Maryland Contractor License Lookup: MHIC Search and Contract Rules

To run a Maryland contractor license lookup, use the Maryland Home Improvement Commission’s free search tool on the state Department of Labor website. It takes about two minutes, returns the license status, expiration date, and any disciplinary history, and works from a name, business name, city, ZIP code, or license number. Checking it before you sign a contract is the single most effective way to avoid unlicensed operators, whose contracts Maryland courts often refuse to enforce.¹

How to Run the Search

From the MHIC homepage, click “Check the License Status of a Contractor or Salesperson.” The Electronic Licensing portal offers five ways in:

License number. The fastest and most precise option. Maryland contractors are required to include their MHIC number on contracts and advertisements, so it may already be on the estimate in front of you.
Contractor personal name, with an optional city filter.
Trade name, which is the business name the contractor operates under, also with a city filter.
Location, by city or ZIP code, to pull a list of licensed contractors in a specific area.
Salesperson name. Maryland licenses home improvement salespersons separately, and you can look them up by last name.

If you have the license number, start there. It cuts through the noise that common names generate. When searching by name, always add the city; a search for “Smith” or “Johnson” without one returns dozens of matches.

What the Results Tell You

A successful search returns more than a yes-or-no answer. Look at four things:

License status. Active means the contractor can legally perform home improvement work today. Anything else means they cannot.
Expiration date. MHIC licenses renew every two years. A license that expired last month makes the contractor currently unlicensed, whatever their history.
Disciplinary history. Suspensions, revocations, and fines appear in the record. One resolved complaint from years ago reads very differently from a pattern of violations.
Business name match. Confirm the trade name on the record matches what appears on the contractor’s truck, business card, and written estimate. A mismatch can mean someone is borrowing or misusing another contractor’s credentials.¹

When the Results Are Ambiguous

Common last names are the biggest source of confusion. If a search returns 40 results, use the contractor’s city, phone number, or business address to pinpoint the right listing. Asking the contractor for their MHIC number directly is the cleanest fix.

Disciplinary entries sometimes lack detail. A notation that the commission “took action” in 2022 does not say whether the contractor failed to finish a deck or committed outright fraud. If a record raises questions, call the MHIC at 410-230-6231 or 1-888-218-5925 for context.²

Why the License Matters

A valid MHIC license means the contractor has met Maryland’s baseline requirements for experience, financial stability, and insurance. Since June 2024, every licensed contractor must carry at least $500,000 in general liability insurance.³ That coverage protects you if the contractor damages your property or if someone is injured on the job site. Without it, those costs can land on your homeowner’s insurance or directly on you.

Licensed contractors also pay into the MHIC Guaranty Fund, a backstop that reimburses homeowners for actual losses caused by licensed contractors who perform incomplete, incorrect, or unworkmanlike work, or who abandon a project. The maximum recovery is $30,000 per claimant or the amount you actually paid the contractor, whichever is less.⁴ The Fund only covers work done by licensed contractors. Hire someone unlicensed and the safety net disappears.

The stakes go further. Maryland courts have repeatedly declined to enforce contracts with unlicensed home improvement contractors. If an unlicensed contractor abandons the job halfway, you may have no legal mechanism to recover the money you already paid, because the contract itself can be treated as void for violating the Maryland Home Improvement Law. Your homeowner’s insurance may also deny claims tied to unlicensed work. Five minutes on the lookup tool is cheap insurance against every one of those outcomes.

What the Written Contract Must Include

Verifying the license is step one. Step two is confirming the contract meets Maryland’s legal requirements before you sign. Every Maryland home improvement contract must be in writing and include:

The contractor’s name, address, and MHIC license number. If a salesperson is involved, their name and license number too.
A description of the work to be performed and the materials to be used.
Approximate start and substantial completion dates.
The agreed total contract price.
A notice with the MHIC’s phone number and website, stating that the contractor must hold a current license and that anyone can contact MHIC to verify.
Language explaining that the MHIC administers a Guaranty Fund that may compensate homeowners for certain losses caused by licensed contractors.

You must receive a signed copy before work begins.² A one-page estimate with no license number and no MHIC notice is a red flag regardless of what the lookup showed.

Deposit Cap

Maryland caps a contractor’s deposit at one-third of the total contract price, and the contractor cannot accept any payment before the contract is signed.² A contractor demanding half the money up front with nothing in writing is breaking the law. The cap exists because large upfront payments are the most common mechanism for home improvement fraud.

Contracts Signed at Your Home

If the contractor solicited you at your house rather than at their place of business, federal law gives you three business days to cancel the contract without penalty. The contractor must provide two copies of a cancellation form and a dated receipt or contract explaining your right to cancel, in the same language used during the sales pitch.⁵ The rule covers any sale of $25 or more made at your residence.

Pre-1978 Homes Need a Second Credential

An MHIC license by itself is not enough if your home was built before 1978. The EPA requires renovation, repair, or painting work that disturbs lead-based paint in pre-1978 homes to be performed by a lead-safe certified firm, which is a separate credential from the MHIC license.⁶ Verify certification through the EPA’s Lead-Based Paint Professional Locator, which searches by location and type of work.⁷ Roughly half of Maryland’s housing stock predates 1978, so this comes up often.

If Something Goes Wrong

If a contractor is operating without a license, misrepresenting their credentials, or performing substandard work, file a complaint with the MHIC. The commission investigates complaints, awards monetary damages against licensed contractors, and prosecutes violations of the home improvement law.¹ Gather your contract, written estimates, photographs, receipts, and any advertising before filing. Stronger documentation moves the investigation faster.

For a Guaranty Fund claim, you must either live in the home where the work was done or own no more than three residences, and you have three years from the date you discovered (or should have discovered) the loss. The process starts with a complaint, not a claim form; the MHIC sends the claim form only after determining your situation may qualify. Claims require your original contract, photographs of the deficient work, and at least two estimates from other licensed contractors detailing the cost to fix or complete the job, submitted under oath.⁴ For losses beyond the Fund’s cap, or situations involving unlicensed contractors where the Fund does not apply, civil litigation remains an option, though a lawyer experienced in Maryland construction disputes can tell you whether a judgment is worth chasing.

1
Maryland Department of Labor. Maryland Home Improvement Commission (MHIC)
2
Maryland Department of Labor. Maryland Home Improvement Contracts
3
Maryland General Assembly. Maryland Code Business Regulation 8-302.1
4
Maryland Department of Labor. Guaranty Fund Frequently Asked Questions (FAQs) – Maryland Home Improvement Commission (MHIC)
5
eCFR. Part 429 Rule Concerning Cooling-Off Period for Sales Made at Homes or at Certain Other Locations
6
US EPA. Lead Renovation, Repair and Painting Program
7
US EPA. Lead-Based Paint Professional Locator