Louisiana Real Estate License Law and Commission Rules
Who regulates what
Louisiana real estate licensees answer to the Louisiana Real Estate Commission (LREC), which administers the license law and its rules. Candidates must know the license categories-broker, associate broker, and salesperson-and the sponsorship rule: a salesperson and an associate broker must work under a sponsoring broker. The broker is responsible for supervision, advertising compliance, and trust funds. Activities requiring a license include listing, selling, leasing, negotiating, and procuring prospects for compensation. Know the common exemptions, such as an owner selling their own property or an attorney performing legal work.
Trust funds and records
A frequent trap is money handling. A salesperson who receives a deposit or rent should turn it over to the broker; the broker deposits it into a trust account, not an operating account. Commingling and conversion are serious violations. Keep transaction records and advertising files as the rules require. Advertising must identify the brokerage name; team names and social media posts can create violations if they imply a separate brokerage.
Discipline and renewal
LREC can investigate complaints, issue letters of reprimand, suspend or revoke licenses, and impose fines. Licensees must complete commission-required continuing education and renew on time.
Rule of thumb
When money, advertising, or supervision is unclear, ask: “Does the sponsoring broker control and approve this?” If not, stop. Worked example: A salesperson accepts a $5,000 earnest-money check at a showing. The correct step is to deliver it to the broker promptly so the broker can deposit it into the brokerage trust account; depositing it into the salesperson’s personal account is conversion.