Start Practice Test

Maryland Home Improvement Contractor (MHIC) Practice Exam

What This Practice Exam Covers

The MHIC licensing exam consists of 55 questions answered in 150 minutes, with a passing score of 70% (39 correct answers). The exam draws from five topic areas that span Maryland-specific home improvement law, consumer protection statutes, labor and safety regulations, and practical estimating skills.

This practice site offers two ways to prepare:

Free practice exam: Each attempt gives you 10 questions drawn from a limited pool. You can retake it as many times as you like — it's a genuine way to get a feel for question style, wording, and pacing before committing to deeper preparation.

Full practice exam (paid): Mirrors the real exam exactly — 55 questions, 150-minute timer, same topic weightings. Questions are drawn from a pool of 225+ items, so every attempt produces a unique exam. No two sittings will be identical, which means you're studying the concepts rather than memorizing a fixed answer key. Start with the free exam to get oriented, then use the full exam for realistic preparation.

What You'll Be Tested On

Home Improvement Law — 41 of 55 questions

This is the dominant section by a large margin. Nearly three-quarters of the exam comes from here, so it deserves the bulk of your study time.

Definitions and scope require you to apply the statutory definition of "home improvement" under §8-101(g) precisely. The exam tests whether specific activities fall inside or outside that definition — particularly the line between "home improvement" and ordinary maintenance under §8-101(g)(2)(i). Know the exclusions listed in §8-101(g)(2) and §8-101(g)(3), including items such as painting, landscaping, and certain appliance work.

Commission structure questions test membership composition under §8-202(a) and §8-202(b), term length and start dates under §8-202(f)(1), and how vacancies or quorum work under §8-202(d), §8-202(e), and §8-202(g)(2)-(3). The Executive Director's duties under §8-205 and the Commission's regulatory authority under §8-207 also appear.

Licensing requirements cover who must be licensed under §8-301(c), the exemptions, and the application process including experience and education substitutions. Know the vocational training substitution rules and how salesperson experience credit is calculated. Pass scores have a defined validity period under Subtitle 3 — Examinations.

Guaranty Fund questions are detailed. Know eligibility (including the owner residence requirement), what counts as "actual loss," the payment cap provisions, how proportionate payments work when the fund is insufficient, annual assessment caps, license suspension after a claim payment and the conditions under which that suspension can be avoided, and the role of the AAG at hearings. Burden of proof at hearings and the contractor's response timeline are both tested.

Contract requirements under Subtitle 5 cover required contract elements, form requirements, how changes to contracts must be handled, deposit and payment limits, the consumer notice, mandatory arbitration disclosure (including the homeowner initialing and dating requirement), and what must appear on the Notice of Cancellation.

Prohibited acts and penalties under Subtitle 6 include civil and criminal penalties, per-violation civil penalty amounts under §8-620, subsequent conviction penalties, selling through unlicensed persons, and lead paint accreditation violations.

Door-to-Door Sales Act — 4 of 55 questions

Four questions cover the Act, so every point matters. Know the definition of a "door-to-door sale" under §14-301(d), what qualifies as the buyer's "residence" under §14-301(h), and which transactions are exempt under §14-302(10). The standard cancellation period, the extended period for buyers 65 and older, and what the seller must include on both copies of the Notice of Cancellation under §14-302(3) are all tested. Know the contractor's obligations after receiving a cancellation notice, including deposit refund timing under §14-302(7) and §14-302.1. Seller disclosure obligations at first contact under §14-302(2) and the bona fide emergency waiver requirements are also in scope.

Labor Laws — 3 of 55 questions

Three questions draw from FLSA minimum wage and overtime rules, child labor restrictions (including prohibited hazardous tasks for minors), Form I-9 verification requirements, ADA employer obligations, workers' compensation penalties in Maryland, and IRS employee vs. independent contractor classification. Study the NASCLA Contractors Guide chapters on Employee Management and Chapter 15 on Tax Basics — particularly the Financial Control factors under the IRS guidelines section.

Safety Regulations — 4 of 55 questions

Four questions test OSHA construction standards, recordkeeping (Forms 300, 300A, and 301), penalty types and amounts, Safety Data Sheets and hazard communication, PPE requirements, and emergency action plan requirements. The oral-vs.-written plan threshold (10 employees) appears directly in the question bank, as shown in the sample questions below.

Estimating — 3 of 55 questions

Three questions test bid documents and bid package components, bidding ethics (bid shopping, bid peddling, bid rigging), the quantity take-off method, labor burden calculation, and how to handle allowances, contingencies, and overhead markup. Be prepared to work through a calculation — adding labor burden percentages or calculating overhead as a percentage of direct costs are the most likely numerical tasks.

Worked Sample Questions

Question 1 — Home Improvement Law

The terms of members serving on the Maryland Home Improvement Commission are staggered. Each member's term begins on what date?

• A. January 1
• B. The date of the Governor's appointment letter
• C. October 1
• D. July 1

Correct Answer: D — July 1

The statute specifies both the length and start date of a Commission member's term. Per §8-202(f)(1), each member's term is 4 years and begins on July 1. The staggered structure means not all terms expire simultaneously, providing continuity on the Commission. Options A and C are plausible calendar dates but are not what the statute says. Option B sounds logical but the appointment letter date is not the statutory trigger.

Source: Maryland Home Improvement Law and Regulations, §8-202(f)(1)

Question 2 — Door-to-Door Sales Act

When completing the Notice of Cancellation form for a door-to-door sale, a contractor is required to enter specific information before furnishing it to the buyer. Which of the following must be included on both copies of the form?

• A. The contractor's license number and insurance policy number
• B. The total contract price and a list of all materials to be used
• C. The seller's name, business address, date of the transaction, and the last date the buyer may cancel
• D. The buyer's Social Security number and date of birth

Correct Answer: C

The Act prescribes exactly what the seller must pre-complete on both copies of the Notice of Cancellation before handing them to the buyer. Per §14-302(3), the required entries are the seller's name, the seller's business address, the transaction date, and the deadline date by which the buyer may cancel. Options A, B, and D contain plausible-sounding information that does not appear in the statutory list — a common pattern in exam distractors for this topic.

Source: Maryland Door-to-Door Sales Act, §14-302(3)

Question 3 — Safety Regulations

You are a contractor with 8 employees. What is the requirement for your emergency action plan under OSHA regulations?

• A. You must post the plan on your company website and file it with OSHA
• B. You must have a written plan and submit it to OSHA for approval
• C. You are exempt from having an emergency action plan
• D. You may communicate the plan orally to employees rather than putting it in writing

Correct Answer: D

All employers must have an emergency action plan — the size of the company only determines the format. Employers with more than 10 employees must maintain the plan in writing. Employers with 10 or fewer employees (this contractor has 8) may communicate the plan orally. Note that Option C is a trap: there is no full exemption from having a plan. Option B is incorrect because OSHA does not require employers to submit the plan for agency approval.

Source: NASCLA Contractors Guide, Chapter 5 (Jobsite Safety and Environmental Factors)

How to Read Your Score

The passing threshold is 70%, meaning you need at least 39 of 55 questions correct on the real exam.

Treat your first practice attempt as a diagnostic, not a judgment. Most candidates underestimate how specifically Maryland law is tested — a general familiarity with contractor licensing won't carry you through 41 Home Improvement Law questions. A first-attempt score tells you which topics need concentrated work, not whether you're capable of passing.

Topic-by-topic breakdowns are where the real information lives. If you're scoring well on Estimating but dropping points on Guaranty Fund eligibility or Door-to-Door Sales Act cancellation rights, you know exactly where to focus next.

If your practice score is sitting between 70–75%, be cautious. That margin does not leave room for misreads, unfamiliar question phrasing, or time pressure on exam day. Aim for consistent scores in the 80%+ range on the full 55-question practice exam before scheduling your real sitting. Scoring below 70% is useful data — it means the concepts haven't fully consolidated yet, and more targeted review will move the number.

Where Candidates Lose Points

Misreading definitions. The Home Improvement Law definitions section is precise. Candidates who answer from general knowledge rather than the statutory language in §8-101 regularly miss questions about what qualifies as a "home improvement" versus maintenance — a distinction the exam tests directly.

Guaranty Fund details. The payment cap, proportionate payment rules, license suspension conditions, and the burden of proof at hearings are all individually tested. Candidates who know the Fund exists but haven't studied the procedural rules lose multiple points here.

Door-to-Door Sales Act exact numbers. The standard cancellation period and the extended period for buyers 65 and older are a guaranteed question. Missing this by one day is wrong.

Notice of Cancellation content. Candidates frequently confuse what belongs on the notice with what belongs in the contract itself. The statutory list in §14-302(3) is specific — study it directly.

Emergency action plan threshold. The 10-employee dividing line between oral and written plans catches candidates who assume "small company = exempt."

Skipping calculations in Estimating. Labor burden and overhead markup questions require arithmetic. Candidates who skim these subtopics lose easily avoidable points on three questions that reward a few minutes of focused preparation.

Time allocation. With 41 of 55 questions in Home Improvement Law, over-spending time on the three Estimating questions is a real risk. Practice pacing on the full 55-question timed exam.

Exam Quick Facts