MICHIGAN RESIDENTIAL BUILDER
LICENSING EXAM: 2025/2026 WITH
CORRECT/ACCURATE ANSWERS
Is part of the state-mandated licensing process, not an academic exam
offered by a university. It is administered by the third-party testing
company psi services llc on behalf of the michigan department of
licensing and regulatory affairs (lara)
Key facts about the exam
Administering agency:
Regulatory authority
Educational requirement:
MICHIGAN RESIDENTIAL BUILDER
LICENSING
M&A contractors include: correct answers 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 correct
answers Licensed
The one who obtains the residential builder's license is called a
correct answers Qualifying Officer
First Offense for practicing without a license correct answers
Misdemeanor fine of
$5,000 - $25,000
,or prison for not more than 1 year, or both.
Second offense for practicing without a license correct answers
Misdemeanor fine of
$5,000 - $25,000
or prison for not more than 2 years, or both.
Death or serious injury correct answers Felony fine of $5,000 - $25,000 or
prison for not more than 4 years, or both.
Define a Residential Builder correct answers 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 correct answers 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 correct answers employee of agent other than a qualifying
officer who sells business for the contractor.
who reissues licenses for salespeople? correct answers LARA (The
Department)
Which types of trade work require a different type of license other than
the resi license? correct answers Plumbing, Electrical, and Mechanical.
Who issues the license? correct answers LARA
How is the director of LARA appointed? correct answers by the governor
What types of people make up the Board of Residential Builders? correct
answers 4 Licensed residential builders
2 M&A contractors
, 3 members of the public
What are the duties of the board of residential builders? (4) correct
answers 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? correct
answers The entity's license is revoked as well.
How can a foreign entity get a license? correct answers Only if authorized
by the Corporations and Securities Commission.
Non residents must file this to be considered for a license. correct answers
An Irrevocable consent to service of process
T or F, Builders must maintain a place of business in the state they
operate in. correct answers True
T of F, Contractors must maintain an accurate set of books/records open
to inspection by the department (LARA). correct answers True
If the department inquires, licensees must submit
showing licensee's current financial status, and must do so within 30
days of inquiry. correct answers sworn financial statements
T or F, Advertising must not misrepresent material facts. correct answers
True
LICENSING EXAM: 2025/2026 WITH
CORRECT/ACCURATE ANSWERS
Is part of the state-mandated licensing process, not an academic exam
offered by a university. It is administered by the third-party testing
company psi services llc on behalf of the michigan department of
licensing and regulatory affairs (lara)
Key facts about the exam
Administering agency:
Regulatory authority
Educational requirement:
MICHIGAN RESIDENTIAL BUILDER
LICENSING
M&A contractors include: correct answers 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 correct
answers Licensed
The one who obtains the residential builder's license is called a
correct answers Qualifying Officer
First Offense for practicing without a license correct answers
Misdemeanor fine of
$5,000 - $25,000
,or prison for not more than 1 year, or both.
Second offense for practicing without a license correct answers
Misdemeanor fine of
$5,000 - $25,000
or prison for not more than 2 years, or both.
Death or serious injury correct answers Felony fine of $5,000 - $25,000 or
prison for not more than 4 years, or both.
Define a Residential Builder correct answers 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 correct answers 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 correct answers employee of agent other than a qualifying
officer who sells business for the contractor.
who reissues licenses for salespeople? correct answers LARA (The
Department)
Which types of trade work require a different type of license other than
the resi license? correct answers Plumbing, Electrical, and Mechanical.
Who issues the license? correct answers LARA
How is the director of LARA appointed? correct answers by the governor
What types of people make up the Board of Residential Builders? correct
answers 4 Licensed residential builders
2 M&A contractors
, 3 members of the public
What are the duties of the board of residential builders? (4) correct
answers 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? correct
answers The entity's license is revoked as well.
How can a foreign entity get a license? correct answers Only if authorized
by the Corporations and Securities Commission.
Non residents must file this to be considered for a license. correct answers
An Irrevocable consent to service of process
T or F, Builders must maintain a place of business in the state they
operate in. correct answers True
T of F, Contractors must maintain an accurate set of books/records open
to inspection by the department (LARA). correct answers True
If the department inquires, licensees must submit
showing licensee's current financial status, and must do so within 30
days of inquiry. correct answers sworn financial statements
T or F, Advertising must not misrepresent material facts. correct answers
True
