A residential builder or home builder license exam tests whether you can run a home building or remodeling business within the law. Each state sets its own exam, but the subjects overlap a great deal.
What it covers
- Licensing law: who needs a license, the dollar thresholds, exemptions, renewals, continuing education and penalties.
- Contracts with homeowners: required terms, disclosures, deposits, warranties and cancellation rights.
- Liens: who has lien rights, notices and deadlines.
- Federal rules for housing work: EPA lead-safe renovation, fair housing and the FTC's three-day cooling-off rule.
- Running the business: insurance, bonds, workers' compensation, payroll and records.
The federal rules every state shares
State law differs, but federal rules apply everywhere, so they are worth learning once and well: see EPA lead-safe renovation rules for builders and fair housing and the cooling-off rule.
Your state's exam
Format, question count, time and passing score differ by state. See the guide for your state: Alabama, Michigan and South Carolina.
Practice residential builder exam questions for your state, with explanations and timed mock exams.