MHIC Practice Test: Video 1 Answers (25 Questions) — Questions and Answers
Question 1: What does the Maryland Healthy Homes Protection Act require contractors to disclose to homeowners?
- All subcontractor identities before work begins
- Presence of lead-based paint hazards in pre-1978 homes (Correct answer)
- Any prior insurance claims on the contractor's policy
- Material cost markups exceeding 15%
Correct answer: Presence of lead-based paint hazards in pre-1978 homes
Maryland law requires contractors to inform homeowners about lead-based paint hazards in homes built before 1978, consistent with EPA RRP rules.
Question 2: Under Maryland law, a contractor who fails to obtain a required building permit before starting work may face:
- Only a warning for a first offense
- Fines, stop-work orders, and potential license suspension (Correct answer)
- Civil liability only with no regulatory penalty
- No penalty if the work passes final inspection
Correct answer: Fines, stop-work orders, and potential license suspension
Unpermitted work in Maryland can result in fines, mandatory stop-work orders, and referral to the MHIC for license disciplinary action.
Question 3: What is the maximum OSHA-allowed angle for positioning an extension ladder against a wall?
- 1:5 ratio (one out for every five up)
- 1:4 ratio (one out for every four up) (Correct answer)
- 1:3 ratio (one out for every three up)
- Any angle is acceptable if secured at the top
Correct answer: 1:4 ratio (one out for every four up)
OSHA requires extension ladders to be set at a 75-degree angle, which corresponds to a 1:4 ratio (one foot out for every four feet of height).
Question 4: A Maryland home improvement contractor discovers asbestos-containing materials during a renovation. What is the correct first step?
- Encapsulate it and continue work
- Stop work and notify MDE before disturbing the material (Correct answer)
- Notify the homeowner and proceed if they consent
- Remove it immediately using standard PPE
Correct answer: Stop work and notify MDE before disturbing the material
The Maryland Department of the Environment (MDE) must be notified before any asbestos-containing material is disturbed during renovation or demolition.
Question 5: What is the required minimum number of air changes per hour when applying solvent-based coatings indoors under OSHA ventilation standards?
- 6 air changes per hour
- Ventilation is only required when fumes are visible
- 10 air changes per hour (Correct answer)
- 2 air changes per hour
Correct answer: 10 air changes per hour
OSHA requires at least 10 air changes per hour when spray-applying solvent-based coatings in enclosed spaces to prevent flammable vapor accumulation.
Question 6: A Maryland contractor employs three full-time workers. Under Maryland law, which insurance coverage is mandatory?
- Errors and omissions insurance
- Professional liability insurance
- Workers' compensation insurance (Correct answer)
- Commercial umbrella insurance
Correct answer: Workers' compensation insurance
Maryland requires employers with one or more employees to carry workers' compensation insurance.
Question 7: Under Maryland law, how long must a licensed MHIC contractor retain records of home improvement contracts?
- 1 year
- 7 years
- 3 years (Correct answer)
- 5 years
Correct answer: 3 years
Maryland regulations require home improvement contractors to keep records of contracts and related documents for at least 3 years.
Question 8: Which of the following is a valid reason for the MHIC to suspend a contractor's license?
- Hiring subcontractors on a project
- Completing work ahead of schedule
- Abandoning a home improvement project without justification (Correct answer)
- Requiring a deposit before starting work
Correct answer: Abandoning a home improvement project without justification
Abandoning a project without legal justification is grounds for license suspension or revocation by the MHIC.
Question 9: How soon after starting business must a new MHIC licensee notify the Commission of their business address?
- Within 10 days
- At the next annual renewal
- Within 30 days (Correct answer)
- Within 60 days
Correct answer: Within 30 days
Licensees must notify MHIC of their current business address within 30 days of any change.
Question 10: What is the maximum deposit percentage that a Maryland home improvement contractor may legally collect before starting work?
- 33% (Correct answer)
- 25%
- 10%
- 50%
Correct answer: 33%
Maryland law caps initial deposits at one-third (approximately 33%) of the total contract price.
Question 11: Under Maryland law, what is the maximum civil penalty the MHIC can impose on an unlicensed contractor per violation?
- $500
- $1,000
- $5,000 (Correct answer)
- $10,000
Correct answer: $5,000
The MHIC may impose a civil penalty of up to $5,000 per violation on unlicensed contractors.
Question 12: Which entity in Maryland has the primary authority to investigate complaints against home improvement contractors and revoke licenses?
- Maryland Attorney General
- Maryland Department of Labor
- Maryland Home Improvement Commission (MHIC) (Correct answer)
- Maryland Board of Public Works
Correct answer: Maryland Home Improvement Commission (MHIC)
The Maryland Home Improvement Commission (MHIC) is the primary regulatory body empowered to investigate complaints and revoke contractor licenses.
Question 13: The Maryland Home Improvement Guaranty Fund is funded primarily by:
- Fines collected from homeowners
- Federal housing grants
- State general tax revenues
- Fees paid by licensed contractors (Correct answer)
Correct answer: Fees paid by licensed contractors
The Guaranty Fund is financed through fees assessed on Maryland-licensed home improvement contractors.
Question 14: Under Maryland's Home Improvement Law, a contractor must provide a written contract for any job costing more than:
- $500
- $1,000
- $250 (Correct answer)
- $100
Correct answer: $250
Maryland law requires a written contract for any home improvement job with a total price exceeding $250.
Question 15: A subcontractor performs electrical work on a home improvement project in Maryland without being licensed. Who bears primary legal responsibility?
- The local building department
- The general contractor who hired the subcontractor (Correct answer)
- Only the subcontractor
- The homeowner
Correct answer: The general contractor who hired the subcontractor
The licensed general contractor is responsible for ensuring all subcontractors comply with Maryland licensing requirements.
Question 16: Under Maryland regulations, which of the following must a home improvement contract include regarding payment schedule?
- A clear payment schedule tied to project milestones or dates (Correct answer)
- Payment in full required before work begins
- Payment solely at the contractor's discretion
- Monthly installments regardless of project length
Correct answer: A clear payment schedule tied to project milestones or dates
Maryland home improvement contracts must specify a payment schedule, and law limits deposits to protect homeowners from contractors who collect money and disappear.
Question 17: When calculating overhead costs in a job estimate, which of the following is an example of a fixed overhead expense?
- Permit fees for the specific job
- Subcontractor labor for framing
- Cost of lumber for the project
- Office rent (Correct answer)
Correct answer: Office rent
Fixed overhead expenses like office rent remain constant regardless of the number of projects, unlike direct job costs.
Question 18: If a subcontractor is not paid by the general contractor, what Maryland legal remedy can the subcontractor use against the homeowner's property?
- Place a UCC financing statement on the property
- Report the homeowner to the MHIC board
- Sue the homeowner directly for breach of contract
- File a mechanic's lien (Correct answer)
Correct answer: File a mechanic's lien
Under Maryland law, unpaid subcontractors and suppliers may file a mechanic's lien against the improved property within prescribed deadlines.
Question 19: Under Maryland Home Improvement Law, what is the maximum number of days a homeowner has to cancel a home improvement contract after signing?
- 10 calendar days
- 7 calendar days
- 3 business days (Correct answer)
- 5 business days
Correct answer: 3 business days
Maryland law grants homeowners a 3-business-day right of rescission for home improvement contracts signed at their residence.
Question 20: Which contract clause protects a contractor if unforeseen site conditions (e.g., hidden mold or rot) substantially increase the project cost?
- Liquidated damages clause
- Arbitration clause
- Unforeseen conditions clause (Correct answer)
- Indemnification clause
Correct answer: Unforeseen conditions clause
An unforeseen conditions clause allows the contractor to seek additional compensation when hidden defects materially change the scope of work.
Question 21: According to the IRC stairway requirements, what is the maximum allowable rise (vertical height) for a single step in an interior staircase?
- 8¼ inches
- 8 inches
- 7¾ inches (Correct answer)
- 7 inches
Correct answer: 7¾ inches
The IRC specifies a maximum riser height of 7¾ inches for interior staircases. Additionally, the minimum tread depth is 10 inches. These dimensions are set to reduce the risk of falls on stairs, which are a leading cause of home injuries.
Question 22: Under the International Residential Code (IRC), what is the minimum required ceiling height for habitable rooms in a new residential construction?
- 8 feet
- 7 feet 6 inches
- 6 feet 8 inches
- 7 feet (Correct answer)
Correct answer: 7 feet
The IRC requires a minimum ceiling height of 7 feet for habitable rooms. While 8 feet is common in practice and some local codes may be stricter, the IRC baseline is 7 feet.
Question 23: According to the IRC, what is the maximum allowable rise (vertical height) for a single stair riser in a residential interior staircase?
- 7-3/4 inches (Correct answer)
- 7 inches
- 8-1/4 inches
- 6 inches
Correct answer: 7-3/4 inches
The IRC permits a maximum riser height of 7-3/4 inches for interior residential stairs. The minimum is 4 inches. Additionally, the greatest riser height within any flight of stairs cannot exceed the smallest by more than 3/8 inch. These dimensions are designed to ensure a safe, comfortable stride for occupants.
Question 24: Under the IRC, what is the maximum allowable rise (vertical height) for a single step in a residential staircase?
- 8.25 inches
- 7.75 inches (Correct answer)
- 7.0 inches
- 6.5 inches
Correct answer: 7.75 inches
The IRC specifies a maximum riser height of 7¾ inches (7.75 inches) for residential staircases. Combined with the minimum tread depth of 10 inches, these dimensions are designed to provide a comfortable and safe stride angle. Risers exceeding 7.75 inches increase the risk of tripping and are a frequent code violation found during inspections.
Question 25: Under the International Residential Code (IRC), what is the minimum required ceiling height for habitable rooms in a dwelling?
- 8 feet
- 6 feet 8 inches
- 7 feet 6 inches
- 7 feet (Correct answer)
Correct answer: 7 feet
The IRC requires a minimum ceiling height of 7 feet (84 inches) for habitable rooms. While many builders choose 8 or 9 feet for comfort, the code minimum is 7 feet.
MHIC Practice Test: Video 1 Answers (25 Questions)
What does the Maryland Healthy Homes Protection Act require contractors to disclose to homeowners?
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These practice questions were written with AI tools. They are not real exam questions. 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
- dsd.maryland.gov — Fees · verified Oct 2026
- labor.maryland.gov — Renewal, test delivery, eligibility, fees, exam format, passing score, registration, retake policy, score validity · verified Oct 2026