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Michigan Residential Builder's License – Questions With Correct Solutions
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Michigan Residential Builder's License – Questions With Correct Solutions
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Michigan Residential Builder's License – QuestionsWith Correct Solutions
What is the 1st offense penalty for engaging in the practice of residential
building without a license? Correct Ans - Not less than $5K and not
more than $25K and/or 1 year
What is the penalty for engaging in the practice of residential building,
resulting in a death? Correct Ans - Not less than $5K and not more
than $50K and/or 4 years
On your individual builder's license application, what should you write as
your "business address"? Correct Ans - Your personal address
What is the cost of the individual builder's license? Correct Ans - $195
After receiving your residential builder's license, what are the only trades that
are not covered by your license? Correct Ans - -Plumbing
-Electrical
-HVAC
Who is the TESTING company for the State of Michigan? Correct Ans -
PSI
What is the name of the DEPARTMENT that regulates your license?
Correct Ans - LARA
Before you may test, what must you do? Correct Ans - Present 2 forms
of ID
How should you schedule your test with PSI? Correct Ans - -Online
-Phone/Fax
When will you receive your test score? Correct Ans - Immediately
following the completion of the test
,What are the 2 parts of the Residential Builder's Exam? Correct Ans - -
Business & Law
-Practice & Trade
How long will you have to complete the Practice & Trade portion of the exam?
Correct Ans - 180 mins
What is a quick asset ratio? Correct Ans - 1 to 1
Under the carpentry section of the test, what does a "span table" tell us?
Correct Ans - What species and what grade of lumbar a floor joist has to be
to span a certain distance
Which topics will be covered on the Practice & Trade portion of the exam?
Correct Ans - -Carpentry
-Roofing
-Insulation
Do you need a Residential Builder's License to work on commercial projects?
Correct Ans - No
Where does the most fraud occur? Correct Ans - The residential
market
As a builder, your license falls under the regulation of what? Correct Ans -
-Rules by the director & board
-Laws of The State of Michigan
What is the make up of the 9 members of the board? Correct Ans - -6
individuals that have a license/registration in the occupation in which the
board monitors
-3 members of the general public
Under the definition of occupation code, what does the word "limitation" refer
to? Correct Ans - A condition, stricture, restraint or probation attached
to a license relative to the scope of practice
Who, upon completing a hearing, shall assess a penalty(ies)? Correct Ans
- The Board
,If you fail to renew your license/registration on or before the expiration date,
how many days do you have to resubmit with the proper payment and late
fee? Correct Ans - 60 Days
When the department is investigating a complaint and finds evidence of a
violation, what actions can be brought against them? Correct Ans - -
Cease & desist order
-Formal complaint
-Citation
How many days after the administrative law hearings examiner hears the
report, must a determination of penalties be made by the board? Correct
Ans - 60 Days
What is a compliance conference? Correct Ans - A meeting where the
respondent meets with the department to discuss the complaint against them
What is a possible penalty for operating without a residential builder's
license? Correct Ans - -A placement of a limitation on the license
-Probation
-Suspension of license
What does a residential structure mean? Correct Ans - A premise used
or intended to be used for a residence purpose and related facilities
appurtenant to the premises used or intended to be used as an adjunct of
residential occupancy
When can an employee other than the listed salesperson make a sale?
Correct Ans - When it's occasional and incidental to the person's principle
employment
Why would someone be allowed to operate without a residential builder's
license? Correct Ans - -They are an authorized representative of the US
Government
-They are the owner of a rental property with reference to the maintenance
and alteration of that rental property
-An owner of property with reference to a structure on the property for the
owner's own use and occupancy
, Beginning the license cycle after Dec 21st, 2007, the department shall issue
the license of a residential builder and residential maintenance and alteration
contractor for a period of how many years duration? Correct Ans - 3
years
After receiving your initial residential builder's license, how many hours of
continuing competency are required within the next 3 years? Correct Ans
- 21 hours
How is the salesperson license changed when the salesperson desires to
change employment from 1 residential builder to another? Correct Ans -
-License will be forwarded to the department
-An application for transfer is made
-New license under the new employer will be issued
Regarding workmanship, how long does a client have to file a "verified
complaint"? Correct Ans - 18 months
If a licensed residential builder or licensed residential maintenance and
alteration contractor wishes to change the control or direction of the business,
how long do they have to report that change to the department? Correct
Ans - 10 days
The department shall conduct a review upon the notice that the licensee has
violated the asbestos abatement contractors licensing act, what is a possible
consequence for this violation? Correct Ans - -The department may
suspend/revoke that person's license
-Fines may be issued
When the board issues the findings of a verified complaint, what happens?
Correct Ans - -Department will post on its website any final order of the
board and the date it was issued
According to the Administrative Rules, what does and application for a license
include? Correct Ans - -The residence address of all individuals,
partners, officers and/or members as requested by the board
-The address if the principle place of business in Michigan
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