MHIC Cheat Sheet 2026

The 30 highest-yield MHIC facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Under Maryland Home Improvement Law, which state agency is primarily responsible for licensing and regulating home improvement contractors? → Maryland Department of Labor, MHIC Unit
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? → Do not change the plans, only the contractor can change the plans
3. What is a requirement of a home improvement contract in the following choices? → Before work starts, the customer receives a signed copy of the contract.
4. In Maryland, which of the following is TRUE about the homeowner's right to a copy of the signed home improvement contract? → The homeowner is entitled to a copy of the signed contract at the time of signing
5. Which Maryland agency is primarily responsible for licensing and regulating home improvement contractors? → Maryland Home Improvement Commission (MHIC)
6. Which of the following actions triggers automatic suspension of an MHIC license? → Conviction of a felony involving moral turpitude
7. Which entity in Maryland has the primary authority to investigate complaints against home improvement contractors and revoke licenses? → Maryland Home Improvement Commission (MHIC)
8. Under MHIC regulations, what information must appear on a home improvement contractor's vehicle used for business? → The contractor's MHIC license number and business name
9. A Maryland contractor is accused of a home improvement violation. Which agency has primary jurisdiction to investigate and adjudicate the complaint? → Maryland Home Improvement Commission (MHIC)
10. A Maryland home improvement contract is signed on a Monday. By what day must the homeowner receive the Notice of Cancellation rights? → The same day the contract is signed
11. Under Maryland law, which of the following constitutes an unfair or deceptive trade practice by a home improvement contractor? → Misrepresenting the contractor's qualifications or license status to a homeowner
12. John Jones and Company, a home improvement contractor, is changing his firm's name to John Jones and Son. When should he tell the Home Improvement Commission? → Within 10 days of the change
13. In Maryland, which document gives a contractor the legal right to place a lien on a property for unpaid home improvement work? → A mechanics' lien filed with the county circuit court
14. 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? → $3,166.67
15. What is the purpose of requiring Maryland contractors to maintain a separate project escrow account for large deposits? → To ensure consumer funds are protected and used only for the specified project
16. A licensed contractor in Maryland must notify the MHIC of any change in their business address or trade name within how many days? → 10 days
17. Under Maryland Home Improvement Law, which of the following MUST be included in every home improvement contract? → The contractor's MHIC license number
18. When is a building permit required for home improvement work in Maryland? → As required by local county or municipal building codes for the specific type of work
19. If a Maryland home improvement contractor's license expires, how many days does the contractor have to renew before the license is considered lapsed? → 30 days
20. A consumer files a complaint with MHIC against a licensed contractor. What is the typical first step in MHIC's complaint process? → MHIC investigates the complaint and may contact both parties for information
21. The Maryland Home Improvement Guaranty Fund provides compensation to consumers. What is the maximum payment per claim from this fund? → $20,000
22. A licensed contractor must notify the MHIC of any change in their business address or trade name within what timeframe? → 10 days.
23. A buyer has canceled a sale within the allowable time period. When must any goods or property traded in be returned? → Within 10 business days after the seller receives the cancellation notice
24. Under Maryland Home Improvement Law, which of the following is a prerequisite for obtaining an initial MHIC license? → Passing the MHIC examination
25. Which of the following is NOT a required element in a Maryland Home Improvement contract? → The homeowner's driver's license number.
26. When working in a confined space on a residential project, what is the FIRST step a contractor should take? → Test the atmosphere for oxygen, flammable gases, and toxic substances
27. Under the MHIA, which of the following persons or entities is EXEMPT from the MHIC licensing requirement? → A homeowner who personally performs improvements on their own primary residence
28. Under Maryland law, what is the maximum civil penalty the Maryland Home Improvement Commission can impose per violation? → $5,000
29. What is the license application fee for a salesperson license? → $120
30. A surety bond in home improvement contracting primarily protects: → The homeowner if the contractor fails to complete the work or meet contractual obligations