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Business and Law I
Trades Licensing and Regulation 326B.802-.815
| Question | Answer |
|---|---|
| What is an "affiliate" under Minnesota residential contractor law? | A person directly or indirectly controlling, controlled by, or under common control with another person. (Minn. Stat. §326B.802 — Definitions) |
| What are "gross annual receipts" for residential contractor licensing purposes? | The total amount derived from residential contracting or remodeling activities, regardless of where performed, without reduction for cost of goods sold, expenses, losses, or any other amount. (Minn. Stat. §326B.802 — Definitions) |
| What is a "lessee" under Minnesota residential contractor law? | A person who rents or leases residential real estate under a written lease agreement of at least one year's duration. (Minn. Stat. §326B.802 — Definitions) |
| What is a "licensee" under the residential trades licensing statutes? | A residential building contractor, residential remodeler, manufactured home installer, or residential roofer licensed under §§326B.802–326B.885. (Minn. Stat. §326B.802 — Definitions) |
| What is a "mechanical contractor"? | A person or organization in the business of erection, installation, alteration, repair, relocation, replacement, addition to, use, or maintenance of heating, ventilating, cooling, process piping, plumbing, fire protection, refrigeration, etc |
| What is an "owner" when used in connection with real property? | A person having any legal or equitable interest in the real property. (Minn. Stat. §326B.802 — Definitions) |
| What is a "qualifying person"? | The individual who fulfills the examination and education requirements for licensure on behalf of the licensee. (Minn. Stat. §326B.802 — Definitions) |
| What is a residential building contractor? | A person in the business of building residential real estate, or contracting/offering to contract with an owner to build residential real estate, by providing two or more special skills. The contractor may also improve existing residential real estate. |
| How many special skills must generally be provided for a person to meet the definition of residential building contractor? | Two or more special skills. (Minn. Stat. §326B.802 — Definitions) |
| What is a residential remodeler? | A person in the business of contracting or offering to contract with an owner to improve existing residential real estate by providing two or more special skills. (Minn. Stat. §326B.802 — Definitions) |
| What is "residential real estate"? | A new or existing building constructed for habitation by one to four families, including detached garages. (Minn. Stat. §326B.802 — Definitions) |
| How many families may occupy a building and still fall within the course definition of residential real estate? | One to four families. (Minn. Stat. §326B.802 — Definitions) |
| Are detached garages included in the definition of residential real estate? | Yes. (Minn. Stat. §326B.802 — Definitions) |
| What is a residential roofer? | A person contracting or offering to contract with an owner for roof coverings, roof sheathing, roof weatherproofing and insulation, and repair of roof systems on residential real estate, but not construction of new roof systems. (Minn. Stat. §326B.802) |
| Can a residential roofer construct a new roof system under the residential roofer definition? | No. The definition covers repair of roof systems, but not construction of new roof systems. (Minn. Stat. §326B.802 — Definitions) |
| How many categories of "special skill" are identified in §326B.802? | Eight. (Minn. Stat. §326B.802 — Definitions) |
| What are the eight special-skill categories? | Excavation; masonry and concrete; carpentry; interior finishing; exterior finishing; drywall and plaster; residential roofing; and general installation specialties. (Minn. Stat. §326B.802 — Special skill) |
| What work is included in the excavation special skill? | Excavation, trenching, grading, and site grading. (Minn. Stat. §326B.802 — Special skill: Excavation) |
| What work is included in the masonry and concrete special skill? | Drain systems; poured walls; slabs and poured-in-place footings; masonry walls; masonry fireplaces; masonry veneer; and water resistance/waterproofing. (Minn. Stat. §326B.802 — Special skill: Masonry and concrete) |
| What work is included in the carpentry special skill? | Rough framing; finish carpentry; doors, windows, and skylights; porches and decks excluding footings; wood foundations; and drywall installation excluding taping and finishing. (Minn. Stat. §326B.802 — Special skill: Carpentry) |
| Are deck footings included in the carpentry special skill? | No. Porches and decks are included, excluding footings. (Minn. Stat. §326B.802 — Special skill: Carpentry) |
| Does carpentry include drywall taping and finishing? | No. Carpentry includes drywall installation but excludes taping and finishing. (Minn. Stat. §326B.802 — Special skill: Carpentry) |
| What work is included in the interior finishing special skill? | Floor covering; wood floors; cabinets and countertops; insulation and vapor barriers; interior or exterior painting; ceramic, marble, and quarry tile; ornamental guardrails and prefabricated stairs; and wallpapering. (Minn. Stat. §326B.802) |
| What work is included in the exterior finishing special skill? | Siding; soffit, fascia, and trim; exterior plaster and stucco; painting; and rain-carrying systems including gutters and downspouts. (Minn. Stat. §326B.802 — Special skill: Exterior finishing) |
| What work is included in the drywall and plaster special skill? | Installation, taping, finishing, interior plaster, painting, and wallpapering. (Minn. Stat. §326B.802 — Special skill: Drywall and plaster) |
| What work is included in the residential roofing special skill? | Roof coverings; roof sheathing; roof weatherproofing and insulation; and repair of the roof support system, but not construction of a new roof support system. (Minn. Stat. §326B.802 — Special skill: Residential roofing) |
| Does the residential roofing special skill include construction of a new roof support system? | No. It includes repair of the roof support system, but not construction of a new roof support system. (Minn. Stat. §326B.802 — Special skill: Residential roofing) |
| What work is included in general installation specialties? | Garage doors and openers; pools, spas, and hot tubs; fireplaces and wood stoves; asphalt paving and seal coating; ornamental guardrails and prefabricated stairs. (Minn. Stat. §326B.802 — Special skill: General installation specialties) |
| What is a specialty contractor? | A person contracting or offering to contract to build or improve residential real estate by providing only one special skill. (Minn. Stat. §326B.802 — Definitions) |
| How many special skills does a specialty contractor provide? | Only one special skill. (Minn. Stat. §326B.802 — Definitions) |
| What is a garage for purposes of Minnesota residential contractor law? | A structure attached to or in reasonable proximity to a dwelling, primarily used or intended for protection or storage of automobiles or other personal vehicles of the dwelling occupants. (Minn. Stat. §326B.802 — Definitions) |
| Who must be licensed as a residential building contractor? | A person who meets the definition of a residential building contractor. (Minn. Stat. §326B.805, Subd. 1 — Persons required to be licensed) |
| What license must a residential remodeler hold? | Either a residential remodeler license or a residential building contractor license. (Minn. Stat. §326B.805, Subd. 1) |
| What licenses may a residential roofer hold to legally perform roofing work? | Residential roofer, residential building contractor, or residential remodeler. (Minn. Stat. §326B.805, Subd. 1) |
| What license must a manufactured home installer hold? | A manufactured home installer license. (Minn. Stat. §326B.805, Subd. 1) |
| May a person meeting the definition of specialty contractor obtain a residential building contractor or remodeler license? | Yes. (Minn. Stat. §326B.805, Subd. 2 — Persons who may be licensed) |
| Who fulfills the examination and education requirements for a potential licensee? | The qualifying person/qualifying party designated by the potential licensee. (Minn. Stat. §326B.805, Subd. 4 — Licensing criteria) |
| What must a managing employee qualifying person do? | Be regularly employed by the licensee and actively engaged in residential contracting or remodeling on behalf of the licensee. (Minn. Stat. §326B.805, Subd. 4) |
| Who may serve as the qualifying person for a sole proprietorship? | The proprietor or a managing employee. (Minn. Stat. §326B.805, Subd. 4) |
| Who may serve as the qualifying person for a partnership? | A general partner or managing employee. (Minn. Stat. §326B.805, Subd. 4) |
| Who may serve as the qualifying person for a limited liability company? | A chief manager or managing employee. (Minn. Stat. §326B.805, Subd. 4) |
| Who may serve as the qualifying person for a corporation? | An owner, officer, or managing employee. (Minn. Stat. §326B.805, Subd. 4) |
| When may one qualifying person qualify more than one corporation or LLC? | When there is common ownership of at least 25% among each licensed corporation or LLC for which the person acts as qualifying person. (Minn. Stat. §326B.805, Subd. 4) |
| What percentage of common ownership is required for one person to qualify multiple corporations or LLCs? | At least 25%. (Minn. Stat. §326B.805, Subd. 4) |
| What basic contact information must a licensee provide? | A current address and telephone number where the licensee resides and where the business is physically located. (Minn. Stat. §326B.805, Subd. 5 — Required information) |
| Within how many days must a licensee notify the commissioner of changes in ownership, control, officers/directors, names, or qualifying person? | Within 15 days. (Minn. Stat. §326B.805, Subd. 5) |
| Within how many days must a licensee notify the commissioner after declaring bankruptcy? | Within 15 days. (Minn. Stat. §326B.805, Subd. 5) |
| Within how many days must a licensee notify the commissioner after being found guilty of a felony, misdemeanor, or offense involving fraud, misrepresentation, or misuse of funds? | Within 10 days. (Minn. Stat. §326B.805, Subd. 5) |
| Is an employee of a licensed contractor required to obtain a separate residential contractor license merely because of that employment? | No. An employee of a licensee is listed as an exemption. (Minn. Stat. §326B.805, Subd. 6 — Exemptions) |
| Are material suppliers, manufacturers, or retailers furnishing finished products or materials exempt from the residential contractor licensing requirement? | Yes. (Minn. Stat. §326B.805, Subd. 6) |
| May a homeowner build their own home without a residential building contractor license under the course exemption? | Yes, but the homeowner cannot build more than one home in two years. (Minn. Stat. §326B.805, Subd. 6) |
| How many homes may an exempt homeowner build within two years? | No more than one home in two years. (Minn. Stat. §326B.805, Subd. 6) |
| Are architects and professional engineers listed as exempt from the residential contractor licensing requirement? | Yes. (Minn. Stat. §326B.805, Subd. 6) |
| What gross annual receipts threshold is used for the small-volume licensing exemption described in the course? | $15,000 or less. (Minn. Stat. §326B.805, Subd. 6) |
| What must a person obtain to use the $15,000-or-less exemption? | A Certificate of Exemption from the commissioner. (Minn. Stat. §326B.805, Subd. 6) |
| What affidavit is required for the $15,000-or-less exemption? | A completed, signed, and notarized affidavit stating that the applicant does not expect to exceed $15,000 in gross annual receipts from services requiring licensure. (Minn. Stat. §326B.805, Subd. 6) |
| What happens if a person operating under the $15,000 exemption exceeds $15,000 in gross receipts during the calendar year? | The person must immediately surrender the certificate of exemption and apply for the appropriate license. (Minn. Stat. §326B.805, Subd. 6) |
| After exceeding the $15,000 exemption threshold, how long must the person remain licensed? | Until the person's gross annual receipts during a calendar year fall below $15,000. The person may then apply for an exemption for the next calendar year. (Minn. Stat. §326B.805, Subd. 6) |
| Are mechanical contractors listed among the licensing exemptions in the course? | Yes. (Minn. Stat. §326B.805, Subd. 6) |
| Are Habitat for Humanity, Builders Outreach Foundation, and their volunteers listed as exempt? | Yes. (Minn. Stat. §326B.805, Subd. 6) |
| Must agreements between a residential contractor licensee and customer be in writing? | Yes. Proposals, estimates, bids, quotations, contracts, purchase orders, and change orders must be in writing. (Minn. Stat. §326B.809 — Written contract required) |
| What three basic items must written contractor-customer agreements contain? | A detailed summary of services; a description of specific materials or standard features; and the total contract price or the basis on which the price will be calculated. (Minn. Stat. §326B.809) |
| What must a contractor provide a prospective customer before the customer agrees to the work? | Written performance guidelines for the services to be performed. (Minn. Stat. §326B.809) |
| Who must sign and date contractor-customer agreements? | Both the licensee and the customer. (Minn. Stat. §326B.809) |
| When must a contractor give the customer a signed and dated copy of the contract documents? At the time the contract is signed and dated. (Minn. Stat. §326B.809) | May a contractor charge the customer for the required signed and dated contract documents? No. They must be provided at no charge. (Minn. Stat. §326B.809) |
| What documents does the course identify as examples of documents that must be provided to the customer? | Agreements, performance guidelines, and mechanic's lien waivers. (Minn. Stat. §326B.809) |
| Are residential roofers subject to the requirements of §§326B.802–326B.885? | Yes, except for the recovery fund requirement. (Minn. Stat. §326B.81 — Residential roofers, as cited in course) |
| What contractor requirement does the course say does NOT apply to residential roofers? | The recovery fund. (Minn. Stat. §326B.81 — Residential roofers, as cited in course) |
| When does the special 72-hour roofing-contract cancellation right apply? | When the written contract is for goods/services to be paid from property or casualty insurance proceeds and the insured has been notified that the insurer denied the claim. (Minn. Stat. §326B.811, Subd. 1) |
| How long does an insured have to cancel an applicable roofing contract after being notified that the insurer denied the claim? | 72 hours. (Minn. Stat. §326B.811, Subd. 1 — Right to cancel) |
| How must cancellation of an applicable insurance-related roofing contract be made? | By giving written notice of cancellation to the contractor at the address stated in the contract. (Minn. Stat. §326B.811, Subd. 1) |
| What minimum type size must be used for the statutory roofing cancellation notice described in the course? | Boldface type of at least 10 points. (Minn. Stat. §326B.811, Subd. 2) |
| How many completed copies of the "NOTICE OF CANCELLATION" form must the contractor furnish? | A fully completed form in duplicate. (Minn. Stat. §326B.811, Subd. 2) |
| What caption must appear on the roofing cancellation form? | "NOTICE OF CANCELLATION." (Minn. Stat. §326B.811, Subd. 2) |
| According to the cancellation notice, how long does the customer have after claim denial notification to mail or deliver cancellation? | Within 72 hours. (Minn. Stat. §326B.811, Subd. 2) |
| According to the cancellation notice, when must payments be returned after the contractor receives the cancellation notice? | Within ten business days according to the notice language reproduced in the course. (Minn. Stat. §326B.811, Subd. 2) |
| According to Subdivision 3 in the course, within how long after cancellation must the contractor return payments and evidence of indebtedness? | Within ten days. (Minn. Stat. §326B.811, Subd. 3 — Return of payments) |
| If a roofing contract is canceled but the contractor already performed emergency services, is the contractor entitled to compensation? | Yes. The contractor is entitled to compensation for emergency services provided. (Minn. Stat. §326B.811, Subd. 3) |
| For §326B.811, who is included in the definition of "contractor"? | A residential building contractor providing roofing services, a residential remodeler providing roofing services, or a residential roofer. (Minn. Stat. §326B.811, Subd. 4) |
| Is a residential contractor, remodeler, or roofer license considered a business license? | Yes. (Minn. Stat. §326B.815, Subd. 1 — Fees) |
| What is the manufactured home installer licensing fee stated in the course? | $180 for three years. (Minn. Stat. §326B.815, Subd. 1) |
| How long are initial and renewal licenses effective, except manufactured home installer licenses? | Two years. (Minn. Stat. §326B.815, Subd. 1) |
| On what date do residential contractor, remodeler, and roofer licenses described in the course expire? | March 31 of the year after the year in which the application is made. (Minn. Stat. §326B.815, Subd. 1) |
| What is the maximum local surcharge a local government unit may place on a qualifying land use, zoning, or building permit for license verification? | $5. (Minn. Stat. §326B.815, Subd. 2 — Local surcharge) |
| What three basic components make up the license fee for residential building contractors, remodelers, and roofers according to the course? | Base licensing fee, e-license surcharge fee, and continuing education fee. (Minn. Stat. §326B.815, Subd. 2) |
| What additional fees apply to residential building contractors and residential remodelers according to the course? | Contractor Recovery Fund and Contractor Recovery Fund Assessment fees. (Minn. Stat. §326B.815, Subd. 2) |
| Is a real estate developer included in the recovery-fund definition of "owner"? | No. (Minn. Stat. §326B.89, Subd. 1) |
| Is an owner who uses or intends to use the property for a business purpose rather than as owner-occupied residential real estate included in the recovery-fund definition of "owner"? | No. (Minn. Stat. §326B.89, Subd. 1) |
| Who administers the contractor recovery fund? | The commissioner. (Minn. Stat. §326B.89, Subd. 2) |
| Where is the contractor recovery fund created? | In the state treasury. (Minn. Stat. §326B.89, Subd. 2) |
| What happens to interest or profit earned from investment of contractor recovery fund money? | It is credited to the contractor recovery fund. (Minn. Stat. §326B.89, Subd. 2) |
| On what is a licensee's contractor recovery fund fee based? | The person's gross annual receipts for the most recent fiscal year preceding the application or renewal. (Minn. Stat. §326B.89, Subd. 3) |
| What contractor recovery fund fee applies to gross annual receipts under $1,000,000? | $320. (Minn. Stat. §326B.89, Subd. 3 — Fund fees) |
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