MHIC Door-to-Door Sales Act

Question 1

Under Maryland's Door-to-Door Sales Act (Home Solicitation Sales Act), how many business days does a homeowner have to cancel a contract signed at their residence?

Accepted Answer

3 business days

Answer

1 business day

Answer

5 business days

Answer

7 business days

Question 2

The Maryland Door-to-Door Sales Act applies to home solicitation contracts of what minimum dollar amount?

Accepted Answer

$25

Answer

$10

Answer

$100

Answer

$500

Question 3

Which of the following sales transactions is subject to Maryland's Door-to-Door Sales Act cancellation requirements?

Accepted Answer

A $500 painting contract signed at the homeowner's kitchen table

Answer

A $5,000 roofing contract signed at the contractor's office

Answer

A verbal agreement at the homeowner's home for $20 in minor repairs

Answer

A $10,000 renovation contract signed via email

Question 4

When a Maryland contractor completes a home solicitation sale, they are REQUIRED to provide the buyer with:

Accepted Answer

A copy of the signed contract and a written notice of the right to cancel

Answer

A performance bond equal to 10% of the contract price

Answer

Three references from comparable completed projects

Answer

A copy of their MHIC license certificate

Question 5

A homeowner cancels a $3,000 home improvement contract within the 3-day cooling-off period. The contractor had already purchased $500 in materials for the job. Under Maryland law, what is the contractor entitled to?

Accepted Answer

Nothing — the contractor must return any deposit and cannot charge for materials not yet installed

Answer

The full $3,000 because materials were purchased in reliance on the contract

Answer

$500 for materials plus a restocking fee

Answer

$500 only if the materials cannot be returned to the supplier

Question 6

A contractor fails to include the required cancellation notice in a home solicitation sales contract in Maryland. What is the legal consequence?

Accepted Answer

The buyer's right to cancel is extended until proper notice is provided

Answer

The contractor faces a $50 fine per occurrence

Answer

The contract is automatically void and unenforceable from the start

Answer

The MHIC may suspend the contractor's license for 30 days