Regulatory and Statutory Requirements (Overview) Flashcards
The builder or contractor shall deliver to the customer, when construction is involved:
a: Specifications for the job
b: All necessary permits
c: Both plans and specifications
d: Full executed copies of all agreements, including plans and specifications
d: Full executed copies of all agreements, including plans and specifications
Whitie Nowak built a house in January. It was sold in February and Renfru Zetz moved in at completion in September of the same year. The following year in December the pipes froze. Who is responsible for the damage?
(Note: The builder is responsible for faulty workmanship for a period of 18 months. Starting from the date of purchase, completion or occupancy which ever occurs last.)
a: Plumber
b: Builder
c: Heating contractor
d: Homeowner
b: Builder
Which is not a requirement to obtain a builder’s license?
a: Taking a builder’s course and a one year apprenticeship
b: Taking and passing the residential builder’s examination
c: Paying the required license fee
d: Completion of 60 hrs. of required study
a: Taking a builder’s course and a one year apprenticeship
A proper notification of change of address must be made within:
a: 10 days
b: 30 days
c: 45 days
d: 60 days
b: 30 days
What is the first step the Department will take to resolve a complaint between a buyer and builder?
a: File a cease and desist order against the builder
b: File a summary suspension of the builder’s license
c: Hold an informal conference
d: Hold a contested case hearing
c: Hold an informal conference
At what point after a completed contract will the Department not investigate a complaint?
a: A certificate of occupancy is issued
b: A purchase agreement is signed
c: The building is occupied
d: 18 months after completion, occupancy, or purchase, whichever occurs later.
d: 18 months after completion, occupancy, or purchase, whichever occurs later.
A license can be revoked without a hearing:
a: True
b: False
c: Not if the builder shows good faith
d: If the builder is from another state
a: True
A father is the only qualified builder in a partnership he has with his son. The father dies. In order for the son to continue with the business, the son must:
a: Deliver to the department a copy of the death certificate
b: Request that the license be transferred to the son’s name
c: Complete the license application procedure, including taking and passing the exam
d: Claims residential inheritance
c: Complete the license application procedure, including taking and passing the exam
If the license of the qualified officer, partner, trustee, director, officer, member, or person exercising control of the corporation, partnership, or other association is revoked, or denied, the license of the corporation, partnership or other association shall:
a: Be suspended
b: Remain in effect for 30 days
c: Be issued under an assumed name (d.b.a.)
d: Lapse at the end of the month
a: Be suspended
The phrase “good moral character” typically means:
a: Person has no bankruptcies
b: Strong religious convictions
c: Person is honest and fair
d: Person has never been incarcerated
c: Person is honest and fair
An applicant operating as a corporation must submit which of the following to the Department?
a: Copy of the articles of incorporation
b: Certified copy of sales tax license number
c: Names and addresses of corporation board members
d: All of the above
d: All of the above
If, as a licensed builder, you file for bankruptcy, you:
a: Are in violation of the Code and may be subject to any one of the several penalties
b: Must post bond with the Bureau
c: Can continue to operate for not more than 90 days
d: None of the above
a: Are in violation of the Code and may be subject to any one of the several penalties
What is a change in specifications prior to bidding called?
a: A completed application
b: Change order
c: Addition to the contract
d: Change in specifications
d: Change in specifications
A licensee found guilty of one Article 6 violation may be:
a: Suspended, revoked, censured, or placed on probation
b: Suspended, revoked, censured, placed on probation, and/or fined
c: Suspended or reprimanded by the Labor Bureau
d: Suspended, or placed on probation
b: Suspended, revoked, censured, placed on probation, and/or fined
A person who has had a limitation placed on a license may petition the Department, in writing, for a review of the decision to place the limitation. The licensee has how many days to file this petition?
a: 5 days
b: 15 days
c: 30 days
d: 60 days
c: 30 days
An unlicensed builder, Mr. Spencer, contracts to add a room on to homeowner Jones’ house. Upon completion, Mr. Jones refuses to pay builder Spencer for his services. Mr. Spencer:
a: can tear down the room
b: Can record a lien on Mr. Jones’ property
c: Can sue Mr. Jones for his fee, plus court costs
d: Has no recourse
d: Has no recourse
According to the Occupational Code, the following is not a residential builder:
a: One who demolishes houses
b: One who works for an hourly wage for his labor in building a house
c: One who assembles prefabricated housing
d: One who provides plans, labor and materials for the building of a house.
b: One who works for an hourly wage for his labor in building a house
The board member who has participated in an investigation on a complaint filed with the Department, or who has attended an informal conference, _______ participate in making the final decision on that complaint.
a: Must
b: Must not
c: May arbitrate to
d: May be appointed to
b: Must not
A residential builder or maintenance and alteration contractors license is not required if:
a: You contract to build a house as an electrician
b: You build homes part time
c: You are an officer of a court acting within the terms of the officer’s office.
d: You work for a non-profit organization
c: You are an officer of a court acting within the terms of the officer’s office.
A license may be revoked for (mark incorrect answer):
a: A violation of a building code
b: Disregarding blueprints and specifications
c: Mishandling deposit money
d: Both spouses not signing the contract
d: Both spouses not signing the contract
The law regulating licensing of the building trades is known as:
a: Occupational Code of 1980
b: Public Act 299 of 1980
c: Michigan Builders License Law
d: Both A and B
d: Both A and B
A salesperson cannot start selling until he receives his:
a: License and pocket ID card
b: Admittance letter for the examination
c: OL from the builder
d: Until he or she sends in the application for the examination
a: License and pocket ID card
When a builder or contractor wants to advertise in the media, he must:
a: Furnish his license number before any advertising begins.
b: Furnish his license name and address
c: Both a and b
d: Neither, if he’s just in town for a while
c: Both a and b
What is considered a legitimate place of business for a licensed builder?
a: A post office box number
b: A telephone answering service
c: An actual established, physical location from which the builder can and does conduct business and where books and records are kept.
d: The residential construction site
c: An actual established, physical location from which the builder can and does conduct business and where books and records are kept.
If the qualifying officer, who is licensed for a business, has his license suspended:
a: The salesperson license is held in escrow
b: The salesperson license is also suspended
c: A temporary license is granted while the board investigates the aspects of the suspension
d: The business may continue to operate with civil court guidance
b: The salesperson license is also suspended
What reason may the Department use for the denial of an application for a license?
a: Non-issuance of a surety bond
b: A notice of furnishing being issued
c: Good and sufficient cause
d: Not having insurance coverage
c: Good and sufficient cause
Failure to act on a complaint that construction is structurally/materially deficient is:
a: Punishable by fine or imprisonment
b: Cause for federal involvement
c: Is always the fault of the subcontractors
d: Is not a problem if the complaint is 60 days.
a: Punishable by fine or imprisonment
Who is entrusted to enforce the licensing act requirements in the State of Michigan and who may prosecute?
a: Attorney General enforces, the Department prosecutes
b: Department enforces, Attorney General prosecutes
c: The Department (BOPR)
d: The Judge Advocate General
b: Department enforces, Attorney General prosecutes
Failure of an individual licensee or qualifying officer to appear before an informal conference may be the basis for:
a: Suspension
b: Revocation
c: Denial of a license
d: All of the above
d: All of the above
When a salesperson terminates employment, what must the builder do?
a: The builder must wait for a state requisition
b: The builder must wait for a written request by the salesperson
c: The builder must return the salesperson’s license within 5 days by certified mail
d: The builder must wait for the salesperson’s relinquishment of the sales card
c: The builder must return the salesperson’s license within 5 days by certified mail
A commission can be paid to you for the sale of goods and services of a builder provided:
a: It is occasional and supplemental income
b: You are related to a license
c: You are employed by the provider of the stated goods and services and you hold a salesperson license
d: You hold a real estate license
c: You are employed by the provider of the stated goods and services and you hold a salesperson license
If the company’s license is revoked, the salesperson’s license:
a: Is extended for six months or until the salesperson finds a new employment
b: Is suspended
c: Remains in effect, if the salesperson was not involved in any wrongdoing
d: Automatically transferred to the state.
b: Is suspended
If Mr. Write holds a Maintenance and Alteration Contractor’s License in the State of Michigan, what must he do to obtain a Residential Builder’s License?
a: Submit an application with the required fee
b: Take and pass the test for residential builders
c: Nothing, because the licenses are essentially the same thing
d: Takes a builders pre-licensing class.
b: Take and pass the test for residential builders
What must a licensee submit to the Bureau to be licensed as a corporation?
a: Qualifying officer’s license number and certificate of incorporation
b: Tax ID number, names and addresses of corporate officers and the certificate of incorporation
c: Address of the corporation where the license will be displayed and books and records kept.
d: All of the above
b: Tax ID number, names and addresses of corporate officers and the certificate of incorporation
An unlicensed builder who has the homeowner pull all building permits for the builder to construct a residential building over $599:
a: Is absolved from all liability
b: Is legally circumventing the law
c: Is in violation of the Department laws
d: Is in violation of the Construction Lien Act
c: Is in violation of the Department laws
Which of the following is exempt from being licensed?
a: Maintenance and alteration contractor
b: Residential builder
c: Garage builder
d: Approved US Government official
d: Approved US Government official
A builder has how long to renew his license after the expiration of his last license, without retaking the exam:
a: Two years
b: Three years
c: Thirty days
d: Ninety days
b: Three years
An applicant shall not be refused a license without:
a: First obtaining an attorney
b: Being deemed to have a bad moral character
c: Having an opportunity for a hearing before the Department
d: A valid driver’s license
c: Having an opportunity for a hearing before the Department
The Residential Builders license is only issued by the:
a: Michigan Department of Labor
b: Local building inspectors
c: Department of Licensing and Regulatory Affairs
d: Governor’s Office
c: Department of Licensing and Regulatory Affairs
Following a complaint, the Attorney General’s Office may order a builder to stop all work. Such a demand is known as:
a: A liability order
b: A cease & desist order
c: A revocation
d: A suspension
b: A cease & desist order
“Commission” means:
a: A “board” other than an agency
b: An agency other than a board
c: The same as “agency”
d: The same as “board”
b: An agency other than a board
In the Occupational Code, “Department” means:
a: Department of Labor
b: Department of Attorney General
c: Department of Licensing and Regulatory Affairs “LARA”
d: Department of H.U.D.
c: Department of Licensing and Regulatory Affairs “LARA”
Who decides what penalty will be imposed against a residential builder who violates the occupational code?
a: Builder’s Board
b: The Director of the Department, if the Board fails to take action within 60 days.
c: Civil Liberties Union
d: Both A and B
d: Both A and B
If a residential builder’s license is suspended:
a: The sales people remain licensed for 30 days or until they find another builder
b: The builder’s salespersons’ licenses are also suspended
c: The builder’s salespersons are responsible for returning their license
d: None of the above
b: The builder’s salespersons’ licenses are also suspended
Who submits a salesperson’s license application?
a: The builder
b: The salesperson
c: The department
d: The testing company
a: The builder
Expiration date of a residential builders license shall be:
a: Annually on their application date
b: Every year on the anniversary of their license
c: May 31
d: June 1
c: May 31
The members of the board are appointed by the:
a: Commission
b: Governor, with the advice and consent of the senate
c: Legislature
d: Senate with the approval of the Governor
b: Governor, with the advice and consent of the senate
Which of the following is a violation of the articles regulating the occupation?
a: Practicing fraud or deceit in obtaining a license
b: Practicing fraud, deceit or dishonesty in practicing an occupation
c: Violating a rule of conduct of an occupation
d: All of the above
d: All of the above
Which of the following could be a penalty for violating an article regulating an occupation?
a: Placement of a limitation on a license
b: Suspension of a license
c: Revocation of a license
d: All of the above
d: All of the above
Upon the completion of the contract between the builder and the homeowner, what is delivered?
a: Building agreement only
b: Specifications for construction only
c: A copy of all instruments executed by the principals
d: His new furniture
c: A copy of all instruments executed by the principals
An alternate form of testing must be provided for:
a: A person with a physical handicap
b: A person with a mental handicap
c: Request for an oral exam after filing the exam
d: All of the above
d: All of the above
All records kept in the office of the Department shall be:
a: Open to the public
b: Closed to the public
c: Closed to the public, unless opened by court order
d: Open only by federal intervention
a: Open to the public
A builder:
a: Need not display the license of his salesperson
b: Must display the license of his salesperson in his place of business
c: Need not have a licensed salesperson sell his goods and services
d: Must display his salespersons licenses on each remodel job
b: Must display the license of his salesperson in his place of business
A residential contractor and a commercial contractor have the same regulatory commission for new construction of:
a: Four-story apartment buildings
b: Small strip malls
c: Jewelry store
d: All of the above
d: All of the above
A complaint has been filed against a builder. In order for the dispute to be settled informally:
a: A fine will be imposed
b: Agreement must be reached between both parties and the bureau
c: The builder must agree to a suspension of his license
d: The Board must take civil action in addition to the resolution of the complaint
b: Agreement must be reached between both parties and the bureau
A valid reason for a general contractor to withhold payment from a licensed subcontractor would be:
a: A draw made by subcontractor, which is not processed by the contractor
b: An improperly placed purchase order by the contractor
c: Unacceptable work by the subcontractor
d: Unacceptable work by the contractor
c: Unacceptable work by the subcontractor
If a builder decides to sell his business:
a: He can sell his business only to a person who is already operating as a licensed builder
b: The business cannot be sold: its assets must be liquidated and it must be dissolved
c: The new owner must be licensed, or take the test and become licensed before he could operate the company.
d: He can sell both his license and business to another person
c: The new owner must be licensed, or take the test and become licensed before he could operate the company.
In the Occupational Code, the word “Board” means:
a: Board of Licensing and Regulation
b: Residential Builders and Maintenance and Alteration Contractors Board
c: Board of Review
d: Board of Examiners
b: Residential Builders and Maintenance and Alteration Contractors Board
The “Respondent” in a complaint proceeding is:
a: The person who files a complaint
b: The person against whom the complaint is filed
c: The person who investigates the complaint
d: The person who, in writing, makes the complaint known to the public.
b: The person against whom the complaint is filed
If the builder disputes the material facts of the complaint against him, the Board may:
a: Ask for a report from the building official in the area of the complaint
b: Make an inspection to determine the facts
c: Ask the complainant to furnish more information
d: Any of the above
d: Any of the above
You can file a complaint against a builder or contractor if you are:
a: The local building official b:
b: A dissatisfied customer
c: The Attorney General
d: Any of the above
d: Any of the above
Which of the following cannot be done without a licensed contractor?
a: Building a house for your own use
b: Repairs to a house by the owner
c: Dividing a house into apartments by the owner
d: Building a structure that will have both commercial and residential use
d: Building a structure that will have both commercial and residential use
An M & A contractor licensed for carpentry would like to install a roof. The contractor:
a: Must write the word “roofing” on the license
b: Must take and pass the M & A contractor test for roofing
c: Must use employees who are licensed roofers
d: Can proceed. The existing license will also be good for roofing
b: Must take and pass the M & A contractor test for roofing
In the Occupational Code, “place” means:
a: The place at which construction takes place
b: The physical location out of which one does business
c: A post office box
d: A telephone answering service
b: The physical location out of which one does business
A contempt of court citation can be issued against a builder who is the object of a complaint:
a: In lieu of an administrative hearing
b: Prior to a formal investigation of a complaint
c: As a penalty for violation of the code.
d: For willful refusal to cooperate in the investigation of a complaint
d: For willful refusal to cooperate in the investigation of a complaint
True or False. Each member of a partnership or corporation must have a Builders License.
False
True or False. If a licensed builder hires a salesman to work part time on a salary, a salesman’s license is not required.
False
Who sets the standards of conduct, performance, qualifications and fitness of applicants, conducts investigations, and settles complaints?
a: The Committee
b: The Board
c: The Senate
d: The Attorney General
b: The Board
Failure to appear for an informal conference may result in:
a: Suspension of a license
b: Denial of a license
c: Revocation of a license
d: Any one of the above
d: Any one of the above
If a company is organized as a Corporation, Limited Liability Company or a Partnership, must both the company and the qualifying officer puchase a license?
a: Yes
b: No
a: Yes
The Department’s request for a current and accurate financial statement must be:
a: Send by registered mail
b: Served by the court
c: Signed by the Attorney General
d: A written demand
d: A written demand
Which of the following are violations of the Occupational Code?
a: Abandonment (Without legal excuse) of a contract, construction project, or operation engaged in or undertaken by the licensee.
b: Diversion of funds or property received for completion of a specific construction project or operation for any other construction project or operation, obligation, or purpose
c: Failure to account for or remit money coming into the person’s possession which belongs to others
d: All of the above
d: All of the above
It is a violation of the Occupational Code, in a maintenance and alteration contract, for the licensee to fail to furnish, to the lender, the purchaser’s signed completion certificate executed upon completion of the work to be performed under the contract:
a: Yes
b: No
c: Under Federal Law
d: Not in township jurisdiction
a: Yes
When do you, as a sole proprietor, have to file and pay into the unemployment fund?
a: When you have three or more employees
b: When you have one employee who works less than 35 hours per week
c: When gross wages paid exceed $1,000.00
d: Payment into the unemployment fund is not required by law
c: When gross wages paid exceed $1,000.00
If a Maintenance and Alteration contractor, licensed as a carpenter, wants to add to his trade, such as roofing, must he take the roofing exam?
a: Yes
b: Not if it’s less than 50% of his business
c: No, he can do roofing with his existing license
d: No, he must take the residential builders examination
a: Yes
Members of the Maintenance and Alteration Contractor’s Board are:
a: Voted for by the general public
b: Appointed by the Governor with the consent of the senate
c: Appointed by the Board
d: Appointed by the Governor with the consent of the houses of representatives
b: Appointed by the Governor with the consent of the senate
A license must be renewed on or before:
a: January 31
b: December 31
c: May 31
d: June 3
c: May 31
Which of the following are not required to have a Residential Builder’s license because they are licensed under a separate law?
a: An electrical contractor
b: H.A.V contractor
c: A plumbing contractor
d: All of the above
d: All of the above
A person who, for compensation of $600.00 or more, undertakes with another the repair, alteration of, addition to, subtraction from, improvement of, moving of, or wrecking of a residential building must be licensed as a:
a: Commercial Builder
b: Residential Builder or Maintenance and Alteration Contractor
c: Electrical Contractor
d: Handyman
b: Residential Builder or Maintenance and Alteration Contractor
An employee or agent of a licensed residential builder or maintenance and alteration contractor who, for compensation, sells, negotiates, solicits for, furnishes or attempts to furnish the goods and services of a residential builder or maintenance and alteration contractor must:
a: Be honest and a good salesperson
b: Be licensed as a residential builder
c: Be licensed as a salesperson
d: Be licensed as a residential maintenance and alteration contractor
c: Be licensed as a salesperson
The following are exempt from licensure except:
a: A government representative
b: An owner of rental property, with reference to the maintenance and alteration of that rental property
c: A person working on one undertaking or project by one or more contracts in which the total contract price is more than $600.00
d: A person operating under an order of an court
c: A person working on one undertaking or project by one or more contracts in which the total contract price is more than $600.00
The Department and Board may remove a limitation on a license:
a: If the licensee retests
b: If the licensee makes restitution
c: If they determine that he could perform with competence each function of the occupation
d: Both A and B
c: If they determine that he could perform with competence each function of the occupation
A builder licensed as Robert Conrad Building Company may advertise as:
a: Robert Conrad Building Company
b: Conrad Building Company
c: Bob the Builder
d Robert Conrad Construction
a: Robert Conrad Building Company
When contracting with a builder to build a house from a set of plans, the builder must provide to the purchaser:
a: A set of plans
b: A et of the specifications
c: A fully executed copy of all agreements between them
d: All of the above
d: All of the above
A restricted license could be one in which:
a: The licensee may be restricted to a specific function of the occupation
b: The licensee may be restricted to a specified geographical location
c: The licensee may be required to have all of his contracts reviewed by an attorney
d: All of the above
d: All of the above
Which of the following does not require licensing?
a: Maintenance and alteration
b: Residential builder
c: Garage builder
d: Commercial builder
d: Commercial builder
The effective date of the Occupational Law for Residential Builders and Maintenance and Alteration Contractors is:
a: January 31, 1966
b: January 1, 1966
c: October 21, 1980
d: No such law
c: October 21, 1980
If you are issued a cease and desist order following a complaint, you:
a: Must cease building for one year
b: Are entitled to a hearing before the bureau, if a written request is made within 30 days
c: Have no recourse to regain your license, except by a lawsuit
d: May build until the end of the month
b: Are entitled to a hearing before the bureau, if a written request is made within 30 days
As used in the Occupational Code:
a: “Complaint” means a verbal or written grievance
b: “Board” means apathetic
c: “Incompetence” means government action
d: “Licensee” means the applicant
a: “Complaint” means a verbal or written grievance
A person shall not have a license issued to him or her until the person:
a: Pays the required fee
b: Meets the requirements 10 through 26
c: Files certificates of insurance
d: All of the above
a: Pays the required fee
Public Act 299 provides for licensing and the right to engage in business as:
a: Salesperson
b: Residential builder
c: Maintenance contractor
d: All of the above
d: All of the above
A person registering a complaint with the Department against a builder must do so within:
a: 90 days
b: 12 months of the purchase
c: 18 months of sale, completion, or occupancy, whichever occurs later.
d: 60 days of the sale
c: 18 months of sale, completion, or occupancy, whichever occurs later.
Act 299 has a specific licensure exemption for:
a: All 9 members of the builder’s board
b: Unlicensed builders who disclose their status to their clients
c: Employees of licensed builders
d: Employees of unlicensed builders
c: Employees of licensed builders
Who can licensed contractors bring to a hearing to speak on their behalf?
a: His or her subcontractors
b: A duly authorized representative or attorney
c: The Board member who participated in the investigation
d: They are not allowed to defend themselves
b: A duly authorized representative or attorney
What is the purpose of an investigative conference?
a: To determine what the penalty should be
b: To terminate or suspend the license
c: To determine if there is cause for a hearing or complaint
d: To establish the amount of the fine
c: To determine if there is cause for a hearing or complaint
How many days advance notice will a person be given before an investigative conference is held?
a: 5 days
b: 10 days
c: 15 days
d: 30 days
b: 10 days
How many days does a person have from receipt of a complaint to respond?
a: 5 days
b: 10 days
c: 15 days
d: 30 days
c: 15 days
Can the Department demand a financial statement at any time?
a: No
b: Yes, and the builder shall respond within 30 days
c: Yes, and the builder shall respond within 15 days
d: Yes, and the builder shall respond with 45 days
b: Yes, and the builder shall respond within 30 days
Can a builder solicit a contract by promising the purchaser a bonus which is contingent upon the purchaser displaying his dwelling to a third person?
a: Yes, if the agreement is in writing and fully executed
b: No, never
c: Yes, as long as the bonus is a fixed amount and not a percentage
d: Yes, as long as it is not in writing
b: No, never
When a salesperson terminates employment with a builder, what must the salesperson do?
a: The salesperson returns the license within 5 days via regular mail.
b: The salesperson returns the ID pocket card via certified mail within 30 days
c: The salesperson returns the pocket ID card certified mail within 5 days.
d: The builder returns both the pocket ID card and the license to the Department within 5 days via certified mail.
c: The salesperson returns the pocket ID card certified mail within 5 days.
Where should the licenses be displayed in a builder’s office?
a: On the bathroom wall
b: On the office wall in a conspicuous position
c: In a secure place where they will not be stolen
d: In the file cabinet with other important papers
b: On the office wall in a conspicuous position
Who sets the standards of conduct, performance, qualifications and fitness of applicants, conducts investigations, settles complaints, and handles disciplinary procedures?
a: The board
b: The Governor
c: The applicant
d: The “Act”
a: The board
A licensee, upon written demand and notice by the Department, shall within _______ days submit a current and accurate financial statement showing his or her current financial status.
a: 10
b: 15
c: 30
d: 60
c: 30
What is the completion date of a structure?
a: Upon final inspection by state and local inspectors
b: Upon final approval of state and local inspectors
c: The date the certificate of occupancy is issued
d: All of the above
c: The date the certificate of occupancy is issued
Which of the following cannot be used by the Department to determine the fitness of an applicant to hold a license:
a: Your scores on a license test
b: An arrest for an offense, which is not followed by conviction
c: Your general financial solvency
d: Your standards of professionalism and competency
b: An arrest for an offense, which is not followed by conviction
When criminal charges are brought against a builder he:
a: Can avoid a penalty by assigning blame to his subcontractors
b: Has the same right to legal process as anyone accused of an offense
c: Can no longer do business in Michigan
d: Can only ask for a hearing before the Bureau of Professional and Occupational Regulation
b: Has the same right to legal process as anyone accused of an offense
If the builder decides on his own to use cheaper materials than specified without a change order he is:
a: Acting in violation of the code, even if the materials themselves are not in violation of the code.
b: Breaking the contract between himself and the owner
c: Limiting his legal claim to payment by the owner
d: All of the above
d: All of the above
When a builder signs a citation issued by the Bureau, it:
a: Means the builder cannot be further penalized by the Bureau for that offense
b: Is acceptance of a cease and desist order
c: Only indicates that the citation has been received by the builder
d: Means that the builder has admitted to the violation and has forfeited his right to a hearing
c: Only indicates that the citation has been received by the builder
If you are issued a cease and desist order following a complaint, you:
a: Must cease building for a period of one year
b: Have no recourse to regain your license except by bringing suit against the bureau
c: Are entitled to a hearing before the Bureau, if a written request is made within 30 days
d: Must post bond equal to the contract for the project
c: Are entitled to a hearing before the Bureau, if a written request is made within 30 days
True or False. If a company loses their qualifying officer, the company’s license is suspended.
Note: (If requested, the Department may allow the company’s license to remain in force for a reasonable time in order to get a new qualifying officer.)
True
If you wish to renew a license that has expired within 60 days of the expiration date, you must pay a late renewal fee of ____ plus the license fee.
a: $10
b: $20
c: $30
d: $40
b: $20
How many board members are needed to constitute a quorum?
a: 4
b: 5
c: 6
d: 7
b: 5
Sole proprietors, corporations, LLCs and partnerships all have to purchase a license. What other entities require the purchase of a license?
a: Sales persons
b: Qualifying officers of Corps, LLCs and Partnerships
c: All branch offices
d: All of the above
d: All of the above
If there is a contractual agreement to use arbitration as a means of settling disputes, will the board take action against a licensee if the step required in the arbitration agreement are met by the contractor.
Note: (Typically the court recognizes the arbitrators’ decision to be final.)
No
What must sales people and contractors use to identify themselves to potential customers in door to door sales?
a: Their business card
b: Their wallet license ID card
c: Their license number
d: Any of the above
b: Their wallet license ID card
A corporation has three branch offices and six sales people. If all of these licenses expire in the same year, how many licenses must be renewed by May 31st?
Note: 1 for their qualifier, 1 for the corporation, 3 for the branch offices and 6 for the sales people.
a: 2
b: 5
c: 8
d: 11
d: 11
Sworn Statements are required by law to be used by contractors as a means of relinquishing financial transparency to the owners, material providers or subcontractors. If the owner requested a copy of a builders sworn statement, how may days does the contractor have to provide it?
a: 1
b: 3
c: 7
d: 10
d: 10
True or False. The company’s listed on a contractors sworn statement will typically be material providers and subcontractors.
True
How many days does a contractor or material provider have to file a lien against an owner’s property from their last day on the job or from time of purchase
a: 30 days
b: 45 days
c: 60 days
d: 90 days
d: 90 days
Subcontractors and material suppliers must provide to the owner of a project their “Notice of Furnishings” with ____ days of first providing any labor or materials.
a: 5
b: 10
c: 15
d: 20
d: 20
A person who files a lien must take action to foreclose on the lien within _______.
a: 30 days
b: 3 months
c: 6 months
d: 1 year
d: 1 year
Owners must make available a “Notice of Commencement” which will provide the correct information as to the owner or owners of a property and their correct addresses. If a contractor requests a copy the owner must provide it within ________.
a: 10 days
b: 15 days
c: 20 days
d: 30 days
a: 10 days
True or False. Contractors who understand what their responsibilities are under the lien laws of Michigan will file the necessary forms and protect their right to be paid.
True
Both LLCs and _______ need to provide copies of their Articles of Incorporation when applying for a license.
a: Sole Proprietorships
b: Joint Ventures
c: Partnerships
d: Corporations
d: Corporations
Passing test scores are only good for:
a: 90 days
b: 1 year
c: 18 months
d: 2 years
b: 1 year
True or False. Salespeople may only work under one contractor at a time.
True
If a license is suspended or revoked, the licensee must return it to the Department within:
a: 3 days
b: 5 days
c: 7 days
d: 10 days
d: 10 days
If a qualifying officer leaves a company, they have ______ to notify the Department in writing.
a: 10 days
b: 24 hours
c: 30 days
d: 60 days
a: 10 days
True or False. Residential builders are required by law to have an actual office in Michigan where their business records are kept.
True
Which of the following does not need to be included in a residential construction contract?
a: Specifications and plans
b: Costs
c: Type and amount of work to be done
d: Professional architect or engineer approval
d: Professional architect or engineer approval
If someone makes a complaint against you, you must respond to the notice within _____ of receipt.
a: 7 days
b: 10 days
c: 15 days
d: 30 days
c: 15 days
If you have let your license lapse, you are still responsible for reporting a change of address:
a: Up to 7 years after the license has changed
b: 3 years after all complaints have been closed
c: Until all final orders have been complied with
d: Any of the above
d: Any of the above
If you are late to renew your license, there is a fee of:
a: $15
b: $20
c: $25
d: $50
b: $20
True or False. An arrest record that was not followed by a conviction is still considered as a count against you when applying for a license.
False
The ___________ is a Michigan specific civil rights legislation.
a: Walsh-Healy Act
b: Elliott-Larson Civil Rights Act
c: Civil Rights Act of 1866
d: Fair Housing Act
b: Elliott-Larson Civil Rights Act
Which of the following is NOT exempt under the Elliott-Larson and Persons with Disabilities Acts?
a: Rental of a unit in a two-family dwelling that is occupied by the owner
b: Rental of a room in a single-family dwelling occupied by the owner
c: Sale of a by the owner of a unit in a two-family dwelling
d: Rental of a unit in a multi-dwelling
d: Rental of a unit in a multi-dwelling
These laws shape and influence what job restrictions and qualifications may be established, how advertisement are placed and what tests may be used in the applicant screening process.
a: Equal Employment Opportunity
b: Fair Housing
c: Dodd-Frank
d: TRID
a: Equal Employment Opportunity
Which of the following is NOT an acceptable question or topic to discuss with a potential candidate?
a: Reason for leaving their previous job
b: Description of a typical day at current job
c: Birthplace of the applicant of their parents
d: How long they been job hunting
c: Birthplace of the applicant of their parents
Which of the following pre-employment questions pose legal implications by tending to single out specific protected classes?
a: Previous arrest records
b: Financial status
c: Birth dates
d: All of the above
d: All of the above
_____ is a naturally occurring fibrous mineral.
a: Lead
b: Asbestos
c: Silica
d: Radon
b: Asbestos
ACM (Asbestos Containing Material) is any material containing more than _____ % asbestos.
a: 1%
b: 5%
c: 7&
d: 10%
a: 1%
Records of asbestos exposure must be kept for:
a: 5 years
b: 10 years
c: 20 years
d: 30 years
d: 30 years
The agency responsible for promulgating and enforcing the Renovation, Repair and Painting Program is:
a: DNR
b: EEOC
c: HUD
d: EPA
d: EPA
When considering lead-based paint exposure, are hospitals considered “target” housing?
No
Houses built before _______ typically have lead paint risk factors.
a: 1990
b: 1978
c: 2000
d: 2003
b: 1978
True or False. Since 2010, all contractors who work with homes built prior to 1978 with lead paint hazards must be certified renovators.
True
EPA has established limits for minor repairs of maintenance, that do not require compliance with the RRP Rule. Work that does not exceed _____ sq ft per interior room of 20 sq ft is exempt.
a: 4 sq ft
b: 6 sq ft
c: 8 sq ft
d: 10 sq ft
b: 6 sq ft
RRP certifications are good for:
a: 2 years
b: 3 years
c: 5 years
d: 6 years
c: 5 years
True or False. You may become certified by taking a 4 hour course provided by the local building department.
False
Documentation of renovations, testing and training related to renovations must be kept for:
a: 2 years
b: 3 years
c: 5 years
d: 7 years
b: 3 years
This radioactive gas comes from the natural breakdown of uranium soil, rock and water.
a: Asbestos
b: Radon
c: Lead
d: Sulphur
b: Radon
A ______ layer of clean gravel below the slab allows radon gas to move more freely under the building.
a: 2 inch
b: 3 inch
c: 4 inch
d: 6 inch
c: 4 inch
________ should be placed on top of the gravel base to prevent the radon gas from entering the house.
a Rigid foam
b: Loose fill
c: Cardboard
d: Heavy plastic sheeting
d: Heavy plastic sheeting
True or False. It is recommended you run a 3 or 4 inch PVC pipe from the gravel to the roof where radon can be safely vented out of the house.
True
When contracting with a builder to build a house from a set of plans, the builder must provide to the purchaser:
a: A set of plans
b: A set of the specifications
c: A fully executed copy of all agreements between them
d: All of the above
d: All of the above
What type of work do you need to be licensed for as a residential builder or Maintenance & Alteration Contractor.
Residential construction or remodeling on a project whose total value is $600 or more.
What does each residential builder receive to show that they are licensed?
A pocket card.
List four common exemptions from the licensing law.
- An owner of the property, with reference to a structure on the property for the owner’s own use and occupancy
- An owner off rental property, with reference to the maintenance and alteration of that rental property.
- A subcontractor to a licensed builder, that is, a person other than a salesperson who engages solely in the business of performing work and services under contract with a Residential Builder or a Residential Maintenacne & Alteration Contractor licensed under this article.
- A person working on 1 undertaking or projecct by 1 or more contracts, the aggregate contract price for which labor, material, and any other item is less than &600.00. A license is required if the construction work is only a part of a larger or major operation (whether undertaken by the same or a different Residential Builder or residential Maintenance & Alterations Contractor), or in which a division o the operation is made in contracts of amounts less than $600.00 to evade this act.
When does the Builder’s license renew and expire?
It is renewed every 3 years and expires on May 31st. The cost to renew is $150 and must be renewed using the online payment system.
What are the additional conditions of renewal?
- You need a copy of Michigan residential code and must have successfully completed at least 3 hours of activities demonstrating continuing competency in each calendar year, during the first 6 calendar years of licensure, and 21 hours in each 3-year time period after the issuance of your license, and 21 hours in each 3-year time period after the issuance of your license.
- At least 3 hours must be devoted to those activities designed to develop a licensee’s understanding and ability to apply state building codes and laws relating to the licensed occupation, safety, and changes in construction and business management laws.
- After the initial 6 years of licensure licensee only completes at least 3 hours of continuing competency during each license cycle. The 3 hours of continuing competency activities must relate to state building codes/laws relating to the licensed occupation, safety, and changes in construction and business management laws.
What three things do you have to do for renewal?
- Apply to the department on a form provided by the department. The applicants must deliver the application for renewal to the department on or before the expiration date of the person’s current license.
- Pays the appropriate fees.
- Meets the renewal requirements (continuing education).
When should a licensee report to the department a change in name or mailing address, or a change of electronic mail address?
No later than 30 days after the change.
What does a revoked license mean?
The person’s authorization or privilege to engage in an occupation or profession regulated under the occupational code is terminated and shall not be restored, reinstated, or renewed, except that an application for a new license or reinstatement of a license may be considered by the department and board as permitted under the occupational code.
What does a suspended license mean?
It means that a person’s authorization or privilege to engage in an occupation or profession regulated under the occupational code is temporarily withdrawn and shall not be restored, reinstated, or renewed until a term, condition, or requirement imposed upon the person by the department or board has been met or until a specified period off time has elapsed.
If you are conducting business as a corporation, limited liability company, or partnership, then what are your two options for licenses.
- You can get a Corporation, Limited Liability Company
- or Partnership Residential Builder and Maintenance & Alteration Contractor License Application.
If a corporation, partnership, association, limited liability company, or other entity that applies for a license, what must they designate one of their officers or partners as?
As a qualifying officer: This officer is responsible for exercising the supervision or control of the building or construction operations and must maintain a license as an Individual Residential Builder or Maintenance & Alteration Contractor, as applicable.
True or False. Residential contractors do not need an address of an actual office in Michigan where their business records are kept.
False. It is required. They also need all their licenses displayed in a conspicuous place in the office. A builder or contractor must keep and maintain a complete, accurate set of books and records which disclose the licensee’s current financial condition. Books and records must be available for inspection by any person duly authorized.
A licensee must include what in all advertising? and what is prohibited?
- Name
- License number
- Actual business address as shown on the license
- The use o a telephone or post office box number alone is prohibited.
What is the case when new homes are being made by a licensed builder, through a licensed real estate brok
Advertisements may indicate the broker’s name or both the names of the builder and broker.
All agreements and changes to the agreements between a builder, or contractor must be what?
They must be in writing and signed by the parties.
What terms of the transactions should be clearly stated?
- Both plans and specifications
- Cost
- Type and amount of work to be done
- Type and quality of materials to be used.
How long after a notice does licensee have to submit a sworn financial statement showing their current financial status?
30 days
What three reasons can a notice for a financial statement be released?
- Unsatisfied Judgement
- A lien filed against the licensee
- The department’s reasonable belief that the licensee does not have the financial resources to meet contractual obligations.
(An extension of time must be in writing and may be granted for good and sufficient cause.)
When must a complaint be made?
Within 18 months of the latest of the following regarding a residential structure or a combination of residential and commercial structure as follows:
- In the case of a maintenance and alteration contract: Completion, Occupancy, Purchase
- In the case of a project requiring an occupancy permit: Issuance of the certificate of occupancy or temporary certificate of occupancy, Closing.
When must a complaint be made?
Within 18 months of the latest of the following regarding a residential structure or a combination of residential and commercial structure as follows:
- In the case of a maintenance and alteration contract: Completion, Occupancy, Purchase
- In the case of a project requiring an occupancy permit: Issuance of the certificate of occupancy or temporary certificate of occupancy, Closing.
Name some violations of the law.
- To abandon a construction project without legal excuse
- To divert funds from a project. Funds must be used for the contract intended.
- To fail to account for monies received
- To fail to build as specified in prints, plans and specs
- To knowingly violate building laws and codes
- To fail to furnish a signed completion certificate to the lender
- To fail to inform the State of Michigan of a change of ownership, direction, or officers within 10 days.
- To fail to provide to the purchaser any documents that pertain to the overall cost of the project. For example, Change Orders
- To fail to turn over money that is collected from clients while working as a salesperson
- To let someone else work under your license
- For salespeople to accept money or to work for unlicensed companies
- To dissolve a company without meeting all financial obligations
- For workmanship not meeting Michigan Residential Code
- If a company knowingly violates the Asbestos Abatement Contractors Licensing Act, their license may be suspended or revoked.
What 4 things apply to administrative proceedings regarding workmanship?
- A complaint submitted by an owner must describe in writing the factual basis for the allegation. The homeowner must send a copy of the initial complaint to the licensee at the same time.
- The department will presume the innocence o the licensee throughout the proceeding
- The licensee has the burden of refuting evidence submitted by a person during the administrative hearing.
- The licensee also has the burden of proof regarding the reason deficiencies were not corrected.
How else can a licensee resolve complaints filed by the department?
Holding an alternative dispute resolution procedure conducted by a neutral third party.
Upon receipt of a valid and written complaint, what happens next?
The department will assign a complaint number, acknowledge the complaint, and forward a copy of the complaint to the licensee. The licensee must reply to the department within 15 days and confirm or deny the justification of the complaint.
What happens if the licensee fails or refuses to correct a structural matter that is materially deficient, dangerous, or hazardous to the owners.
It will be presumed dishonest or unfair dealing.
Who conducts investigations?
The department.
What can the department request as far as investigations go?
They can request for the attorney general petition the circuit court to issue a subpoena requiring a person to appear before the department and be examined with reference to the investigation and to produce books, papers, or documents pertaining to the investigation.
The investigative unit of the department must do what within 30 days of receiving a complaint?
Report to the director on the status of the investigation.
In what four ways can aa the attorney general appropriate action against a respondent after disclosing evidence of a violation?
- A formal complaint
- A cease and desist order
- A notice of summary suspension
- A citation
The department, after investigation, may request a licensee to appear at what?
An Investigative Conference, to determine whether there is cause for a hearing on, or dismissal of, the complaint.
What happens to an individual licensee or qualifying officer of a licensee if they fail to appear for the conference?
This can be the basis for suspension, revocation or denial of a license.
On what other basis can the department issue an order summarily suspending a license?
Based on the belief that an imminent threat to the public health, safety, and welfare exists.
A person ordered to cease and desist is entitled to what?
A hearing before the department if a written request for a hearing is filed within 30 days after the effective date of the order.
A respondent may select, within how many days of the receipt notice to do one of what three options?
-15 days and:
1. An opportunity to meet with the department to negotiate a settlement of the matter.
2. An opportunity to demonstrate compliance prior to holding a contested case hearing
3. An opportunity to proceed to a contested case hearing.
What can an informal conference result in?
- Settlement
- Consent order
- Waiver
- Default
- Other method of settlement agreed upon by the parties and the department.
What can a settlement include?
- Revocation
- Suspension
- Limitation of a license or registration
- Censure
- Probation
- Restitution
- Penalty
What is a common component of construction contracts?
Arbitration Agreements: Arbitration is an accepted and popular method to resolve disputes between all parties involved in the project. They are generally faster, cheaper, and obviously reduce the burden on the court system.
The general understanding is that all disputes will be settled by an arbitrator.
It is important to note, however, that not all arbitration agreements are binding, and under certain circumstances a dispute can end up in the courts, even though an arbitration agreement was included in the original contract.
What does the building official do?
- Receive applications
- Review construction documents and issue permits for the erection and alteration of buildings and structures.
- Inspect the premises for which such permits have been issued and enforce compliance with the provisions of this code.
If you intend to what? Do you first need to acquire a permit.
Construct, Enlarge, Alter, Repair, Move, Demolish, Change occupancy or electrical, gas, mechanical or plumbing.
Building permits aren’t required for what 10 different cases?
- One-story detached…provided the floor area does not exceed 200sf
- Fences not over 7 feet.
- Retaining walls…not over 4 feet…from bottom of footing to the top of the wall
- Water tanks…upon grade if capacity does not exceed 5000 gal
- Sidewalks and driveways
- Painting, papering, tiling, carpeting, cabinets, counter tops and similar finish work.
- Prefabricated swimming pools…less than 24 inches deep
- Swings and other playground equipment
- Window awnings suupported by an exterior wall which does not project more than 54 inches.
- Decks < 200 sf; < 30” above grade at any point; not attached to a dwelling; not serving the required exit door.
What 7 things should the first application in writing address?
- Identifying and describing the work
- Describe the land by legal description or street address…that readily identifies and locates the proposed work
- Indicates the use and occupancy for the proposed work.
- Is accompanied by construction documents and other information as required in Section R106.1.
- States the valuation of the proposed work
- Is signed by the applicant or the applicant’s agent.
- Proves any data and information required by the building oficial.
When can a permit become invalid?
If the work authorized by the permit isn’t started within 180 days of isssuance or if it is suspended for 180 days after issuance.
True or False. The building permit or copy thereof shall be kept on the site of the work until the completion of the project.
True.
What are the four exemptions of the Elliott Larson & Persons with Disabilities Laws:
- The rental of a unit in a two-family structure is exempt, if one of the two units is occupied by the owner, a person leasing the entire structure, or a member of the family of the owner or lwssor.
- The rental of a room or rooms in a single-family dwelling by the owner or lessor is exempt if he or a member of his family lives there.
- The sale or rental by the owner or lessor of a housing unit in a one-or two-family dwelling is exempt.
- The rental of a housing unit for 12 months or less by the owner or lessor is exempt if it was occupied by him and maintained as his home for at least three months immediately before occupancy by the tenant and is temporarily vacated while maintaining legal residence there.
What are 3 acts that are NOT covered by the 1968 law?
- Renting rooms or units (up to a 4 unit owner-occupied).
- A religious organization, for other than a commercial purpose, limiting the sale, rental, or occupancy of dwellings to such persons of the same religion, provided that membership in such religion is not based on race, color, or national origin.
- A private club that limits the rental or occupancy of lodgings, regarding their own members, when such a club is operated for other than commercial purposes
An unfair housing practice can cost what for the first offense? and what for subsequent court costs?
$11,000 for the first offense, and $100,000 for subsequent and court costs.
When an existing building undergoes a change in use group what will be required?
Some accessibility changes will be required. If the change affects less than 50 percent of the existing floor area, only the affected area and a barrier free route to it must be barrier free.
Asbestos is any naturally occuring or chemically altered fibrous mineral including but not limited to what six substances?
- Chrysotile
- Amosite
- Crocidolit
- Tremolite asbestos
- Anthophyllite asbestos
- Actinolite asbestos and anoy of these minerals
What does ACM mean?
Any material containing more than one percent asbestos.
What is surfacing ACM?
Surfacing material which contains more than 1% asbestos. These materials are used in commercial, industrial and residential applications. “Popcorn” ceilings, stucco finishes and any other textured finish or protective coating may potentially be an ACM.
What does HEPA stand for?
High Efficiency Particulate Air Filtration. Capable of trapping and retaining at least 99.97 percent of all mono-dispersed particles of 0.3 micrometers in diameter.
What is a type of cancer caused exclusively by asbestos?
Mesothelioma
What is the supplementary record that gives more details of the injury or illness?
OSHA Form #101
What are the three agencies that represent Housing, Environment, and Safety/Health?
- U.S. Environmental Protection Agency (EPA)
- U.S. Department of Housing and Urban Development (HUD)
- U.S. Occupational Safety and Health Administration (OSHA)
What is the purpose of the Toxic Substances Control Act?
It addresses lead-based paint hazards created by renovation, repair, and painting activities that disturb lead-based paint in “target housing” and “Child-occupied Facilities”.
Target housing: A home or residential unit built on or before December 31, 1977, except: Housing for elderly or people with disabilities and any zero bedroom dwellings (studio apartments, hospitals, hotels, dormitories, etc.)
Child-Occupied Facility: A pre-1978 building that meets all of the criteria: Visited regularly by the same child under 6 years old, The visits are on at least two different days within any week and each visits lasts at least 3 hours, Combined weekly visits last at least 6 hours, and the combined family visits at least 60 hours, can included schools, child care facilities, and daycare centers.
What certification is needed for a renovation firm to work in any non-authorized state, territorial, or tribal area.
One EPA renovation firm certification (good for 5 years)
Who needs to be a certified renovator?
The person responsible for lead-safe work practices and other firm employees on the job.
How do you become a certified renovator?
Complete an EPA-approved 8-hour training course in lead-safe work practices taught by an EPA-accredited training provider.
What are the responsibilities of a Certified Renovator?
- Perform work and direct lead-safe work practices
- Provide on-the-job training to non-certified workers.
- Keep a copy of the initial and/or refresher training certificates onsite.
- Use EPA-recognized test kits to identify lead-based paint.
- Be physically present while posting signs, containing work areas, and cleaning work areas.
- Maintain the containment to keep dust and debris within the work area
- Implement the cleaning verification procedure
- Prepare and maintain required records.
The EPA has the authoity to seek what for civil fines? of $37,500 per offense and an additional criminal fine of $25,000 plus jail time for knowing and willful violations of the Renovation, Repair, and Painting Rule requirements.
Civil fines of $37,500 per offense and an additional criminal fine of $25,000 plus jail time for knowing and willful violations of the Renovation, Repair, and Painting Rule requirements.
The EPA can also revoke the certification of a certified renovator who violates Renovation, Repair, and Painting Rule requirements.
What resistance should homes be built with to provide a public health service and reduce risk of lung cancer?
Radon resistance.
What are five methods used to prevent Radon?
- Gravel: Using 4 inches below the slab to allow the gases to circulate away from the house
- Plastic Sheeting or Vapor Retarder: Place a heavy duty plastic sheet or vapor retarder on top of the gravel to prevent the soil gases from entering te house.
- A vent pipe: Run a 3-inch or 4-inch solid PVC Schedule 40 pipe vertically from the gravel layer through the house’s conditioned space and roof to safely vent Radon and other soil gases outside above the house.
- Sealing and Caulking: Seal all openings, cracks, and crevices in the concrete foundation floor and walls with polyurethane caulk to prevent radon and other soil gases from entering the home.
- Junction Box: Install in the attic for use with a vent fan, after testing for radon, a more robust system be needed.
How do salesperson licenses function for the builder trade?
A salesperson must be licensed under a person holding a license as a builder or contractor, but may not be licensed under two at the same time.
When can the salesperson begin work?
When the builder or contractor receives the salesperson license and identification card from the department.
When can the salesperson begin work?
When the builder or contractor receives the salesperson license and identification card from the department.
When a salesperson is discharge, how long do they have until they have to return their identification card to the department?
5 days.
True or False. If a residential builder’s license is suspended then the salesperson’s license is suspended as well.
True
