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MHIC > Maryland Home Improvement Laws and Regulations > Flashcards

Maryland Home Improvement Laws and Regulations Flashcards

1
Q

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

A

3 years from discovery of the loss or damage

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2
Q

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

A

10 days

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3
Q

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.

A

60 days

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4
Q

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

A

10 percent

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5
Q

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

A

True

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6
Q

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.

A

True

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7
Q

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

A
  1. Name, address and license number of contractor
  2. Name and license number of salesperson involved
  3. Approximate start and end dates
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8
Q

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

A

True

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9
Q

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

A

No

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10
Q

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

A

True

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11
Q

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.

A

True

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12
Q

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

A

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

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13
Q

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?

A

Yes

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14
Q

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

A

No

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15
Q

Contractors may not:

A
  1. misrepresent their service or product
  2. make false promises
  3. lie on their license application
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16
Q

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:

A

fraud, an illegal act , a misdemeanor

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17
Q

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.

A

True, in writing

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18
Q

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

A

True

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19
Q

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

A

$5,000

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20
Q

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.

A

True

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21
Q

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

A

True

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22
Q

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

A

10 days

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23
Q

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

A

Yes for individual units, no for common areas

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24
Q

Does home improvement include work done on a swimming pool?

A

Yes

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25
Q

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

A

Yes

26
Q

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.

A

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

27
Q

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

A

Can

28
Q

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

A

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.

29
Q

What is the term of a member on the Commission?

A

4 yrs.

30
Q

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

A

5 yrs.

31
Q

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

A

True

32
Q

How often does the Commission hold meetings at a minimum?

A

6 times a year, every two months

33
Q

The _______________ is a full time employee of the State.

A

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

34
Q

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

A

the Director of the Commission

35
Q

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:

A
  1. injunctive relief against the conduct
  2. an order for satisfactory completion of the project
  3. restitution
36
Q

Can the Commission request financial records at any time?

A

Yes

37
Q

The following are exempt from licensure requirements:

A

Employees for labor services and employees for clerical work.

38
Q

What is the minimum amount of liability insurance needed?

A

$50,000

39
Q

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

A

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

40
Q

The Commission can ask an applicant for information about the applicant’s…

A

character, experience, financial stability

41
Q

The financial information provided by an applicant is private information.

A

Yes

42
Q

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

A

10 days

43
Q

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

A

True

44
Q

How many contractors may a salesperson represent?

A

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

45
Q

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

A

Yes

46
Q

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

A

give the commission written notice

47
Q

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

A

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

48
Q

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

A

No

49
Q

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.

A

actual loss only.

50
Q

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

A

$20,000.00

51
Q

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

A

$100,000.00

52
Q

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

A

No

53
Q

Each home improvement contract must:

A
  • 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
54
Q

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

A
  • 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
55
Q

Does Mold Remediation require a different license.

A

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.

56
Q

License Numbers on Vehicles

A

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.

57
Q

Does the MHIC have to be displayed on advertisements?

A

YES

58
Q

How often does the license need to be renewed?

A

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.

59
Q

What work required MHIC license?

A

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

60
Q

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

A

No, that required a different license.

61
Q

How many members does the Commission consist of?

A

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
62
Q

Who does the MHIC license not apply to?

A

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

MHIC (11 decks)

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