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Residential Builder's Salesperson Practice Exam Questions And Answers In a typical construction loan, the interest rate is locked for the entire term of the loan. - correct answer True Both company overhead and project overhead should be accounted for in a projects estimate. - correct answer True Salespeople shall not begin selling until they receive their license and pocket ID card. - correct answer True A material breach of contract is the most serious of contract breaches. - correct answer True If a sale was initiated and completed by a salesperson at a person's home, the customer has a right to cancel that contract within __________days. - correct answer 3 If a contract is negotiated on the premise of price per square foot of material installed, this would be a ____________ - correct answer Unit Price contract Residential Builder's Salesperson Practice Exam Questions And Answers Costs that a contractor incurs such as administrative costs to service the project while under construction are called _________ - correct answer Company Overhead Company overhead can include - correct answer Office expenses, facility maintenance expense, electrical expenses A complete list of all of the materials and items of work that would be required to complete a project are ____ - correct answer Quantity survey (take off) Can an unlicensed contractor who is required to be licensed impose a lien against a homeowner? - correct answer No Public Act 299 provides for licensing and the right to engage in business as _______ - correct answer A salesperson, residential builder, and M&A contractor If a salesperson doesn't intend to renew their license after it has expired, do they have to return it to the Department? - correct answer Yes Residential Builder's Salesperson Practice Exam Questions And Answers How many days does a person have from the receipt of a complaint to respond? - correct answer 15 Days Without ________________, customers don't legally have to oblige your request because you didn't get their approval for these additional costs. - correct answer Change Orders When adding profit to an estimate, the value is usually _________________ - correct answer A percentage of the total job cost No one may take any of the following actions based on race, color, national origin, religion, sex, familial status or handicap - correct answer Refuse to rent or sell housing, refuse to negotiate for housing, or make housing unavailable Project overhead can include ______________ - correct answer Cost of sanitary facilities, financing costs, and cost of blueprints Contracts for the sale of good are not valid unless they have 4 required elements: offer and acceptance, Residential Builder's Salesperson Practice Exam Questions And Answers consideration, competent parties and __________ - correct answer Legal Purpose In order for a merchant to avoid a misunderstanding having to do with a warranty on the product, there must be a disclaimer provided to the customer in a conspicuous manner that the product is sold "AS IS" and there is no warranty either expressed or implied. - correct answer True When applying for a construction loan a copy of the contract between the owner and the builder must be included with the application. - correct answer True How many days is it necessary for a telemarketer or seller to search the National Do Not Call Registry ? - correct answer 31 Days When a salesperson terminates employment with a contractor, what must the salesperson do? - correct answer Return the pocket ID card via Certified Mail within 5 days Residential Builder's Salesperson Practice Exam Questions And Answers How many days advance notice will a person be given before an investigative conference is held? - correct answer 10 days This page of the blueprint indicates the location of the structure and the distances from it to the property lines - correct answer Plot or site plan If the sale of a construction project is secured by an unlicensed salesperson, the contract is unenforceable. - correct answer True The Home Solicitations Sales Act requires that the seller provide to the purchaser at the time of the sale a copy of their Notice of Rights to Cancel in not less than _______________________. It must be two points larger than the text in the contract. - correct answer 10 point bold print If the contract states that a certain percentage of the contract's funds will be withheld from the contractor until the entire project is completed, the withheld funds are called ______________________ - correct answer Retainage Residential Builder's Salesperson Practice Exam Questions And Answers salesperson? - correct answer The qualifying person What type of contract would be best used by a contractor to remodel an older home? - correct answer Cost Plus The fair housing laws prohibit all of the following, except: - correct answer Evicting a current user of illegal drugs The penalty for practicing the occupation without a license is _________ - correct answer A minimum of $5000.00 and not more than $25,000.00, or 1 year of jail time, or both Changes to the contract documents before the execution of the contract are called _________________ - correct answer Addenda If there is a change made to the original plans and specifications on a project, it must be formalized with a/an _______ - correct answer Change Order Residential Builder's Salesperson Practice Exam Questions And Answers Must a builder furnish his customer plans and specifications if the home he is building is exactly the same home as a model the customer has walked through? - correct answer No Permits are required for any improvement on a home greater than $2500 in total cost. - correct answer False All written agreements shall provide clear terms, specifications and plans if applicable, as well as _______________ - correct answer Cost, type and amount of work to be done, type and quality of materials to be used If a contractor doesn't complete a project on schedule and the contract states that the completion date is an important factor, the contractor may have to pay __________________ - correct answer Liquidated damages Of the nine board members, how many of them represent members of the general public who are not practicing contractors? - correct answer 3 Residential Builder's Salesperson Practice Exam Questions And Answers A violation of Truth in Advertising is which of the following? - correct answer Mislead or deceive a consumer Who decides what penalty will be imposed against a residential builder or M&A contractor? - correct answer Builders Board, or the Director of the Department, if the Board fails to take action within 60 days Before a contractor will receive a draw or progress payment, the financial institution will require that all material suppliers and subcontractors for which the money is to be distributed sign a ________________ - correct answer Lien Waiver The National Do-Not-Call Registry applies to all organizations who sell goods or services through intestate phone calls. The exception to the law is ____________________ - correct answer Political organizations, charities, telephone surveyors A person registering a complaint to the Board of Residential Builders and Maintenance and Alterations Contractors must do so with ________________ -