MHIC NASCLA Contractors Practice Exam

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Prepare for the MHIC NASCLA Contractors Exam with our comprehensive quiz that includes multiple-choice questions designed to help you familiarize yourself with the exam format and increase your chances of passing. Get ready to succeed!

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Is a verbal agreement sufficient to ensure lien rights for home improvement contracts in Maryland?

Yes, always
No, it must be in writing
Only for small projects
Only if both parties are present

The correct answer is: No, it must be in writing

In Maryland, for home improvement contracts, a written agreement is indeed essential to ensure lien rights. This requirement is stipulated to protect both homeowners and contractors by providing clear and enforceable terms related to the work to be performed, payment, deadlines, and other conditions. Verbal agreements can lead to misunderstandings or disputes that are difficult to resolve, as there is no formal record of what was agreed upon. This emphasis on a written contract ensures that all parties understand their rights and responsibilities. Furthermore, it helps to formalize the intention to create a lien, which is crucial for securing payment if the contractor needs to exercise that right in the event of non-payment. Without a written contract, the contractor may lack the legal foundation to claim a lien against the property, jeopardizing their ability to recover owed funds.