TESTING REAL EXAM QUESTIONS WITH DETAILED ANSWERS | A+ GRADE ASSURED //
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Question 1
Which of the following activities is specifically included in the definition of "home
improvement" under Maryland law?
A) Grass cutting and lawn maintenance
B) Snow removal from a residential driveway
C) Building a swimming pool, deck, or pier
D) Construction of a new commercial office building
E) Cleaning the interior of a residential home
Correct Answer: C) Building a swimming pool, deck, or pier
Rationale: According to the Maryland Home Improvement Law, the definition of home
improvement specifically includes the addition or improvement of structures adjacent to a
residence, such as swimming pools, decks, piers, or porches.
Question 2
A contractor is hired to renovate an apartment complex. Under what condition is this work
EXCLUDED from the definition of "home improvement"?
A) If the complex has more than 2 units
B) If the complex has more than 4 units
C) If the complex is owned by a corporation
D) If the work is performed on the exterior only
E) Apartment complexes are never considered home improvement
Correct Answer: B) If the complex has more than 4 units
Rationale: Maryland law excludes work done on apartment complexes of more than 4 units
from the home improvement regulations. However, work on individual condominium units
is included.
Question 3
Which of the following services is considered a "home improvement" when performed at a
residence?
A) Routine tree trimming
B) Installation of a fire alarm or security system
C) Weekly grass cutting services
D) Interior decorating without structural changes
E) Janitorial services for a home office
Correct Answer: B) Installation of a fire alarm or security system
Rationale: The law specifies that the installation of alarms, awnings, or fire alarms in a
residence falls under the category of home improvement.
Question 4
A person who enters into an agreement with a homeowner to perform home improvements is
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defined as a:
A) Subcontractor
B) Journeyman
C) Contractor
D) Salesperson
E) Consultant
Correct Answer: C) Contractor
Rationale: A contractor is defined as a person who performs, or offers or agrees to perform,
a home improvement for an owner.
Question 5
What is a primary restriction placed on a "subcontractor" regarding the homeowner?
A) They cannot perform any physical labor
B) They must be licensed as a salesperson
C) They are not authorized to enter into an agreement directly with the owner
D) They must pay the homeowner a security deposit
E) They must reside in the same county as the homeowner
Correct Answer: C) They are not authorized to enter into an agreement directly with the
owner
Rationale: Subcontractors enter into contracts with contractors or other subcontractors.
They are legally barred from making direct agreements with the homeowner; that role is
reserved for the prime contractor.
Question 6
According to Maryland law, a "home improvement contract" must meet which of the following
criteria?
A) It can be a verbal "handshake" agreement
B) It must be recorded at the local courthouse within 24 hours
C) It must be in writing and signed by all parties
D) It must be notarized by a Maryland public official
E) It must be reviewed by the Attorney General prior to signing
Correct Answer: C) It must be in writing and signed by all parties
Rationale: The Maryland Home Improvement Law specifically requires that all home
improvement contracts be in writing and signed by both the homeowner and the contractor
to be valid.
Question 7
Under Maryland law, the definition of an "owner" in a home improvement contract includes:
A) Only the person whose name is on the deed
B) The owner, the owner's agent, or a tenant authorized to enter the contract
C) Only individuals over the age of 65
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D) Any neighbor who witnesses the work
E) The contractor's insurance company
Correct Answer: B) The owner, the owner's agent, or a tenant authorized to enter the
contract
Rationale: An "owner" is defined broadly to include the actual owner, their legal agent, a
tenant, or any other person authorized to enter into the home improvement contract.
Question 8
Does a "handyman" who performs small home repair jobs for profit in Maryland need a license?
A) No, if the job is under $500
B) No, as long as they do not use power tools
C) Yes, they must be licensed by the MHIC
D) Only if they employ more than 2 people
E) No, handymen are exempt from all licensing requirements
Correct Answer: C) Yes, they must be licensed by the MHIC
Rationale: The law is clear that anyone performing home improvement work, including
those self-described as "handymen," must hold a valid license issued by the Home
Improvement Commission.
Question 9
In which of the following scenarios is the Maryland Home Improvement Law NOT applicable?
A) When the homeowner is a senior citizen
B) When the work is performed on a weekend
C) When one of the parties in the contract is a government agency
D) When the contract is for less than $1,000
E) When the contractor uses non-union labor
Correct Answer: C) When one of the parties in the contract is a government agency
Rationale: The Home Improvement Law does not apply if one of the parties involved in the
contract is a government agency.
Question 10
A contractor performs work on a residence located inside a United States military base in
Maryland. Is this work subject to MHIC licensing?
A) Yes, because it is within Maryland state lines
B) No, work on a military base is excluded from licensing requirements
C) Only if the soldier is a Maryland resident
D) Only if the work exceeds $10,000
E) Yes, but only for exterior work
Correct Answer: B) No, work on a military base is excluded from licensing requirements
Rationale: Work performed on a residence located within a military base is specifically
excluded from the Maryland home improvement licensing requirements.
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Question 11
Which entity is the only one authorized to issue a license to solicit, sell, or perform home
improvement services in Maryland?
A) The local county permit office
B) The Maryland Department of Commerce
C) The Maryland Home Improvement Commission (MHIC)
D) The Circuit Court of the county where the work is done
E) The Maryland Attorney General's Office
Correct Answer: C) The Maryland Home Improvement Commission (MHIC)
Rationale: Local jurisdictions are prohibited from issuing home improvement licenses. Only
the MHIC has the authority to license contractors and salespersons for these services in
Maryland.
Question 12
Can a homeowner and a contractor lawfully agree to waive the requirement for the contractor to
have an MHIC license?
A) Yes, if it is written in bold text in the contract
B) Yes, if the homeowner receives a 20% discount
C) No, a waiver of the licensing requirement is prohibited
D) Only for emergency repairs
E) Only if the contract is for less than $500
Correct Answer: C) No, a waiver of the licensing requirement is prohibited
Rationale: The law does not allow individuals to "opt-out" of the protection provided by
licensing. Any agreement to ignore the licensing requirement is unlawful and void.
Question 13
In what year was the Maryland Home Improvement Commission established?
A) 1945
B) 1962
C) 1975
D) 1988
E) 2001
Correct Answer: B) 1962
Rationale: The Commission was established in 1962 to regulate the home improvement
industry and protect consumers.
Question 14
The Maryland Home Improvement Commission consists of how many members?
A) 5
B) 7
C) 9