Michigan Builders License Exam Study
Guide questions and answers 2024
What is the first offense penalty for engaging in the practice of residential building
without a license? - Not less than $5,000 and not more than $25,000 and/or one
year in prison. Subsequent violations can extend the prison time to up to 2 years.
What is the penalty for engaging in the practice of residential builders license,
resulting in a death? - Not less than $5,000 and not more than $25,000 and/or
four years in prison
On your individual builder's license application, what should you write as your
"business address"? - Your personal address
What is the cost for the individual builder's license? - $195
After receiving your residential builder's license, what are the only trades not
covered by your license? - Plumbing, electrical, and HVAC
Who is the TESTING company for the State of Michigan? - PSI
What is the name of the department that regulates your license? - LARA
,Michigan Builders License Exam Study
Guide questions and answers 2024
What are the 2 parts of the Residential Builder Examination? - Business and Law
examination/Practice and Trade examination
What is a good quick asset ratio? - 1 to 1
Under the Carpentry section of the test, what does a "span table" tell us? - What
species and what grade of lumber a floor joist has to be to span a certain distance
Which is NOT a reason that you need a residential business license?
It allows you to be able to file a lein on property
It allows you to pull a residential permit
It allows you to file a lawsuit if necessary
It allows you to work on commercial properties - It allows you to work on
commercial properties
Where does most fraud occur? - In the residential market
As a builder, your license falls under the regulation of: - Both rules by the director
and board as well as laws of the state of Michigan
,Michigan Builders License Exam Study
Guide questions and answers 2024
What is the make up of the 9 members of the board? - 4 residential builders, 2 M
+ A contractors, and 3 members of the general public
Under the definition of occupational code, what does the word "limitation" refer
to? - A condition, stricture, restraint or probation attached to a license relative to
the scope of practice
Who, upon completion of a hearing, shall assess a penalty or penalties? - The
Board
If you fail to renew your license or registration on or before the expiration date,
how many days do you have to resubmit with the proper payment and late fee? -
60 days
When the department is investigating a complaint and finds evidence of a
violation, what actions can be brought against the respondent? - A cease and
desist order, a formal complaint, and/or a citation
, Michigan Builders License Exam Study
Guide questions and answers 2024
How many days after the administrative law hearings examiner hears the report,
must a determination of penalties be made by the board? - 60 days
What is a compliance conference? - A meeting where ONLY the respondent meets
with the department to discuss the complaint against them
Which of the following terms means a premise used or intended to be used for a
residential purpose and related facilities appurtenant to the premises used or
intended to be used as an adjunct of residential occupancy? - Residential structure
An employee other than the listed salesperson may make a sale when: - It is
occasional and incidental to the person's principal employment
The following are reasons that someone would be allowed to operate without a
residential business license: - - They are an authorized representative of the
United States 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
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