MHIC - Maryland Home Improvement Contractor MD Home Improvement Law Questions and Answers

Question 1

A licensed Maryland Home Improvement contractor's advertisement must include which of the following pieces of information?

Accepted Answer

The contractor's MHIC license number.

Answer

According to the Maryland Home Improvement Law, all advertisements for home improvement services must conspicuously include the contractor's MHIC license number. This allows consumers to easily verify the contractor's license status with the Commission.

Question 2

A homeowner signs a home improvement contract at their kitchen table with a licensed salesperson. According to the Maryland Door-to-Door Sales Act, what is the standard timeframe the homeowner has to cancel the contract without penalty?

Accepted Answer

Until midnight of the fifth business day after the transaction.

Answer

The Maryland Door-to-Door Sales Act, which covers many home improvement contracts, gives consumers the right to cancel a contract without penalty by midnight of the fifth business day after the date of the transaction. For buyers aged 65 or older, this period is extended to the seventh business day.

Question 3

Under Maryland Home Improvement Law, what is the maximum deposit a contractor can legally require a homeowner to pay before work begins?

Accepted Answer

1/3 of the total contract price.

Answer

Maryland law explicitly prohibits a home improvement contractor from accepting more than one-third (1/3) of the total contract price as a deposit or down payment before or at the time of signing the contract.

Question 4

A homeowner discovers faulty workmanship from a project completed by a licensed MHIC contractor. To file a claim with the MHIC Guaranty Fund for potential compensation, the claim must be filed within what period?

Accepted Answer

Three years from the date the loss or damage was discovered.

Answer

A claim against the MHIC Guaranty Fund must be filed within three years after the homeowner discovered, or should have reasonably discovered, the loss or damage caused by the licensed contractor.

Question 5

Which of the following is NOT a required element of a written Maryland Home Improvement contract?

Accepted Answer

A mandatory binding arbitration clause.

Answer

While a contract can contain a mandatory arbitration clause, it is not a required element. If one is included, it must be clearly disclosed and initialed by both parties. The other items—approximate dates, the MHIC license number, and a clear scope of work—are all mandatory components of a valid contract.

(MHIC) Maryland Home Improvement Contractor Practice Test

(MHIC) Maryland Home Improvement Contractor Practice Test

MHIC - Maryland Home Improvement Contractor MD Home Improvement Law Questions and Answers