MHIC - Maryland Home Improvement Contractor Business and Labor Practices Questions and Answers

Question 1

A licensed Maryland Home Improvement salesperson may represent a maximum of how many licensed contractors at any given time?

Accepted Answer

Two

Answer

According to the Maryland Home Improvement Commission (MHIC) regulations, a licensed salesperson is permitted to represent no more than two licensed contractors simultaneously.

Question 2

A contractor is preparing a home improvement contract for a $30,000 kitchen remodel. What is the maximum deposit the contractor can legally require from the homeowner before work begins?

Accepted Answer

$10,000

Answer

Maryland law explicitly prohibits a home improvement contractor from accepting more than one-third (1/3) of the total contract price as a deposit before or at the time of signing the contract. For a $30,000 project, this amounts to a maximum deposit of $10,000.

Question 3

Which of the following is a mandatory requirement for all advertisements for a home improvement business in Maryland?

Accepted Answer

The MHIC license number.

Answer

The Maryland Home Improvement Law requires that all advertisements, including business cards, websites, and vehicles, must conspicuously display the contractor's MHIC license number.

Question 4

A licensed contractor in Maryland must notify the MHIC of any change in their business address or trade name within how many days?

Accepted Answer

10 days

Answer

MHIC regulations require licensees to notify the Commission of any change of address, trade name, or business ownership within 10 days of the change. This notification must be sent via certified mail.

Question 5

A subcontractor is hired by a licensed general contractor to perform electrical work on a residential remodeling project. Under Maryland law, which of the following is true regarding the subcontractor's licensing requirements?

Accepted Answer

The subcontractor is not required to have an MHIC license as long as they are working for a licensed contractor.

Answer

As of July 1, 2016, Maryland eliminated the separate subcontractor license category. Subcontractors may work without a specific MHIC license, provided they are performing work for a contractor who holds a valid MHIC license. The licensed prime contractor is ultimately responsible for the project.

(MHIC) Maryland Home Improvement Contractor Practice Test

(MHIC) Maryland Home Improvement Contractor Practice Test

MHIC - Maryland Home Improvement Contractor Business and Labor Practices Questions and Answers