MHIC Maryland Home Improvement Law and Contracts Flashcards
6 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 6 MHIC Maryland Home Improvement Law and Contracts flashcards as text
Under the Maryland Home Improvement Act (MHIA), which of the following contractors is REQUIRED to hold an MHIC license?
Answer: A contractor who replaces windows and siding on an existing residence
The MHIA requires any contractor performing home improvement work on existing residential property valued at $500 or more (for labor and materials combined) to hold a valid MHIC license. Window and siding replacement on an existing residence is a classic home improvement requiring licensure.
What is the maximum deposit a licensed MHIC contractor may collect from a homeowner before beginning work on a home improvement contract?
Answer: One-third (33⅓%) of the total contract price
Maryland law limits the initial deposit a home improvement contractor may collect to one-third (1/3) of the total contract price. Exceeding this limit is a violation of the MHIA and can result in disciplinary action.
A homeowner signs a home improvement contract on a Monday at the contractor's office. Under Maryland law, how many business days does the homeowner have to cancel (rescind) the contract?
Answer: 3 business days
Maryland's Home Improvement Act provides homeowners with a 3-business-day right of rescission for home improvement contracts. This applies to contracts solicited at the homeowner's residence; contracts signed at the contractor's office may be subject to different rules, but the 3-day notice of right to cancel is a standard consumer protection requirement.
Which of the following MUST be included in a written home improvement contract under Maryland law?
Answer: The approximate start and completion dates of the work
Maryland law requires a home improvement contract to include the approximate start date and completion date (or time frame) for the project. This is one of several mandatory provisions under the MHIA designed to protect consumers.
A homeowner files a complaint against an MHIC licensee for shoddy workmanship. Which state agency is responsible for receiving and investigating this complaint?
Answer: Maryland Department of Labor, Licensing and Regulation (DLLR) / Maryland Home Improvement Commission
The Maryland Home Improvement Commission (MHIC), operating under the Department of Labor, Licensing and Regulation, is the primary state agency that licenses home improvement contractors and investigates consumer complaints against licensees.
Under the MHIA, which of the following persons or entities is EXEMPT from the MHIC licensing requirement?
Answer: A homeowner who personally performs improvements on their own primary residence
A homeowner who personally performs home improvements on their own primary residence is exempt from MHIC licensing requirements. The law is designed to regulate contractors who perform work for others, not homeowners doing their own work.