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.
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.
