Michigan Residential Builders Exam ½
Questions with Verified Answers
What is the first offense penalty for engaging in residential building without a license? -
ANSWERSA fine of not less than $5,000.00 or more than $25,000.00, or imprisonment
for not more than 1 year, or both.
What is the penalty for engaging in residential building without a license, resulting in a
death? - ANSWERSA fine of not less than $5,000.00 or more than $25,000.00 or
imprisonment for not more than 4 years, or both.
On your individual builder's license application, what should you write as your "business
address"? - ANSWERSYour personal address.
What is the cost of the individual builder's license? - ANSWERS$195
After receiving your residential builder's license, what are the only trades not covered by
your license? - ANSWERSPlumbing, electrical, and HVAC
Who is the TESTING company for the State of Michigan? - ANSWERSPSI
What is the name of the department that regulates your license? - ANSWERSLARA
Before you may test you must _____. - ANSWERSPresent 2 valid forms of ID.
In order to schedule your test with PSI you may ______. - ANSWERSschedule online
schedule my mail
schedule by phone or fax
When will you receive your test score? - ANSWERSas soon as you complete the test
What are the 2 parts of the Residential Builder Examination? - ANSWERSBusiness and
Law examination/Practice and Trade examination
How long will you have to complete the Practice and Trade portion of the exam? -
ANSWERS180 minutes
What is a quick asset ratio? - ANSWERS1:1
Under the Carpentry section of the test, what does a "span table" tell us? -
ANSWERSWhat species and what grade of lumber a floor joist has to be to span a
certain distance
,Which of the following topics will be covered on the exam? - ANSWERScarpentry
roofing
insulation
Which is NOT a reason that you need a residential business license? - ANSWERSIt
allows you to work on commercial properties
Where does most fraud occur? - ANSWERSIn the residential market
As a builder, your license falls under the regulation of _____ - ANSWERSBoth rules by
the director and board as well as laws of the state of Michigan
What is the makeup of the 9 members of the board? - ANSWERSThere are 6
individuals with a license or registration in the occupation that the board monitors and 3
members of the general public.
Under the definition of occupational code, what does the word "limitation" refer to? -
ANSWERSA condition, stricture, restraint, or probation attached to a license relative to
the scope of practice
When does your license expire? - ANSWERSMay 31st every 3 years
Who, upon completion of a hearing, shall assess a penalty or penalties? -
ANSWERSThe board
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? -
ANSWERS60 days
When the department investigates a complaint and finds evidence of a violation, what
actions can be taken against the respondent? - ANSWERSA cease and desist order.
A formal complaint.
A citation.
How many days after the administrative law hearings examiner hears the report must
the board determine penalties? - ANSWERS60 days
What is a compliance conference? - ANSWERSA meeting where the respondent meets
with the department to discuss the complaint against them.
Which of the following is NOT a possible penalty for operating without a residential
builder's license? - ANSWERSa fine of $50,000
Which of the following is a possible penalty for operating without a residential builder's
license? - ANSWERS-Placement of a limitation on the license.
, -Probation.
-Suspension of the license
Which of the following terms means a premise used or intended to be used for a
residence purpose and related facilities appurtenant to the premises used or intended to
be used as an adjunct of residential occupancy? - ANSWERSResidential structure
Other than the listed salesperson, an employee may make a sale when ______. -
ANSWERSit is occasional and incidental to the person's principal employment
Which of the following is why someone would be allowed to operate without a
residential business license? - ANSWERS-They are an authorized representative of the
United States government.
-They are the owner of a rental property and are responsible for 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? - ANSWERS3 years
After receiving your initial residential builder's license, how many continuing competency
hours are required within the next 3 years? - ANSWERS21 hours
If a salesperson desires to change employment from one residential builder or
maintenance and alteration contractor to another _____. - ANSWERSthe 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"? -
ANSWERS18 months
Suppose a licensed residential builder or licensed residential maintenance and
alteration contractor wishes to change the control or direction of the business. How long
to they have to report that change to the department? - ANSWERS10 days
The department shall conduct a review upon notice that the licensee has violated the
Asbestos Abatement Contractors Licensing Act; what are the possible consequences
for this violation? - ANSWERSThe department may suspend or revoke that person's
license, and fines may be issued.
When the board issues the findings of a verified complaint, _____. - ANSWERS-the
department shall post on its website any final order of the board and the date it was
issued
Questions with Verified Answers
What is the first offense penalty for engaging in residential building without a license? -
ANSWERSA fine of not less than $5,000.00 or more than $25,000.00, or imprisonment
for not more than 1 year, or both.
What is the penalty for engaging in residential building without a license, resulting in a
death? - ANSWERSA fine of not less than $5,000.00 or more than $25,000.00 or
imprisonment for not more than 4 years, or both.
On your individual builder's license application, what should you write as your "business
address"? - ANSWERSYour personal address.
What is the cost of the individual builder's license? - ANSWERS$195
After receiving your residential builder's license, what are the only trades not covered by
your license? - ANSWERSPlumbing, electrical, and HVAC
Who is the TESTING company for the State of Michigan? - ANSWERSPSI
What is the name of the department that regulates your license? - ANSWERSLARA
Before you may test you must _____. - ANSWERSPresent 2 valid forms of ID.
In order to schedule your test with PSI you may ______. - ANSWERSschedule online
schedule my mail
schedule by phone or fax
When will you receive your test score? - ANSWERSas soon as you complete the test
What are the 2 parts of the Residential Builder Examination? - ANSWERSBusiness and
Law examination/Practice and Trade examination
How long will you have to complete the Practice and Trade portion of the exam? -
ANSWERS180 minutes
What is a quick asset ratio? - ANSWERS1:1
Under the Carpentry section of the test, what does a "span table" tell us? -
ANSWERSWhat species and what grade of lumber a floor joist has to be to span a
certain distance
,Which of the following topics will be covered on the exam? - ANSWERScarpentry
roofing
insulation
Which is NOT a reason that you need a residential business license? - ANSWERSIt
allows you to work on commercial properties
Where does most fraud occur? - ANSWERSIn the residential market
As a builder, your license falls under the regulation of _____ - ANSWERSBoth rules by
the director and board as well as laws of the state of Michigan
What is the makeup of the 9 members of the board? - ANSWERSThere are 6
individuals with a license or registration in the occupation that the board monitors and 3
members of the general public.
Under the definition of occupational code, what does the word "limitation" refer to? -
ANSWERSA condition, stricture, restraint, or probation attached to a license relative to
the scope of practice
When does your license expire? - ANSWERSMay 31st every 3 years
Who, upon completion of a hearing, shall assess a penalty or penalties? -
ANSWERSThe board
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? -
ANSWERS60 days
When the department investigates a complaint and finds evidence of a violation, what
actions can be taken against the respondent? - ANSWERSA cease and desist order.
A formal complaint.
A citation.
How many days after the administrative law hearings examiner hears the report must
the board determine penalties? - ANSWERS60 days
What is a compliance conference? - ANSWERSA meeting where the respondent meets
with the department to discuss the complaint against them.
Which of the following is NOT a possible penalty for operating without a residential
builder's license? - ANSWERSa fine of $50,000
Which of the following is a possible penalty for operating without a residential builder's
license? - ANSWERS-Placement of a limitation on the license.
, -Probation.
-Suspension of the license
Which of the following terms means a premise used or intended to be used for a
residence purpose and related facilities appurtenant to the premises used or intended to
be used as an adjunct of residential occupancy? - ANSWERSResidential structure
Other than the listed salesperson, an employee may make a sale when ______. -
ANSWERSit is occasional and incidental to the person's principal employment
Which of the following is why someone would be allowed to operate without a
residential business license? - ANSWERS-They are an authorized representative of the
United States government.
-They are the owner of a rental property and are responsible for 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? - ANSWERS3 years
After receiving your initial residential builder's license, how many continuing competency
hours are required within the next 3 years? - ANSWERS21 hours
If a salesperson desires to change employment from one residential builder or
maintenance and alteration contractor to another _____. - ANSWERSthe 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"? -
ANSWERS18 months
Suppose a licensed residential builder or licensed residential maintenance and
alteration contractor wishes to change the control or direction of the business. How long
to they have to report that change to the department? - ANSWERS10 days
The department shall conduct a review upon notice that the licensee has violated the
Asbestos Abatement Contractors Licensing Act; what are the possible consequences
for this violation? - ANSWERSThe department may suspend or revoke that person's
license, and fines may be issued.
When the board issues the findings of a verified complaint, _____. - ANSWERS-the
department shall post on its website any final order of the board and the date it was
issued
