MHIC MHIC Maryland Home Improvement Law and Contracts 5

Question 1

A Maryland home improvement contract is signed on a Monday. By what day must the homeowner receive the Notice of Cancellation rights?

Accepted Answer

The same day the contract is signed

Answer

The required Notice of Cancellation must be provided to the homeowner at the time the contract is signed.

Question 2

Which of the following work is EXEMPT from Maryland home improvement licensing requirements?

Accepted Answer

New residential construction not involving alteration of an existing structure

Answer

New construction of a residence is exempt; the MHIC license applies to improvement, repair, or alteration of existing structures.

Question 3

What happens to a Maryland contractor's MHIC license if their required surety bond lapses?

Accepted Answer

The license is automatically suspended until the bond is reinstated

Answer

An active surety bond is a continuous licensing requirement; a lapse results in automatic license suspension.

Question 4

A homeowner exercises their 3-day right to cancel a home improvement contract. What must the contractor do with any payments already received?

Accepted Answer

Return the payment within 10 business days of receiving the cancellation notice

Answer

Upon valid cancellation, the contractor must return all payments to the homeowner within 10 business days.

Question 5

Under Maryland law, advertising home improvement services without an MHIC license number in the ad is:

Accepted Answer

A violation subject to penalties

Answer

Maryland law requires contractors to display their MHIC license number in all advertising; omission is a violation.

(MHIC) Maryland Home Improvement Contractor Practice Test