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Question 1Louisiana Real Estate License Law and Commission Rules

What is the minimum age for a person to be licensed as a real estate salesperson in Louisiana?

  1. 16 years of age
  2. 21 years of age
  3. 19 years of age
  4. 18 years of age Correct answer.

Explanation

An applicant for a Louisiana salesperson license must be at least 18 years old and meet the other statutory qualifications, including education and examination. The higher and lower ages listed are not licensing thresholds in this state.

Question 2Louisiana Real Estate License Law and Commission Rules

How many hours of approved pre-license classroom education must a Louisiana salesperson applicant complete before taking the licensing examination?

  1. 120 classroom hours
  2. 45 classroom hours
  3. 90 classroom hours Correct answer.
  4. 150 classroom hours

Explanation

A salesperson applicant must complete 90 hours of approved pre-license education before sitting for the exam. Broker applicants are held to a higher education and experience standard.

Question 3Louisiana Real Estate License Law and Commission Rules

Which body administers and enforces the Louisiana real estate license law?

  1. The state banking regulator
  2. The state supreme court
  3. The attorney general's office
  4. The real estate commission Correct answer.

Explanation

The Louisiana Real Estate Commission adopts rules, issues and renews licenses, investigates complaints, and conducts disciplinary hearings under the license law. Other agencies and courts play different roles and do not administer the licensing program.

Question 4Louisiana Real Estate License Law and Commission Rules

Which person may lawfully sell real property in Louisiana without holding a real estate license?

  1. An owner selling her own home Correct answer.
  2. A person who negotiates a commercial lease for a commission
  3. A finder who locates buyers for a fee
  4. A property manager who leases units for a fee

Explanation

The license law exempts a person who deals with her own property, so an owner may sell or lease her own real estate without a license. Acting for another person for compensation brings a person within the licensing requirement.

Question 5Louisiana Real Estate License Law and Commission Rules

A broker deposits a client's earnest money check into the brokerage's general operating account along with the broker's own funds. This practice is best described as:

  1. Conversion
  2. Commingling Correct answer.
  3. Reconciliation
  4. Escrow reduction

Explanation

Trust funds such as earnest money must be held in a separate trust account and may not be mixed with the broker's own money; mixing them is commingling. Conversion involves actually applying client funds to the broker's own use.

Question 6Louisiana Real Estate License Law and Commission Rules

After closing, a buyer hands a salesperson a personal check for her share of the commission. Under Louisiana law, the salesperson should:

  1. Ask the buyer to make the check payable to both parties
  2. Deposit it and pay taxes on it later
  3. Cash the check and report it as income
  4. Turn the check over to her broker Correct answer.

Explanation

A salesperson may be paid compensation only by the employing broker. Any commission payment tendered by a member of the public must be turned over to the broker, who then compensates the salesperson.

Question 7Louisiana Real Estate License Law and Commission Rules

Before a Louisiana salesperson license can be activated, the licensee must:

  1. Work under a licensed broker Correct answer.
  2. Register with a trade association
  3. Serve a one-year apprenticeship
  4. Post a surety bond with the state

Explanation

A salesperson license is active only while it is registered with a licensed Louisiana broker who supervises the salesperson's real estate activity. Without that affiliation the license is placed on inactive status.

Question 8Louisiana Real Estate License Law and Commission Rules

Which activity requires a Louisiana real estate license?

  1. Selling your own residence
  2. Leasing apartments for another owner for a fee Correct answer.
  3. Managing your own rental duplex
  4. Renting your own vacation cottage

Explanation

Licensure is required when a person, for compensation, leases or offers to lease real property belonging to another. An owner dealing with her own property is exempt from the licensing requirement.

Question 9Louisiana Real Estate License Law and Commission Rules

How much continuing education must a Louisiana real estate licensee complete each license year?

  1. 16 hours, including 8 in mandatory topics
  2. 6 hours of elective topics only
  3. 8 hours, including 2 in mandatory topics
  4. 12 hours, including 4 in mandatory topics Correct answer.

Explanation

Louisiana requires 12 hours of continuing education each license year, of which at least 4 hours must cover Commission-designated mandatory topics. Elective coursework alone does not satisfy the requirement.

Question 10Louisiana Real Estate License Law and Commission Rules

How and when must a Louisiana real estate license be renewed?

  1. Every three years by June 30
  2. Annually on the anniversary of issuance
  3. Annually, with the license expiring December 31 Correct answer.
  4. Every two years on the licensee's birthday

Explanation

Louisiana licenses are renewed annually, and the license year ends December 31. Renewal requires completion of the continuing education hours and payment of the required fee.

Question 11Louisiana Real Estate License Law and Commission Rules

A salesperson affiliated with Broker A misrepresents a property's square footage to a buyer. Which parties may the Commission discipline?

  1. Both the salesperson and the broker Correct answer.
  2. The salesperson only
  3. Neither, if the buyer was a customer
  4. The broker only

Explanation

The affiliated salesperson is subject to discipline for the misrepresentation, and the broker is responsible for supervising licensees acting under the broker's authority. Both may therefore face Commission action.

Question 12Louisiana Real Estate License Law and Commission Rules

An unlicensed person negotiates the sale of a neighbor's house and collects a $5,000 fee. Under Louisiana law this conduct is:

  1. A violation of the license law subject to penalties Correct answer.
  2. Permissible, because a single transaction needs no license
  3. Permissible if the fee is disclosed at closing
  4. Permissible if the owner signs a written consent

Explanation

Negotiating the sale of another person's real property for compensation requires a license. Doing so without one is unlicensed brokerage and exposes the person to Commission action and statutory penalties.

Question 13Louisiana Real Estate License Law and Commission Rules

A broker wants to represent both the buyer and the seller in the same transaction. In Louisiana, dual agency is:

  1. Permitted without disclosure if the broker is neutral
  2. Prohibited in all circumstances under state law
  3. Permitted with written consent of both parties Correct answer.
  4. Permitted only for commercial transactions

Explanation

Louisiana permits a broker to act as a dual agent when both the buyer and the seller give informed consent in writing. Without that written consent the broker may not represent both sides in the same transaction.

Question 14Louisiana Real Estate License Law and Commission Rules

Under Commission rules, a salesperson's advertisement of a listing must include:

  1. The name of the affiliated broker Correct answer.
  2. The listing price and the property address
  3. The seller's written approval
  4. The salesperson's license number

Explanation

Advertising by a salesperson must identify the affiliated broker or brokerage so the public knows which licensee is responsible for the advertisement. License numbers and price terms are not required elements.

Question 15Louisiana Real Estate License Law and Commission Rules

An exclusive right-to-sell listing agreement in Louisiana must:

  1. State a definite termination date Correct answer.
  2. Be filed with the Commission within ten days
  3. Run for a minimum of ninety days
  4. Be notarized by a Louisiana notary

Explanation

Listing agreements must contain a definite expiration date so the owner knows when the listing ends. Open-ended listing agreements are not permitted.

Question 16Louisiana Real Estate License Law and Commission Rules

Louisiana's statutory residential property disclosure requirement generally applies to:

  1. All commercial buildings
  2. Residential property of one to four units Correct answer.
  3. Newly constructed homes only
  4. Vacant land of any size

Explanation

The Louisiana Residential Property Disclosure Act applies to residential real property improved with one to four dwelling units, and the seller delivers the disclosure document to the buyer. Certain transfers are exempt from the requirement.

Question 17Louisiana Real Estate License Law and Commission Rules

Under Commission rules, a broker's transaction records must be:

  1. Destroyed at each closing
  2. Filed with the parish clerk of court
  3. Kept only in electronic form
  4. Open to Commission inspection Correct answer.

Explanation

Brokers must keep records of transactions and trust fund activity and make them available to the Commission on request during an audit or investigation. The records are not filed with courts and may be kept in paper or electronic form.

Question 18Louisiana Real Estate License Law and Commission Rules

Which of the following is a fiduciary duty a Louisiana licensee owes to a client?

  1. Setting the price the seller must accept
  2. Guaranteeing a favorable appraisal
  3. Obtaining the buyer's mortgage loan
  4. Loyalty and confidentiality Correct answer.

Explanation

A licensee acting as an agent owes the client fiduciary duties that include loyalty, confidentiality, disclosure, obedience to lawful instructions, and accounting. A licensee does not guarantee value and does not perform lending functions.

Question 19Louisiana Real Estate License Law and Commission Rules

A buyer who is not represented by any licensee but is shown a listing by the seller's agent is, in Louisiana practice, a:

  1. Principal
  2. Customer Correct answer.
  3. Fiduciary
  4. Subagent

Explanation

An unrepresented party who deals with a licensee is a customer, to whom the licensee owes honesty and fair dealing but not full fiduciary duties. A client is the party the licensee actually represents.

Question 20Louisiana Real Estate License Law and Commission Rules

A buyer and seller dispute who is entitled to the earnest money held by the broker. The broker should:

  1. Apply the money toward the broker's commission
  2. Hold the funds until a written agreement or court order resolves the dispute Correct answer.
  3. Pay the money to the seller at closing
  4. Return the money to the buyer immediately

Explanation

When entitlement to trust funds is disputed, the broker must keep the funds in trust until the parties agree in writing or a court orders disbursement. Unilateral release to either side exposes the broker to liability.

Question 21Louisiana Real Estate License Law and Commission Rules

A broker appoints one affiliated licensee to represent the seller and another to represent the buyer in the same transaction, with the written consent of both parties. This arrangement is:

  1. Subagency
  2. Designated agency Correct answer.
  3. Transactional brokerage
  4. Dual agency by estoppel

Explanation

Designated agency assigns different licensees within the same brokerage to represent each side, with written consent, so that neither licensee becomes a dual agent. The broker remains responsible for supervising both licensees.

Question 22Louisiana Real Estate License Law and Commission Rules

The Louisiana Real Estate Recovery Fund exists to:

  1. Pay commissions lost in a dispute between competing brokers
  2. Fund the Commission's annual operating budget
  3. Reimburse consumers who hold a court judgment against a licensee Correct answer.
  4. Provide start-up loans to newly licensed brokers

Explanation

The Recovery Fund reimburses members of the public who obtain a court judgment against a licensee for certain wrongful acts, such as fraud, and who cannot collect from the licensee. It is neither a commission dispute fund nor an operating account for the agency.

Question 23Louisiana Real Estate License Law and Commission Rules

Which task may an unlicensed assistant legally perform for a Louisiana brokerage?

  1. Explain and prepare the purchase agreement
  2. Negotiate the price on a listing
  3. Deliver flyers and answer the telephone Correct answer.
  4. Hold an open house and quote the seller's terms

Explanation

Unlicensed assistants may perform clerical and administrative tasks such as delivering marketing materials and answering the telephone. They may not perform acts requiring a license, including negotiating, explaining contract terms, or quoting property terms to prospects.

Question 24Louisiana Real Estate License Law and Commission Rules

Before the Commission may suspend or revoke a license, the licensee is entitled to:

  1. Notice and an opportunity for a hearing Correct answer.
  2. A jury trial in district court
  3. Binding arbitration with the complainant
  4. A private settlement conference only

Explanation

Disciplinary action requires due process: the licensee must receive notice of the charges and a hearing at which to respond before sanctions are imposed. Only after that hearing may the Commission suspend or revoke the license.

Question 25Louisiana Real Estate License Law and Commission Rules

The Commission receives a complaint that a person is brokering real estate without a license. Which action may the Commission itself take?

  1. Seize the person's property without a court order
  2. Suspend a license that the person does not hold
  3. Issue a cease and desist order Correct answer.
  4. Impose a jail sentence on the person

Explanation

The Commission may issue a cease and desist order and seek injunctive relief in court to stop unlicensed brokerage, and may refer the matter for criminal prosecution. It does not itself impose jail time or seize property.

Question 26Louisiana Real Estate License Law and Commission Rules

In Louisiana, the amount of commission a broker may charge for handling a residential sale is

  1. established by the local multiple listing service
  2. negotiated between the broker and the client Correct answer.
  3. capped by statute at 6 percent of the sales price
  4. set by a schedule adopted by the Louisiana Real Estate Commission

Explanation

Commission rates are not fixed by statute or by the Commission; they are negotiable between the broker and the client. Any published schedule or MLS rate is only a starting point for negotiation.

Question 27Louisiana Real Estate License Law and Commission Rules

The minimum prelicense education required for a Louisiana real estate salesperson license is

  1. 90 hours Correct answer.
  2. 120 hours
  3. 45 hours
  4. 150 hours

Explanation

Louisiana requires 90 clock hours of approved prelicense education for a salesperson applicant before taking the licensing examination. The other hour totals do not match the salesperson prelicense requirement.

Question 28Louisiana Real Estate License Law and Commission Rules

A Louisiana salesperson who closes a sale is entitled to be paid the commission by

  1. the seller directly
  2. the closing agent
  3. the salesperson's employing broker Correct answer.
  4. the buyer at closing

Explanation

A salesperson may be compensated for real estate activity only by the employing broker, who then pays the salesperson under their agreement. The salesperson may not collect a commission directly from a party to the transaction.

Question 29Louisiana Real Estate License Law and Commission Rules

A Louisiana salesperson license is inactive whenever the licensee

  1. is over age 65
  2. works part-time
  3. has not paid local board dues
  4. is not affiliated with a sponsoring broker Correct answer.

Explanation

A salesperson's license is active only while the licensee is affiliated with a sponsoring broker. Without that affiliation, the license is inactive and the person may not perform licensed activity.

Question 30Louisiana Real Estate License Law and Commission Rules

To qualify for a Louisiana real estate broker license, an applicant generally must have at least

  1. two years of active salesperson experience Correct answer.
  2. one year of active salesperson experience
  3. five years of active salesperson experience
  4. three years of active salesperson experience

Explanation

Broker applicants must show at least two years of active experience as a licensed salesperson, along with completing the required broker education. The other periods do not satisfy the experience requirement.

Question 31Louisiana Real Estate License Law and Commission Rules

A Louisiana broker receives a buyer's earnest money deposit. The broker may

  1. hold it in the broker's personal account
  2. use it to pay the firm's advertising expenses until closing
  3. deposit it in a trust account and disburse it according to the contract Correct answer.
  4. deposit it in the firm's general operating account

Explanation

Client funds such as earnest money must be held in a trust or escrow account and disbursed according to the contract. Commingling client funds with the broker's own money is prohibited.

Question 32Louisiana Real Estate License Law and Commission Rules

A Louisiana licensee wants to pay a $300 referral fee to an unlicensed friend who sent a buyer to the licensee. This payment is

  1. permitted if the friend signs a receipt
  2. prohibited as unlicensed compensation Correct answer.
  3. permitted if the fee is under $500
  4. permitted because referral fees are not regulated

Explanation

Only licensed brokers may receive compensation for procuring real estate business. Paying an unlicensed person for a referral violates Louisiana license law regardless of the amount or documentation.

Question 33Louisiana Real Estate License Law and Commission Rules

A Louisiana salesperson wants to sell a house she owns personally. Before the sale, she must

  1. list the property with another broker
  2. disclose in writing that she is a licensed salesperson Correct answer.
  3. obtain Commission approval
  4. transfer her license to the buyer

Explanation

A licensee selling property she owns must disclose her licensed status in writing so the other party knows they are dealing with a licensee. The Commission does not approve individual personal sales.

Question 34Louisiana Real Estate License Law and Commission Rules

Under Louisiana Commission rules, a licensee must disclose which party the licensee represents

  1. only when a written offer is presented
  2. at the first substantive contact with a consumer Correct answer.
  3. at the closing
  4. only if the consumer asks

Explanation

Louisiana requires licensees to disclose whom they represent at the first substantive contact so consumers know whether they are a client or a customer. Waiting until an offer or closing is too late.

Question 35Louisiana Real Estate License Law and Commission Rules

A Louisiana salesperson license may be affiliated with

  1. one broker at a time Correct answer.
  2. any number of brokers
  3. up to two brokers
  4. only the broker who sponsored the licensing exam

Explanation

A salesperson may be affiliated with only one broker at a time. Changing brokers requires terminating the existing affiliation before activating with another broker.

Question 36Louisiana Real Estate License Law and Commission Rules

A Louisiana salesperson whose license has expired continues to show properties to buyers for a fee. The salesperson is

  1. automatically reinstated
  2. exempt because the license is renewable
  3. engaged in unlicensed activity Correct answer.
  4. acting lawfully during a 30-day grace period

Explanation

Once a license expires, the person is no longer licensed and may not perform licensed acts for compensation. Continuing to do so is unlicensed activity subject to Commission discipline.

Question 37Louisiana Real Estate License Law and Commission Rules

Broker B offers a $500 referral fee directly to a salesperson employed by Broker A. To comply with Louisiana law, the salesperson should

  1. accept the check if Broker B is licensed in Louisiana
  2. accept the check and report it on her next renewal
  3. decline direct payment and let Broker A receive the fee Correct answer.
  4. have the client pay the fee instead

Explanation

A salesperson may not accept compensation directly from another broker. Any cooperative fee must be paid to the employing broker, who may then share it with the salesperson under their agreement.

Question 38Louisiana Real Estate License Law and Commission Rules

A Louisiana real estate licensee who prepares a written opinion of value for a mortgage lender for compensation must generally

  1. obtain the broker's written permission
  2. register the opinion with the Commission
  3. hold a separate appraisal certification or license Correct answer.
  4. rely on the real estate license alone

Explanation

Appraisal work for compensation requires state appraisal certification or licensure. A real estate license by itself does not authorize a licensee to perform appraisals.

Question 39Louisiana Real Estate License Law and Commission Rules

After a buyer agency agreement ends, the former buyer's agent may

  1. disclose the buyer's motivation to other licensees
  2. use the buyer's information for the agent's own investments
  3. keep the buyer's confidential information private Correct answer.
  4. reveal the buyer's financial information to the seller

Explanation

The duty of confidentiality survives termination of the agency relationship, so the former agent must not disclose the buyer's confidential information. The duty continues unless the information becomes public or the client releases it.

Question 40Louisiana Real Estate License Law and Commission Rules

Managing rental property for another person for a fee in Louisiana generally requires

  1. a contractor's license
  2. no license if the manager is paid hourly
  3. a real estate license Correct answer.
  4. only a business license

Explanation

Louisiana license law covers leasing and managing real estate for others for compensation, so a property manager generally must hold a real estate license. A business or contractor license does not authorize brokerage activity.

Question 41Law of Agency and Agency Relationships

Under Louisiana law, the contract by which one person confers authority on another to transact one or more affairs for that person is called:

  1. A usufruct
  2. A mandate Correct answer.
  3. A novation
  4. A servitude

Explanation

Louisiana is a civil law state, and agency is grounded in the concept of mandate. The principal (mandant) confers authority on the mandatary to act on the principal's behalf. The other listed terms are unrelated civil law institutions.

Question 42Law of Agency and Agency Relationships

Which fiduciary duty requires a licensee to place the client's interests above the licensee's own interests?

  1. Disclosure
  2. Loyalty Correct answer.
  3. Accounting
  4. Obedience

Explanation

Loyalty is the core fiduciary duty that forbids self-dealing, secret profits, and undisclosed conflicts of interest. It requires the agent to subordinate personal gain to the client's best interest.

Question 43Law of Agency and Agency Relationships

A buyer who is not represented by any licensee but who is shown a listing by the seller's agent is generally referred to as:

  1. A mandatary
  2. A principal
  3. A customer Correct answer.
  4. A client

Explanation

A customer is an unrepresented party who receives services from a licensee but to whom no fiduciary duties are owed. The client is the party the licensee actually represents.

Question 44Law of Agency and Agency Relationships

A single agent in a real estate transaction represents:

  1. Both parties, with written consent
  2. The lender and the buyer
  3. Only one of the parties Correct answer.
  4. The seller's attorney

Explanation

A single agent owes fiduciary duties to one party only - either the seller or the buyer. The unrepresented side is treated honestly and fairly but is not owed loyalty.

Question 45Law of Agency and Agency Relationships

A dual agent is a licensee who:

  1. Represents only the seller, even when the buyer has no agent of their own
  2. Represents both the buyer and the seller with written consent Correct answer.
  3. Represents the lender in a financing transaction
  4. Represents the buyer but is paid by the seller at closing

Explanation

Dual agency exists when the same licensee represents both sides of the same transaction, which requires the informed written consent of both parties. The role limits advocacy because the agent cannot favor one client over the other.

Question 46Law of Agency and Agency Relationships

A listing agreement states that it expires at midnight on December 31. If no sale occurs, the agency relationship ends on that date because of:

  1. Renunciation by the agent
  2. Expiration of the stated term Correct answer.
  3. Revocation by the principal
  4. Accomplishment of the stated purpose

Explanation

A term listing terminates automatically when the stated expiration date arrives. Revocation and renunciation are acts of the parties, and accomplishment of purpose requires a completed transaction.

Question 47Law of Agency and Agency Relationships

Commingling, in the handling of real estate trust funds, means:

  1. Mixing client funds with the broker's personal or operating funds Correct answer.
  2. Depositing earnest money into a properly labeled trust account
  3. Returning a deposit to a buyer after a failed inspection
  4. Transferring a commission from the trust account to the broker

Explanation

Commingling is the improper mixing of money held for others with the broker's own funds. Client funds must be segregated in a trust account and accounted for separately.

Question 48Law of Agency and Agency Relationships

In Louisiana residential brokerage, an agency relationship with a seller is most commonly created by:

  1. Operation of law alone, without any action by the parties
  2. An express written agreement between principal and broker Correct answer.
  3. A casual verbal remark made at an open house
  4. The mere payment of a commission at the closing

Explanation

Agency for a listing is normally established by an express written listing agreement signed by the seller and the broker. The writing identifies the parties, the term, the compensation, and the authority granted.

Question 49Law of Agency and Agency Relationships

A licensee wishes to represent both the seller and the buyer in the same transaction. Under Louisiana practice, this is permissible only if:

  1. The seller agrees to it in the listing agreement
  2. The buyer pays a reduced commission
  3. The broker of record approves it verbally
  4. Both parties give written informed consent Correct answer.

Explanation

Dual representation requires the informed written consent of both clients. Consent from only the seller, or an informal internal approval, does not satisfy the disclosure obligation owed to the buyer.

Question 50Law of Agency and Agency Relationships

A listing expires without a sale. The former seller later tells the same agent, in confidence, that foreclosure is imminent. The agent now represents a buyer interested in that home. The agent should:

  1. Tell the buyer about the foreclosure because it likely affects the property's value
  2. Keep the information confidential and not disclose it to the buyer Correct answer.
  3. Disclose it only if the buyer asks directly
  4. Post the information in the MLS to attract offers

Explanation

The duty of confidentiality survives the end of the agency relationship. Information the seller disclosed in confidence may not later be used against the former client.