Maryland Home Improvement Law and Regulations
Who regulates and what MHIC can do
The Commission licenses contractors, subcontractors, and salespersons; investigates complaints; and holds hearings. On a finding of a violation it may reprimand, place on probation, suspend, or revoke a license, order restitution to the homeowner, and impose civil penalties (commonly up to $5,000 per violation).
Conduct that draws discipline
- Fraud, misrepresentation, or a false statement in an application or advertisement.
- Abandoning a job, or failing to perform according to the contract or approved plans.
- Unworkmanlike workmanship.
- Demanding or accepting a deposit above the one-third limit, or collecting money for work not performed.
- Lending a license to another person or helping an unlicensed person contract.
- Failing to maintain required workers' compensation or unemployment insurance coverage.
Complaints and the homeowner's side
A complaint goes to MHIC in writing with the contract, payment records, and photos. Staff attempt conciliation; unresolved cases go to an administrative hearing where both sides present evidence. Separately, an owner solicited at home may cancel within three business days. A contractor who was unlicensed when the work was contracted generally cannot sue to collect the contract price in Maryland courts - a strong reason the license number is verified before work starts.
Worked example
An owner pays $12,000 for a kitchen and the contractor stops after demolition. MHIC opens a complaint, finds abandonment, revokes the license, and orders restitution. Because the contractor held a valid license when the contract was signed, the owner can also pursue the Guaranty Fund for the remaining loss.
Traps
- Assuming a license covers every worker - salespersons and subcontractors need their own credentials.
- Thinking MHIC only handles money disputes; workmanship and abandonment are core violations.
- Missing the window for a home-solicitation cancellation.