Practice Test Geeks(MHIC) Maryland Home Improvement Contractor Practice Test
← All MHIC Flashcard Decks

MD Home Improvement Law 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 MD Home Improvement Law flashcards as text

  1. Under Maryland Home Improvement Law, which of the following persons is EXEMPT from needing an MHIC license?

    Answer: A property owner performing work on their own principal residence

    Maryland law exempts property owners who personally perform home improvement work on their own principal residence. However, subcontractors, handymen, and corporations performing home improvement work for others generally require licensure.

  2. The Maryland Home Improvement Guaranty Fund provides compensation to consumers. What is the maximum payment per claim from this fund?

    Answer: $20,000

    The MHIC Guaranty Fund pays up to $20,000 per claim to homeowners who suffer financial losses due to the actions of a licensed contractor.

  3. A licensed MHIC contractor is found guilty of a second violation of the Maryland Home Improvement Law. What is the maximum criminal penalty?

    Answer: A fine of $5,000 and/or up to 3 years imprisonment

    Repeat violations of the Maryland Home Improvement Law can result in criminal penalties including fines up to $5,000 and imprisonment up to 3 years, depending on the nature and severity of the violations.

  4. Under Maryland law, within how many days must a contractor begin work after the contract start date, unless the contract specifies otherwise?

    Answer: There is no statutory start deadline; the contract governs

    Maryland Home Improvement Law requires that contracts specify start and completion dates, and the contractual terms govern the timeline. There is no separate statutory override unless the contractor abandons the project.

  5. Which of the following would be grounds for MHIC to revoke a contractor's license?

    Answer: Willful departure from accepted trade standards

    Willful departure from accepted trade standards for home improvement work is a specific ground for license revocation under Maryland Home Improvement Law.

  6. A homeowner cancels a home improvement contract within 3 business days of signing. Under Maryland law, what must the contractor do?

    Answer: Refund all payments made by the homeowner within 10 days

    Maryland's right of rescission gives homeowners 3 business days to cancel a home improvement contract. Upon cancellation, the contractor must refund all payments within 10 days.