MHIC Licensing and Regulations Overview
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Questions and Answers

What does MHIC mean?

Maryland Home Improvement Commission

What is the primary function of the MHIC?

To protect the health and safety of the general public

What type of home improvement licenses are there in Maryland?

Contractor and salesperson

What does the contractors license allow the licensee to do?

<p>work as a contractor, subcontractor, and salesperson</p> Signup and view all the answers

When will Don Smith be able to retake his exam after failing?

<p>30 days</p> Signup and view all the answers

An MHIC license applicant can be exempt from taking the Home Improvement Law and Regulations exam.

<p>False</p> Signup and view all the answers

Can John Thompson apply for the Contractor's License without two years of work experience in construction?

<p>Yes, if he can prove he has equivalent education and training.</p> Signup and view all the answers

Which requirements must be met for obtaining the Contractor's license? (Select all that apply)

<p>All of the above</p> Signup and view all the answers

Who regulates home improvement businesses in Maryland?

<p>The Maryland Home Improvement Commission</p> Signup and view all the answers

Can Paula Johnson become a commissioner with the MHIC after residing in Maryland for three years and six months?

<p>No, she has to wait one year and six months.</p> Signup and view all the answers

When does the term of the commissioner begin and how long is it for?

<p>It begins on the 1st of July and the term is for one year.</p> Signup and view all the answers

Who appoints the Commission's Executive Director?

<p>The secretary of the labor department</p> Signup and view all the answers

Which activities are exempt from the Home Improvement Law during a project in a new home? (Select all that apply)

<p>All of the above</p> Signup and view all the answers

How many members are there in the hearing board?

<p>3</p> Signup and view all the answers

After a license is denied, how long does the applicant have to wait to re-apply?

<p>180 days</p> Signup and view all the answers

How many contractors can a salesperson simultaneously work for?

<p>2</p> Signup and view all the answers

What happens if one member of the Hearing Board agrees on the penalty while another disagrees?

<p>The commission must reschedule a meeting with all its members within 15 days.</p> Signup and view all the answers

The commission may deny a license if the applicant: (Select all that apply)

<p>All of the above</p> Signup and view all the answers

Which activities are not regulated by the MHIC law and regulations?

<p>working in a 4-unit building</p> Signup and view all the answers

How much does the commission charge for verification of a license's good standing?

<p>$1</p> Signup and view all the answers

What is the sum of all fees required to be paid when applying for a contractor's License?

<p>$370</p> Signup and view all the answers

How long must someone wait to apply for a license after being convicted?

<p>1 year</p> Signup and view all the answers

Who can appoint or remove a commissioner or member of the commission?

<p>The governor</p> Signup and view all the answers

When may a licensed contractor receive a down payment for a home improvement contract?

<p>When both the licensed contractor and the homeowner sign the contract.</p> Signup and view all the answers

If a salesperson working for two contractors executes a contract with a homeowner, whom could they receive a commission from?

<p>Only from the contractor who will be approving the contract and performing the home improvement.</p> Signup and view all the answers

Who chooses the members of the hearing board?

<p>The members of the commission.</p> Signup and view all the answers

How often shall the Commission provide a current list of all licensees to relevant departments?

<p>Each month</p> Signup and view all the answers

A hearing notice shall be sent at least __ days before the hearing.

<p>10</p> Signup and view all the answers

What happens if a contractor fails to pay an assessment to the Guaranty Fund on time?

<p>The commission will suspend the license.</p> Signup and view all the answers

What may happen if the commission finds the claimant unreasonably rejected good faith efforts by the contractor?

<p>The commission may deny the claim.</p> Signup and view all the answers

What penalty is applied for performing a home improvement without an MHIC License for the first time?

<p>A fine of up to $1,000 and/or imprisonment not exceeding 6 months.</p> Signup and view all the answers

What is the penalty for accepting a false completion certification?

<p>A fine of up to $5,000 and/or imprisonment not exceeding 3 years.</p> Signup and view all the answers

What is the penalty if someone is found performing a Home Improvement without an MHIC License for the second time?

<p>A fine up to $5,000 and/or imprisonment not exceeding 2 years.</p> Signup and view all the answers

What is the criminal penalty for advertising without an MHIC License number?

<p>A fine of up to $1,000 and/or imprisonment not exceeding 6 months.</p> Signup and view all the answers

A mold remediation services licensee must be covered by any insurance of at least:

<p>$1,000,000</p> Signup and view all the answers

Who signs a Home Improvement contract?

<p>Contractor, homeowner, and salesperson.</p> Signup and view all the answers

The mold remediation services subtitle of the Maryland Home Improvement Law does not apply to areas less than __ square feet.

<p>10</p> Signup and view all the answers

What is the minimum height for displaying an MHIC number on both sides of a vehicle?

<p>3 inches</p> Signup and view all the answers

Who should apply for the building permit when Mr. Smith hires a contractor?

<p>The contractor</p> Signup and view all the answers

How long does one have to notify the Commission of an important change in their business information?

<p>10 days</p> Signup and view all the answers

How long is the contractor given to disapprove a contract if it states it is subject to their approval?

<p>10 days</p> Signup and view all the answers

What address should the contractor submit to the commission?

<p>Physical address</p> Signup and view all the answers

What type of loss will be paid if the commission approves a homeowner's Guaranty Fund claim?

<p>Actual loss</p> Signup and view all the answers

What civil citation is imposed on a contractor who is found using misleading or deceptive advertisements for the first time?

<p>$300</p> Signup and view all the answers

What civil citation does the Commission issue for a contractor who for a second time does not provide a homeowner with a copy of the contract?

<p>$1,000</p> Signup and view all the answers

How long does a homeowner have to file a complaint against a licensee with the commission?

<p>3 years from the date of the home improvement contract.</p> Signup and view all the answers

When should the parties affix their initials and date next to any mandatory arbitration clause in a home improvement contract?

<p>At the time of the execution of the contract.</p> Signup and view all the answers

Study Notes

Overview of MHIC

  • MHIC stands for Maryland Home Improvement Commission.
  • Primary function is to protect public health and safety in home improvement projects.

Licensing

  • Two types of home improvement licenses: contractor and salesperson.
  • Contractors can operate as contractors, subcontractors, and salespeople.
  • Applicants must never be exempt from the Home Improvement Law and Regulations exam.
  • The Commission requires proof of two years' experience or equivalent education for Contractor's License.
  • All requirements for the Contractor's License include passing tests, proving experience, maintaining liability insurance of at least $50,000, and demonstrating financial solvency.

Application and Examination

  • After failing the exam, applicants like Don Smith must wait 30 days to retake.
  • License applicants who are denied must wait 180 days to re-apply.
  • Criminal conviction requires a 1-year waiting period to apply for a license.

Commissioner and Board Operations

  • Only the governor can appoint or remove a commissioner or commission member.
  • The hearing board consists of 3 members, appointed by the Commission.
  • Commission must hold meetings for penalty decisions if board members cannot agree.

Contracting and Maintenance

  • Licensed contractors may only receive down payments after signing contracts with homeowners.
  • Salespeople may work for two contractors simultaneously but can only receive commissions from the contracting one approving the job.
  • MHIC must send updated licensee lists monthly to building departments.

Violations and Penalties

  • First offense for performing without an MHIC License results in a fine up to $1,000 and/or up to 6 months imprisonment.
  • Accepting false completion certificates is punishable by a $5,000 fine and/or up to 3 years imprisonment.
  • Second offenses incur higher fines and imprisonment terms, up to $5,000 and 2 years.
  • Advertising without an MHIC License number has penalties including fines and possible imprisonment.

Insurance and Financial Obligations

  • Mold remediation licensees must hold insurance coverage of at least $1,000,000.
  • Contractors must notify the Commission of important business changes within 10 days.

Home Improvement Contracts

  • Home Improvement contracts must be signed by contractors, homeowners, and salespeople.
  • Mandatory arbitration clauses need initials and dates from all parties at contract execution.

Consumer Rights and Claims

  • Homeowners have a 3-year window to file complaints against licensees.
  • If a claim is approved by the Commission, actual losses will be compensated through the Guaranty Fund.

Civil Citations and Misconduct

  • First-time offenders using deceptive advertisements incur a $300 civil citation.
  • Repeat offenders failing to provide homeowners with contract copies may face a $1,000 citation.
  • Contractor disapproval of a contract must occur within 10 days if specified.

Miscellaneous

  • Commission verification of a license's good standing costs $1.
  • Display of an MHIC number on vehicles must be at least 3 inches in size.
  • The mold remediation services law is not applicable for areas under 10 square feet.

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Description

This quiz covers the Maryland Home Improvement Commission's licensing process and regulations. It includes details about the types of licenses, application requirements, and examination procedures for contractors and salespeople. Test your knowledge about public safety standards and experience requirements in home improvement projects.

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