MHIC Exam With 100% Correct And Verified Answers 2024, Exams of Advanced Education

Download MHIC Exam With 100% Correct And Verified Answers 2024 and more Exams Advanced Education in PDF only on Docsity! MHIC Exam With 100% Correct And Verified Answers 2024 Which title is the Home Improvement law contained in? - Correct Answer-Title 8 of the Business Regulation Article of the Annotated Code of Maryland. How many sections or subtitles is the law divided into? What are they? - Correct Answer-8 sections. 1. Definitions and Jurisdiction. 2. The Commission. 3. Licensing and Disciplinary Actions. 4. The Guaranty Fund. 5. Home improvement contracts and miscellaneous provisions. 6. Prohibited acts and penalties. 7. Mold remediation services. 8. Short title and termination of title. Which subtitle was the Home improvement law created under and what does the law state? - Correct Answer-2. The scope of the law and it established the Guaranty fund and determined who is qualified to receive an award from the fund. The law also has regulations which are published in COMAR (code of Maryland regulations). When does home improvement law not apply? - Correct Answer-When performed on property owned by the federal, state, or local government. Can a homeowner or contractor agree to waive any requirements of the HOME IMPROVEMENT LAW? - Correct Answer-No What is home improvement? - Correct Answer-The addition to or alteration, conversion, improvement, modernization, remodeling, repair, or replacement of a building or part of a building that is used or was designed to be used as a residence or dwelling place or a structure adjacent to that building or an improvement to land adjacent to that building. Included or excluded: new home construction or work done to comply with a guarantee of completion for a new building. - Correct Answer-Excluded. Included or excluded: sale of materials where salesperson does not install the materials. - Correct Answer-Excluded Connection or installation of a dishwasher, disposal, or refrigerator with ice maker to existing household plumbing lines. - Correct Answer-Included. Excluded if alteration to plumbing lines is required. Work done on apartment buildings that contain 4 or more single family units. - Correct Answer-Excluded Installation of an awning, fire alarm, or storm window. - Correct Answer-Included Work done on individual condos. - Correct Answer-Included. Work done on commonly owned areas of condos. - Correct Answer-Excluded In what 2 ways is home improvement interpreted by the commission? - Correct Answer-1. Work that adds value to the residence and 2. Would typically remain as part of the property if it were sold to a new owner Is a HMIC license required to clean a house or a yard or to perform basic maintenance activities? - Correct Answer-No What is a contractor? - Correct Answer-A contractor is a person who performs or offers or agrees to perform a home improvement for an owner. An employee of the owner is not a contractor. What is a subcontractor? - Correct Answer-A subcontractor enters into contracts with contractors or other subcontractors to perform all or part of a home improvement. A subcontractor is not authorized to enter into agreements directly with homeowners. A subcontractor does not include a laborer or supplier of materials. What is a salesperson? - Correct Answer-A person who sells a home improvement. What is a home improvement contract? - Correct Answer-An agreement between a homeowner and a contractor to perform a home improvement. The home improvement law requires that all home improvement contracts be in writing and be signed by the parties to the agreement. What does it mean to sell a home improvement? - Correct Answer-To negotiate or offer to negotiate a home improvement contract with an owner, or to otherwise seek to get an owner to enter into a home improvement contract. What is an owner? - Correct Answer-An owner, owner's agent, tenant, or other person who is authorized to enter into home improvement contracts. What is a contractor's license? - Correct Answer-An individual who holds a contractor license is authorized to act as a contractor or salesperson. What is a salesperson's license? - Correct Answer-Authorizes an individual to act within the scope of the specific license. For example, a licensed salesperson may only sell home improvements. Is the Commission entitled to reimbursement by the contractor in the event of a Guaranty fund payment? - Correct Answer-Yes, the amount paid plus interest at the annual rate of 10%. Is formal mediation between homeowners and contractors available through the MHIC? - Correct Answer-Yes What are the requirements of a home improvement contract? - Correct Answer-It must be in writing and legible. The contract must describe each document that it incorporates and it must be signed by each party to the agreement. He contract must also contain a description of the home improvement to be performed and the materials to be used. The homeowner must receive a signed copy of the contract prior to the work starting. What is subtitle 5? - Correct Answer-Home improvement contacts and miscellaneous provisions A home improvement contract must contain: - Correct Answer-The contractor's name, address, and MHIC license number. If a salesperson solicited or sold the home improvement, then those names and license numbers must be included as well. What is consumer notice in regards to a home improvement contract? - Correct Answer-Notice that gives the telephone number of the commission and states that, "each contractor and subcontractor must hold a current MHIC license and anyone can ask MHIC about a contractor." Can a homeowner request a contacting to purchase a performance bind for additional protection against losses not covered by the Guaranty fund? - Correct Answer-Yes What is the most a contractor can accept as a deposit? - Correct Answer-1/3 of the contract price as a deposit and nothing else until the job is complete. Does the home improvement law cover pay schedules? - Correct Answer-No, payment terms can be negotiated between the homeowner and contractor. The agreed upon price should be clearly written in the contract. What must the first page of a contract dealing with interest in securing payment through real estate state? - Correct Answer-This contract creates a mortgage or lien against your property to secure payment and may cause a loss of your property if you fail to consult an attorney. You have the right to rescind this contract within 3 business days after the date you sign it by notifying the contractor in writing that you are rescinding the contract Who is the only person authorized to make changes to a contract for a homeowner? - Correct Answer-The contractor. Sales person or other representatives may NOT make changes to a contract for a homeowner. What are some rights bestowed by the MD door to door sales act? - Correct Answer- The right to cancel the contract without any penalty or obligation, by sending notice of cancellation to the seller by midnight of the 5th business day following the sale, or the 7th business day if the buyer is at least 65. If a homeowner cancels a contract under the door to door sales act of MD, when must the contractor return the deposit? - Correct Answer-Within 10 business days following the receipt of the cancellation. Each contact covered by the door to door sales act must have what? - Correct Answer- A notice of cancellation attached to the contract, along with Written and signed acknowledgement of buyers right to cancel. Can a salesperson represent more than 2 contractors at the same time? - Correct Answer-No. Additionally, a salesperson can only represent a single contractor while selling a home improvement. What must add contain? - Correct Answer-The name and MHIC license number. Ads cannot be, "false, deceptive, or misleading." Where must the name and MHIC# be displayed on vehicles used primarily for home improvement services? - Correct Answer-Both sides of all vehicles used What is subtitle 6? - Correct Answer-Prohibited acts and penalties What is the first penalty and fine for acting as a contractor? - Correct Answer-6 months incarceration and $1,000 What is subtitle 7? - Correct Answer-Mold remediation services What year was the mold remediation services act established? - Correct Answer-2008 What is the insurance requirements for mold remediation? - Correct Answer-At least $1,000,000 What is Subtitle 8? - Correct Answer-Shirt title and termination of title. When will the law expire? - Correct Answer-July 1, 2022, unless specifically extended by the general assembly. When was the law last extended? - Correct Answer-2012