Practice, Ethics, and Regulatory Compliance
Ethical practice
Louisiana licensees must practice fairly and honestly, obey fair housing law, and avoid deceptive advertising. Federal fair housing protects race, color, religion, sex, national origin, familial status, and disability; state and local laws may add protections. Know the prohibited practices: steering buyers by race, blockbusting, refusing service, and discriminatory advertising. Antitrust rules prohibit price-fixing, group boycotts, and market allocation. RESPA Section 8 prohibits kickbacks and unearned fees for settlement services; affiliated business arrangements require disclosure and cannot be required.
Regulatory compliance
LREC rules cover advertising, supervision, trust accounts, records, and continuing education. A broker must supervise licensees and ensure ads name the brokerage. Telemarketing and email marketing must comply with do-not-call and privacy rules. When handling complaints, cooperate with LREC investigations.
Traps
Watch for “gifts” tied to referrals, commission splits with unlicensed persons, and social media posts that fail to identify the brokerage. Another trap is assuming a lender’s affiliated title company may be required; it may be recommended only with proper disclosure and consumer choice.
Rule of thumb
If a payment or favor is tied to a referral of settlement business, treat it as a RESPA red flag. Worked example: A lender offers a licensee $500 for each buyer referred to its affiliated title company. Accepting would violate RESPA’s anti-kickback rule. The licensee may share general information about the affiliate, but cannot accept a fee for the referral.