MHIC Knowledge 5 — Questions and Answers
Question 1: Under Maryland's Home Improvement Law, which of the following projects is EXEMPT from MHIC licensing requirements?
- Adding a deck to a single-family home
- Replacing all windows in a condo unit
- New construction of a residential building (Correct answer)
- Installing a new HVAC system in an existing home
Correct answer: New construction of a residential building
New construction is excluded from MHIC jurisdiction; the license applies only to improvement of existing residential structures.
Question 2: A contractor's MHIC license number must appear on all of the following EXCEPT:
- Written contracts
- Advertisements
- Vehicle signage
- Worker safety plans (Correct answer)
Correct answer: Worker safety plans
Maryland requires the license number on contracts and advertisements but does not mandate it on internal safety documentation.
Question 3: A homeowner wants to cancel a home improvement contract signed at their residence. Under Maryland's right-of-rescission rule, how long does the homeowner have?
- 24 hours
- 3 business days (Correct answer)
- 5 business days
- 7 calendar days
Correct answer: 3 business days
Maryland law gives homeowners three business days to rescind a home improvement contract signed in their home.
Question 4: Which action would most likely result in suspension or revocation of an MHIC license?
- Filing a permit one day late
- Abandoning a project without legal justification (Correct answer)
- Hiring a subcontractor without written notice to the homeowner
- Using subcontractors who are not individually licensed
Correct answer: Abandoning a project without legal justification
Abandoning a contracted project without cause is a primary ground for disciplinary action under Maryland home improvement law.
Question 5: In Maryland, who is responsible for ensuring that the required building permits are obtained before home improvement work begins?
- The homeowner
- The licensed contractor (Correct answer)
- The local building department
- The MHIC
Correct answer: The licensed contractor
The licensed contractor bears the legal obligation to secure all necessary permits prior to starting work.
Question 6: What minimum information must a Maryland home improvement contract include regarding project completion?
- An exact completion date only
- Approximate start and completion dates (Correct answer)
- A penalty clause for delays
- A notarized schedule of milestones
Correct answer: Approximate start and completion dates
Maryland law requires the contract to state approximate start and completion dates for the work.
Question 7: A Maryland contractor is accused of a home improvement violation. Which agency has primary jurisdiction to investigate and adjudicate the complaint?
- Maryland Attorney General's Consumer Protection Division
- Maryland Home Improvement Commission (MHIC) (Correct answer)
- Maryland Department of Labor
- Local county licensing board
Correct answer: Maryland Home Improvement Commission (MHIC)
The MHIC is the primary state agency authorized to investigate complaints against and discipline licensed home improvement contractors.
MHIC Knowledge 5
Under Maryland's Home Improvement Law, which of the following projects is EXEMPT from MHIC licensing requirements?