Questions and Answers
Who applies for a license?
A person can be a qualifying person for two corporations if at least 25% of each corporation has common ownership.
True
A person who fails to apply for renewal by March 31st is considered licensed for 30 days, or until the new license is issued by the Commissioner.
False
Who is responsible for determining who is qualified to be licensed by the State of Minnesota?
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Anyone in the business of building residential real estate must be licensed unless yearly gross receipts are less than $15,000.
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The licensing process requires each company to designate one individual who will serve as a ____________.
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The maximum payment per claim paid out of the Contractor Recovery Fund is:
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The maximum payment per licensee out of the Contractor Recovery Fund (not the accelerated process) is __________.
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It is a law that you must notify, in writing, if you change your business name or your address where you conduct business, within:
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The following are exempt from being licensed:
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What is the primary reason Minnesota requires contractors to be licensed?
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A person or business that only provides one special skill isn't required to be licensed, with the exception of:
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A contractor is required to be licensed if his gross annual receipts exceed:
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All of the following are requirements for license application, except:
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It is a requirement, by law, to publish in all advertising and official documents:
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What is the requirement in order to be able to sit for the Residential Building Contractor or Remodeler Examination?
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Specialty Contractor means:
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Which of the following is a violation of the laws regulating the occupation?
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A person whose company is required to be licensed, and who performs unlicensed work as a residential building contractor or remodeler, is guilty of a:
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You do not need a Residential Builders License to construct a detached garage.
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Duties of the Commissioner include:
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An application for renewal of a license is considered to be timely if postmarked by March 1st.
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The licensee must display the license number on all building permits, applications, business cards, contracts, lien claims and:
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If a company loses their qualifying person, the licensee must notify the Commissioner in writing within _________________.
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Which of the following are not required to have a Residential Builders or Remodelers License because they are licensed under a separate law?
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The most important difference between a Residential Building Contractor and a Residential Remodeler is that a remodeler is permitted to work only on existing structures.
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An application for an assumed name can be found at the _____________ offices.
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If a person elects to receive payment from the Contractors Recovery Fund under the accelerated process, the maximum amount of payment would be:
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The written exam will concentrate on which of the following areas?
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The Residential Builders and Remodelers License expires on March 31st every two years.
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How many days are allowed for a temporary license after the loss of a qualifying person?
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The expiration date of your builders license will be _____________ of every other year.
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You can let your license lapse for ________________ without having to retake the exam.
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The following are requirements to obtain a Building Contractors or Remodelers License:
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Minnesota requires that all builders continue their education by attending 7 hours of classroom study per year, with at least 1 hour dedicated to:
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A company has __________ days from the departure of a qualifying licensee to obtain a new qualifying person.
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By law, you must display the license number on all building permits, applications, business cards, contracts, lien claims, and display advertising.
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It is the responsibility of the subcontractors to comply with the state building code.
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A person required to be licensed, who performs unlicensed work, is guilty of a misdemeanor.
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Who is the person who fulfills the examination and education requirements for licensure on behalf of the licensee (company or business)?
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Who is required to hold a contractor license under Chapter 326 of the Minnesota Statutes?
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What is the total cost of a Minnesota building contractor/remodeler two-year license renewal if that builder's gross receipts are less than $1 million?
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Who is exempt from being licensed as a Residential Building Contractor or Residential Remodeler?
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The purpose of the Contractors' Recovery Fund is to provide reimbursement to a consumer who has suffered financial loss as a result of a contractor who has engaged in fraudulent, dishonest practices.
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A qualifying person of a licensee must provide proof of completion of _____ hours of continuing education per two-year licensure period.
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Study Notes
Licensing Overview
- All entities requiring a contractor license in Minnesota include sole proprietors, partners, and corporate officers.
- A person may qualify for dual corporation licenses if there is a 25% common ownership or if one is a subsidiary of the other.
Renewal and Expiration
- Failing to renew a contractor's license leads to immediate lapse, not a 30-day grace period.
- License renewal applications are timely if postmarked by March 1st, allowing for continued operation pending approval.
Contractor Licensing Requirements
- Individuals must be 18 years old to sit for the Residential Building Contractor or Remodeler Exam.
- Contractors must demonstrate proof of liability insurance, workers’ comp insurance, and a history of business operations for licensing.
Contractor Recovery Fund
- The maximum claim from the Contractor Recovery Fund is $75,000 per incident, with a lifetime cap of $150,000 per licensee.
- The fund provides reimbursement for financial losses due to contractor fraud or dishonesty.
Licensing Exceptions and Responsibilities
- Exemptions to licensing include employees of licensed builders, material suppliers not involved in installation, and homeowners working on their own properties (limited to one sale every 24 months).
- The licensing system aims to safeguard public health, safety, and welfare, not merely to collect fees.
Display and Notification Requirements
- Contractors must display their license number on all official documents, advertising, and building permits.
- Any changes to business name or address must be reported in writing within 15 days.
Legal Violations and Continuing Education
- Violations of contractor laws include fraud during licensing or work, with offenses classified as misdemeanors.
- Licensees must complete 14 hours of continuing education, including 1 hour focused on energy efficiency per two-year renewal cycle.
Special Cases and Specific Skills
- Only roofing contractors require licensing even if they provide a singular contracting skill.
- No contractor license is needed for projects generating less than $15,000 in annual gross receipts unless receiving a Certificate of Exemption.
Temporary Licensing and Application Processes
- Companies have 120 days to find a new qualifying person after losing one, and applications for an assumed name are facilitated through the Secretary of State.
- The two-year renewal fee for contractors with gross receipts under $1 million is $690.
Additional Facts
- The Residential Builders and Remodelers License expires every two years on March 31st.
- Subcontractors must follow building codes, but ultimate responsibility lies with the primary contractor.
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Description
Test your knowledge with this MN Contractors Exam licensing quiz. This quiz will cover essential licensing requirements and qualifications needed for contractors in Minnesota. Get ready to challenge what you know about the rules governing contractor licensing.
