[{"data":1,"prerenderedAt":88},["ShallowReactive",2],{"guide-question-maryland-contractor-simulator-deposit-too-large":3},{"site":4,"simulation":15,"topic":23,"question":26,"siblings":55,"prev":35,"next":87},{"name":5,"tagline":6,"title":7,"description":8,"guideTitle":9,"guideDescription":10,"ogImage":11,"disclaimer":12,"practicePitch":13,"citationsTitle":14},"Free MHIC Training","Maryland home improvement exam prep","Free MHIC Exam Prep: Maryland Home Improvement Contractor Practice","Free, narrated MHIC exam prep: 147 real Maryland contractor scenarios, every choice explained, with the law cited where it applies.","MHIC Exam Study Guide","Every scenario in the free Maryland Contractor Simulator, written out as a practice question: the situation, your options, how each choice plays out, and the Maryland law where it applies.","/og/free-mhic-training.png","Free MHIC Training is free study material for the Maryland home improvement contractor exam. It is not affiliated with the Maryland Home Improvement Commission and is not legal advice.","The free Maryland Contractor Simulator puts you in situations like these across a 40-day contracting career, narrated, with your license on the line. No account needed.","Law and codes cited",{"slug":16,"title":17,"subtitle":18,"description":19,"maxTurns":20,"characterCount":21,"scenarioCount":22},"maryland-contractor-simulator","Maryland Contractor Simulator","Learn the law by living it.","You just got your MHIC license application approved and you're starting your home improvement business in Maryland. Navigate real contractor scenarios — contracts, permits, clients, subcontractors, and inspectors. Every choice teaches you the law through consequence, not memorization. Master all five exam areas to pass.",40,20,147,{"slug":24,"title":25},"payments-change-orders","Deposits, Payments & Change Orders",{"slug":27,"title":28,"description":29,"takeaway":30,"situation":31,"speaker":35,"speakerDescription":35,"speakerAvatar":35,"audioUrl":36,"choices":37,"citations":53},"deposit-too-large","How large a deposit can a Maryland contractor take?","No more than one-third of the contract price. Business Regulation §8-617 bars any payment before the contract is signed and any deposit over one-third…","No more than one-third of the contract price. Business Regulation §8-617 bars any payment before the contract is signed and any deposit over one-third before or at signing; a smaller deposit is the stronger practice.",[32,33,34],"A new client is ready to sign a $30,000 contract for a whole-house renovation. She asks about the deposit.","\"How much do you need upfront to get started?\"","You typically ask for 10%, but you're behind on materials bills and $9,000 upfront would help.",null,"/media/voices/deposit_too_large.mp3",[38,43,48],{"text":39,"verdict":40,"label":41,"explanation":42},"Stick with your standard 10% ($3,000) deposit. Explain the milestone payment schedule and why it protects both parties","best","Best practice","Maryland does cap deposits: under Business Regulation §8-617, you may not take any payment before the contract is signed, or a deposit of more than one-third of the contract price before or at signing. On a $30,000 job that ceiling is $10,000, so $9,000 would be legal, but a modest 10% deposit is the stronger practice. Large deposits are a red flag for the MHIC and a top consumer complaint category. A milestone schedule (deposit → rough-in → finish → final) protects the homeowner from paying for unfinished work and protects you by ensuring payment at each phase.",{"text":44,"verdict":45,"label":46,"explanation":47},"Ask for 50% ($15,000) upfront to cover materials and get the project rolling","wrong","Illegal","A 50% deposit violates Business Regulation §8-617, which caps a deposit at one-third of the contract price — $10,000 on this $30,000 job. Beyond the violation, you'd be holding $15,000 of the homeowner's money against incomplete work, one of the most common patterns in MHIC Guaranty Fund claims: large deposit + slow/incomplete work = complaint. Your cash flow problems shouldn't become the client's risk.",{"text":49,"verdict":50,"label":51,"explanation":52},"Tell her you don't require a deposit — you'll bill at each milestone","partial","Generous but risky","No deposit means you're funding materials and labor out of pocket until the first milestone payment. If the client cancels or disputes, you've invested significantly with no commitment from them. A reasonable deposit (10-15%) demonstrates mutual commitment. Being too generous with payment terms can hurt your cash flow and attract clients who aren't serious.",[54],"Business Regulation §8-617",[56,57,60,63,66,69,72,75,78,81,84],{"slug":27,"title":28,"topic":24},{"slug":58,"title":59,"topic":24},"payment-schedule-dispute","Can you accept full payment up front for a home improvement job?",{"slug":61,"title":62,"topic":24},"deposit-refund-demand","Must you refund a deposit if the homeowner cancels before work starts?",{"slug":64,"title":65,"topic":24},"chase-sarah-payment","How do you collect an overdue progress payment?",{"slug":67,"title":68,"topic":24},"final-payment-holdback","Can a homeowner hold back part of the final payment?",{"slug":70,"title":71,"topic":24},"payment-by-credit-card","Who pays the fee when a homeowner pays by credit card?",{"slug":73,"title":74,"topic":24},"change-order-dispute","Does added work need a written change order?",{"slug":76,"title":77,"topic":24},"change-order-blowup","Can you collect for extra work that was never put in writing?",{"slug":79,"title":80,"topic":24},"rain-delay-dispute","How do you handle a weather delay past the contract completion date?",{"slug":82,"title":83,"topic":24},"insurance-adjuster-dispute","What if the insurance payout is lower than your estimate?",{"slug":85,"title":86,"topic":24},"newlyweds-budget-panic","How do you handle a client whose vision is bigger than the budget?",{"slug":58,"title":59,"topic":24},1792184484118]