Maryland Home Improvement PSI Exam Study Guide 2024-2025: Questions and Answers, Exams of Real Estate Management

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Maryland Home Improvement PSI Exam Study

Guide 2024-2025. Questions and Correct Verified

Answers. Graded A

A contract is signed at noon on Thursday, September 20. The buyer can cancel this contract any time up until:

1. Midnight on Sunday, September 23
2. Midnight on Monday, September 24
3. Noon on Tuesday, September 25
4. Noon on Thursday, September 27 - ANS4. Noon on Thursday, September 27 A Home Improvement Contractor is a person who offers to
5. perform repairs for a homeowner
6. construct a new home for a homeowner
7. sell supplies or equipment to a "do-it-yourself" homeowner
8. alter plumbing lines to accommodate new appliances - ANS1. perform repairs for a homeowner

A homeowner cancels a $1,000 door-to-door contract 2 days after signing the contract. The MAXIMUM service fee that may be collected by the contractor is:

1. Nothing. No service fee may be collected
2. $
3. $
4. $100 - ANS1. Nothing. No service fee may be collected A license that is NOT renewed will:
5. expire
6. become inactive
7. be revoked
8. be suspended - ANS1. expire A local county or municipality may
9. require a person to get authorization to perform or sell a home improvement
10. establish qualifications for a home improvement business

3. regulate the quality of home improvements
4. issue home improvement license - ANS3. regulate the quality of home improvements A person who is convicted of acting without a required Home Improvement license MUST wait a MINIMUM of what time period before being issued a license?
5. 30 days
6. 60 days
7. 180 days
8. 1 year - ANS4. 1 year A renewal notice MUST be mailed by the Commission within how many months of the license expiration date?
9. 1 month
10. 2 months
11. 3 months
12. 6 months - ANS1. 1 month

All door-to-door sales contracts MUST include:

1. the name and address of the buyer
2. the name and address of the seller
3. a promissory note
4. copies of all product brochures - ANS2. the name and address of the seller All of the following activities are grounds for disciplinary action against a licensee EXCEPT:
5. Violation of labor laws
6. issuing a promissory note for the home improvement
7. failure to comply with the Maryland Workers' Compensation Act
8. disregard of safety laws - ANS2. issuing a promissory note for the home improvement All of the following are considered home improvements EXCEPT:
9. landscaping
10. repairs to a fallout shelter

3. installation of an awning
4. repairs to an HVAC system - ANS4. repairs to an HVAC system All of the following are exempt from licensing under the Home Improvement Law EXCEPT:
5. licensed architect
6. fence contractor
7. salesperson for a licensed plumbing contractor
8. Licensed security systems technician - ANS2. fence contractor All of the following are grounds for denial of licensure EXCEPT:
9. failing to give all required application information
10. not being a Maryland resident
11. conviction of a felony
12. fraud - ANS2. not being a Maryland resident All of the following Commission records can be inspected by the public during normal office hours EXCEPT:

1. licenses issued
2. expired, suspended, or revoked licenses
3. financial records or each licensee
4. contractors represented by each licensed salesperson - ANS3. financial records or each licensee All of the following information on the "Notice of Cancellation" MUST be entered by the seller prior to giving the form to the buyer EXCEPT the:
5. name of the seller
6. purchase price
7. date of the transaction
8. Latest cancellation date - ANS2. purchase price An applicant was denied a license after a hearing. When may the applicant reapply?
9. 30 days
10. 60 days

3. 6 months
4. 1 year - ANS3. 6 months The Commission MUST give a MINIMUM of how many days notice to a licensee about a hearing on disciplinary action against the licensee?
5. 3 days
6. 10 days
7. 30 days
8. 60 days - ANS2. 10 days The cost of a project includes $1,000 for goods and services, $50 for delivery, and $125 for interest. What is the purchase price for this contract?
9. $1,
10. $1,
11. $1,
12. $1,175 - ANS4. $1,

The Home Improvement Commission holds a hearing to determine the status of an individual's application for licensure. The Commission MUST notify the applicant of its decision within:

1. 10 days after the hearing
2. 30 days after the hearing
3. 60 days after the hearing
4. 180 days after the hearing - ANS3. 60 days after the hearing The office of the Home Improvement Commission is located in
5. Baltimore
6. Annapolis
7. College Park
8. Washington, DC - ANS1. Baltimore The official record keeper of the Home Improvement Commission shall be the
9. Chairperson of the Commission
10. Executive Director of the Commission

3. Secretary of the Department of Labor, Licensing, and Regulation
4. Governor - ANS2. Executive Director of the Commission What is the MAXIMUM amount that a home improvement contractor may pay to a homeowner for referring a client to the contractor?
5. $
6. $1,
7. 10% of the contract amount
8. The contractor is NOT permitted to compensate the homeowner for referrals - ANS4. The contractor is NOT permitted to compensate the homeowner for referrals What is the MAXIMUM deposit permitted for a project with a total contract price of $1,500?
9. $
10. $
11. $
12. $1,500 - ANS2. $

What license is required for a telephone salesperson that works as an independent contractor for a home improvement contractor?

1. Salesperson
2. Contractor
3. Subcontractor
4. No license is required - ANS4. No license is required Which of the following holidays is considered a business day with regard to the time period allowed for cancellation of a door-to-door sales contract?
5. Columbus Day
6. Veteran's Day
7. Election Day
8. Washington's Birthday - ANS3. Election Day Who investigates complaints against Home Improvement Licensees?
9. Investigative staff of the Home Improvement Commission

2. Complaint staff of the Contractors' Licensing Board
3. State Attorney's staff
4. Legislative staff - ANS1. Investigative staff of the Home Improvement Commission