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. 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
6. 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
7. 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
8. 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
9. 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
10. Under Maryland Home Improvement Law, which of the following MUST be included in every home improvement contract? → The contractor's MHIC license number
11. 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
12. 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
13. The Maryland Home Improvement Guaranty Fund provides compensation to consumers. What is the maximum payment per claim from this fund? → $20,000
14. A licensed contractor must notify the MHIC of any change in their business address or trade name within what timeframe? → 10 days.
15. 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
16. Under Maryland Home Improvement Law, which of the following is a prerequisite for obtaining an initial MHIC license? → Passing the MHIC examination
17. Which of the following is NOT a required element in a Maryland Home Improvement contract? → The homeowner's driver's license number.
18. 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
19. 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
20. What is the license application fee for a salesperson license? → $120
21. Commission consist of how many members? → 7
22. When is an MHIC license applicant exempt from taking the Home Improvement Law and Regulations exam? → Never
23. Under OSHA regulations applicable to home improvement contractors, what is the minimum height at which fall protection is required for residential construction? → 6 feet above a lower level
24. Which of the following individuals is EXEMPT from obtaining an MHIC license in Maryland? → A homeowner personally performing improvements on their own primary residence
25. How long is an MHIC license valid before it must be renewed? → 2 years
26. What is the penalty for accepting a false completion certification? → A fine of up to $5,000 and/or imprisonment not exceeding 3 years
27. What is the primary purpose of requiring MHIC licensure for home improvement contractors in Maryland? → To protect consumers from unqualified and dishonest contractors
28. A homeowner rescinds (cancels) a home improvement contract within the allowable period. What must the contractor do? → Return any deposit paid by the homeowner within 10 days and not begin work
29. The fund reimburses homeowners for genuine losses caused by the act or omission of a licensed contractor. → Home Improvement Guaranty Fund
30. If a mandatory arbitration clause is included in a Maryland home improvement contract, what specific action must be taken by the parties regarding this clause? → Both parties must initial and date the contract next to the clause.