1|Page
License Exam Michigan Builders ACTUAL VERIFIED
QUESTIONS AND CORRECT DETAILED ANSWERS
LATEST UPDATE.pdf
Where does most fraud occur? - Answer-In the residential
market
As a builder, your license falls under the regulation of: -
Answer-Both rules by the director and board as well as
laws of the state of Michigan
What is the make up of the 9 members of the board? -
Answer-4 residential builders, 2 M + A contractors, and 3
members of the general public
Under the definition of occupational code, what does the
word "limitation" refer to? - Answer-A condition, stricture,
restraint or probation attached to a license relative to the
scope of practice
Who, upon completion of a hearing, shall assess a penalty
or penalties? - Answer-The Board
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If you fail to renew your license or registration on or before
the expiration date, how many days do you have to
resubmit with the proper payment and late fee? - Answer-
60 days
When the department is investigating a complaint and
finds evidence of a violation, what actions can be brought
against the respondent? - Answer-A cease and desist
order, a formal complaint, and/or a citation
How many days after the administrative law hearings
examiner hears the report, must a determination of
penalties be made by the board? - Answer-60 days
What is a compliance conference? - Answer-A meeting
where ONLY the respondent meets with the department to
discuss the complaint against them
Which of the following terms means a premise used or
intended to be used for a residential purpose and related
facilities appurtenant to the premises used or intended to
be used as an adjunct of residential occupancy? - Answer-
Residential structure
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An employee other than the listed salesperson may make
a sale when: - Answer-It is occasional and incidental to the
person's principal employment
The following are reasons that someone would be allowed
to operate without a residential business license: -
Answer-- They are an authorized representative of the
United States government
- They are the owner of a rental property with reference to
the maintenance and alteration of that rental property
- An owner of property with reference to a structure on the
property for the owner's own use and occupancy
Beginning the license cycle after December 21, 2007, the
department shall issue the license of a residential builder
and residential maintenance and alteration contractor for a
period of how many years in duration? - Answer-3 years
After receiving your initial residential builder's license, how
many hours of continuing competency are required within
the next 3 years? - Answer-21 hours
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If a salesperson desires to change employment from one
residential builder or maintenance and alteration
contractor to another: - Answer-The license shall be
forwarded to the department, an application will be made
for a transfer, and a new license under the salesperson's
new employer will be issued
Regarding workmanship, how long does a client have to
file a "verified complaint"? - Answer-18 months from the
completion of work
If a licensed residential builder or licensed residential
maintenance and alteration contractor wishes to change
the control or direction of the business, how long do they
have to report that change to the department? - Answer-10
days
The department shall conduct a review upon notice that a
licensee has violated the asbestos abatement contractors
licensing act. What are the possible consequences for for
this violation? - Answer-The department may suspend or
revoke that person's license and fines may be issued
License Exam Michigan Builders ACTUAL VERIFIED
QUESTIONS AND CORRECT DETAILED ANSWERS
LATEST UPDATE.pdf
Where does most fraud occur? - Answer-In the residential
market
As a builder, your license falls under the regulation of: -
Answer-Both rules by the director and board as well as
laws of the state of Michigan
What is the make up of the 9 members of the board? -
Answer-4 residential builders, 2 M + A contractors, and 3
members of the general public
Under the definition of occupational code, what does the
word "limitation" refer to? - Answer-A condition, stricture,
restraint or probation attached to a license relative to the
scope of practice
Who, upon completion of a hearing, shall assess a penalty
or penalties? - Answer-The Board
,2|Page
If you fail to renew your license or registration on or before
the expiration date, how many days do you have to
resubmit with the proper payment and late fee? - Answer-
60 days
When the department is investigating a complaint and
finds evidence of a violation, what actions can be brought
against the respondent? - Answer-A cease and desist
order, a formal complaint, and/or a citation
How many days after the administrative law hearings
examiner hears the report, must a determination of
penalties be made by the board? - Answer-60 days
What is a compliance conference? - Answer-A meeting
where ONLY the respondent meets with the department to
discuss the complaint against them
Which of the following terms means a premise used or
intended to be used for a residential purpose and related
facilities appurtenant to the premises used or intended to
be used as an adjunct of residential occupancy? - Answer-
Residential structure
,3|Page
An employee other than the listed salesperson may make
a sale when: - Answer-It is occasional and incidental to the
person's principal employment
The following are reasons that someone would be allowed
to operate without a residential business license: -
Answer-- They are an authorized representative of the
United States government
- They are the owner of a rental property with reference to
the maintenance and alteration of that rental property
- An owner of property with reference to a structure on the
property for the owner's own use and occupancy
Beginning the license cycle after December 21, 2007, the
department shall issue the license of a residential builder
and residential maintenance and alteration contractor for a
period of how many years in duration? - Answer-3 years
After receiving your initial residential builder's license, how
many hours of continuing competency are required within
the next 3 years? - Answer-21 hours
, 4|Page
If a salesperson desires to change employment from one
residential builder or maintenance and alteration
contractor to another: - Answer-The license shall be
forwarded to the department, an application will be made
for a transfer, and a new license under the salesperson's
new employer will be issued
Regarding workmanship, how long does a client have to
file a "verified complaint"? - Answer-18 months from the
completion of work
If a licensed residential builder or licensed residential
maintenance and alteration contractor wishes to change
the control or direction of the business, how long do they
have to report that change to the department? - Answer-10
days
The department shall conduct a review upon notice that a
licensee has violated the asbestos abatement contractors
licensing act. What are the possible consequences for for
this violation? - Answer-The department may suspend or
revoke that person's license and fines may be issued
