MHIC - Maryland Home Improvement Contractor MD Home Improvement Law Questions and Answers

Question 1

A licensed Maryland Home Improvement contractor's advertisement must include which of the following pieces of information?

Accepted Answer

The contractor's MHIC license number.

Answer

The contractor's general liability insurance carrier.

Answer

A statement that all estimates are binding for 30 days.

Answer

The complete home addresses of the business owners.

Question 2

A homeowner signs a home improvement contract at their kitchen table with a licensed salesperson. According to the Maryland Door-to-Door Sales Act, what is the standard timeframe the homeowner has to cancel the contract without penalty?

Accepted Answer

Until midnight of the fifth business day after the transaction.

Answer

24 hours after signing the contract.

Answer

10 business days after the work has begun.

Answer

There is no right to cancel once the contract is signed.

Question 3

Under Maryland Home Improvement Law, what is the maximum deposit a contractor can legally require a homeowner to pay before work begins?

Accepted Answer

1/3 of the total contract price.

Answer

50% of the total contract price.

Answer

An amount equal to the cost of materials.

Answer

There is no legal limit on the deposit amount.

Question 4

A homeowner discovers faulty workmanship from a project completed by a licensed MHIC contractor. To file a claim with the MHIC Guaranty Fund for potential compensation, the claim must be filed within what period?

Accepted Answer

Three years from the date the loss or damage was discovered.

Answer

One year from the contract completion date.

Answer

Five years from the date the contract was signed.

Answer

There is no time limit for filing a claim against the Guaranty Fund.

Question 5

Which of the following is NOT a required element of a written Maryland Home Improvement contract?

Accepted Answer

A mandatory binding arbitration clause.

Answer

The approximate start and completion dates.

Answer

The contractor's MHIC license number.

Answer

A description of the work to be performed and materials to be used.

Question 6

A licensed contractor must notify the MHIC of any change in their business address or trade name within what timeframe?

Accepted Answer

10 days.

Answer

At the next license renewal period.

Answer

30 days.

Answer

90 days.