Maryland Home Improvement Test
(Answered) With Complete Verified Solution
100%
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.
Who is not eligible to collect from the Fund?
Spouse, relative, or employee of the contractor, or an officer of the corporation.
Similarly, an owner may only receive compensation if she/he resides in the house
where the work was performed or does not own more than 3 residences.
What happens to the license of the contractor after a claim has been paid?
The licensed is suspended, unless the commission determines that contractor did not
know the wrongful conduct or it could had not been avoided
What is required in a home Improvement contract?
Date
Contractors name, address, and MHIC number
(Answered) With Complete Verified Solution
100%
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.
Who is not eligible to collect from the Fund?
Spouse, relative, or employee of the contractor, or an officer of the corporation.
Similarly, an owner may only receive compensation if she/he resides in the house
where the work was performed or does not own more than 3 residences.
What happens to the license of the contractor after a claim has been paid?
The licensed is suspended, unless the commission determines that contractor did not
know the wrongful conduct or it could had not been avoided
What is required in a home Improvement contract?
Date
Contractors name, address, and MHIC number
