Michigan Builders License Exam with
Questions and Correct Answers 2026/2027
Updated.
What is the first offense penalty for engaging in the practice of residential building
without a license - CORRECT ANSWER-not less than $5,000 and not more than
$25,000 and/or one year
What is the penalty for engaging in the practice of residential builders license,
resulting in a death? - CORRECT ANSWER-not less than $5,000 and not more than
$25,000 and/or four years
on your individual builder's license application, what should you write as your
"business address"? - CORRECT ANSWER-Your personal address
After receiving your residential builder's license, what are the only trades not covered
by your license - CORRECT ANSWER-Plumbing, electrical, and HVAC
What is a quick asset ratio? - CORRECT ANSWER-1 to 1
Under the Carpentry section of the test, what does a "span table" tell us? -
CORRECT ANSWER-what species and what grade of lumber a floor joist has to be
to span a certain distance
Who, upon completion of a hearing, shall assess a penalty or penalties? - CORRECT
ANSWER-The 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? -
CORRECT ANSWER-60 days
When the department is investigating a complaint and finds evidence of a violation,
what actions can be brought against the respondent? - CORRECT ANSWER-a
citation | a formal complaint | a cease and desist order
How many days after the adminstrative law hearings examiner hears the report, must
a determination of penalites be made by the board? - CORRECT ANSWER-60 days
What is a compliance conference? - CORRECT ANSWER-a meeting where the
respondent meets with the department to discuss the complaint against them
,Which is NOT a reason that you need a residential business license? - CORRECT
ANSWER-It allows you to work on commercial properties
Where does most fraud occur? - CORRECT ANSWER-in the residential market
As a builder, your licence falls under the regulation of - CORRECT ANSWER-Both
rules by the director and board as well as laws of the state of Michigan
What is the make up of the 9 members of the board? - CORRECT ANSWER-4
residential builders, 2 M + A contractors, and 3 members of the general public
Under the definition of occupational code, what does the word "limitation" refer to? -
CORRECT ANSWER-a condition, stricture, restraint or probation attatched to a
license relative to the scope of practice
Which of the following is NOT a possible penalty for operating without a residential
builder's license? - CORRECT ANSWER-a fine of $50,000
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? - CORRECT ANSWER-
residential structure
An employee other than the listed salesperson may make a sale when - CORRECT
ANSWER-An employee other than the listed salesperson may make a sale when
Which of the following is a reason that someone would be allowed to operate without
a residential business license? - CORRECT ANSWER-They are an authorized
representative of the United States government
They are the owner of a rental property with reference to 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 in duration? - CORRECT ANSWER-3 years
After receiving your initial residential builder's license, how many hours of continuing
competency are required within the next 3 years? - CORRECT ANSWER-21 hours
If a salesperson desires to change employment from one residential builder or
maintenance and alteration contractor to another - CORRECT ANSWER-the 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"? -
CORRECT ANSWER-Regarding workmanship, how long does a client have to file a
"verified complaint"?
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? - CORRECT ANSWER-10 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 for this violation? - CORRECT ANSWER-the department may suspend or revoke
that person's license and fines may be issued
When the board issues the findings of a verified complaint - CORRECT ANSWER-the
department 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 department shall annually post on its website the number of final orders to the
board
According to the Administrative Rules, an application for a license shall include -
CORRECT ANSWER-the residence address of all individuals, partners, officers
and/or members, as requested by the department
the address of the principal place of business in Michigan
Upon final order of license suspension or revocation, the licensee shall surrender the
license to the department within how many days of the date of suspension or
revocation? - CORRECT ANSWER-10 days
According to Administrative rules, a licensee shall include the following in all
advertising - CORRECT ANSWER-the name on the license
the license number
the actual business address as shown on the license
According to purchase and sale agreements, the builder or contractor shall make
certain that the written agreements clearly state the terms of the transaction,
including - CORRECT ANSWER-specifications and cost
the type and quality of materials
Questions and Correct Answers 2026/2027
Updated.
What is the first offense penalty for engaging in the practice of residential building
without a license - CORRECT ANSWER-not less than $5,000 and not more than
$25,000 and/or one year
What is the penalty for engaging in the practice of residential builders license,
resulting in a death? - CORRECT ANSWER-not less than $5,000 and not more than
$25,000 and/or four years
on your individual builder's license application, what should you write as your
"business address"? - CORRECT ANSWER-Your personal address
After receiving your residential builder's license, what are the only trades not covered
by your license - CORRECT ANSWER-Plumbing, electrical, and HVAC
What is a quick asset ratio? - CORRECT ANSWER-1 to 1
Under the Carpentry section of the test, what does a "span table" tell us? -
CORRECT ANSWER-what species and what grade of lumber a floor joist has to be
to span a certain distance
Who, upon completion of a hearing, shall assess a penalty or penalties? - CORRECT
ANSWER-The 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? -
CORRECT ANSWER-60 days
When the department is investigating a complaint and finds evidence of a violation,
what actions can be brought against the respondent? - CORRECT ANSWER-a
citation | a formal complaint | a cease and desist order
How many days after the adminstrative law hearings examiner hears the report, must
a determination of penalites be made by the board? - CORRECT ANSWER-60 days
What is a compliance conference? - CORRECT ANSWER-a meeting where the
respondent meets with the department to discuss the complaint against them
,Which is NOT a reason that you need a residential business license? - CORRECT
ANSWER-It allows you to work on commercial properties
Where does most fraud occur? - CORRECT ANSWER-in the residential market
As a builder, your licence falls under the regulation of - CORRECT ANSWER-Both
rules by the director and board as well as laws of the state of Michigan
What is the make up of the 9 members of the board? - CORRECT ANSWER-4
residential builders, 2 M + A contractors, and 3 members of the general public
Under the definition of occupational code, what does the word "limitation" refer to? -
CORRECT ANSWER-a condition, stricture, restraint or probation attatched to a
license relative to the scope of practice
Which of the following is NOT a possible penalty for operating without a residential
builder's license? - CORRECT ANSWER-a fine of $50,000
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? - CORRECT ANSWER-
residential structure
An employee other than the listed salesperson may make a sale when - CORRECT
ANSWER-An employee other than the listed salesperson may make a sale when
Which of the following is a reason that someone would be allowed to operate without
a residential business license? - CORRECT ANSWER-They are an authorized
representative of the United States government
They are the owner of a rental property with reference to 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 in duration? - CORRECT ANSWER-3 years
After receiving your initial residential builder's license, how many hours of continuing
competency are required within the next 3 years? - CORRECT ANSWER-21 hours
If a salesperson desires to change employment from one residential builder or
maintenance and alteration contractor to another - CORRECT ANSWER-the 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"? -
CORRECT ANSWER-Regarding workmanship, how long does a client have to file a
"verified complaint"?
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? - CORRECT ANSWER-10 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 for this violation? - CORRECT ANSWER-the department may suspend or revoke
that person's license and fines may be issued
When the board issues the findings of a verified complaint - CORRECT ANSWER-the
department 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 department shall annually post on its website the number of final orders to the
board
According to the Administrative Rules, an application for a license shall include -
CORRECT ANSWER-the residence address of all individuals, partners, officers
and/or members, as requested by the department
the address of the principal place of business in Michigan
Upon final order of license suspension or revocation, the licensee shall surrender the
license to the department within how many days of the date of suspension or
revocation? - CORRECT ANSWER-10 days
According to Administrative rules, a licensee shall include the following in all
advertising - CORRECT ANSWER-the name on the license
the license number
the actual business address as shown on the license
According to purchase and sale agreements, the builder or contractor shall make
certain that the written agreements clearly state the terms of the transaction,
including - CORRECT ANSWER-specifications and cost
the type and quality of materials
