MHIC Contracts and Estimating 2

Question 1

Under Maryland Home Improvement Law, which of the following MUST be included in every home improvement contract?

Accepted Answer

The contractor's MHIC license number

Answer

Every Maryland home improvement contract must include the contractor's MHIC license number. This is a mandatory disclosure requirement under Maryland law.

Question 2

A contractor provides a written estimate and the homeowner signs it. Under Maryland law, this signed estimate generally functions as:

Accepted Answer

A binding contract if it contains all required contract elements

Answer

If a signed estimate includes all elements required by Maryland Home Improvement Law (parties, description of work, price, start/completion dates, license number, etc.), it can function as a valid binding contract.

Question 3

Maryland law requires that a home improvement contract include a notice of the homeowner's right to cancel. When must this notice be provided?

Accepted Answer

At the time of signing, as part of the contract

Answer

Maryland Home Improvement Law requires the right-to-cancel notice to be included in the contract at the time of signing, not after work begins.

Question 4

A contractor gives an oral estimate of $8,000, then submits a written contract for $9,500. The homeowner signed the written contract. Which amount governs?

Accepted Answer

$9,500 — the signed written contract governs

Answer

Under contract law and Maryland Home Improvement Law, the signed written contract governs over any prior oral discussions. The homeowner agreed to $9,500 by signing the contract.

Question 5

Under Maryland Home Improvement Law, what is the maximum deposit a contractor can require before beginning work?

Accepted Answer

One-third (1/3) of the contract price

Answer

Maryland Home Improvement Law limits advance deposits to one-third (1/3) of the total contract price before work begins.

(MHIC) Maryland Home Improvement Contractor Practice Test

(MHIC) Maryland Home Improvement Contractor Practice Test

MHIC Contracts and Estimating 2