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Questions and Answers
What is a Home Improvement Contractor?
What is a Home Improvement Contractor?
A person who offers to perform repairs for a homeowner.
What is the MAXIMUM deposit permitted for a project with a total contract price of $1,500?
What is the MAXIMUM deposit permitted for a project with a total contract price of $1,500?
What is the MAXIMUM amount that a home improvement contractor may pay to a homeowner for referring a client to the contractor?
What is the MAXIMUM amount that a home improvement contractor may pay to a homeowner for referring a client to the contractor?
The contractor is NOT permitted to compensate the homeowner for referrals.
All of the following are exempt from licensing under the Home Improvement Law EXCEPT:
All of the following are exempt from licensing under the Home Improvement Law EXCEPT:
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When may an applicant reapply for a license after being denied?
When may an applicant reapply for a license after being denied?
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What license is required for a telephone salesperson that works as an independent contractor for a home improvement contractor?
What license is required for a telephone salesperson that works as an independent contractor for a home improvement contractor?
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The Home Improvement Commission MUST notify the applicant of its decision within how many days after a hearing?
The Home Improvement Commission MUST notify the applicant of its decision within how many days after a hearing?
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What is the MAXIMUM service fee that may be collected by a contractor if a homeowner cancels a $1,000 door-to-door contract 2 days after signing?
What is the MAXIMUM service fee that may be collected by a contractor if a homeowner cancels a $1,000 door-to-door contract 2 days after signing?
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All of the following are grounds for denial of licensure EXCEPT:
All of the following are grounds for denial of licensure EXCEPT:
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When must a renewal notice be mailed by the Commission in relation to the license expiration date?
When must a renewal notice be mailed by the Commission in relation to the license expiration date?
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What happens to a license that is NOT renewed?
What happens to a license that is NOT renewed?
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All of the following Commission records can be inspected by the public during normal office hours EXCEPT:
All of the following Commission records can be inspected by the public during normal office hours EXCEPT:
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All of the following are considered home improvements EXCEPT:
All of the following are considered home improvements EXCEPT:
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What may a local county or municipality do in relation to home improvements?
What may a local county or municipality do in relation to home improvements?
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Where is the office of the Home Improvement Commission located?
Where is the office of the Home Improvement Commission located?
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Who is the official recordkeeper of the Home Improvement Commission?
Who is the official recordkeeper of the Home Improvement Commission?
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Who investigates complaints against Home Improvement licensees?
Who investigates complaints against Home Improvement licensees?
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All of the following activities are grounds for disciplinary action against a licensee EXCEPT:
All of the following activities are grounds for disciplinary action against a licensee EXCEPT:
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What is the MINIMUM time period a person must wait before being issued a license after acting without a required Home Improvement license?
What is the MINIMUM time period a person must wait before being issued a license after acting without a required Home Improvement license?
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What is the MINIMUM number of days notice that the Commission MUST give a licensee about a hearing on disciplinary action?
What is the MINIMUM number of days notice that the Commission MUST give a licensee about a hearing on disciplinary action?
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Which of the following holidays is considered a business day with regard to the time period allowed for cancellation of a door-to-door sales contract?
Which of the following holidays is considered a business day with regard to the time period allowed for cancellation of a door-to-door sales contract?
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What information MUST all door-to-door sales contracts include?
What information MUST all door-to-door sales contracts include?
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What is the purchase price for a contract that includes $1,000 for goods and services, $50 for delivery, and $125 for interest?
What is the purchase price for a contract that includes $1,000 for goods and services, $50 for delivery, and $125 for interest?
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If a contract is signed at noon on Thursday, September 20, until when can the buyer cancel this contract?
If a contract is signed at noon on Thursday, September 20, until when can the buyer cancel this contract?
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All of the following information on the 'Notice of Cancellation' MUST be entered by the seller prior to giving the form to the buyer EXCEPT the:
All of the following information on the 'Notice of Cancellation' MUST be entered by the seller prior to giving the form to the buyer EXCEPT the:
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Study Notes
Home Improvement Contractor Overview
- A Home Improvement Contractor offers repair services directly to homeowners.
- A $500 maximum deposit is allowed for projects with a total contract price of $1,500.
Referral Practices
- Contractors cannot pay homeowners for client referrals.
Licensing Exemptions and Requirements
- Fence contractors are NOT exempt from licensing under Home Improvement Law.
- Applicants denied a license can reapply after 6 months.
- No license is needed for independent telephone salespersons working for contractors.
Commission Regulations
- The Home Improvement Commission must notify applicants of licensure decisions within 60 days post-hearing.
- Homeowners can cancel a $1,000 door-to-door contract without any service fee.
Denial Grounds for Licensure
- Not being a Maryland resident is NOT grounds for licensure denial.
Renewal and Record Keeping
- Renewal notices are sent out within 1 month of license expiration.
- Unrenewed licenses will expire.
- Public can inspect most Commission records, except for financial records of licensees.
Home Improvement Definitions
- Repairs to HVAC systems are NOT classified as home improvements.
- Local counties or municipalities have the authority to regulate home improvement quality.
Commission Office Location and Structure
- The Home Improvement Commission is based in Baltimore.
- The Executive Director acts as the official recordkeeper.
Complaint Investigation
- Investigations of complaints against licensees are conducted by the Commission's investigative staff.
Disciplinary Actions
- Disciplinary grounds do NOT include issuing a promissory note for home improvements.
- Individuals convicted of unlicensed activity must wait a minimum of 1 year before license issuance.
Hearing Notifications
- A minimum of 10 days notice must be provided to licensees regarding disciplinary hearings.
Contract Cancellation
- Election Day is considered a business day for cancellation purposes.
- Door-to-door sales contracts must include the seller's name and address.
Purchase Price Calculations
- The total project price includes costs for goods, services, delivery, and interest, resulting in a purchase price of $1,175.
Cancellation Timelines
- A contract signed on Thursday can be canceled until noon the following Thursday.
- Notice of Cancellation forms must include the seller's name, transaction date, and latest cancellation date, but NOT the purchase price.
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Description
Prepare for the Maryland Home Improvement exam with this practice test featuring essential definitions and key regulations. Each question is designed to enhance your understanding of contractor regulations and business practices. Test your knowledge and ensure you are ready for the PSI exam.
