Michigan Residential Builder Licensing Exam
(2025 updated) QUESTIONS AND ANSWERS
(DETAILED & ELABORATED) fully solved
M&A contractors include: - ANSWER: A = Carpentry
B = Concrete
D = Excavation
G = Insulation Work
I = Masonry
J = Painting & Decorating
K = Siding
M = Roofing
If more than one office is used for work, the branch office must be
__________ - ANSWER: Licensed
The one who obtains the residential builder's license is called a
_____________ ____________ - ANSWER: Qualifying Officer
First Offense for practicing without a license - ANSWER: Misdemeanor
fine of $5,000 - $25,000
or prison for not more than 1 year, or both.
Second offense for practicing without a license - ANSWER:
Misdemeanor fine of $5,000 - $25,000
,or prison for not more than 2 years, or both.
Death or serious injury - ANSWER: Felony fine of $5,000 - $25,000 or
prison for not more than 4 years, or both.
Define a Residential Builder - ANSWER: A person or entity who is
involved in the construction of a residential structure or a combination
residential and commercial structure.
Define M&A contractor - ANSWER: 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.
Salesperson - ANSWER: employee of agent other than a qualifying
officer who sells business for the contractor.
who reissues licenses for salespeople? - ANSWER: LARA (The
Department)
Which types of trade work require a different type of license other than
the resi license? - ANSWER: Plumbing, Electrical, and Mechanical.
Who issues the license? - ANSWER: LARA
How is the director of LARA appointed? - ANSWER: by the governor
, What types of people make up the Board of Residential Builders? -
ANSWER: 4 Licensed residential builders
2 M&A contractors
3 members of the public
What are the duties of the board of residential builders? (4) - ANSWER:
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
What happens if the qualifying officer's license is revoked? - ANSWER:
The entity's license is revoked as well.
How can a foreign entity get a license? - ANSWER: Only if authorized
by the Corporations and Securities Commission.
Non residents must file this to be considered for a license. - ANSWER:
An Irrevocable consent to service of process
T or F, Builders must maintain a place of business in the state they
operate in. - ANSWER: True
(2025 updated) QUESTIONS AND ANSWERS
(DETAILED & ELABORATED) fully solved
M&A contractors include: - ANSWER: A = Carpentry
B = Concrete
D = Excavation
G = Insulation Work
I = Masonry
J = Painting & Decorating
K = Siding
M = Roofing
If more than one office is used for work, the branch office must be
__________ - ANSWER: Licensed
The one who obtains the residential builder's license is called a
_____________ ____________ - ANSWER: Qualifying Officer
First Offense for practicing without a license - ANSWER: Misdemeanor
fine of $5,000 - $25,000
or prison for not more than 1 year, or both.
Second offense for practicing without a license - ANSWER:
Misdemeanor fine of $5,000 - $25,000
,or prison for not more than 2 years, or both.
Death or serious injury - ANSWER: Felony fine of $5,000 - $25,000 or
prison for not more than 4 years, or both.
Define a Residential Builder - ANSWER: A person or entity who is
involved in the construction of a residential structure or a combination
residential and commercial structure.
Define M&A contractor - ANSWER: 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.
Salesperson - ANSWER: employee of agent other than a qualifying
officer who sells business for the contractor.
who reissues licenses for salespeople? - ANSWER: LARA (The
Department)
Which types of trade work require a different type of license other than
the resi license? - ANSWER: Plumbing, Electrical, and Mechanical.
Who issues the license? - ANSWER: LARA
How is the director of LARA appointed? - ANSWER: by the governor
, What types of people make up the Board of Residential Builders? -
ANSWER: 4 Licensed residential builders
2 M&A contractors
3 members of the public
What are the duties of the board of residential builders? (4) - ANSWER:
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
What happens if the qualifying officer's license is revoked? - ANSWER:
The entity's license is revoked as well.
How can a foreign entity get a license? - ANSWER: Only if authorized
by the Corporations and Securities Commission.
Non residents must file this to be considered for a license. - ANSWER:
An Irrevocable consent to service of process
T or F, Builders must maintain a place of business in the state they
operate in. - ANSWER: True
