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Maryland Home Improvement Contract (MHIC) Guide: Requirements & Legal Forms

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A comprehensive guide to the Maryland Home Improvement Commission (MHIC) contract requirements. This PDF covers legally required clauses, payment schedules, arbitration, and consumer protections for both homeowners and licensed contractors.

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Maryland Home Improvement - Practice Test
(PSI)With Complete Solutions.




Define home improvement - .....ANSWER ...✔✔ 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? - .....ANSWER ...✔✔
Yes


Is work done on apartment complexes of more than 4
units considered home improvement? - .....ANSWER
...✔✔ No


Is work done on individual condominium units considered
home improvement? - .....ANSWER ...✔✔ Yes

,2|Page



Is installation in a residence of alarm, awning or fire
alarm considered home improvement? - .....ANSWER
...✔✔ Yes


Is now removal or grass cutting home improvement? -
.....ANSWER ...✔✔ No


Define contractor - .....ANSWER ...✔✔ A person who
performs or offers or agrees to perform a home
improvement for an owner


Define Subcontractor - .....ANSWER ...✔✔ 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 - .....ANSWER ...✔✔ A person who
sells a home improvement


Define Home Improvement contract - .....ANSWER
...✔✔ 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.

,3|Page




Define Owner - .....ANSWER ...✔✔ Owner, owner's
agent , tenant or other person authorized to enter into a
home improvement contract


Define license - .....ANSWER ...✔✔ is either a
contractor or salesperson license that is issued by the
Home Improvement Commission.


Does a handyman need a license? - .....ANSWER
...✔✔ Yes


True or False: Home Improvement law does not apply if
one of the parties is a government agency - .....ANSWER
...✔✔ True


Work done a residence inside a military base is
excluded from licensing requirements - .....ANSWER
...✔✔ True


Can local jurisdictions issue home improvement lincenses
- .....ANSWER ...✔✔ No, only MD Home Improvement
Commission is authorized to issue a license to solicit, sell,
or perform home improvement services in Maryland

, 4|Page




Can two or more individuals (such as homeowner and
contractor) lawfully agree to ignore the Home
Improvement licensing requirement? - .....ANSWER
...✔✔ No, waiver is prohibited


When was the commission established? - .....ANSWER
...✔✔ 1962


How Many commissioners are there? - .....ANSWER
...✔✔ 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? -
.....ANSWER ...✔✔ 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? - .....ANSWER ...✔✔ bi-
monthly. Meetings are open to the public.

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