builders license michigan 2026 Exam
1. penalty for engaging in practice of residential building without a license?:
not less than $5000 and not more than $25,000 and/ or one year
2. whats the penalty for engaging in the practice of residential builders license
resulting in a death?: not less than $5000 and not more than $25000 and/or 4
years
3. on individual builders license application what should you write as your
business address?: your personal address
4. what is the cost for the individual builders license?: $195
5. after receiving your builders license, what are the only trades not covered
by it?: plumbing, electrical, hvac
6. who is the testing company for the state of michigan?: PSI
7. what is the name of the dept that regulates your license?: LARA
8. before the test you must?: present 2 valid forms of identification
9. in order to schedule your test with PSI you may?: schedule online, by mail,
by phone or fax
10. when will you recieve your test score?: as soon as you complete the test
11. what are the 2 parts of the residential builders exam?: Business and law/
practice and trade exam
12. How long will you have to complete the practice and trade portion of the
exam?: 180 minutes
13. what is the quick asset ratio?: 1 to 1
14. Under the Carpentry section of the test, what does a "span table" tell us?:
what species and what grade of lumber a floor joist has to be to span a certain
distance
15. what of the following topics will be on covered in the exam?: carpentry,
roofing, insulation
16. which is not a reason you need a residential builders license?: it allows you
to work on commercial projects
17. where does most fraud occur?: residential market
18. as a builder your license falls under the regulation of?: both rules by the
director and board as well as laws of the state of michigan
19. what is the make up of the 9 members of the board?: 6 individuals that have
a license or registration in the occupation in which the board monitors and 3
members of the general public
,20. under the definition of occupational code, what does the word "limitation"
refer to?: a condition, stricture, restraint or problem attached to a license
relative to the scope of practice?
21. Who, upon completion of a hearing, shall assess a penalty or penalties?:
the board
22. 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?: 60 days
23. when the dept is investigating a complaint and finds evidence of a
violation, what actions can be brought against the correspondent?: a
cease and desist order, a formal complaint, a citation
24. how many days after the administrative law hearings examiner hears the
report, must a determination of penalties be made by the board?: 60 days
25. what is a compliance conference?: a meeting where the respondent meets
with the department to discuss the complaint against them
26. which of the following is not a penalty for operating without a residential
builders license?: a fine of $50,000
27. 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?: residential structure
28. An employee other than the listed salesperson may make a sale when?:
is it occasional and incidental to the persons principal employment
29. which of the following is a reason that someone would be allowed to
operate without a residential builders license?:
-they are an authorized representative of the U.S. govt
-they are the owner of the rental property with references to the maintenance and
altercation of that rental property
- an owner of the property with reference to a structure on the property for the
owners own use and occupancy
30. 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 in duration?: 3 years
31. after receiving your initial residential builders. license, how many hours
of continuing competency are required within. the next 3 years?: 21 hours 32.
if a salesperson desires to change employment from one residential builder
or maintenance and altercation contractor to another?: the license shall be
, builders license michigan 2025
forwarded to the dept, an application will be made for a transfer and a new license
under the salespersons new employer will be issued
33. Regarding workmanship, how long does a client have to file a "verified
complaint"?: 18 months
34. If a licensed residential builder or licensed residential maintenance and
alteration contractor wishes to change the control or direction of the
business, how long do they have to report that change to the department?:
10 days
35. the dept 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?: the dept may suspend or revoke
that persons license and fines may be issued
36. When the board issues the findings of a verified complaint, what
happens?: -the dept shall post on its website any final order of the board and the
date it was issued
- the posting shall occur within 30 days after the final order is issued
- the dept shall annually post on its website the number of final orders of the board
37. according to the administrative rules, an application for a license shall
include?: -the residence address of. all individuals, partners, officers, and /or
members, as requested by the dept
-the address of the principal place of business in michigan
38. upon final order of license suspension or revocation, the licensee shall
surrender the license to the dept within how many days of the date of
suspension or revocation?: 10 days
39. according to administrative rules, a licensee shall include the following
in all advertising?:
-name of the licensee
- license #
-the actual business address as shown on the license
40. according to the purchase and sale. agreements, the builder or
contractor shall make certain that the written agreements clearly state the
terms of the transaction, including?:
-specifications and cost
-the type of quality of materials
-the type and amount of work to be done
, 41. the dept after investigation, may request a licensee to appear to
such as is necessary to determine whether there is a cause for
complaint which would require a hearing or dismissal of the complaint?:
investigation conference
42. a respondent in a complaint may be represented by?: An attorney or his/her
own self
43. what act was created to collect fees for the regulation of certain
occupations and professions, and for certain agencies and businesses; to
create certain funds, and to prescribe certain powers and duties of certain
state agencies and departments?: state license fee act
44. what is the "occupation license for former offenders act?": an act to
encourage and contribute to the rehabilitation of former offenders and to assist
them in the assumptions of the responsibilities of citizenship
45. according to the "building conduct fund", evidence of "intent to
defraud" is defined as ?: when a contractor, or any subcontractor, appropriates
money to his/herself for building operations before the payment by him or all
money, or so to become due laborers, subcontractors, materialmen or other
entitled to payment
46. according to the construction lien act, what must be supplied by owner,
general contractor, subcontractor, or supplier within 10 days of being asked
for a copy by anyone entitled to a copy?: notice of commencement
47. the "claim of lien" must be filed within days of last furnishing labor
or material for a project?: 90 days
48. proceedings to foreclosure must take place within of the date that
the claim lien was recorded?: 1 year
49. according to the " construction lien act", what recommendations are
given for your protection?:
- never use your assets to complete someones project - get sufficient down payment
and/ or obtain sufficient progress payments as the job processes
- have well defined contracts which include rights and responsibilities of binding
parties
50. which document lists each subcontractor, supplier and laborer for
whom payment of wages or fringe benefits and withholdings is due but
unpaid, with whom the contractor/subcontractor has
contracted/subcontracted for performance under the contract with the
owner or leasee, and the amounts due to the persons as of the date of
statements?: the sworn statement
1. penalty for engaging in practice of residential building without a license?:
not less than $5000 and not more than $25,000 and/ or one year
2. whats the penalty for engaging in the practice of residential builders license
resulting in a death?: not less than $5000 and not more than $25000 and/or 4
years
3. on individual builders license application what should you write as your
business address?: your personal address
4. what is the cost for the individual builders license?: $195
5. after receiving your builders license, what are the only trades not covered
by it?: plumbing, electrical, hvac
6. who is the testing company for the state of michigan?: PSI
7. what is the name of the dept that regulates your license?: LARA
8. before the test you must?: present 2 valid forms of identification
9. in order to schedule your test with PSI you may?: schedule online, by mail,
by phone or fax
10. when will you recieve your test score?: as soon as you complete the test
11. what are the 2 parts of the residential builders exam?: Business and law/
practice and trade exam
12. How long will you have to complete the practice and trade portion of the
exam?: 180 minutes
13. what is the quick asset ratio?: 1 to 1
14. Under the Carpentry section of the test, what does a "span table" tell us?:
what species and what grade of lumber a floor joist has to be to span a certain
distance
15. what of the following topics will be on covered in the exam?: carpentry,
roofing, insulation
16. which is not a reason you need a residential builders license?: it allows you
to work on commercial projects
17. where does most fraud occur?: residential market
18. as a builder your license falls under the regulation of?: both rules by the
director and board as well as laws of the state of michigan
19. what is the make up of the 9 members of the board?: 6 individuals that have
a license or registration in the occupation in which the board monitors and 3
members of the general public
,20. under the definition of occupational code, what does the word "limitation"
refer to?: a condition, stricture, restraint or problem attached to a license
relative to the scope of practice?
21. Who, upon completion of a hearing, shall assess a penalty or penalties?:
the board
22. 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?: 60 days
23. when the dept is investigating a complaint and finds evidence of a
violation, what actions can be brought against the correspondent?: a
cease and desist order, a formal complaint, a citation
24. how many days after the administrative law hearings examiner hears the
report, must a determination of penalties be made by the board?: 60 days
25. what is a compliance conference?: a meeting where the respondent meets
with the department to discuss the complaint against them
26. which of the following is not a penalty for operating without a residential
builders license?: a fine of $50,000
27. 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?: residential structure
28. An employee other than the listed salesperson may make a sale when?:
is it occasional and incidental to the persons principal employment
29. which of the following is a reason that someone would be allowed to
operate without a residential builders license?:
-they are an authorized representative of the U.S. govt
-they are the owner of the rental property with references to the maintenance and
altercation of that rental property
- an owner of the property with reference to a structure on the property for the
owners own use and occupancy
30. 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 in duration?: 3 years
31. after receiving your initial residential builders. license, how many hours
of continuing competency are required within. the next 3 years?: 21 hours 32.
if a salesperson desires to change employment from one residential builder
or maintenance and altercation contractor to another?: the license shall be
, builders license michigan 2025
forwarded to the dept, an application will be made for a transfer and a new license
under the salespersons new employer will be issued
33. Regarding workmanship, how long does a client have to file a "verified
complaint"?: 18 months
34. If a licensed residential builder or licensed residential maintenance and
alteration contractor wishes to change the control or direction of the
business, how long do they have to report that change to the department?:
10 days
35. the dept 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?: the dept may suspend or revoke
that persons license and fines may be issued
36. When the board issues the findings of a verified complaint, what
happens?: -the dept shall post on its website any final order of the board and the
date it was issued
- the posting shall occur within 30 days after the final order is issued
- the dept shall annually post on its website the number of final orders of the board
37. according to the administrative rules, an application for a license shall
include?: -the residence address of. all individuals, partners, officers, and /or
members, as requested by the dept
-the address of the principal place of business in michigan
38. upon final order of license suspension or revocation, the licensee shall
surrender the license to the dept within how many days of the date of
suspension or revocation?: 10 days
39. according to administrative rules, a licensee shall include the following
in all advertising?:
-name of the licensee
- license #
-the actual business address as shown on the license
40. according to the purchase and sale. agreements, the builder or
contractor shall make certain that the written agreements clearly state the
terms of the transaction, including?:
-specifications and cost
-the type of quality of materials
-the type and amount of work to be done
, 41. the dept after investigation, may request a licensee to appear to
such as is necessary to determine whether there is a cause for
complaint which would require a hearing or dismissal of the complaint?:
investigation conference
42. a respondent in a complaint may be represented by?: An attorney or his/her
own self
43. what act was created to collect fees for the regulation of certain
occupations and professions, and for certain agencies and businesses; to
create certain funds, and to prescribe certain powers and duties of certain
state agencies and departments?: state license fee act
44. what is the "occupation license for former offenders act?": an act to
encourage and contribute to the rehabilitation of former offenders and to assist
them in the assumptions of the responsibilities of citizenship
45. according to the "building conduct fund", evidence of "intent to
defraud" is defined as ?: when a contractor, or any subcontractor, appropriates
money to his/herself for building operations before the payment by him or all
money, or so to become due laborers, subcontractors, materialmen or other
entitled to payment
46. according to the construction lien act, what must be supplied by owner,
general contractor, subcontractor, or supplier within 10 days of being asked
for a copy by anyone entitled to a copy?: notice of commencement
47. the "claim of lien" must be filed within days of last furnishing labor
or material for a project?: 90 days
48. proceedings to foreclosure must take place within of the date that
the claim lien was recorded?: 1 year
49. according to the " construction lien act", what recommendations are
given for your protection?:
- never use your assets to complete someones project - get sufficient down payment
and/ or obtain sufficient progress payments as the job processes
- have well defined contracts which include rights and responsibilities of binding
parties
50. which document lists each subcontractor, supplier and laborer for
whom payment of wages or fringe benefits and withholdings is due but
unpaid, with whom the contractor/subcontractor has
contracted/subcontracted for performance under the contract with the
owner or leasee, and the amounts due to the persons as of the date of
statements?: the sworn statement
