Occupational Code: Article 24

Question 1

Residential Builder means…

Answer 1

A person engaged in the construction of a residential structure or a combination residential and commercial structure who for a fixed sum other than wages for personal labor only, undertakes or purports to have the capacity to undertake construction or alteration of a residential or commercial structure other than for a persons own use and occupancy.

Question 2

Residential structure means….

Answer 2

Premises used for residential purposes and related facilities.

Question 3

Salesperson means…

Answer 3

Employee or agent other than qualifying officer of a licensed builder who for a salary or wage negotiates goods or service except for one who only occasionally acts makes sales incidental.

Question 4

On the residential builders and maintenance board, of the X members, Y members are licensed builders, Z are M/A contractors.

And of those representing general public at least W shall be what?

Answer 4

9 members on board.
4 are licensed builders.
2 are M/A contractors.
At least 1 shall be registered under building official and inspection act.

Question 5

A person may act as a builder without a license if…

Answer 5

A) he is an authorized representative of US government or state

B) Owner of property for owners own use and occupancy

C) Owner of rental

D) Officer acting within terms of officers office

E) Person other than salesperson who engages in work under contract with a residential builder (subcontractor)

F) working on 1 undertaking who’s aggregate sum is less than $600

Question 6

The department may require what to happen before issuing a license?

Answer 6

1) Applicant to submit evidence of good moral character and financial stability.
2) Applicant to submit copy of operators license or state identification card for proof of identity.

Question 7

What does the examination establish?

Answer 7

That the applicant has fair knowledge of the obligations of a residential builder, and the statutes relating to applicants licensure.

Question 8

Residential builder maintain what within the state?

Answer 8

Residential builder must maintain a place of business within the state.

Question 9

What if a residential builder wants multiple places of business within this state?

Answer 9

Branch office license shall be issued to each place of business.

Question 10

Beginning December 21, 2007 the department shall issue license for X years in duration.

Answer 10

3 years.

Question 11

Beginning December 21, 2007, applicants for renewal of license must show…

Answer 11

That applicant has a current copy of Michigan residential code and has fulfilled requirements regarding continuing competency.

Question 12

Beginning December 21, 2007, licensee must maintain documentation for X years of activities meeting continuing competency.

Answer 12

5 years.

Question 13

As part of the contract, a licensee shall…

Answer 13

A licensee shall provide information relating to his or her individual license and to any license issued to that person.

Question 14

The department requires X hours of approved pre licensure courses consisting of Y hours in the following:

Answer 14

60 hours of pre licensure courses consisting of 6 hours in each of the following:

(a) Business management, estimating, and job costing.
(b) Design and building science.
(c) Contracts, liability, and risk management.
(d) Marketing and sales.
(e) Project management and scheduling.
(f) The current Michigan residential code.
(g) Construction safety standards promulgated under the Michigan
occupational safety and health act

Question 15

During the 3 years of the license cycle duration, licensee must complete X hours of continuing competency.

At least Y hours of continuing competency must include…

Answer 15

21 hours of continuing competency.

At least 3 hours of continuing competency must include 1 hour of code, 1 hour of safety, 1 hour of legal issues.

Question 16

What happens if a license is applied by a corporation or llc?

Answer 16

The entity shall designate 1 of its members to be a qualifying officer. The qualifying officer shall also obtain a license as an individual.

Question 17

What if a qualifying officer of a license ceases to be the qualifying officer?

Answer 17

The license is suspended, however upon request the department may allow the license to remain in force for a reasonable time for the entity to designate a new qualifying officer.

Question 18

A license shall not be issued to a foreign corporation unless…

Answer 18

The foreign corporation is authorized to do business in this state by securities commission. The non resident shall file an irrevocable consent to service of process which shall be signed by applicant or authorized officer and shall be notarized.

Question 19

If the application of consent to service of process is a corporation…

Answer 19

consent shall be accompanied by a certified copy of the resolution.

Question 20

A salesperson must be licensed in the employ of X residential builder(s).

Answer 20

Sales person shall be employed under only 1 residential builder.

Question 21

If a salesperson wants to change employers what must he do?

Answer 21

Salesperson must forward license to department and application be made for transfer and issuance of new license.

Question 22

Application of salesperson license must be submitted by who?

Answer 22

The licensed residential builder.

Question 23

A complaint filed must be within X months of completion, occupancy, or purchase.

Answer 23

complain must be filed within 18 months.

Question 24

A licensee who commits 1 of the following is subject to penalties in article 6:

A)
B)
C) 
D) 
E) 
F)
G)
H) 
I)
J)
K)

Answer 24

A) Abandonment without legal excuse.
B) Diversion of funds received for completion of project.
C) Failure to account for money
D) Willful departure of plans without consent of owner.
E) Willful violation of building laws
F) Failure to furnish to a lender the purchasers signed completion certificate executed upon completion.
G) Failure to notify a change in business control or direction within 10 days.
H) Failure to deliver to the purchaser the entire agreement including any finance or changes.
I) If a salesperson, failure to hand over any money immediately.
J) Aiding or abetting unlicensed person to evade this article.
K) Acceptance of commission from someone other than the residential builder.
L) Becoming insolvent, bankruptcy, failing to satisfy judgments or liens.
M) Workmanship not meeting Michigan standards.

Question 25

A licensee who commits 1 of the following is subject to penalties in article 6:

A)
B)
C) 
D) 
E) 
F)
G)
H) 
I)
J)
K)
L)
M)

Answer 25

A) Abandonment without legal excuse.
B) Diversion of funds received for completion of project.
C) Failure to account for money
D) Willful departure of plans without consent of owner.
E) Willful violation of building laws
F) Failure to furnish to a lender the purchasers signed completion certificate executed upon completion.
G) Failure to notify a change in business control or direction within 10 days.
H) Failure to deliver to the purchaser the entire agreement including any finance or changes.
I) If a salesperson, failure to hand over any money immediately.
J) Aiding or abetting unlicensed person to evade this article.
K) Acceptance of commission from someone other than the residential builder.
L) Becoming insolvent, bankruptcy, failing to satisfy judgments or liens.
M) Workmanship not meeting Michigan standards.

Question 26

If a licensee violated the asbestos abatement act, who conducts a review?

Answer 26

The department

Question 27

What shall be included in a complaint submitted by owner, and what shall the complainant do with the copies of complaint?

Answer 27

The factual basis for the allegation shall be written, and copies shall be sent to both the licensee and the department.

Question 28

During a complaint, the licensee can contractually do what?

Answer 28

Provide for alternative dispute resolution. Notice of the alternative dispute resolution must be sent by certified mail not less than 30 DAYS before the procedure to the complainant. Procedure will take place at a mutually agreed upon location.

Question 29

If the licensee has provided for alternative dispute resolution, the department shall…

Answer 29

The department shall not commence with proceedings against licensee who has an alternative dispute resolution that has not been completed.

Question 30

Verified complaint means…

Answer 30

verified complaint means a complaint in which all or part of the allegations have been confirmed by affidavit of sate or local building official.

Question 31

The department shall post on its website any final order of the board within X days after the final order is issued.

Answer 31

The department shall post final order on their website within 30 days after it was issued.

Question 32

What must a person do before bringing an action in court for the collection of compensation?

Answer 32

First prove that the person was licensed during the act which the person wants compensation for.

Question 33

You cannot impose a lien on a property you worked on unless…

Answer 33

unless you were licensed while working on the property.

Question 34

Who may bring an action for civil violation against an unlicensed person?
And what shall the fine be for unlicensed work

Answer 34

Prosecuting attorney and the attorney general may bring action for civil violation.
The fine shall be between
$5,000 to $25,000

Question 35

How many hours of continuing comp does a person need?

Answer 35

during the first 3 years: 21 hours
during the second 3 year: 21 hours
every year following that 6th year: 3 hours.
1 hour of safety, 1 hour of legal, 1 hour of code.

Question 36

In the case of a licensee who has been determined by the department in a final order to have violated this act or a rule adopted under this act, he or she shall successfully complete, during the next
complete license cycle X hours of activities…

Answer 36

21 hours