Download Michigan Residential Builder Licensing Exam 2023 and more Exams Nursing in PDF only on Docsity!
Exam 2023
M&A contractors include: - correct answers A = Carpentry B = Concrete D = Excavation G = Insulation Work I = Masonry J = Painting & Decorating K = Siding M = Roofing If more than one office is used for work, the branch office must be __________ - correct answers Licensed The one who obtains the residential builder's license is called a _____________ ____________ - correct answers Qualifying Officer First Offense for practicing without a license - correct answers Misdemeanor fine of $5,000 - $25, or prison for not more than 1 year, or both. Second offense for practicing without a license - correct answers Misdemeanor fine of $5,000 - $25, or prison for not more than 2 years, or both.
Exam 2023
Death or serious injury - correct answers Felony fine of $5,000 - $25, or prison for not more than 4 years, or both. Define a Residential Builder - correct answers A person or entity who is involved in the construction of a residential structure or a combination residential and commercial structure. Define M&A contractor - correct answers Person who for a fixed sum/price other than wages for personal labor for the repair, alteration, or addition/improvement to residential/commercial or residential structure. Salesperson - correct answers employee of agent other than a qualifying officer who sells business for the contractor. who reissues licenses for salespeople? - correct answers LARA (The Department) Which types of trade work require a different type of license other than the resi license? - correct answers Plumbing, Electrical, and Mechanical. Who issues the license? - correct answers LARA
Exam 2023
Non residents must file this to be considered for a license. - correct answers An Irrevocable consent to service of process T or F, Builders must maintain a place of business in the state they operate in. - correct answers True T of F, Contractors must maintain an accurate set of books/records open to inspection by the department (LARA). - correct answers True If the department inquires, licensees must submit ___________ _____________ ___________ showing licensee's current financial status, and must do so within 30 days of inquiry. - correct answers sworn financial statements T or F, Advertising must not misrepresent material facts. - correct answers True Licensee shall include ____________, _______________, and ________________ in all advertising - correct answers name, license number, and actual business address Is it legal to pay money or give gifts to customers in exchange for the use of their home as a model for potential clients? - correct answers No.
Exam 2023
All agreements between builders and customers should be in writing and signed. (T or F). All changes require ___________ ____________ added to the contract. - correct answers True, change orders Licensee violations include:
- _________________ without legal excuse of contract
- ______________ of funds/property
- willful _____________ from or ______________ of plans/specs without authorization of owner
- Willful ___________ of building laws
- Failure to deliver entire _______________.
- If a _______________ fails to pay money received to the contractor.
- _____________ or _______________ an unlicensed person
- Allowing a _____________ to be used by an unlicensed individual.
- Accepting a _____________, ______________, or _______________ by a salesperson
- becoming _______________
- poor ____________ - correct answers 1. Abandonment
- Diversion
- Departure, disregard
- Violation
- Agreement/contract
Exam 2023
- Lack
- Negligence
- Advertising
- Incompetence
- comply
- citation
- Order Complain against a build must be made within ____ months after completion, occupancy, or purchase, whichever occurs later. - correct answers 18 Complaint will be lodged with the ______________. - correct answers department (LARA) the department of attorney general, the department, a board, or any other person may file a complaint with or WITHOUT a complaint from the _________ - correct answers public Upon receipt of a building inspection report issued to the department by a state or local building enforcement official, which report verifies or confirms the nature of the complaint, department will send by certified mail a copy of the complaint to both the ________________ and
Exam 2023
_________________. - correct answers complaintent, licensee (called an arbitration clause). This avoids the use of courts to settle claims in order to save both the contractor and customer money. another name for an alternative dispute resolution written into contracts - correct answers an arbitration clause The department will not initiate a proceeding against a licensee unless licensee has not complied with a decision ordered as a result of an arbitration within _____ days after complaint was filed with the department - correct answers 90 A licensed builder who commits a violation may be assessed one or more of these penalties
- Requirement that licensee must deposit money received into an __________ account which can be used only under certain conditions
- _______ of a license (2)
- Revocation of a __________
- A _______ __________, paid to the department (LARA), not to exceed ____________
- Censure (define)
- License is put under __________ for a period of time
- a requirement that ________________ be made. - correct answers 1. escrow
Exam 2023
________ - correct answers laborers, subcontractors, material men. felony. The appropriation of a contractor of any monies paid to him for building operations before the payment by him of all monies due to ____________, _____________, or _______________ shall be evidence of ______________ to __________________. - correct answers laborers, subcontractors, material men, intent, defraud. Define legal description - correct answers A description of real property that gives the exact location anywhere in the world. give the dimensions of an acre in square feet as well as the _____ x _____ dimensions in ft - correct answers 1 Acre = 43,560 Sq ft 1 Acre = 208 ft by 208 ft property is described through a series of ____________ and ______________ ______________ - correct answers distances, angular measurements. The description of a property always begins at a point called _____________ of _______________ (P.O.B) - correct answers Point of beginning
Exam 2023
surveyors use a ________ which is any physical evidence of a boundary line - correct answers monument define a percolation test - correct answers Performed to measure how well land absorbs water in order to determine the design of a septic system. Define easement - correct answers A right to use a part or all of property. May consist of the right to install and maintain sewers, electric and telephone lines, or the right of passage Define condominium ownership - correct answers A system of ownership reflecting in owning 1 unit in a multi-unit structure, combined with the ownership of common elements. Define common elements in condo ownership - correct answers Common elements would include portions of the multi-unit structure owned by unit owners together HOA bylaws and fees, what are they and what is the builder's role with them? - correct answers Provides for regulations aimed at preserving and maintaining property values and neighborhood relations. This includes a fee to be paid by the homeowner. The builder's job regarding this is to make a purchaser aware of binding bylaws as well as inform the purchaser of the association fee.
Exam 2023
positive factor in "C" corporations - correct answers Entity aspect shields investors from unlimited liability. "S" corporation - correct answers Provides limited liability, but taxed like a partnership. (no double taxation). Direct profit and loss pass through investors. define planning - correct answers An act of local governments aimed at controlling the growth of local community. many factors are considered such as the density of the population, need for housing, recreation, commercial, retail establishments, etc. define zoning - correct answers The act of local governments to determine the use of certain properties such as RESIDENTIAL, COMMERCIAL, INDUSTRIAL, AND AGRICULTURAL. Zoning can also control the size of improvements made, architectural layout, building height, etc. Zoning Ordinance - correct answers exercise of police power by a municipality to regulate and control the character and use of property Buffer zone - correct answers Used to separate two different use districts. An example would be a park between land zoned for industrial use and land zoned for residential use.
Exam 2023
Non-conforming use - correct answers The use of the land that does not match the zoning law. Grandfather clause - correct answers provision in the law that allows the continuation of a non-conforming use when such use had preceded a zoning change. zoning variance - correct answers Allows the introduction (by a government) of a non-conforming use. Setback - correct answers The minimum distance from the lot line where a building can be erected. Civil rights act of 1968, TITLE 8 - correct answers Prohibits discrimination because of race, color, religion, or national origin. Housing and Community Development Act of 1974 - correct answers prohibits discrimination based on sex; requires use of an equal housing opportunity poster The Michigan Civil Rights Act "Elliot Larsen" - correct answers Prohibits against discrimination because of age and marital status and with regards to employment height and weight. It was amended in 1992 to include "familial status"
Exam 2023
Significance of designation A person cannot do the following to a wetland:
- ________ _______ or permit placing of fill material in wetland
- ________, __________ or permit removal of soil or minerals from wetland
- ___________, operate or maintain any use of development in wetland
- ______ _______ ________ from wetland. - correct answers 1. Deposit soil
- Dredge, remove
- Construct
- Drain surface water Penalties of violation of Wetland Protection Act
- Attorney general may commence civil action including __________
- Court may impose a civil fine of not more than ____________ per day of violation
- Misdemeanor
- Second offense is a ___________ with fine not to exceed $__________ per day and/or imprisonment for not more than 2 years.
Exam 2023
- Court may order person who has violated act to "restore as nearly as possible the wetland to its ____________ ___________ immediately before violation occurred" - correct answers 1. Injunctive relief (protects plantiff from irreparable harm)
- $10,
- Felony, 50,
- original condition Define land surveys - correct answers necessary to locate property boundary, and is required by most lenders to approve a loan. define a Lien - correct answers A charge against property that provides security for a debt or obligations What is a deed - correct answers legal instrument that transfers ownership of real property What is a deed restriction? ( restrictive covenant) - correct answers a provision in the deed aimed at controlling the present and future use of land. Deed Restrictions may be more restrictive than a __________ __________. - correct answers zoning ordinance (In a dispute, the more stricter of the two prevails)
Exam 2023
What is a performance and payment bond? - correct answers Requires that each contractor to whom a contract is awarded shall furnish bonds which contain 2 obligations :
- performance to indemnify the owner against loss resulting from the failure of the contractor to complete work in accordance with plans and specs.
- guarantee payment of all bills incurred by the contractor for labor or materials for work. Maintenance bonds (AKA warranties) - correct answers Agrees to defect all defects of workmanship and materials for a specified time following completion. Subdivision Bonds - correct answers guarantees all site improvements and utilities as well as individual buildings themselves will be constructed in accordance with governing codes and ordinances. Comprehensive General Liability Insurance - correct answers protects against liability for bodily injury to a member of the public arising out of the contractor's operations, the contractor's employees and the subcontractors. Builder's Risk Property Damage (Insurance) - correct answers Protects partially built structures and contents due to theft, vandalism, or other natural causes
Exam 2023
Worker's compensation insurance - correct answers 1. Covers employee loss of wages and medical care due to job injury Worker's compensation insurance is required if the company employs ______ or more employee for ______ hours or more per week for at least ______ weeks OR employ _____ or more employees full or part time at the same time. - correct answers 1, 35, 13, 3 A buyer has the right to cancel a home solicitation sale until _________ of the ___________ business day. - correct answers midnight, third Notice of commencement - correct answers Announces that work is about to begin on a home building or remodeling project. What does a notice of commencement contain? (3) - correct answers 1. A legal description of the property
- Name and address of the owner or lessee of the property
- Name and address of the contractor. What does a notice of commencement indicate? (3) - correct answers 1. Where the work is being done
