MHIC Basic 4

Question 1

Under Maryland law, what is the maximum allowable down payment a licensed home improvement contractor may collect before starting work?

Accepted Answer

One-third of the contract price

Answer

Maryland law caps the initial down payment at one-third of the total contract price to protect homeowners.

Question 2

A homeowner discovers that a contractor completed work without a required building permit. Who is primarily responsible for obtaining that permit under MHIC rules?

Accepted Answer

The licensed contractor

Answer

The MHIC-licensed contractor bears responsibility for securing all required permits before beginning covered work.

Question 3

Which document must an MHIC licensee provide to the homeowner BEFORE starting a home improvement project valued over $100?

Accepted Answer

A written contract signed by both parties

Answer

Maryland requires a written, signed contract for home improvement work exceeding $100 to protect both parties.

Question 4

If an MHIC licensee's bond is cancelled by the surety company, within how many days must the contractor notify the Maryland Home Improvement Commission?

Accepted Answer

30 days

Answer

Contractors must notify the Commission within 30 days of any bond cancellation to maintain compliance.

Question 5

A salesperson working for a licensed MHIC contractor wishes to solicit home improvement contracts. What credential does that salesperson need?

Accepted Answer

A separate MHIC salesperson license

Answer

Maryland requires each individual who solicits home improvement sales to hold their own MHIC salesperson license.

(MHIC) Maryland Home Improvement Contractor Practice Test

(MHIC) Maryland Home Improvement Contractor Practice Test

MHIC Basic 4