MHIC Study Guide 2026

The arbitration clause must state *whether* the arbitrator's findings are binding, but it is not required that they must be. The clause must also name the arbitrator, disclose any fees, and state that a Guaranty Fund claim will be stayed pending arbitration.

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.

MHIC regulations mandate that licensed contractors must conspicuously display their home improvement license number, preceded by the letters "MHIC #", on both sides of all work vehicles. The lettering must be at least 3 inches high.

Maryland law limits the amount a home improvement contractor can collect as an initial payment or down payment. The maximum initial payment allowed is typically one-third (1/3) of the total contract price. For a contract amount of $9,500, the maximum initial payment would be $9,500 / 3, which equals $3,166.67.

MHIC is an acronym that stands for the Maryland Home Improvement Commission. This commission is the regulatory body responsible for licensing and regulating home improvement contractors and salespersons in the state of Maryland. Its primary role is to protect consumers by ensuring contractors meet certain standards and adhere to specific laws and regulations.

If the required surety bond lapses or is cancelled, the contractor's MHIC license is automatically suspended. The contractor cannot legally perform home improvement work until a new bond is filed with the Commission and the suspension is lifted.