Maryland Home Improvement Laws and Regulations

Question 1

How long does a claimant have to bring a claim against the Guaranty Fund?

Answer 1

3 years from discovery of the loss or damage

Question 2

How many days does a contractor have to respond in writing to the copy of a claim that was sent by the Commission?

Answer 2

10 days

Question 3

If within ____________ after the Commission gives notice, a contractor on whose account a claim was paid does not reimburse the fund in full, the Commission may sue the contractor for reimbursement.

Answer 3

60 days

Question 4

In addition to full reimbursement of the fund, a contractor is responsible to pay at least ___________ interest on the amount to reimburse.

Answer 4

10 percent

Question 5

The state can record a lien against any real property owned by the contractor for a debt owed to the fund.

Answer 5

True

Question 6

If the Commission pays a claim from the Fund based on the actions or omissions of a contractor, the Commission may suspend the contractor’s license until full reimbursement of the Fund plus at least 10% interest.

Answer 6

True

Question 7

A home improvement contract in compliance with the home improvement laws would include all of the following:

Answer 7

1. Name, address and license number of contractor
2. Name and license number of salesperson involved
3. Approximate start and end dates

Question 8

A salesperson may not represent 2 contractors at the same time for the same project.

Answer 8

True

Question 9

Can a salesperson legally accept money for themselves from the customer?

Answer 9

No

Question 10

It is against the law for building and permits departments to issue a permit to a contractor without the contractor’s license number.

Answer 10

True

Question 11

If a contractor fails to correct a violation of the building code within a reasonable time period, the county or municipality inspecting the project shall notify the Commission.

Answer 11

True

Question 12

What is the maximum fine for contracting without a license - second offense?

Answer 12

$5,000 and/or 2 years in jail or both

Question 13

Contractor, Jack Smith, is not getting along with Hector Jones, his customer. If he decides not to complete the contract, has Jack broken any law?

Answer 13

Yes

Question 14

Can a contractor decide to use a material other than specified in the contract documents without getting permission from the owner?

Answer 14

No

Question 15

Contractors may not:

Answer 15

1. misrepresent their service or product
2. make false promises
3. lie on their license application

Question 16

Contractor, Jack Brown, makes a deal with customer, Ameal Cougar, to provide an estimate of $40,000 on a project where the actual costs are $30,000, allowing Ameal to pocket $10,000 after securing a mortgage at $40,000 and paying off Jack. This is:

Answer 16

fraud, an illegal act , a misdemeanor

Question 17

If a contractor’s salesperson stops selling or working with the contractor for any reason, the contractor has a responsibility to the State to inform the Commission.

Answer 17

True, in writing

Question 18

All advertising has to provide the identifier “Maryland Home Improvement Commission License No ______________” or “MHIC#__________”.

Answer 18

True

Question 19

What is the maximum penalty the Commission may impose upon a contractor, licensed or unlicensed, per violation of these laws:

Answer 19

$5,000

Question 20

Advertising must be done in a way as to avoid misrepresenting the product, service or terms of sale so as not to deceive the customer.

Answer 20

True

Question 21

An applicant must provide to the Commission, a credit report with their application.

Answer 21

True

Question 22

How many days does a contractor have to respond to a receipt of a claim from the commission?

Answer 22

10 days

Question 23

Does home improvement include work done on an individual condominium unit?

Answer 23

Yes for individual units, no for common areas

Question 24

Does home improvement include work done on a swimming pool?

Answer 24

Yes

Question 25

Does a home improvement contract HAVE to be in writing in order to preserve your lien rights?

Answer 25

Yes

Question 26

A county or municipality in Maryland _____________ require a contractor to get authorization from an official in that city to be able to contract in that municipality.

Answer 26

Cannot, if you have an MHIC they have to allow you to contract in that municipality.

Question 27

A county or municipality in Maryland _______________ regulate the character, performance and quality of home improvement.

Answer 27

Can

Question 28

How many members are there in the Maryland Home Improvement Commission?

Answer 28

9 Members, Of the 9 members on the Commission, 4 are experienced in home improvement, 4 are not, and one is experienced in the banking industry.

Question 29

What is the term of a member on the Commission?

Answer 29

4 yrs.

Question 30

How long must a person be a citizen and member of Maryland before they can be appointed to the Commission?

Answer 30

5 yrs.

Question 31

It is illegal for a member of the Commission to receive any compensation from a person regulated by the Commission.

Answer 31

True

Question 32

How often does the Commission hold meetings at a minimum?

Answer 32

6 times a year, every two months

Question 33

The _______________ is a full time employee of the State.

Answer 33

The - Executive Director - is a full time employee of the State.

Question 34

People hired to investigate complaints about home improvement projects work under:

Answer 34

the Director of the Commission

Question 35

If the Commission decides to sue a contractor because they believe that the contractor has or will cause harm to another person, they can sue for:

Answer 35

1. injunctive relief against the conduct 2. an order for satisfactory completion of the project 3. restitution

Question 36

Can the Commission request financial records at any time?

Answer 36

Yes

Question 37

The following are exempt from licensure requirements:

Answer 37

Employees for labor services and employees for clerical work.

Question 38

What is the minimum amount of liability insurance needed?

Answer 38

$50,000

Question 39

How many years of trade experience or comparable educational training must an applicant for licensure have?

Answer 39

2 Years - An applicant for licensure must have 2 years trade experience or comparable educational training.

Question 40

The Commission can ask an applicant for information about the applicant's...

Answer 40

character, experience, financial stability

Question 41

The financial information provided by an applicant is private information.

Answer 41

Yes

Question 42

If an application for a license is denied, the applicant can request a hearing within ______________ after the notice of denial is mailed.

Answer 42

10 days

Question 43

A salesperson will not be issued a license until the salesperson becomes employed or contractually involved with a licensed contractor.

Answer 43

True

Question 44

How many contractors may a salesperson represent?

Answer 44

a salesperson may represent no more then TWO (2) contractors.

Question 45

Does a salesmen have to inform his current employer before accepting a position as a salesman with another contractor?

Answer 45

Yes

Question 46

When a sales person is no longer associated with a company they represented, the contractor must:

Answer 46

give the commission written notice

Question 47

The Commission may suspend or revoke a license if the licensee:

Answer 47

lies on their application, practices fraud while being licensed, is convicted of a felony

Question 48

Are Licensed Home Improvement Contractors also required to hold a construction license issued by the Clerk of the Court under Title 17.

Answer 48

No

Question 49

Home owners have a right to bring a claim against the Guaranty Fund for situations of _________________________ concerning restoration, repair, replacement or completion that arise from unworkmanlike, inadequate, or incomplete home improvement.

Answer 49

actual loss only.

Question 50

What is the maximum amount of money the Commission will award to any one claimant from the Guaranty Fund?

Answer 50

$20,000.00

Question 51

What is the maximum amount of money the Commission will pay out of the fund concerning the affairs of any one contractor?

Answer 51

$100,000.00

Question 52

Can a person bring a claim against the Guaranty Fund in a contract he has with the employer of his son?

Answer 52

No

Question 53

Each home improvement contract must:

Answer 53

* Be in writing and legible * Describe clearly each document that it incorporates * Be signed by each party to the home improvement contract * A description of the home improvement to be performed

Question 54

In addition to any other matters on which the parties lawfully agree, each home improvement contract shall contain:

Answer 54

* The name, address, and license number of the contractor *dates when the performance of the home improvement will begin and when it will be substantially completed 8* description of the home improvement to be performed and the materials * The agreed upon consideration and number of monthly payments * any collateral security for the obligation of the owner * A notice that gives the telephone number of the Commission and states that contractor must be licensed by the Commission and anyone * Specifies the protections available to consumers through the Commission * Advises the consumer of the right to purchase a performance bond

Question 55

Does Mold Remediation require a different license.

Answer 55

The Maryland Mold Remediation Services Act requires that any company or firm that provides mold remediation services on residential property must obtain a mold remediation license. A mold remediation contractor who only performs "demolition" or "cleaning" type services (such as cleaning ventilation systems or applying chemicals to kill mold), is not required to obtain a license from MHIC.

Question 56

License Numbers on Vehicles

Answer 56

Licensed contractors and subcontractors must conspicuously display their home improvement license number preceded by the designation "MHIC #" on both sides of all vehicles. Displays must be at least 3 inches in height.

Question 57

Does the MHIC have to be displayed on advertisements?

Answer 57

YES

Question 58

How often does the license need to be renewed?

Answer 58

The license shall expire 2 years from the date on which the previously issued license expired. It can be renewed online. A credit report review is conducted for active contractors at renewal.

Question 59

What work required MHIC license?

Answer 59

MHIC license is required for work that adds value to a home and remains as part of the property when sold to a new owner. A home improvement is a permanent change made to an existing home and the surrounding property. This includes Pools, Fence, Garage, Connection, installation, or replacement of a dishwasher, disposal, or refrigerator with an icemaker to existing exposed household plumbing lines; Installation of an awning, fire alarm, or storm window; Work done on individual condominium units

Question 60

Do you need an MHIC license to build a new home?

Answer 60

No, that required a different license.

Question 61

How many members does the Commission consist of?

Answer 61

The Commission consists of nine (9) members, appointed by the Governor. Of the nine members: 4 must have experience in the business of home improvement At least 1 must have experience in the business of banking or finance 4 must be members of the general public

Question 62

Who does the MHIC license not apply to?

Answer 62

This section does not apply to: 1. An employee of a contractor who is not a salesperson 2. An employee of a licensed contractor who sells a home improvement at a retail establishment 3. A subcontractor 4. A telephone solicitor 5. An architect, electrician, plumber, heating, ventilation 6. A security systems technician