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Michigan Residential Builder's License
Questions and Answers (100% Correct
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What is the 1st offense penalty for engaging in the practice of residential
building without a license? Ans: Not less than $5K and not more than
$25K and/or 1 year
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What is the penalty for engaging in the practice of residential building,
resulting in a death? Ans: Not less than $5K and not more than $50K
and/or 4 years
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On your individual builder's license application, what should you write as
your "business address"? Ans: Your personal address
What is the cost of the individual builder's license? Ans: $195
After receiving your residential builder's license, what are the only trades
that are not covered by your license? Ans: -Plumbing
-Electrical
-HVAC
Who is the TESTING company for the State of Michigan? Ans: PSI
What is the name of the DEPARTMENT that regulates your license? Ans:
LARA
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Before you may test, what must you do? Ans: Present 2 forms of ID
How should you schedule your test with PSI? Ans: -Online
-Phone/Fax
When will you receive your test score? Ans: Immediately following the
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completion of the test
What are the 2 parts of the Residential Builder's Exam? Ans: -Business &
Law
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-Practice & Trade
How long will you have to complete the Practice & Trade portion of the
exam? Ans: 180 mins
What is a quick asset ratio? Ans: 1 to 1
Under the carpentry section of the test, what does a "span table" tell us?
Ans: What species and what grade of lumbar a floor joist has to be to
span a certain distance
Which topics will be covered on the Practice & Trade portion of the
exam? Ans: -Carpentry
-Roofing
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-Insulation
Do you need a Residential Builder's License to work on commercial
projects? Ans: No
Where does the most fraud occur? Ans: The residential market
As a builder, your license falls under the regulation of what? Ans: -Rules
by the director & board
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-Laws of The State of Michigan
What is the make up of the 9 members of the board? Ans: -6 individuals
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that have a license/registration in the occupation in which the board
monitors
-3 members of the general public
Under the definition of occupation code, what does the word "limitation"
refer to? Ans: A condition, stricture, restraint or probation attached to a
license relative to the scope of practice
Who, upon completing a hearing, shall assess a penalty(ies)? Ans: The
Board
If you fail to renew your license/registration on or before the expiration
date, how many days do you have to resubmit with the proper payment
and late fee? Ans: 60 Days
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When the department is investigating a complaint and finds evidence of
a violation, what actions can be brought against them? Ans: -Cease &
desist order
-Formal complaint
-Citation
How many days after the administrative law hearings examiner hears the
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report, must a determination of penalties be made by the board? Ans:
60 Days
What is a compliance conference? Ans: A meeting where the
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respondent meets with the department to discuss the complaint against
them
What is a possible penalty for operating without a residential builder's
license? Ans: -A placement of a limitation on the license
-Probation
-Suspension of license
What does a residential structure mean? Ans: 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
When can an employee other than the listed salesperson make a sale?
Ans: When it's occasional and incidental to the person's principle
employment