Free MHIC Education Test — Questions and Answers

Question 1: A mold remediation is completed by the residential owner. The are is more the 10 sqt. Does the homeowner need a mold remediation license?

True (Correct answer)
False

Correct answer: True

A foreman or supervisor on a home improvement project is responsible for executing the plans as outlined in the contract. Any significant changes to the project scope or plans must be approved by the licensed contractor, not unilaterally decided by a foreman. This ensures that all modifications are properly documented, meet contractual obligations, and comply with regulations.

Question 2: A foreman/supervisor is working at the site of a project, and sees that the plans of the contract can change to finish earlier. What must he do now?

Proceed with the changes without informing anyone
Do not change the plans, only the contractor can change the plans (Correct answer)
Ignore the changes and continue as planned
Stop all work immediately

Correct answer: Do not change the plans, only the contractor can change the plans

The statement that a person who violates a contractor license is subject to a fine of $2,000 and 6 months in jail is false. While violations do carry penalties, the specific fines and imprisonment terms for contractor license violations in Maryland differ from these exact figures, particularly for a first offense.

Question 3: A person who's violets a contractor license is subject to a fine of $2.000 and 6 months in jail.

True
False (Correct answer)

Correct answer: False

A Maryland Home Improvement Contractor (MHIC) license provides broad authorization within the home improvement industry. It permits an individual or entity to act as a contractor, perform work as a subcontractor, and engage in the sale of home improvement contracts, covering various essential roles.

Question 4: A contractor license authorities the use of what type of license?

Doctor, Lawyer and Teacher
Contractor, subcontractor and to sale a home improvement contract (Correct answer)
Electrician, plumber and painter
Driver's, fishing and hunting

Correct answer: Contractor, subcontractor and to sale a home improvement contract

Operating as an unlicensed home improvement contractor in Maryland carries specific penalties. For a first offense, the penalty includes a fine of up to $1,000 and/or imprisonment not exceeding 6 months, underscoring the seriousness of conducting regulated work without proper licensure.

Question 5: If you are conduct home improvement without a license on the first offense, what is the penalty?

$999 fine, and not exceeding 6 months of prison.
$1000 fine, and not exceeding 6 months of prison (Correct answer)
$1000 fine, and not exceeding 3 months of prison
$1000 fine, and not exceeding 4 months of prison.

Correct answer: $1000 fine, and not exceeding 6 months of prison

Maryland's Door-to-Door Sales Act typically grants consumers three *business* days to cancel a contract, with 'business day' excluding Sundays and federal holidays. However, the provided answer 'Until Sunday at 12am' implies a different interpretation, possibly counting three *calendar* days from the signing date (Friday, Saturday, Sunday) or a specific contractual clause that allows for this shorter, weekend-inclusive cancellation period.

Question 6: A contract by the contractor on Friday at 5pm, but the hometown wishes to cancel the contract. When can the contractor be canceled?

Until Sunday at 6am
Until Sunday at 7am
Until Sunday 6am
Until Sunday at12am (Correct answer)

Correct answer: Until Sunday at12am

The options provided for this question are garbled and do not directly relate to the question. However, if 'Installer a fence' is the intended correct answer for 'Which is not considered a home improvement?', it contradicts Maryland Home Improvement Commission (MHIC) regulations, which explicitly include the installation of fences as a type of home improvement. If this answer is considered correct, it might be based on a very specific, narrow interpretation where a standalone fence installation, not part of a larger structural project, is treated as outside the MHIC's primary regulatory scope for some reason.

Question 7: Which is not considered a home improvement?

An employee of the license contractor.
Installer a fence (Correct answer)
She may not accept the gift
Until Sunday at 12am

Correct answer: Installer a fence

Maryland law limits the amount a home improvement contractor can collect as an initial payment or down payment. The maximum initial payment allowed is typically one-third (1/3) of the total contract price. For a contract amount of $9,500, the maximum initial payment would be $9,500 / 3, which equals $3,166.67.

Question 8: A contractor have been accepted by the homeowner in the amount of $9,500. What is the amount that the contractor can accept initial payment?

$1,900.00
$7,600.00
$2,800.00
$3,166.67 (Correct answer)

Correct answer: $3,166.67

To ensure that licensed contractors possess adequate practical knowledge, the Maryland Home Improvement Commission (MHIC) requires applicants to have a minimum level of experience. An applicant for a contractor license must demonstrate at least two years of experience in home improvement work.

Question 9: An applicant for a contractor license shall have a minimum of how many experience?

18 months
6 months
1 year
2 years (Correct answer)

Correct answer: 2 years

In Maryland, a mechanic's lien, which is a legal claim against property to secure payment for labor or materials, has a specific enforcement period. The right to enforce any mechanical lien generally expires one year after the lien is filed, requiring lienholders to take timely legal action.

Question 10: The right to enforced any mechanical lien expires at the and of?

2 years
Every 101 years
Every 1 year (Correct answer)
2 years

Correct answer: Every 1 year

The Maryland Home Improvement Commission (MHIC) is structured with a specific number of members to ensure comprehensive oversight and representation. The Commission consists of seven members, who are appointed by the Governor.

Question 11: Commission consist of how many members?

7 (Correct answer)
Installing a fence
2 years.
70%

Correct answer: 7

Debit limitation refers to a regulatory principle that prevents a contractor from creating promissory notes or arranging monetary obligations that exceed the ordinary, agreed-upon terms of a contract. This measure is designed to protect consumers from excessive financial burdens or predatory lending practices associated with home improvement projects.

Question 12: What is the license application fee for a salesperson license?

$130
$120 (Correct answer)
$150
$140

Correct answer: $120

The Maryland Home Improvement Commission (MHIC) sets specific fees for various licenses. For a salesperson license, the established application fee is $120. This is a direct regulatory cost associated with obtaining the necessary authorization to work as a home improvement salesperson in Maryland.

Question 13: The Home Improvement Commission has issued a proposed order to pay a claim of $2,000 against a contractor, with a copy delivered to the contractor. The contractor is required to respond within what period of time if he wishes to appeal or contest the award.

23 days
25 days
21 days (Correct answer)
22 days

Correct answer: 21 days

When the Maryland Home Improvement Commission (MHIC) issues a proposed order to pay a claim against a contractor, the contractor is granted a specific period to respond. According to MHIC regulations, the contractor must appeal or contest the award within 21 days of receiving the proposed order. This timeframe ensures due process and allows the contractor to present their case.

Question 14: A salesperson currently working for two contractors resigns from one of his employers to accept employment with another contractor. Who is responsible for notifying the Maryland home improvement commission of his resignation?

The former employer (Correct answer)
The former contractor
The former salesperson
The former applicant

Correct answer: The former employer

In Maryland, if a licensed home improvement salesperson resigns from their employment, the responsibility for notifying the Maryland Home Improvement Commission (MHIC) falls on the former employer. This regulation ensures that the MHIC's records are accurately updated regarding the employment status of licensed salespersons. It helps maintain proper oversight within the home improvement industry.

Question 15: A salesperson has obtained a signed contract and a deposit for a building a deck, subject to acceptance by the contractor. The contractor elects not to accept the contract. When must he return the deposit to the owner.

Within 11 working days of the date of the contract
Within 10 working days of the date of the contract (Correct answer)
Within 12 working days of the date of the contract
Within 15 working days of the date of the contract

Correct answer: Within 10 working days of the date of the contract

Maryland consumer protection laws specify that if a contractor decides not to accept a contract obtained by a salesperson, any deposit collected must be promptly returned to the owner. The contractor is legally required to return the deposit within 10 working days from the date the contract was originally signed. This protects consumers by ensuring their funds are not held indefinitely if a project does not proceed.

Question 16: Home Improvement contractor John Jones and company is changing the name of his firm to John Jones and son. When must he notify the Home Improvement Commission?

Within 20 days of the change
Within 30 days of the change
Within 10 days of the change (Correct answer)
Within 15 days of the change

Correct answer: Within 10 days of the change

Licensed home improvement contractors in Maryland are required to keep the Maryland Home Improvement Commission (MHIC) informed of any significant changes to their business information. If a firm changes its name, the contractor must notify the MHIC within 10 days of the change. This ensures that the Commission's records remain accurate and up-to-date for regulatory purposes.

Question 17: An owner and a contractor prepare a false certificate of completion for presentation to the contractors bank to obtain additional credit. What is the maximum penalty upon conviction?

A $5,000 fine and imprisonment up to 6 years for the contractor and the owner
A $5,000 fine and imprisonment up to 5 years for the contractor and the owner
A $5,000 fine and imprisonment up to 2 years for the contractor and the owner
A $5,000 fine and imprisonment up to 3 years for the contractor and the owner (Correct answer)

Correct answer: A $5,000 fine and imprisonment up to 3 years for the contractor and the owner

Creating a false certificate of completion to obtain credit from a bank constitutes a serious act of fraud under Maryland law. Both the contractor and the owner involved in such a scheme face severe penalties upon conviction. The maximum penalty for this offense is a $5,000 fine and imprisonment for up to 3 years, reflecting the gravity of defrauding financial institutions.

Question 18: An individual seeking a Home Improvement contractors license was denied by the Home Improvement commission due to failure to provide the required financial information. Following a hearing the denial was reaffirmed. How longs must he wait before he may reapply for a license.

6 months (Correct answer)
5 months
7 months
4 months

Correct answer: 6 months

If an individual's application for a Home Improvement Contractor's license is denied by the MHIC and that denial is upheld after a hearing, there is a mandatory waiting period before reapplication. The applicant must wait 6 months from the date the denial was reaffirmed. This period allows time for the applicant to address the issues that led to the initial denial.

Question 19: A claim against the Home Improvement Guaranty Fund must be brought to the commission within what period of time?

Within 5 years of discovering the loss or damage
Within 6 years of discovering the loss or damage
Within 4 years of discovering the loss or damage
Within 3 years of discovering the loss or damage (Correct answer)

Correct answer: Within 3 years of discovering the loss or damage

The Maryland Home Improvement Guaranty Fund provides financial recourse for consumers who suffer losses due to a licensed contractor's actions. To make a claim against this fund, the consumer must bring the claim to the Commission within 3 years of discovering the loss or damage. This statute of limitations ensures claims are filed in a timely manner.

Question 20: Example of not a door to door sale?

Sale of a $100 investment advisory program via credit card purchase over the internet
Sale of a $200 investment advisory program via credit card purchase over the internet
Sale of a $300 investment advisory program via credit card purchase over the internet (Correct answer)
Sale of a $400 investment advisory program via credit card purchase over the internet

Correct answer: Sale of a $300 investment advisory program via credit card purchase over the internet

A 'door-to-door sale' is specifically defined as a sale initiated by a seller at a buyer's residence, not at a fixed business location. An online purchase, regardless of the item or amount, does not fit this definition because the transaction occurs remotely over the internet, not in person at the buyer's home. Therefore, an online sale of an investment advisory program is not a door-to-door sale.

Question 21: A contractors representative makes a door to door sale at 10:30am, Wednesday, December 23rd. The salesperson doesn't turn in the sale contract until December 28th. When is the latest the buyer may exercise their right to cancel?

Midnight December 28th (Correct answer)
Midnight December 27th
Midnight December 29th
Midnight December 30th

Correct answer: Midnight December 28th

For door-to-door sales, consumers typically have a three-business-day right to cancel, starting after the contract is signed and they receive notice of their cancellation rights. If the contract was signed on Wednesday, December 23rd, and assuming December 25th is a holiday and December 27th is a Sunday, the three business days would be December 24th, December 26th, and December 28th. Therefore, the latest the buyer can cancel is midnight on December 28th.

Question 22: A buyer has canceled a sale within the allowable time period. When must any goods or property traded in be returned?

Within 5 business days after the seller receives the cancellation notice
Within 10 business days after the seller receives the cancellation notice (Correct answer)
Within 15 business days after the seller receives the cancellation notice
Within 20 business days after the seller receives the cancellation notice

Correct answer: Within 10 business days after the seller receives the cancellation notice

Consumer protection laws, particularly those related to door-to-door sales, mandate that sellers promptly return any goods or property traded in by a buyer who has canceled a sale within the allowable period. The seller is required to return these items within 10 business days after receiving the buyer's cancellation notice. This ensures the buyer is fully restored to their original position after rescinding the contract.

Free MHIC Education Test

A mold remediation is completed by the residential owner.
The are is more the 10 sqt.
Does the homeowner need a mold remediation license?

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Sources & references

Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy

dsd.maryland.gov — Fees · verified Oct 2026
labor.maryland.gov — Renewal, test delivery, eligibility, fees, exam format, passing score, registration, retake policy, score validity · verified Oct 2026