate in.: True
20.T of F, Contractors must maintain an accurate set of books/records open
to inspection by the department (LARA).: True
21.If the department inquires, licensees must submit ___________
_____________ ___________ showing licensee's current financial status,
and must do so within 30 days of inquiry.: sworn financial statements 22. T or
F, Advertising must not misrepresent material facts.: True
23.Licensee shall include ____________, _______________, and
________________ in all advertising: name, license number, and actual
business address
24.Is it legal to pay money or give gifts to customers in exchange for the
use of their home as a model for potential clients?: No.
25.All agreements between builders and customers should be in writing
and signed. (T or F). All changes require ___________ ____________
added to the contract.: True, change orders
26.Licensee violations include:
1. _________________ without legal excuse of contract
2. ______________ of funds/property
Michigan
