Exam Cheat Sheet · Quick Reference
Maryland Home Improvement Contractor (MHIC)
Maryland
Verified, not estimated. Every figure below is drawn from the official exam structure we maintain — question counts, passing standard and topic weighting. Practice questions are grounded in the source law with statute citations. We omit any figure we can't verify rather than guess at it.
Total questions
55
Passing score
70%
Exam time
150 min
Format
Reference materials allowed
Maryland State Portion 55 questions
Home Improvement Law
41 Q · 75%
Definitions and scope of home improvement under Maryland lawMaryland Home Improvement Commission structure and authorityLicensing requirements, exemptions, and application processHome Improvement Guaranty Fund eligibility, claims, and payment limitsRequired elements of home improvement contractsProhibited acts, civil penalties, and criminal penaltiesMaryland Door-to-Door Sales Act cancellation rights and requirementsSalesperson licensing, conduct, and contractor relationships
Door-to-Door Sales Act
4 Q · 7%
Definition and scope of door-to-door sale under the ActCancellation rights and timeframes including extended period for buyers 65 and olderRequired content of the Notice of Cancellation formSeller's disclosure obligations at initial contact and during sales presentationContractor's obligations upon receipt of cancellation notice including deposit refundExemptions from Door-to-Door Sales Act coverageEnforcement authority and penalties for violationsWritten acknowledgment requirement for buyer's right to cancel
Labor Laws
3 Q · 5%
Fair Labor Standards Act (FLSA) minimum wage and overtime requirementsChild labor restrictions and prohibited hazardous tasks for minorsForm I-9 employment eligibility verification requirementsAmericans with Disabilities Act (ADA) employer obligations and reasonable accommodationWorkers' compensation coverage requirements and penalties in MarylandEmployee vs. independent contractor classification under IRS guidelinesRequired workplace postings under federal and Maryland lawAnti-discrimination laws (Title VII, ADEA, Equal Pay Act) and prohibited interview questionsFederal payroll tax mechanics: FUTA is employer-paid and never withheld, Circular E (Publication 15) withholding tables, Form 940 annual filing date (NASCLA tax basics)
Safety Regulations
4 Q · 7%
OSHA standards applicable to construction (29 CFR 1926, 1910, 1904)OSHA recordkeeping requirements (Forms 300, 300A, and 301)OSHA penalty types and amounts for violationsSafety Data Sheets (SDS) and hazard communication requirementsPersonal protective equipment and safety gear requirementsEmergency action plan requirementsLead-based paint renovation rules (Lead PRE/RRP program)Maryland sediment and erosion control plan requirements and penalties
Estimating
3 Q · 5%
Bid documents and bid package requirementsEthics in bidding: bid shopping, bid peddling, and bid riggingEstimating framework: project phases, task lists, and materialsQuantity take-off method for estimating materials and laborLabor cost calculation including labor burdenDirect and indirect cost components: materials, equipment, subcontractor fees, contingencies, and allowancesOverhead calculation and markup for profit margin determinationJob cost recording system and use of historical cost data for future estimatesEstimating and scheduling terms: value engineering, float (slack) on the critical path, computer/software estimating aids (NASCLA bidding, estimating and scheduling chapters)
Key Distinctions
Standard door-to-door cancellation period (buyer under 65)vsSenior cancellation period (buyer at least 65)
A buyer under 65 may cancel until midnight of the 5th business day after the transaction, while a buyer who is at least 65 years old gets 7 business days.
Maryland Door-to-Door Sales Act, §14-302.1(1)-(2)Cancellation period (5 or 7 business days)vsRefund deadline (10 business days)
The cancellation window depends on the buyer's age, but the contractor must refund all payments within 10 business days after receiving the cancellation notice regardless of age.
NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Chapter 1 — Maryland Home Improvement Law and Regulations, Subtitle 5 - Maryland Door-to-Door Sales ActNotice of Cancellation for a home improvement contractvsNotice of Cancellation for a general door-to-door sale
For home improvement contracts §14-302.1(2)(i) requires the notice on a separate form that is not part of the contract, while the general rule in §14-302(2)(i) requires it attached and easily detachable.
Maryland Door-to-Door Sales Act, §14-302.1(2)(i)Written Notice of CancellationvsOral notice of right to cancel
Furnishing the written notice is not enough — §14-302(5) makes it a separate, independent unlawful practice to fail to orally inform the buyer of the cancellation right when the buyer signs.
Maryland Door-to-Door Sales Act, §14-302(5)Licensed contractor abandons the jobvsUnlicensed person performs the work
The Guaranty Fund compensates actual losses caused only by licensed contractors; a homeowner who hires an unlicensed person is not eligible to collect from the Fund.
NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Chapter 1 — Maryland Home Improvement Law and Regulations, Subtitle 4 - Home Improvement Guaranty FundGuaranty Fund $30,000 per-contract capvsAmount actually paid to the contractor
Recovery may reach $30,000 per contract but can never exceed what the homeowner actually paid the contractor, even if the actual loss is higher (aggregate cap for one contractor is $250,000).
NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Chapter 1 — Maryland Home Improvement Law and Regulations, Subtitle 4 - Home Improvement Guaranty FundFirst conviction for unlicensed contractingvsSubsequent conviction
A first conviction carries up to 6 months incarceration and a $1,000 fine; each subsequent conviction carries up to 2 years and a $5,000 fine.
NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Chapter 1 — Maryland Home Improvement Law and Regulations, Subtitle 6 - Prohibited Acts and PenaltiesContractor license requirement (handymen included)vsSubcontractor exemption under §8-301(c)
Maryland does not exempt handymen or small contracts from MHIC licensing, but a subcontractor who contracts with a licensed contractor rather than directly with the homeowner is exempt.
NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Chapter 1 — Maryland Home Improvement Law and Regulations, Subtitle 1 - Definitions and General ProvisionsWork on an individual condominium unitvsWork on commonly owned condominium areas
Work on individual units is home improvement under §8-101(g)(2)(v), while work on commonly owned areas is excluded under §8-101(g)(3)(vi).
NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Chapter 1 — Maryland Home Improvement Law and Regulations, §8-101(g)(3)(vi) and §8-101(g)(2)(v)Salesperson representing 2 contractorsvsSalesperson during a sales presentation
A salesperson may represent no more than 2 contractors at a time, but while actually selling a home improvement may represent only a single contractor.
NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Chapter 1 — Maryland Home Improvement Law and Regulations, §8-310Performance bondvsRequired contract elements
A performance bond is not a required contract element — the contract must only inform the homeowner of the right to request one, along with the contractor's name, address, MHIC license number, approximate start/completion dates, and consumer notice.
NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Chapter 1 — Maryland Home Improvement Law and Regulations, Subtitle 5 - Home Improvement ContractsGuaranty Fund claim stayed by mandatory arbitrationvsGuaranty Fund claim permanently waived
An arbitration clause must disclose that a Guaranty Fund claim is stayed until the mandatory arbitration is completed, not permanently waived.
NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Chapter 1 — Maryland Home Improvement Law and Regulations, Subtitle 5 - Mandatory ArbitrationGuaranty Fund claim of $7,500 or lessvsLarger Guaranty Fund claim
For claims not exceeding $7,500 the Commission may issue a proposed order to pay all or part without a full hearing; otherwise it may dismiss for lack of merit or schedule a hearing.
NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Chapter 1 — Maryland Home Improvement Law and Regulations, Subtitle 4 - Home Improvement Guaranty Fund ($7,500 proposed order provision)Free float timevsTotal float time
Free float is how long an activity can be delayed without impacting the early start of the next activity, while total float is the leeway in starting or completing an activity without delaying project completion.
NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Chapter 12 (Scheduling and Project Management), Page 12-2 — Float Time sectionKey Terms
Door-to-door sale (§14-301(d)) Maryland Door-to-Door Sales Act, §14-301(d)
A sale, lease, or rental of consumer goods or services with a purchase price of $25 or more in which the seller personally solicits the sale and the buyer's agreement is made somewhere other than the seller's place of business.
Purchase price (§14-301(h)) Maryland Door-to-Door Sales Act, §14-301(h)
The total price paid or to be paid for the consumer goods or services, including all interest and service charges, for purposes of the $25 threshold.
Business day (§14-301(b)) NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), §14-302.1(1), §14-301(b)
Any calendar day except Sunday and specified federal holidays; Saturday counts as a business day.
Door-to-Door Sales Act exemptions (§14-301.1(6)) Maryland Door-to-Door Sales Act, §14-301.1(6)
The Act does not apply to the sale or rental of real property, the sale of insurance, or the sale of securities or commodities by a registered broker-dealer.
Willful violation penalty (§14-305) Maryland Door-to-Door Sales Act, §14-305
A willful violation of the Door-to-Door Sales Act is a misdemeanor punishable by a fine of not more than $1,000 or imprisonment of not more than one year, or both, in addition to injunctive relief under Title 13, Subtitle 4.
Solicitor identification (§14-302(10)(iv)) Maryland Door-to-Door Sales Act, §14-302(10)(iv)
At first contact the solicitor must reveal identity and trade name before other statements and must also show and display identification stating the solicitor's identity, the trade name of the person represented, and a business address.
Maryland Home Improvement Commission (§8-202(a)) NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Chapter 1 — Maryland Home Improvement Law and Regulations, §8-202(a)
A body of 9 members appointed by the Governor with the advice of the Secretary, including members with home improvement experience, consumer members, and a member with banking or finance experience.
Commission residency requirement (§8-202(b)) NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Chapter 1 — Maryland Home Improvement Law and Regulations, §8-202(b)
Each Commission member must have been a citizen and resident of Maryland for at least 5 years before appointment.
Commission office (§8-204(e)) NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Chapter 1 — Maryland Home Improvement Law and Regulations, §8-204(e)
By statute the Commission must maintain its office in Baltimore City.
Commission quorum and action (§8-204(a)) NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Chapter 1 — Maryland Home Improvement Law and Regulations, §8-204(a)(1)-(2)
A quorum is a majority of members then serving but not fewer than 4, and the Commission may not act unless at least a majority of the members then serving concur.
Home Improvement Law scope exclusion (§8-102) NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Chapter 1 — Maryland Home Improvement Law and Regulations, §8-102
The Home Improvement Law does not apply to transactions involving the United States or its instrumentalities, or a state or its instrumentality or political subdivision.
Trade experience requirement (§8-302.2) NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Chapter 1 — Maryland Home Improvement Law and Regulations, §8-302.2
A contractor license applicant must have at least 2 years of trade experience satisfactory to the Commission or comparable educational training under Commission regulations; passing the exam alone is not sufficient.
Hearing after license denial (§8-305(b)) NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Chapter 1 — Maryland Home Improvement Law and Regulations, §8-305(b)
An applicant may request a hearing within 10 days after the notice of denial is mailed, and the Commission must hold the hearing within 30 days of receiving the request.
Notice of changes (§8-309) NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Chapter 1 — Maryland Home Improvement Law and Regulations, §8-309
A licensee must notify the Commission within 10 days of a change of control in ownership, management, address, or trade name.
Salesperson disclosure duty (§8-310(b)) NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Chapter 1 — Maryland Home Improvement Law and Regulations, §8-310(b)
Before becoming a salesperson for a contractor, the individual must tell that contractor the name of each other contractor he currently represents and tell each current contractor the name of the new contractor.
Contractor liability for salesperson violations (§8-311(b)) NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Chapter 1 — Maryland Home Improvement Law and Regulations, §8-311(b)
The Commission may reprimand a contractor or suspend/revoke the license for a salesperson's violation unless it finds the contractor or management personnel had no knowledge of the wrongful conduct or could not prevent the violation.
Civil penalty (§8-311(c), §8-620) NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Chapter 1 — Maryland Home Improvement Law and Regulations, §8-311(c) and Subtitle 6 - Civil Penalties
The Commission may impose a civil penalty of up to $5,000 for each violation, whether or not the person is licensed, instead of or in addition to reprimand, suspension, or revocation.
False completion certificate (§8-602(c)) NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Page 1-37, §8-602(c)
Accepting or using a completion certificate known to be false is a misdemeanor punishable by a fine not exceeding $5,000 or imprisonment not exceeding 3 years or both.
Salesperson failure to remit (§8-606) NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Page 1-37, §8-606
A salesperson may not fail to account for or remit to the contractor he represents a payment received in connection with selling a home improvement.
Home improvement (Commission interpretation) NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Chapter 1 — Maryland Home Improvement Law and Regulations, Subtitle 1 - Definitions and General Provisions (Commission interpretation criteria)
Work that adds value to the residence and would typically remain as part of the property if it were sold, which distinguishes it from basic maintenance like snow removal or lawn care.
Mortgage/lien notice (Subtitle 5) NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Chapter 1 — Maryland Home Improvement Law and Regulations, Subtitle 5 - Mortgage or Liens
When payment is secured by an interest in residential real estate, the first page of the contract must state that the contract creates a mortgage or lien that may cause loss of the property, and must advise of the right to consult an attorney and to rescind within 3 business days.
Value engineering (NASCLA Ch. 12) NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Chapter 12 (Scheduling and Project Management), Page 12-10 to 12-11 — Value Engineering section
A project management approach aimed at understanding the owner's cost, quality, and time priorities to deliver the highest value, often with owner bonuses for cutting costs without sacrificing quality or deadlines, which should be included in the contract.
Float time (NASCLA Ch. 12) NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Chapter 12 (Scheduling and Project Management), Page 12-2 — Float Time section
The remaining time after a task is complete and before the next task begins; activities with zero float are critical activities on the critical path.
Job cost recording system (NASCLA Ch. 2) NASCLA Contractors Guide, Maryland Home Improvement (7th ed.), Chapter 2 (Bidding and Estimating) — Job Cost Recording System section
A system that lets a contractor compare estimated versus actual costs from completed projects to create more accurate unit costs for future estimates.
Formulas to Know
Equipment unit (hourly) cost
Total yearly equipment cost ÷ total hours of use per year = hourly unit cost (e.g., $30,000 ÷ 1,000 hrs = $30/hr)Project equipment cost
Hourly unit cost × project hours needed (e.g., $30/hr × 40 hrs = $1,200, a direct cost)Direct-cost percentage of bid
100% − (project overhead % + company overhead %) = direct costs as % of total bid (e.g., 100% − 9% − 11% = 80%; 100% − 8% − 12% = 80%)Bid price after adding overhead (before profit markup)
Direct costs ÷ direct-cost percentage (as decimal), because overhead is a percentage of revenue (e.g., $100,000 ÷ 0.80 = $125,000)Maximum deposit on a home improvement contract
Contract price × 1/3 (e.g., $60,000 × 1/3 = $20,000 maximum); no payment may be accepted until the contract is signedGuaranty Fund recovery limit
Recovery = lesser of actual loss, amount actually paid to the contractor, and $30,000 per contract (e.g., paid $18,000 with $22,000 loss → $18,000); $250,000 aggregate per contractorCounting the 5-business-day cancellation deadline
Count calendar days after the transaction date, skipping Sundays and specified federal holidays (Saturday counts); contract signed Wednesday → Thu(1), Fri(2), Sat(3), Mon(4), Tue(5) = midnight TuesdayEarliest transfer of a note to a finance company
Count 5 business days after the signing day (Saturday counts, Sunday and specified holidays excluded); signed Monday → Tue(1), Wed(2), Thu(3), Fri(4), Sat(5), so transfer only after midnight of that SaturdayCommission voting threshold
Action requires concurrence of a majority of members then serving (5 serving → 3 concurring); quorum is a majority of members then serving but not fewer than 4Lead-based paint non-compliance fine
Up to $37,500 per day for each violation, plus criminal imprisonment up to one year for willful or intentional violations