Practice Test Geeks(MHIC) Maryland Home Improvement Contractor Practice Test
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Business and Labor Practices Flashcards

7 cards from real MHIC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Business and Labor Practices flashcards as text

  1. Under Maryland law, how long must a licensed MHIC contractor retain records of home improvement contracts?

    Answer: 3 years

    Maryland regulations require home improvement contractors to keep records of contracts and related documents for at least 3 years.

  2. A homeowner pays a contractor a $5,000 deposit but the contractor fails to begin work within the agreed timeframe and stops responding. Which Maryland agency should the homeowner contact first?

    Answer: Maryland Home Improvement Commission (MHIC)

    The MHIC is the primary regulatory body that handles complaints against licensed home improvement contractors in Maryland.

  3. Which of the following is a valid reason for the MHIC to suspend a contractor's license?

    Answer: Abandoning a home improvement project without justification

    Abandoning a project without legal justification is grounds for license suspension or revocation by the MHIC.

  4. What is the maximum deposit percentage that a Maryland home improvement contractor may legally collect before starting work?

    Answer: 33%

    Maryland law caps initial deposits at one-third (approximately 33%) of the total contract price.

  5. An MHIC licensee wants to add a partner to the business. Which step is required?

    Answer: File a new license application listing the partner

    Adding a new owner or qualifying party typically requires filing an updated license application with MHIC.

  6. Under Maryland's Home Improvement Law, which statement about subcontractors is correct?

    Answer: The general contractor is solely responsible for subcontractors' compliance

    The licensed general contractor is responsible for ensuring that subcontractors working under them comply with applicable laws.

  7. A contractor completes a kitchen remodel but the homeowner refuses to pay the final balance, claiming defective work. What is the contractor's best legal first step in Maryland?

    Answer: Place a mechanic's lien on the property

    A mechanic's lien is the primary legal remedy available to contractors for unpaid work on real property in Maryland.

How this page was made: written with AI tools and published by Nathan Beja, founder of Practice Test Geeks, who is responsible for its content. Exam facts are checked against the official sources listed below. Not reviewed by a subject-matter expert. Editorial policy

Sources & references

Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy

  1. dsd.maryland.gov — Fees · verified Oct 2026
  2. labor.maryland.gov — Renewal, test delivery, eligibility, fees, exam format, passing score, registration, retake policy, score validity · verified Oct 2026