MHIC MHIC Maryland Home Improvement Law and Contracts 1

Question 1

Under the Maryland Home Improvement Act (MHIA), which of the following contractors is REQUIRED to hold an MHIC license?

Accepted Answer

A contractor who replaces windows and siding on an existing residence

Answer

A contractor who builds new homes from the ground up

Answer

A contractor who performs work valued under $100 on a neighbor's home as a favor

Answer

An employee of the homeowner who performs repairs on the owner's property

Question 2

What is the maximum deposit a licensed MHIC contractor may collect from a homeowner before beginning work on a home improvement contract?

Accepted Answer

One-third (33⅓%) of the total contract price

Answer

One-quarter (25%) of the total contract price

Answer

One-half (50%) of the total contract price

Answer

There is no legal deposit limit in Maryland

Question 3

A homeowner signs a home improvement contract on a Monday at the contractor's office. Under Maryland law, how many business days does the homeowner have to cancel (rescind) the contract?

Accepted Answer

3 business days

Answer

1 business day

Answer

5 business days

Answer

No right of rescission exists for contracts signed at the contractor's office

Question 4

Which of the following MUST be included in a written home improvement contract under Maryland law?

Accepted Answer

The approximate start and completion dates of the work

Answer

The contractor's Social Security number

Answer

The homeowner's credit score

Answer

A list of every subcontractor's license number

Question 5

A homeowner files a complaint against an MHIC licensee for shoddy workmanship. Which state agency is responsible for receiving and investigating this complaint?

Accepted Answer

Maryland Department of Labor, Licensing and Regulation (DLLR) / Maryland Home Improvement Commission

Answer

Maryland Attorney General's Consumer Protection Division (exclusively)

Answer

Maryland Department of Housing and Community Development

Answer

Maryland Board of Public Works

Question 6

Under the MHIA, which of the following persons or entities is EXEMPT from the MHIC licensing requirement?

Accepted Answer

A homeowner who personally performs improvements on their own primary residence

Answer

A general contractor who remodels kitchens for homeowners

Answer

A sole proprietor who installs hardwood floors in residential homes

Answer

A partnership that paints and repairs residential properties for profit