Michigan Residential Builders License Practice Test

What is the first offense penalty for engaging in the practice of residential building without a license?

1. Not less than $1,000 and not more than $5,000

2. Not less than $5,000 and not more than $25,000

3. Not less than $10,000 and not more than $50,000

4. Not less than $3,000 and not more than $15,000

The correct answer is: Not less than $5,000 and not more than $25,000

The penalty for engaging in the practice of residential building without a license is substantial because it emphasizes the state's commitment to ensuring that only qualified individuals operate in the construction and building industry. The law is designed to protect consumers from unlicensed contractors who may not have the necessary training, competency, or professionalism expected in residential building. The range of fines for the first offense reflects the serious nature of the violation. A fine of not less than $5,000 and not more than $25,000 serves as a deterrent to those considering practicing without the appropriate credentials, reinforcing the importance of compliance with licensing laws. This penalty structure not only holds the violator accountable but also underscores the significance of maintaining standards within the residential building sector, ensuring public safety and trust.