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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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  • March 18, 2024
  • 107
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

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  • michigan residential builders license questions

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Michigan Residential Builder's License – Questions
With 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
-Mail
-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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