LA License Law Flashcards
A person who engages the professional advice and services of a licensee as his
agent is known as the
Select one:
A. client
B. customer
C. seller
D. buyer
A. client
A licensed person whose license has been transferred to inactive status is
Select one:
A. an active licensee.
B. not authorized to sell real estate.
C. not licensed.
D. this is illegal
B. not authorized to sell real estate.
A written agreement signed by the owner of real estate authorizing a broker to
offer their property for sale or lease is a:
Select one:
a. sales contract.
b. purchase agreement.
c. listing agreement.
d. property agreement.
c. listing agreement.
The sponsoring broker for a licensed corporation, limited liability company, or
partnership is the
Select one:
A. qualifying broker
B. associate broker
C. limited broker
D. designated broker
A. qualifying broker
The term “real estate activity” includes which of the following?
Select one:
A. Selling or purchasing
B. Listing property for sale
C. Managing
D. All of the above
D. All of the above
A person other than an associate broker, who is sponsored by a real estate
broker is called a/an:
Select one:
a. Real Estate Salesperson
b. Qualifying Salesperson
c. Qualifying Licensee
d. Timeshare Registrant
a. Real Estate Salesperson
When is the Real Estate Commission allowed to inspect the records at the
offices of licensees or registrants?
Select one:
a. Between the hours of 9:00 AM and 4:00 PM, except on week-ends and
holidays
b. Only upon subpoena by a court of law
c. By appointment only
d. At the end of each month
a. Between the hours of 9:00 AM and 4:00 PM, except on week-ends and
holidays
Who is responsible for adopting the Rules & Regulations of the Real Estate
Commission?
Select one:
a. The Commissioners.
b. The staff of the Real Estate Commission. c. The governor.
d. The executive director of the Real Estate Commission.
a. The Commissioners.
How is the executive director of the Real Estate Commission selected?
Select one:
a. He/she is appointed by the Commissioners.
b. He/she is appointed by the governor.
c. It is an elected position.
d. He/she must apply to the Civil Service Board.
a. He/she is appointed by the Commissioners.
How many terms may a commissioner serve?
Select one:
a. one six year term
b. two six year terms
c. one four year term
d. an unlimited number of terms
a. one six year term
An individual or institution that offers real estate continuing education courses
is known as a/an:
Select one:
a. Real Estate Vendor.
b. Real Estate School.
c. Real Estate Coordinator.
d. Real Estate Manager.
a. Real Estate Vendor.
Putting personal funds and funds belonging to other persons in one mass or
mixing the funds together so they cannot be differentiated is known as:
Select one:
a. commingling.
b. melding.
c. subjugation.
d. entanglement.
a. commingling.
A real estate broker who holds a salesperson’s license is a:
Select one:
A. qualifying broker
B. sponsoring broker
C. manager
D. associate broker
B. sponsoring broker
A franchise agreement allows a real estate broker to use registered trademarks
and other advertising tools to create a common identity among several brokers
nationally or regionally for marketing purposes.
Select one:
True
False
True
A person who holds a broker’s license but is sponsored by another broker is a:
Select one:
A. salesperson
B. associate broker
C. individual broker
D. This is not legal
B. associate broker
The term Real Estate includes what type/s of properties?
Select one:
a. Land
b. Condominiums
c. Leaseholds
d. All of the above
d. All of the above
Commissioners are appointed for a term of 2 years.
Select one:
True
False
False
How are the members of the Commission chosen?
Select one:
A. Appointed by the governor.
B. Elected
C. Appointed by the director of the Commission.
D. Hired through the Civil Service
A. Appointed by the governor.
How many “at large” members of the Commission are there?
Select one:
a. Two
b. Four
c. Seven
d. Eleven
a. Two
The Commission has the power to:
Select one:
A. issue licenses, registrations, and certificates.
B. censure licensees, registrants, and certificate holders.
C. suspend or revoke licenses, registrations, and certificates.
D. All three of these
D. All three of these
A person who holds a real estate license is known as a/an:
Select one:
a. licensee.
b. salesperson.
c. broker.
d. registrant.
a. licensee.
A document signed by a property owner authorizing a broker to offer his
property for sale is called a/an:
Select one:
a. Listing Agreement
b. Purchase Agreement
c. Timeshare Agreement
d. Property Management Agreement
a. Listing Agreement
A licensee who is employed by and represents only the buyer in a real estate
transaction, regardless of whether the agent’s commission is paid by the buyer
or by the seller is known as a:
Select one:
A. selling agent
B. buyer’s agent
C. buyer broker
D. This is not legal.
B. buyer’s agent
People who engage in the selling of timeshare interests or developing
timeshare property who are registered with the Real Estate Commission are
known as
Select one:
A. timeshare agents
B. timeshare salespersons
C. timeshare registrants
D. timeshare licensees
C. timeshare registrants
Real Estate Activity includes:
Select one:
a. negotiating sales or leases for a commission.
b. listing property for sale or lease for compensation.
c. selling or leasing of real estate for a fee.
d. All of the above.
d. All of the above.
The term “real estate activity” includes which of the following?
Select one:
A. Selling or purchasing
B. Listing property for sale
C. Managing
D. All of the above
D. All of the above
How many Commissioners are appointed from the Supreme Court Districts?
Select one:
a. Seven
b. Eleven
c. Four
d. None
a. Seven
The Louisiana Real Estate Commission consists of how many members?
Select one:
A. 3
B. 6
C. 11
D. 12
C. 11
Who is responsible for creating the License Laws?
Select one:
a. The legislature.
b. The Commission.
c. The governor.
d. The lawyer for the Commission.
a. The legislature.
The Louisiana Real Estate Commission is domiciled in
Select one:
A. New Orleans
B. Shreveport
C. Baton Rouge
D. Lake Charles
C. Baton Rouge
What are the two status classifications of real estate licenses?
Select one:
a. active and inactive
b. agent and licensee
c. active and static
d. current and inactive
a. active and inactive
Every applicant for a license shall submit a sworn statement attesting that he
has knowledge of and understands the provisions of
Select one:
A. The Civil Rights Act
B. The Fair Housing Act
C. The Equal Employment Opportunity Act
D. The Truth In Lending Law
B. The Fair Housing Act
All licensees are required to complete ____ hours continuing education each
year.
Select one:
A. 6
B. 8
C. 10
D. 12
D. 12
Applicants for broker licensing must complete a 30 hour broker responsibility
course as part of the 150 hours of education required.
Select one:
True
False
True
A licensee may remain on inactive status indefinitely.
Select one:
True
False
True
Who may engage in the sale of real estate without being a licensed real estate
agent?
Select one:
A. An attorney on behalf of his or her client.
B. A receiver or trustee in bankruptcy.
C. An individual selling his or her own property.
D. All of the above
D. All of the above
Which of the following is true regarding licensees who have placed their license
on inactive status?
Select one:
A. They must renew their inactive license each year.
B. They are not required to renew each year.
C. They may not transfer to active status until the end of the year.
D. In order to transfer to active status they must take an exam.
A. They must renew their inactive license each year.
Upon termination of a qualifying broker’s affiliation with a corporation, limited
liability company or partnership, the Commission must be notified and a
new qualifying broker designated within
Select one:
A. 3 days
B. 5 days
C. 10 days
D. 30 days
B. 5 days
When a qualifying broker resigns or is terminated, the company can continue to
practice real estate for 5 days until the appointment of a new qualifying broker.
Select one:
True
False
False
When the association of a qualifying broker for a corporation is terminated, the
broker must notify all sponsored licensees by:
Select one:
a. certified or registered mail.
b. regular mail.
c. in person.
d. verbally.
a. certified or registered mail.
The delinquent renewal fee if renewing after November 15th is $200.
Select one:
True
False
True
The fee for renewing your license after September 30th but before November
16th is:
Select one:
a. $50
b. $75
c. $100
d. $150
a. $50
John, who does not hold a real estate license, had some experience with selling
his own homes, so he offered to assist his neighbor in selling her home for
which she paid him a fee of $300. Which of the following is true?
Select one:
a. It is illegal for unlicensed persons to charge a fee for transacting real estate.
b. This is admissible because it was between two private parties.
c. This is admissible because it was a flat fee and not a percentage of the sale.
d. This is illegal because they did not file a request with the Commission.
a. It is illegal for unlicensed persons to charge a fee for transacting real estate.
Which of the following is true regarding listing agreements when a salesperson
transfers to a new sponsoring broker?
Select one:
a. They are the property of the original broker.
b. They are the property of the salesperson.
c. They are the property of the new sponsoring broker.
d. They must be terminated.
a. They are the property of the original broker.
An associate broker or salesperson can assign payment of his or her
commission to an unlicensed corporation or limited liability company of which
he or she is the sole officer, director or shareholder.
Select one:
A. True
B. False
A. True
Demanding a referral fee when reasonable cause does not exist is unlawful.
Select one:
True
False
True
In order for a salesperson to be considered an independent contractor, he or she must:
Select one:
a. be a licensee.
b. receive compensation from sales rather than number of hours worked.
c. have a written agreement with the broker specifying that the licensee
will not be treated as an employee.
d. All of the above.
d. All of the above.
What happens to the licenses of sponsored agents when a broker’s license is revoked?
Select one:
a. They are automatically suspended.
b. They are automatically revoked.
c. They may continue to carry out pending business until they find a new broker.
d. Nothing
a. They are automatically suspended.
Louisiana licensees are required to use the Purchase Agreement Form
prescribed by the Louisiana Real Estate Commission.
Select one:
True
False
True
How long are brokers required to retain records of real estate transactions?
Select one:
A. one year
B. two years
C. three years
D. five years
D. five years
The fee to transfer your license to a new broker is:
Select one:
a. $35
b. $45
c. $25
d. There is no fee.
a. $35
Inactive licensees must renew their licenses no later than:
Select one:
a. March 31st.
b. September 30th.
c. February 15th.
d. They do not have to renew.
b. September 30th.
The last date to renew your license delinquently is:
Select one:
A. December 31
B. February 15
C. June 30
D. March 31
A. December 31
Who can receive a commission payment from a broker?
Select one:
A. a licensed agent.
B. The seller
C. The buyer
D. An unlicensed friend of the seller or buyer who refers them to the
broker.
A. a licensed agent.
If a salesperson transfers his license to a new sponsoring broker but has sales
pending with the former broker, how can he receive his commission?
Select one:
a. directly from the former broker
b. It must be paid to LREC and then to the salesperson.
c. He can not receive any of these commissions.
d. through his new sponsoring broker.
d. through his new sponsoring broker.
It is unlawful for a real estate agent to pay a commission to an unlicensed person.
Select one:
True
False
True
Who can a salesperson receive a commission payment from?
Select one:
A. the seller
B. the buyer
C. his or her sponsoring broker
D. the listing broker
C. his or her sponsoring broker
What happens to the licenses of salespersons or associate brokers when their sponsoring broker’s license is suspended or revoked?
Select one:
A. They are automatically transferred to another broker until they secure a
new sponsoring broker.
B. Their licenses are also suspended or revoked.
C. The sponsoring broker has 72 hours to return all licenses to the Commission.
D. Nothing, they can continue to practice real estate.
C. The sponsoring broker has 72 hours to return all licenses to the Commission.
How long does the agent have to provide his principle with a copy of a document which the principle has signed?
Select one:
A. It should be done immediately.
B. Within 3 days.
C. Within 5 days.
D. Within one week.
A. It should be done immediately.
Which of the following statements is true regarding Purchase Agreements?
Select one:
a. They must have a definite expiration date.
b. They do not have to have an expiration date.
c. A copy must be filed with the Real Estate Commission.
d. A copy must be retained by the broker for 10 years.
a. They must have a definite expiration date.
If a real estate broker conducts business from more than one place of business,
which of the following is true?
Select one:
A. He is required to have one license for his main office only.
B. He is required to have a branch office license for each place of business.
C. No license is required.
D. None of the above.
B. He is required to have a branch office license for each place of business.
The length of time to renew your license delinquently is:
Select one:
a. 3 months.
b. 6 months.
c. 1 year.
d. 1 month.
a. 3 months.
Unlicensed persons can charge a fee for assisting in the sale of real estate as
long as they do not advertise the sale.
Select one:
True
False
False
How many sponsoring brokers may a salesperson have?
Select one:
a. one.
b. one sponsoring broker and one qualifying broker
c. one for each state in which he or she is licensed.
d. as many as needed
c. one for each state in which he or she is licensed.
Under what conditions may a person or company request a referral fee for the
referral of a buyer or seller?
Select one:
A. The person seeking the referral fee introduced the client to the licensee.
B. The person seeking the referral fee has a written contractual relationship with the licensee for a referral fee.
C. The licensee has received the client referral prior to the client contracting to buy or list real estate with the licensee.
D. All of the above.
D. All of the above.
Demanding a referral fee when reasonable cause does not exist is unlawful.
Select one:
True
False
True
Who can receive a commission payment from a broker?
Select one:
A. a licensed agent.
B. The seller
C. The buyer
D. An unlicensed friend of the seller or buyer who refers them to the
broker.
A. a licensed agent.
Which of the following statements is TRUE regarding the mandatory Purchase
Agreement?
Select one:
a. Addendums or amendments can be made to it.
b. No addendums or amendments can be made to it.
c. It is only required for single family residences.
d. It is only required for office buildings.
a. Addendums or amendments can be made to it.
For which of the following properties would the mandatory Purchase
Agreement NOT be required?
Select one:
a. A single family home.
b. A four-plex.
c. A condominium.
d. An office building.
d. An office building.
Written agreements for the sale or management of real estate are required to specify a definite expiration date.
Select one:
A. True
B. False
A. True
Any licensee who is the custodian of any client funds must report the institution
of bankruptcy proceedings to the Commission within
Select one:
A. 3 days
B. 5 days
C. 7 days
D. 10 days
D. 10 days
Bankruptcy proceedings which shall be reported include those in which the
petitioner is named as a debtor, whether classified as voluntary or involuntary,
personal, corporate, or partnership, or which is in any way connected with the
licensee’s, registrant’s, or certificate holder’s real estate business activities.
Select one:
True
False
True
Any final conviction by a court of competent jurisdiction for forgery,
embezzlement, obtaining money under false pretenses, larceny, extortion,
conspiracy to defraud, theft, or any other felony, or any crime involving moral
turpitude shall be reported to the commission within:
Select one:
a. 3 days
b. 7 days
c. 10 days
d. 20 days
c. 10 days
How must complaints against a licensee be filed with the Commission?
Select one:
a. In writing.
b. Verbally or in writing.
c. Through an attorney.
d. The Commission does not deal with complaints against licensees.
a. In writing.
Agent Annie has agreed to meet a prospective buyer to write up a purchase
agreement. Two hours before the appointment Annie is in an accident and has to go to the emergency room. She calls her assistant who is not licensed and
has her meet with the buyer to sign the purchase agreement. Is this legal?
Select one:
a. No.
b. Yes, because the assistant is acting on Annie’s behalf.
c. No, because the broker was not notified.
d. Yes, because otherwise Annie might lose the sale.
a. No.
Unlicensed people can only do ministerial acts.
A licensee is selling his own property and representing the buyer. Which of the
following statements is true?
Select one:
a. As long as he discloses his interest in the property, this is not considered a dual agency.
b. He must have the buyer sign a dual agency disclosure form.
c. The license law does not apply when an agent is selling his own property.
d. He cannot represent the buyer in this transaction.
a. As long as he discloses his interest in the property, this is not considered a dual agency.
After the findings of the Commission against a licensee for a violation, if the
licensee wishes to appeal to the 19th Judicial Court, how long does he have in
which to file the appeal?
Select one:
a. 30 days
b. 10 days
c. 5 days
d. 6 months
a. 30 days
A licensee must be notified of charges made against him by the Commission by
what means?
Select one:
A. in person
B. by registered mail
C. by certified mail
D. Any of the above
D. Any of the above
If a designated qualifying broker who represents more than one corporation,
limited liability company, or partnership is charged with a violation of the license
law, who must be notified?
Select one:
a. Each company for which he is the qualifying broker.
b. Only the company which is involved in the violation.
c. Only the broker himself.
d. Only the client.
a. Each company for which he is the qualifying broker.
When any charges are made against a licensee by the Commission, the licensee
must be notified at least _____ days prior to the date of hearing.
Select one:
A. 10
B. 20
C. 30
D. 60
B. 20
If a qualifying broker for a corporation dies, the corporation must appoint a new
qualifying broker within ___ days.
Select one:
a. 5
b. 3
c. 2
d. 10
a. 5
Which of the following does NOT have to be reported to the Commission?
Select one:
a. A licensee is charged with theft.
b. A licensee is convicted of fraud.
c. A licensee is convicted of embezzling deposit money in a real estate
transaction.
d. Any conviction in a court of law involving forgery.
c. A licensee is convicted of embezzling deposit money in a real estate
transaction.
In the event of the death of the sponsoring broker, who may complete any pending real estate activities of the firm?
Select one:
A. Another brokerage firm will be appointed by the Commission to handle
the business.
B. Any associate broker or salesperson who was sponsored by the deceased broker, upon written approval by the Commission.
C. No one. All current contracts are considered null and void.
D. A relative of the deceased broker will be appointed.
B. Any associate broker or salesperson who was sponsored by the deceased broker, upon written approval by the Commission.
Which of the following is NOT cause for censure, suspension, or revocation of a
license, registration, or certification by the Commission?
Select one:
A. representing to a lender an amount greater than the actual sale price.
B. failure to reduce a bonafide offer to writing when requested by a purchaser.
C. violation of the Fair Housing Act
D. having been convicted of a misdemeanor.
D. having been convicted of a misdemeanor.
It is unlawful for any person or his agent to file with the commission any notice,
statement, or other document, required under the provisions of this Chapter
which is false or contains any material misstatement of fact.
Select one:
True
False
True
If you are acting as a dual agent you must get verbal permission from both
parties.
Select one:
True
False
False
Notice of charges against a licensee for a violation of the license law may be
delivered by registered mail or:
Select one:
a. in person.
b. by regular mail.
c. by telephone.
d. by email.
a. in person.
If a licensee disagrees with the final decision of the Commission concerning
charges made against him, he may request a review of the findings by the
Select one:
A. Board of Realtors
B. Nineteenth Judicial District Court
C. Fifth Circuit Court of Appeals
D. There is no option for review.
B. Nineteenth Judicial District Court
The maximum penalty for violations of the License Law is
Select one:
A. $2000 and 5 years imprisonment.
B. $4000 and 4 years imprisonment
C. $5000 and 5 years imprisonment
D. $10,000 and 10 years imprisonment
A. $2000 and 5 years imprisonment.
A licensee must be notified of charges made against him by the Commission by
what means?
Select one:
A. in person
B. by registered mail
C. by certified mail
D. Any of the above.
D. Any of the above.
The purpose of the Real Estate Recovery Fund is to
Select one:
A. provide funds for real estate education for licensees
B. make payments to licensees for commissions not received
C. reimburse any person who has suffered monetary damages because of acts committed by a licensee in a real estate transaction.
D. To recover money spent on continuing education seminars.
C. reimburse any person who has suffered monetary damages because of acts committed by a licensee in a real estate transaction.
What is the maximum amount that any claimant may receive from the Recovery
Fund?
Select one:
A. $10,000
B. $20,000
C. $30,000
D. $50,000
B. $20,000
Who is eligible to receive payment from the Recovery Fund?
Select one:
A. only licensees
B. only brokers
C. Any claimant who has received final judgment in court against a licensee in a real estate transaction.
D. Any person who is not an employee of the state
C. Any claimant who has received final judgment in court against a licensee in a real estate transaction.
What is the purpose of the Real Estate Research and Education Fund?
Select one:
A. To promote the advancement and more efficient administration of the real estate industry and thereby serve to protect the public.
B. To provide funds for pre-licensing courses
C. To provide funds for payment of Commission employees
D. To provide funds for payment of claims against licensees.
A. To promote the advancement and more efficient administration of the real estate industry and thereby serve to protect the public.
Licensees shall have the option of obtaining errors and omissions insurance
independently, provided that the coverage contained in such policy complies with
the minimum requirements established by the commission.
Select one:
True
False
True
For what purposes may the funds from the Research and Education Fund be
used?
Select one:
A. To establish real estate chairs at Louisiana institutions of higher
learning.
B. To contract for particular research projects in the field of real estate for
the state of Louisiana.
C. To sponsor, conduct, contract for, and to underwrite any and all other research projects or real estate programs having to do with the advancement of the real estate field in Louisiana.
D. All of the above.
D. All of the above.
What is the penalty if a licensee fails to disclose to a buyer that the property
was psychologically impacted?
Select one:
a. None.
b. A fine of not more than $2000.
c. A fine of not more than $5000.
d. Not more than 5 years in prison and $2000.
a. None.
No cause of action shall arise against an owner of real estate or his or her agent
for the failure to disclose to the transferee that the transferred property was
psychologically impacted as defined in Subsection A.
Select one:
True
False
True
Which of the following is required in every written lease, rental agreement, or
contract for sale?
Select one:
A. marital status of lessee
B. street address of seller or lessor
C. notice of statewide database of location of registered sex offenders
D. all of the above
C. notice of statewide database of location of registered sex offenders
Agent Annie notices some mold in a corner of the basement of a house she is
showing to a prospective buyer. What should she do?
Select one:
a. Point it out to the buyer and give them the mold information pamphlet.
b. Nothing, since mold is common and does not have to be disclosed.
c. Give the buyer the mold information pamphlet, but not mention the
presence of the mold.
d. Mention it to the buyer but tell them it will come off with bleach so it’s not a problem.
a. Point it out to the buyer and give them the mold information pamphlet.
Seller Sam tells his agent Al, that the basement wall is cracked but it’s not
noticeable and he doesn’t want to mention it to prospective buyers. Which of
the following statements is true?
Select one:
a. Al must disclose this information because it is a material defect.
b. Al cannot disclose this information because it was told to him in
confidence by his client.
c. If Al discloses the information he is breaching his fiduciary duty of
obedience.
d. Al should tell Sam not to fill out the property disclosure form.
a. Al must disclose this information because it is a material defect.
A contractual relationship between a broker and a client in which the broker
appoints one or more licensees to represent the client is known as __________
agency.
Select one:
a. designated
b. dual
c. single
d. broker
a. designated
Ministerial acts could include all of the following EXCEPT
Select one:
A. responding to phone inquiries concerning price or location
B. setting an appointment to view a property
C. responding to phone inquiries concerning brokerage fees
D. suggesting an offering price for a property
D. suggesting an offering price for a property
A licensee representing a client does not breach a duty or obligation to the
client by showing alternative properties to prospective buyers or tenants or by
showing properties in which the client is interested to other prospective buyers
or tenants.
Select one:
True
False
True
A licensee engaged in any real estate transaction shall be considered to be
representing ______ unless there is a written agreement between the broker and the person providing that there is a different relationship.
Select one:
a. the person he or she is with
b. the seller
c. the buyer
d. no one
a. the person he or she is with
When there is no written agency agreement, who does the licensee represent in a transaction?
Select one:
A. the seller
B. the buyer
C. both
D. the one he is with
D. the one he is with
When acting as a dual agent, what form must be signed by the clients?
Select one:
A. agency disclosure pamphlet
B. buyer representation agreement
C. dual agency disclosure form
D. caveat emptor form
C. dual agency disclosure form
Which of the following CAN NOT be disclosed by the licensee when acting as a
dual agent?
Select one:
A. material defects
B. Confidential information about the seller
C. Confidential information about the buyer
D. Confidential information about buyer or seller
D. Confidential information about buyer or seller
How is sub-agency created in Louisiana?
Select one:
A. by written agreement
B. by membership in MLS
C. by acting as a co-op agent
D. Both B and C
A. by written agreement
Is a client considered to be liable for acts or omissions of his real estate agent?
Select one:
A. yes
B. no
B. no
When a Louisiana broker cooperates with an out of state broker in the sale of
property in Louisiana, the commission is paid
Select one:
A. to the out of state broker only
B. to the Louisiana broker who then pays the out of state broker
C. to the out of state broker who then pays the Louisiana broker
D. to the Louisiana broker only
B. to the Louisiana broker who then pays the out of state broker
If an agent receives his initial license on November 22, 2002, when must he
renew his license?
Select one:
A. December 31, 2003
B. November 22, 2003
C. His birthday, 2003
D. December 31, 2002
D. December 31, 2002
Salesman Sam brings an offer to purchase to the listing agent, Andy. Andy
knows a better offer is coming in later that day. What should Andy do?
Select one:
A. Present the offer immediately.
B. Wait and present the better offer first.
C. Wait and present both offers to the seller at the same time.
D. Not present the offer.
A. Present the offer immediately.
When a sales agent receives a deposit on a property he must
Select one:
A. Put it in a safe place.
B. Give it to his broker
C. deposit it in his escrow account.
D. Deposit it in his operating account.
B. Give it to his broker
When must an offer to purchase be presented to the seller?
Select one:
A. within 5 days
B. immediately
C. within 48 hours
D. within 24 hours
B. immediately
Who must sign the Agency Disclosure Pamphlet?
Select one:
A. the buyer
B. the seller
C. the agents
D. all of the above
D. all of the above
Applicants for a broker’s license must have been actively licensed as a
salesperson for:
Select one:
A. one year
B. Four years
C. three years
D. five years
B. Four years
The sponsoring broker for a corporation, limited liability company, or
partnership is known as the:
Select one:
A. qualifying broker
B. individual broker
C. corporation broker
D. sponsoring broker
A. qualifying broker
The Louisiana Real Estate Commission consists of how many Commissioners?
Select one:
A. 5
B. 11
C. 7
D. 12
B. 11
A buyer and seller have agreed on the sale of a home, however, the buyer does
not have enough cash for the down payment. The seller and buyer, along with
their agents, agree to increase the selling price of the home and then give the
difference to the buyer for his down payment. This would be
Select one:
A. A violation of finance law
B. A violation of license law
C. okay since all parties agreed.
D. Okay as long as the proper paperwork is completed
B. A violation of license law
A person other than an associate broker, who is sponsored by a real estate
broker is called a/an:
Select one:
a. Real Estate Salesperson
b. Qualifying Licensee
c. Timeshare Registrant
d. Qualifying Salesperson
a. Real Estate Salesperson
A person who holds a broker’s license but is sponsored by another broker is a:
Select one:
A. This is not legal
B. salesperson
C. individual broker
D. associate broker
D. associate broker
In the event of the death of the sponsoring broker, who may complete any pending real estate activities of the firm?
Select one:
A. Any associate broker or salesperson who was sponsored by the deceased broker, upon written approval by the Commission.
B. No one. All current contracts are considered null and void.
C. Another brokerage firm will be appointed by the Commission to handle
the business.
D. A relative of the deceased broker will be appointed.
A. Any associate broker or salesperson who was sponsored by the deceased broker, upon written approval by the Commission.
If a qualifying broker for a corporation dies, the corporation must appoint a new
qualifying broker within ___ days.
Select one:
a. 3
b. 10
c. 5
d. 2
c. 5
Any licensee who is the custodian of any client funds must report the institution
of bankruptcy proceedings to the Commission within
Select one:
A. 5 days
B. 7 days
C. 3 days
D. 10 days
D. 10 days
Agent Annie has agreed to meet a prospective buyer to write up a purchase
agreement. Two hours before the appointment Annie is in an accident and has to go to the emergency room. She calls her assistant who is not licensed and
has her meet with the buyer to sign the purchase agreement. Is this legal?
Select one:
a. Yes, because otherwise Annie might lose the sale.
b. No.
c. No, because the broker was not notified.
d. Yes, because the assistant is acting on Annie’s behalf.
b. No.
The Commission will not become involved in disputes concerning
Select one:
A. inspection of records of a brokerage firm.
B. Misuse of escrow funds.
C. disbursement of escrow funds
D. Disputes between licensees regarding payment of commissions.
D. Disputes between licensees regarding payment of commissions.
Agent Bill lists a property for sale and the sellers tell him they do not want a for sale sign in their yard. Bill tells them that it is impossible to sell a property without a for sale sign and puts the sign in the front yard. Which of the following statements is true?
Select one:
a. By signing the listing agreement, the sellers have given Bill free reign to
advertise their property so he has a right to put the sign in their yard.
b. Bill has violated the license law.
c. It is illegal to list a property without placing a for sale sign in the yard.
d. Bill has acted in the best interest of his clients.
b. Bill has violated the license law.
A licensee is selling his own property and representing the buyer. Which of the
following statements is true?
Select one:
a. He cannot represent the buyer in this transaction.
b. The license law does not apply when an agent is selling his own property.
c. He must have the buyer sign a dual agency disclosure form.
d. As long as he discloses his interest in the property, this is not considered a dual agency.
d. As long as he discloses his interest in the property, this is not considered a dual agency.
It is unlawful for any person or his agent to file with the commission any notice,
statement, or other document, required under the provisions of this Chapter
which is false or contains any material misstatement of fact.
Select one:
True
False
True
Notice of charges against a licensee for a violation of the license law may be
delivered by registered mail or:
Select one:
a. by email.
b. by regular mail.
c. by telephone.
d. in person.
d. in person.
If a licensee disagrees with the final decision of the Commission concerning
charges made against him, he may request a review of the findings by the
Select one:
A. Fifth Circuit Court of Appeals
B. Nineteenth Judicial District Court
C. Board of Realtors
D. There is no option for review.
B. Nineteenth Judicial District Court
Which of the following is/are prohibited from owning a real estate school?
Select one:
a. Legislators
b. Commissioners.
c. Relatives of Commissioners.
d. All of the above
d. All of the above
What is the maximum amount that any claimant may receive from the Recovery
Fund?
Select one:
A. $20,000
B. $30,000
C. $50,000
D. $10,000
A. $20,000
What is the maximum amount of payments that can be made for claims arising out of the same transaction regardless of the number of claimants?
Select one:
A. $50,000
B. $20,000
C. $30,000
D. There is no limit.
B. $20,000
All of the following are required to have errors and omissions insurance
EXCEPT:
Select one:
a. active salespersons.
b. new licensees.
c. inactive licensees.
d. active brokers.
c. inactive licensees.
What is the purpose of the Real Estate Research and Education Fund?
Select one:
A. To provide funds for pre-licensing courses
B. To promote the advancement and more efficient administration of
the real estate industry and thereby serve to protect the public.
C. To provide funds for payment of Commission employees
D. To provide funds for payment of claims against licensees.
B. To promote the advancement and more efficient administration of
the real estate industry and thereby serve to protect the public.
For what purposes may the funds from the Research and Education Fund be
used?
Select one:
A. To establish real estate chairs at Louisiana institutions of higher
learning.
B. To contract for particular research projects in the field of real estate for
the state of Louisiana.
C. To sponsor, conduct, contract for, and to underwrite any and all other research projects or real estate programs having to do with the advancement of the real estate field in Louisiana.
D. All of the above.
D. All of the above.
No cause of action shall arise against an owner of real estate or his or her agent
for the failure to disclose to the transferee that the transferred property was
psychologically impacted as defined in Subsection A.
Select one:
True
False
True
The fact that an occupant of a house was infected with AIDS is a material defect.
Select one:
True
False
False
Which of the following statements is NOT TRUE regarding mold information?
Select one:
a. The Commission has approved a mold information pamphlet for licensees to use.
b. Licensees are not required to give prospective buyers info about mold.
c. Licensees cannot be held liable for any errors in the mold information pamphlet.
d. Licensees must give each prospective buyer a mold information pamphlet.
d. Licensees must give each prospective buyer a mold information pamphlet.
A contractual relationship between a broker and a client in which the broker
appoints one or more licensees to represent the client is known as __________
agency.
Select one:
a. broker
b. designated
c. single
d. dual
b. designated
A person who is not represented by the licensee but for whom the licensee is
performing ministerial acts is the
Select one:
A. principle
B. customer
C. buyer
D. client
B. customer
Ministerial acts could include all of the following EXCEPT
Select one:
A. responding to phone inquiries concerning price or location
B. responding to phone inquiries concerning brokerage fees
C. setting an appointment to view a property
D. suggesting an offering price for a property
D. suggesting an offering price for a property
The person who is NOT being represented in a real estate transaction is called the:
Select one:
a. buyer.
b. customer.
c. client.
d. principal.
b. customer.
The payment or promise of payment of compensation to a broker determines
whether an agency relationship has been created.
Select one:
A. True
B. False
B. False
Which of the following statements is true concerning a licensee who unknowingly gives false information to a client that was given to the licensee by the customer?
Select one:
A. This is a violation of License Law.
B. This is fraudulent misrepresentation.
C. This is negligent misrepresentation.
D. This is not a violation of License Law.
D. This is not a violation of License Law.
A seller tells his agent that the roof was replaced one year ago. The buyer later
learns that the roof is actually 10 years old. Who is liable?
Select one:
a. The seller
b. The agent
c. No one
d. The seller and the agent
a. The seller
No cause of action shall arise on behalf of any person against a dual agent for
making disclosures allowed or required, and the dual agent does not terminate
any agency relationship by making the allowed or required disclosures.
Select one:
True
False
True
A dual agency shall not be construed to exist in a circumstance in which the
licensee is working with both landlord and tenant as to a lease which does not
exceed a term of _____ and the licensee is the landlord.
Select one:
a. 3 years
b. 1 year
c. 5 years
d. 2 years
a. 3 years
When acting as a dual agent, what form must be signed by the clients?
Select one:
A. buyer representation agreement
B. dual agency disclosure form
C. agency disclosure pamphlet
D. caveat emptor form
B. dual agency disclosure form
A person who holds a real estate license is known as a/an:
Select one:
a. salesperson.
b. registrant.
c. licensee.
d. broker.
c. licensee.
A licensed person whose license has been transferred to inactive status is
Select one:
A. an active licensee.
B. not authorized to sell real estate.
C. not licensed.
D. this is illegal
B. not authorized to sell real estate.
A document signed by a property owner authorizing a broker to offer his
property for sale is called a/an:
Select one:
a. Timeshare Agreement
b. Listing Agreement
c. Purchase Agreement
d. Property Management Agreement
b. Listing Agreement
How are the members of the Commission chosen?
Select one:
A. Appointed by the director of the Commission.
B. Appointed by the governor.
C. Elected
D. Hired through the Civil Service
B. Appointed by the governor.
The Louisiana Real Estate Commission consists of how many members?
Select one:
A. 12
B. 6
C. 3
D. 11
D. 11
Who is responsible for creating the License Laws?
Select one:
a. The legislature.
b. The Commission.
c. The lawyer for the Commission.
d. The governor.
a. The legislature.
How is the executive director of the Real Estate Commission selected?
Select one:
a. He/she must apply to the Civil Service Board.
b. He/she is appointed by the governor.
c. He/she is appointed by the Commissioners.
d. It is an elected position.
c. He/she is appointed by the Commissioners.
Every applicant for a license shall submit a sworn statement attesting that he has knowledge of and understands the provisions of
Select one:
A. The Truth In Lending Law
B. The Equal Employment Opportunity Act
C. The Civil Rights Act
D. The Fair Housing Act
D. The Fair Housing Act
Licensees who have been on inactive status for more than 5 years must do
what to activate their license?
Select one:
a. apply as a new applicant.
b. complete 80 hours of continuing education.
c. complete 60 hours of continuing education.
d. retake the state exam.
b. complete 80 hours of continuing education.
To obtain a broker’s license you must have held an active salesperson’s license
for at least:
Select one:
A. Four years
B. Six months
C. One year
D. Five years
A. Four years
Which of the following statements is/are true of inactive licensees?
Select one:
a. They must renew their license each year.
b. They may transfer to active status at any time.
c. They may not engage in any real estate activity.
d. All of the above.
d. All of the above.
If a licensee has been in the inactive status for one to three years, how many
hours of continuing education will be required to activate his license?
Select one:
A. 8
B. 40
C. 20
D. 12
C. 20
Upon the merger or consolidation with another corporation, limited liability
company, or partnership, the company shall notify the Commission within ____
days of the merger.
Select one:
a. 10
b. 5
c. 3
d. 2
b. 5
How many hours of post licensing course work are required of brokers?
Select one:
a. 45
b. 12
c. 30
d. None
a. 45
When the association of the qualifying broker for a corporation, limited liability
company, or partnership is terminated, his license must be returned to the
Commission within
Select one:
A. 10 days
B. 5 days
C. 72 hours
D. 3 days
B. 5 days
When a qualifying broker resigns or is terminated, the company can continue to
practice real estate for 5 days until the appointment of a new qualifying broker.
Select one:
True
False
False
When the association of a qualifying broker for a corporation is terminated, the
broker must notify all sponsored licensees by:
Select one:
a. in person.
b. verbally.
c. regular mail.
d. certified or registered mail.
d. certified or registered mail.
The delinquent renewal fee if renewing after November 15th is:
Select one:
a. $200
b. $100
c. $50
d. $300
a. $200
The delinquent renewal fee if renewing after November 15th is $200.
Select one:
True
False
True
If a real estate broker conducts business from more than one place of business,
which of the following is true?
Select one:
A. None of the above.
B. He is required to have one license for his main office only.
C. He is required to have a branch office license for each place of business.
D. No license is required.
C. He is required to have a branch office license for each place of business.
Unlicensed persons can charge a fee for assisting in the sale of real estate as
long as they do not advertise the sale.
Select one:
True
False
False
How many sponsoring brokers may a salesperson have?
Select one:
a. one.
b. as many as needed
c. one for each state in which he or she is licensed.
d. one sponsoring broker and one qualifying broker
c. one for each state in which he or she is licensed.
An associate broker or salesperson can assign payment of his or her commission to an unlicensed corporation or limited liability company of which he or she is the sole officer, director or shareholder.
Select one:
A. True
B. False
A. True
Who can a salesperson receive a commission payment from?
Select one:
A. the seller
B. the listing broker
C. his or her sponsoring broker
D. the buyer
C. his or her sponsoring broker
Persons signing any document in a real estate transaction which pertains to
more than one party should be provided with a copy of the completed
document within _____ days after the final signature is affixed to the document.
Select one:
A. 3
B. 2
C. 7
D. 5
D. 5
How long are brokers required to retain records of real estate transactions?
Select one:
A. two years
B. five years
C. three years
D. one year
B. five years
Which of the following statements is TRUE regarding the mandatory Purchase
Agreement?
Select one:
a. It is only required for single family residences.
b. Addendums or amendments can be made to it.
c. No addendums or amendments can be made to it.
d. It is only required for office buildings.
b. Addendums or amendments can be made to it.
Louisiana licensees are required to use the Purchase Agreement Form
prescribed by the Louisiana Real Estate Commission.
Select one:
True
False
True
A franchise agreement allows a real estate broker to use registered trademarks
and other advertising tools to create a common identity among several brokers
nationally or regionally for marketing purposes.
Select one:
True
False
True
If a broker’s license is revoked:
Select one:
A. Any salespersons may transfer their license to another sponsoring broker and the transfer fee is waived.
B. The salespersons licenses are not affected.
C. The salespersons licenses are also revoked.
D. Any salespersons may transfer their license to another broker upon
paying a $25 transfer fee.
A. Any salesperson may transfer their license to another sponsoring broker and the transfer fee is waived.
When a sponsoring broker gets his license revoked, the salesman
Select one:
A. gets his license suspended
B. is not affected
C. also gets his license revoked
D. must get out of the real estate business
A. gets his license suspended
Who may be granted a Louisiana broker’s license?
Select one:
A. an individual
B. a corporation
C. a limited liability company
D. all of the above
D. all of the above
The sponsoring broker for a corporation, limited liability company, or
partnership is known as the:
Select one:
A. qualifying broker
B. individual broker
C. corporation broker
D. sponsoring broker
A. qualifying broker
How many sponsoring brokers can a licensee have?
Select one:
A. any number
B. one in each state in which he is licensed
C. one for each company that he is employed with
D. one
B. one in each state in which he is licensed
If a seller wishes to pay a bonus to his salesman for his excellent services, he
Select one:
A. May do so if payment is made through the broker.
B. May do so if paid in cash.
C. may not because it is illegal.
D. May pay it directly to the salesman.
A. May do so if payment is made through the broker.
Applicants for a broker’s license must have been actively licensed as a
salesperson for:
Select one:
A. one year
B. Four years
C. three years
D. five years
B. Four years
The Real Estate Commission adjudicates disputes between
Select one:
A. brokers
B. licensees and their principals
C. brokers and salespersons
D. does not become involved in disputes of any kind
B. licensees and their principals
A buyer and seller have agreed on the sale of a home, however, the buyer does not have enough cash for the down payment. The seller and buyer, along with their agents, agree to increase the selling price of the home and then give the
difference to the buyer for his down payment. This would be
Select one:
A. okay since all parties agreed.
B. Okay as long as the proper paperwork is completed
C. A violation of license law
D. A violation of finance law
C. A violation of license law
The legal age for entering into a valid contract in Louisiana is
Select one:
A. 17
B. 20
C. 18
D. 21
C. 18
The term “real estate activity” includes which of the following?
Select one:
A. Selling or purchasing
B. Listing property for sale
C. Managing
D. All of the above
D. All of the above
A person other than an associate broker, who is sponsored by a real estate
broker is called a/an:
Select one:
a. Timeshare Registrant
b. Qualifying Salesperson
c. Real Estate Salesperson
d. Qualifying Licensee
c. Real Estate Salesperson
Bankruptcy proceedings which shall be reported include those in which the
petitioner is named as a debtor, whether classified as voluntary or involuntary,
personal, corporate, or partnership, or which is in any way connected with the
licensee’s, registrant’s, or certificate holder’s real estate business activities.
Select one:
True
False
True
Which of the following does NOT have to be reported to the Commission?
Select one:
a. A licensee is convicted of embezzling deposit money in a real estate
transaction.
b. A licensee is convicted of fraud.
c. Any conviction in a court of law involving forgery.
d. A licensee is charged with theft.
d. A licensee is charged with theft.
In the event of the death of the sponsoring broker, who may complete any pending real estate activities of the firm?
Select one:
A. Another brokerage firm will be appointed by the Commission to handle
the business.
B. A relative of the deceased broker will be appointed.
C. Any associate broker or salesperson who was sponsored by the deceased broker, upon written approval by the Commission.
D. No one. All current contracts are considered null and void.
C. Any associate broker or salesperson who was sponsored by the deceased broker, upon written approval by the Commission.
If you are acting as a dual agent you must get verbal permission from both parties.
Select one:
True
False
False
Agent Bill lists a property for sale and the sellers tell him they do not want a for sale sign in their yard. Bill tells them that it is impossible to sell a property without a for sale sign and puts the sign in the front yard. Which of the following
statements is true?
Select one:
a. It is illegal to list a property without placing a for sale sign in the yard.
b. Bill has acted in the best interest of his clients.
c. By signing the listing agreement, the sellers have given Bill free reign to
advertise their property so he has a right to put the sign in their yard.
d. Bill has violated the license law.
d. Bill has violated the license law.
It is illegal to place a For Sale sign in the seller’s yard without his permission.
Select one:
True
False
True
How must complaints against a licensee be filed with the Commission?
Select one:
a. The Commission does not deal with complaints against licensees.
b. Verbally or in writing.
c. Through an attorney.
d. In writing.
d. In writing.
Agent Sally accepted a deposit from her buyer for the purchase of a home.
Since she was not going back to the office until Monday morning, she put the
deposit check in her personal checking account. She planned on writing her
broker a check on Monday morning. Which of the following statements is true?
Select one:
a. This is a violation of the license law.
b. Since Sally is representing the buyer, as long as she accounts for the money by the time of the closing there is no violation.
c. This is perfectly legal.
d. As long as the money is put in the broker’s escrow account within 5
days there is no violation.
a. This is a violation of the license law.
A licensee must be notified of charges made against him by the Commission by
what means?
Select one:
A. in person
B. by certified mail
C. by registered mail
D. Any of the above.
D. Any of the above.
After the findings of the Commission against a licensee for a violation, if the
licensee wishes to appeal to the 19th Judicial Court, how long does he have in
which to file the appeal?
Select one:
a. 10 days
b. 5 days
c. 30 days
d. 6 months
c. 30 days
What is the source of funds for the Recovery Fund?
Select one:
A. the state
B. sale of real estate publications
C. license fees
D. fees from penalties
C. license fees
Which of the following is/are prohibited from owning a real estate school?
Select one:
a. Legislators
b. Commissioners.
c. Relatives of Commissioners.
d. All of the above
d. All of the above
The Commission may impose a civil penalty of no more than _______ upon any
unlicensed person found to have engaged in real estate activity.
Select one:
a. $3000
b. The Commission can only fine licensees.
c. $2000
d. $5000
d. $5000
For what purposes may the funds from the Research and Education Fund be
used?
Select one:
A. To establish real estate chairs at Louisiana institutions of higher
learning.
B. To contract for particular research projects in the field of real estate for
the state of Louisiana.
C. To sponsor, conduct, contract for, and to underwrite any and all other
research projects or real estate programs having to do with the advancement of the real estate field in Louisiana.
D. All of the above.
D. All of the above.
Licensees are required by the Commission to have:
Select one:
A. homeowner
B. flood insurance
C. errors and omissions insurance
D. broker
C. errors and omissions insurance
Licensees shall have the option of obtaining errors and omissions insurance
independently, provided that the coverage contained in such policy complies with the minimum requirements established by the commission.
Select one:
True
False
True
Which of the following statements is NOT TRUE regarding mold information?
Select one:
a. The Commission has approved a mold information pamphlet for licensees to use.
b. Licensees are not required to give prospective buyers information about mold.
c. Licensees cannot be held liable for any errors in the mold information pamphlet.
d. Licensees must give each prospective buyer a mold information pamphlet.
d. Licensees must give each prospective buyer a mold information pamphlet.
When should an agent present the agency disclosure pamphlet to a party to a real estate transaction?
Select one:
A. at the first substantive meeting
B. at the closing
C. any time before the closing
D. at the time that the contract is signed.
A. at the first substantive meeting
Notice of the availability to the public of access to a statewide database disclosing the locations of sex offenders is required in which of the following?
Select one:
a. Written leases executed by licensees.
b. Purchase agreements executed by licensees.
c. Rental agreement written and executed by licensees.
d. All of the above.
d. All of the above.
Which of the following statements is NOT TRUE regarding mold information?
Select one:
a. The Commission has approved a mold information pamphlet for licensees to use.
b. Licensees are not required to give prospective buyers information
about mold.
c. Licensees can not be held liable for any errors in the mold information pamphlet.
d. Licensees must give each prospective buyer a mold information pamphlet.
d. Licensees must give each prospective buyer a mold information pamphlet.
Ministerial acts could include all of the following EXCEPT
Select one:
A. setting an appointment to view a property
B. suggesting an offering price for a property
C. responding to phone inquiries concerning price or location
D. responding to phone inquiries concerning brokerage fees
B. suggesting an offering price for a property
Seller Sam tells his agent Al, that the basement wall is cracked but it’s not
noticeable and he doesn’t want to mention it to prospective buyers. Which of
the following statements is true?
Select one:
a. Al cannot disclose this information because it was told to him in
confidence by his client.
b. Al should tell Sam not to fill out the property disclosure form.
c. If Al discloses the information he is breaching his fiduciary duty of
obedience.
d. Al must disclose this information because it is a material defect
d. Al must disclose this information because it is a material defect
Agent Annie notices some mold in a corner of the basement of a house she is
showing to a prospective buyer. What should she do?
Select one:
a. Give the buyer the mold information pamphlet, but not mention the
presence of the mold.
b. Mention it to the buyer but tell them it will come off with bleach so it’s not a problem.
c. Nothing, since mold is common and does not have to be disclosed.
d. Point it out to the buyer and give them the mold information pamphlet.
d. Point it out to the buyer and give them the mold information pamphlet.
When there is no written agency agreement, who does the licensee represent in
a transaction?
Select one:
A. the one he is with
B. the buyer
C. the seller
D. both
A. the one he is with
What duties are owed to the customer by the licensee?
Select one:
A. obedience
B. confidentiality
C. all of the above
D. honesty and fairness
D. honesty and fairness
A licensee representing a client does not breach a duty or obligation to the
client by showing alternative properties to prospective buyers or tenants or by
showing properties in which the client is interested to other prospective buyers
or tenants.
Select one:
True
False
True
Which of the following CAN NOT be disclosed by the licensee when acting as a
dual agent?
Select one:
A. material defects
B. Confidential information about the seller
C. Confidential information about the buyer
D. Confidential information about buyer or seller
D. Confidential information about buyer or seller
How is sub-agency created in Louisiana?
Select one:
A. by membership in MLS
B. Both B and C
C. by written agreement
D. by acting as a co-op agent
C. by written agreement
A licensee may act as a dual agent
Select one:
A. only with the informed written consent of all clients.
B. when it is in the best interest of the parties involved.
C. whenever the agent is the listing agent.
D. when the agent is the designated agent.
A. only with the informed written consent of all clients.
A person who holds a real estate license is known as a/an:
Select one:
a. broker.
b. salesperson.
c. licensee.
d. registrant.
c. licensee.
A licensee who is employed by and represents only the buyer in a real estate
transaction, regardless of whether the agent’s commission is paid by the buyer
or by the seller is known as a:
Select one:
A. selling agent
B. buyer’s agent
C. buyer broker
D. This is not legal.
B. buyer’s agent
A real estate broker who holds a salesperson’s license is a:
Select one:
A. associate broker
B. qualifying broker
C. manager
D. sponsoring broker
D. sponsoring broker
Commissioners are appointed for a term of 2 years.
Select one:
True
False
False
How many “at large” members of the Commission are there?
Select one:
a. Two
b. Four
c. Seven
d. Eleven
a. Two
The Louisiana Real Estate Commission consists of how many members?
Select one:
A. 6
B. 11
C. 3
D. 12
B. 11
Who is responsible for adopting the Rules & Regulations of the Real Estate
Commission?
Select one:
a. The governor.
b. The Commissioners.
c. The staff of the Real Estate Commission.
d. The executive director of the Real Estate Commission.
b. The Commissioners.
Licensees who have been on inactive status for more than 5 years must do
what to activate their license?
Select one:
a. apply as a new applicant.
b. complete 80 hours of continuing education.
c. complete 60 hours of continuing education.
d. retake the state exam.
b. complete 80 hours of continuing education.
What are the requirements for obtaining a real estate salesperson license in
Louisiana?
Select one:
A. Must complete 90 hours of approved real estate coursework.
B. Must be a high school graduate, or equivalent.
C. Must pass the state exam.
D. All of the above.
D. All of the above.
All licensees are required to complete ____ hours continuing education each
year.
Select one:
A. 6
B. 8
C. 10
D. 12
D. 12
When may a licensee transfer from inactive to active status?
Select one:
a. At any time.
b. Only after 6 months.
c. Only during the renewal period.
d. At the end of the year.
a. At any time.
How many hours of post licensing course work are required of brokers?
Select one:
a. None
b. 30
c. 12
d. 45
d. 45
How long may a licensee remain on inactive status?
Select one:
a. The time is unlimited.
b. No more than 5 years.
c. Only until the end of the renewal period.
d. Only until he/she finds a new broker.
a. The time is unlimited.
When a corporation, limited liability company or partnership is dissolved, the
licenses of the qualifying broker and other sponsored licensees must be returned to the Commission within ____ days.
Select one:
A. 5
B. 3
C. 10
D. 30
A. 5
The broker’s license is required to show
Select one:
A. name of business
B. address of business
C. name of agents
D. Both A and B
D. Both A and B
Each sales or associate broker’s license is required to show
Select one:
A. the name of the licensee
B. the name of the broker or company name
C. address of licensee
D. Both A and B
D. Both A and B
Upon termination of the association of an associate broker or salesperson with
his sponsoring broker, the broker shall return the license to the Commission
within
Select one:
A. 24 hours
B. 5 days
C. 3 days
D. 10 days
B. 5 days
John, who does not hold a real estate license, had some experience with selling
his own homes, so he offered to assist his neighbor in selling her home for which she paid him a fee of $300. Which of the following is true?
Select one:
a. This is illegal because they did not file a request with the Commission.
b. This is admissible because it was a flat fee and not a percentage of the sale.
c. This is admissible because it was between two private parties.
d. It is illegal for unlicensed persons to charge a fee for transacting real estate.
d. It is illegal for unlicensed persons to charge a fee for transacting real estate.
A real estate license is issued for a period of
Select one:
A. two years
B. one calendar year
C. three years
D. five years
B. one calendar year
If a real estate broker conducts business from more than one place of business,
which of the following is true?
Select one:
A. No license is required.
B. None of the above.
C. He is required to have one license for his main office only.
D. He is required to have a branch office license for each place of business.
D. He is required to have a branch office license for each place of business.
The fee for renewing your license after September 30th but before November
16th is:
Select one:
a. $50
b. $75
c. $100
d. $150
a. $50
An associate broker or salesperson can assign payment of his or her commission to an unlicensed corporation or limited liability company of which he or she is the sole officer, director or shareholder.
Select one:
A. True
B. False
A. True
How many sponsoring brokers may a salesperson have?
Select one:
a. as many as needed
b. one sponsoring broker and one qualifying broker
c. one for each state in which he or she is licensed.
d. one.
c. one for each state in which he or she is licensed.
Demanding a referral fee when reasonable cause does not exist is unlawful.
Select one:
True
False
True
How long does the agent have to provide his principle with a copy of a document which the principle has signed?
Select one:
A. It should be done immediately.
B. Within one week.
C. Within 3 days.
D. Within 5 days.
A. It should be done immediately.
For which of the following properties would the mandatory Purchase
Agreement NOT be required?
Select one:
a. A condominium.
b. A single family home.
c. An office building.
d. A four-plex.
c. An office building.
Written agreements for the sale or management of real estate are required to specify a definite expiration date.
Select one:
A. True
B. False
A. True
How long are brokers required to retain records of real estate transactions?
Select one:
A. one year
B. two years
C. three years
D. five years
D. five years
A franchise agreement allows a real estate broker to use registered trademarks
and other advertising tools to create a common identity among several brokers
nationally or regionally for marketing purposes.
Select one:
True
False
True
How many days after passing the licensing exam does an applicant have in which to submit the affidavit of sponsorship to the Commission?
Select one:
a. 90
b. 60
c. 30
d. 120
a. 90
The examination authorization shall be valid for one examination and shall expire 90 days after the date it is issued.
Select one:
True
False
True
Out of state applicants applying for a Louisiana real estate license who are
currently or previously licensed in another state which does not have reciprocity
with Louisiana, and have taken an equivalent exam in that state must do which of the following?
Select one:
A. They must take the full exam.
B. They do not have to take an exam.
C. They must take only the Louisiana portion of the exam.
D. They must begin as a new applicant.
C. They must take only the Louisiana portion of the exam.
The examination authorization form issued by the Commission shall be valid
for how many days?
Select one:
a. 90 days
b. 30 days
c. 15 days
d. 45 days
a. 90 days
if an applicant for licensing does not take the state exam within 90 days after
turning in his license application to the Commission what will happen?
Select one:
A. The applicant must reapply to the Commission.
B. The applicant must wait six months.
C. The applicant must re-take the 90 hour course.
D. Nothing, the applicant has 6 months to take the exam.
A. The applicant must reapply to the Commission.
Licensees must complete ____ hours of continuing education each year.
Select one:
A. 8
B. 12
C. 16
D. None
B. 12
A transfer fee will not be charged when the salesperson or associate broker
applies for transfer within 60 days of
Select one:
A. the death of the sponsoring broker
B. suspension or revocation of the sponsoring broker
C. transfer of the sponsoring broker
D. all of the above
D. all of the above
When a licensed agency is purchased by another licensed agency, the sponsoring broker of the acquiring agency must notify the Commission within
Select one:
A. 2 business days
B. 3 business days
C. 5 business days
D. 7 business days
C. 5 business days
A broker may be concurrently licensed as:
Select one:
A. an individual broker
B. the designated qualifying broker of a corporation
C. the designated qualifying broker of an LLC or partnership
D. Any of the above.
D. Any of the above.
A broker may be concurrently licensed as:
Select one:
A. an individual broker
B. the designated qualifying broker of a corporation
C. the designated qualifying broker of an LLC or partnership
D. Any of the above.
D. Any of the above.
The name on a license, registration or timeshare certificate must be
Select one:
A. the name of the individual licensee
B. the name of the corporation, partnership or limited liability company as
registered with the Secretary of State
C. trade names registered with the Secretary of State.
D. Any of the above.
D. Any of the above.
A broker may be concurrently licensed as:
Select one:
A. an individual broker
B. the designated qualifying broker of a corporation
C. the designated qualifying broker of an LLC or partnership
D. Any of the above.
D. Any of the above.
Any licensee who buys property or sells his own property must disclose
Select one:
A. the name of his broker
B. his license number
C. that he is a licensed agent
D. all of the above
C. that he is a licensed agent
A broker advertising on an internet site or e-mail must include on each page
Select one:
A. the broker’s name
B. the city and state in which the broker’s office is located
C. Any trade name as registered with the Commission
D. All of the above.
D. All of the above.
For how many branch offices may a sponsoring broker be designated as the
managing broker?
Select one:
a. One or more.
b. None.
c. One.
d. Three.
a. One or more.
Who may open and maintain an escrow account?
Select one:
a. Individual real estate brokers
b. Individual brokers and associate brokers
c. Individual brokers, associate brokers, and salespersons
d. Anyone
a. Individual real estate brokers
Can a broker open additional escrow account to accommodate business
transacted out of branch offices?
Select one:
A. Yes
B. No
A. Yes
Which of the following statements is TRUE regarding escrow accounts?
Select one:
A. A broker may open an additional escrow account when it is in the
interest of the principal parties to a particular transaction.
B. Escrow account must be non-interest bearing unless all parties having an interest in the funds deposited in the account have agreed otherwise in writing.
C. Personal funds of $2500 or less may be kept in an escrow account.
D. All of the above.
D. All of the above.
For which of the following reasons can money in an escrow account be withdrawn?
Select one:
A. to return the funds to the buyer at the time of closing
B. upon mutual written consent of all parties
C. upon court order
D. all of the above
D. all of the above
Within ___ days following the transfer of funds, the sponsoring broker of the
acquired agency shall close the escrow accounts and trust accounts from
which the funds were transferred and shall advise the commission in writing
when such action has been completed.
Select one:
a. 10
b. 5
c. 3
d. 2
a. 10
Disputes over disbursement of escrow funds may be resolved by all of the
following EXCEPT:
Select one:
a. By the Real Estate Commission
b. By reasonable interpretation of the broker holding the funds
c. By mutual agreement of all parties involved
d. By court order
a. By the Real Estate Commission
Licensees must notify the Real Estate Commission within 10 days of a change
in mailing address OR physical address.
Select one:
True
False
True
The Commission shall be notified within ___ days of a change of a licensee’s
phone number.
Select one:
a. 10
b. 5
c. 3
d. 30
a. 10
When involved in the sale or lease of real property, with whom must the licensee
provide an agency disclosure informational pamphlet?
Select one:
A. the seller
B. the buyer
C. the seller and the buyer
D. all parties to the transaction
D. all parties to the transaction
When a licensee is acting as a principal in a real estate transaction, he must disclose the fact that he is licensed. Which of the following would be considered as being a principal to a transaction?
Select one:
a. When selling property which he owns or has an ownership interest.
b. When acting as a listing agent.
c. When acting as the buyer’s agent.
d. When acting as a dual agent.
a. When selling property which he owns or has an ownership interest.
If a licensee holds any interest in a property involved in a real estate transaction, his or her status as licensee must be disclosed in writing to all parties prior to entering into any negotiations concerning the execution of a real estate
contract.
Select one:
True
False
True
A copy of a rejected offer or counter offer shall be provided to the buyer or
seller within
Select one:
A. 24 hours
B. 2 days
C. 3 days
D. 5 days
D. 5 days
Licensees are required to use the Residential Agreement to Buy or Sell as
prescribed the Louisiana Real Estate Commission.
Select one:
True
False
True
When must written offers and counter offers for the purchase of real estate be
presented to buyers and/or sellers?
Select one:
A. within 24 hours
B. immediately
C. within 72 hours
D. within 5 days
B. immediately
When given permission by the seller a listing broker or designated agent may
reject an offer or counter offer and sign the rejection in lieu of the seller.
Select one:
True
False
True
If a franchise applicant is not a resident of Louisiana, which of the following
statements is TRUE?
Select one:
a. The applicant shall appoint a licensed active Louisiana individual real estate broker to act as the applicant’s agent for the service of all judicial process or legal notices.
b. The applicant may not apply for a franchise in Louisiana.
c. The applicant must first obtain a Louisiana broker’s license.
d. The applicant may apply as an out-of-state applicant.
a. The applicant shall appoint a licensed active Louisiana individual real estate broker to act as the applicant’s agent for the service of all judicial process or legal notices.
The penalty for operating as a franchiser of real estate brokerage firms without
the authority of the Commission is
Select one:
A. The company cannot do business in Louisiana for a period of one year.
B. The company can never do business in Louisiana.
C. The company’s license is suspended for 6 months.
D. There is no penalty issued by the Commission.
A. The company cannot do business in Louisiana for a period of one year.
If a complaint is made to the Commission alleging a violation of the License Law or Rules & Regulations, the complaint must be
Select one:
A. signed by the complainant
B. signed by an attorney
C. registered with the Clerk of Court
D. none of the above
A. signed by the complainant
If the respondent does not admit to having committed a violation, then the
violations must be addressed through
Select one:
A. a formal adjudicatory hearing
B. a court of law
C. the 19th judicial court
D. none of the above
A. a formal adjudicatory hearing
Licensees and their spouses who are on active military status and are transferred out of the state may renew their licenses without penalty for up to
Select one:
A. 3 months following honorable discharge
B. 6 months following honorable discharge
C. 9 months following honorable discharge
D. 1 year following honorable discharge
B. 6 months following honorable discharge
If an out-of-state broker is co-operating with a Louisiana broker in the listing of
real property in Louisiana, can the out-of-state broker place a sign on the property?
Select one:
a. Only with the written consent of the Louisiana broker.
b. No, never.
c. Yes, always.
d. Both brokers are required to place a sign on the property.
a. Only with the written consent of the Louisiana broker.
It shall be the duty of every licensee to notify the commission within __ days by
registered or certified mail or hand delivery of any sanction imposed on the
licensee by another jurisdiction.
Select one:
a. 10 days
b. 5 days
c. 20 days
d. 60 days
a. 10 days
Which of the following is true when a Louisiana broker elects to work with a
licensed broker of another state in the sale of property in Louisiana?
Select one:
A. Any monies collected on behalf of others must be placed in the
Louisiana broker’s escrow account.
B. Any advertising must contain the names of both brokers.
C. Any commissions must be paid to the Louisiana broker, who will then
compensate the out of state broker.
D. All of the above.
D. All of the above.
When a Louisiana broker elects to co-operate with an out-of-state broker in the
sale of real property in Louisiana, how are any fees paid?
Select one:
a. Any fees must be paid to the Louisiana broker who will then compensate the out-of-state broker.
b. Any fees must be paid to the broker who originally obtained the listing.
c. Any fees may be paid to either broker, who will then compensate the
other broker.
d. Any fees must be paid to the out-of-state broker, who may then give a
referral fee to the Louisiana broker.
a. Any fees must be paid to the Louisiana broker who will then compensate the out-of-state broker.
When a licensed broker elects to share a part of a real estate commission with
a licensed broker in another jurisdiction who is acting only as a referral agent
and is not involved in the actual negotiations, this payment is known as a
Select one:
A. stipend
B. referral fee
C. agent
D. This is illegal.
B. referral fee
Applications for registration as a franchiser in Louisiana shall contain which of the following?
Select one:
a. A certified, audited financial statement disclosing the current financial condition of the applicant;
b. Name, address, and whether the applicant is a person, partnership,
limited liability company, or corporation;
c. A statement of the business activities of the applicant, including a description of the franchise agreement
d. All of the above
d. All of the above
Each application for renewal by a franchiser shall be submitted on or
before_____ of each year and shall reflect the information required by the
Commission for the preceding year.
Select one:
a. December 31
b. January 1
c. January 15
d. February 1
c. January 15
Whose duty is it to ensure that a licensee is aware of the laws regulating the
real estate industry?
Select one:
A. the licensee
B. the broker
C. the Commission
D. All of the above.
A. the licensee
After a hearing, and upon determination that any federal or state law or commission regulation has been or will be violated by any franchiser that is subject to the rules and regulations, the Real Estate Commission may do which
of the following?
Select one:
a. Withdraw the franchise registration
b. Issue a cease and desist order
c. Either A or B
d. A and/or B
d. A and/or B
Non-resident licensees are bound by the provisions of the Louisiana Real Estate
License Law.
Select one:
True
False
True
Louisiana licensees may automatically become licensed in
Select one:
A. States with which Louisiana has a reciprocal agreement.
B. States which border Louisiana
C. States in the southeastern section
D. No other states.
A. States with which Louisiana has a reciprocal agreement.
Which of the following is true when a Louisiana broker elects to work with a
licensed broker of another state in the sale of property in Louisiana?
Select one:
A. Any monies collected on behalf of others must be placed in the
Louisiana broker’s escrow account.
B. Any advertising must contain the names of both brokers.
C. Any commissions must be paid to the Louisiana broker, who will then
compensate the out of state broker.
D. All of the above.
D. All of the above.
When a Louisiana broker opts to co-operate with an out-of-state broker in the
sale or lease of real property, all advertising must contain:
Select one:
a. The names of both the Louisiana broker and the out-of-state broker.
b. The name of the Louisiana broker only.
c. The name of the out-of-state broker only.
d. Either the name of the Louisiana broker or the name of the out-of-state broker.
a. The names of both the Louisiana broker and the out-of-state broker.
Any person residing in and licensed as a real estate broker or salesperson in a
state whose appropriate authority has entered into a reciprocal agreement with
the commission shall be granted an equivalent non-resident license by the
commission upon applying and complying with the applicable requirements.
Select one:
True
False
True
No person shall at any time, while on the premises of a certified real estate school, discuss the sponsorship of any student by any licensee of the Commission.
Select one:
True
False
True
Salesman Sam brings an offer to Agent Ann on a house she has listed. Ann
positively knows of a better offer that is expected to come in later that day. She
should
Select one:
A. Wait for the better offer to arrive and present them both at the same time.
B. Not present it since he knows a better offer is coming.
C. Present Sam’s offer immediately.
D. None of the above.
C. Present Sam’s offer immediately.
When advertising on the internet, the broker’s name, city and state must
appear on all EXCEPT:
Select one:
A. bulletin boards
B. e-mails
C. websites
D. None of the above, no sites are exempt from this rule.
D. None of the above, no sites are exempt from this rule.
Which of the following is NOT a requirement for obtaining a Louisiana real
estate license?
Select one:
A. Applicant must pass a state exam.
B. Applicant must be 18 years or older.
C. Applicant must be a U.S. citizen.
D. Applicant must complete the required education hours.
C. Applicant must be a U.S. citizen.
Security deposits received by a property manager must be placed in
Select one:
A. a savings account
B. the operating account
C. the rental deposit trust account
D. the security deposit trust account
D. the security deposit trust account
Which of the following must be reported to the Commission within 10 days?
Select one:
A. deposits made to escrow accounts
B. licensee’s change of address and/or phone number
C. disbursements made from escrow accounts.
D. Licensee’s intention to transfer his license.
B. licensee’s change of address and/or phone number
Licensee’s must provide an agency disclosure pamphlet to
Select one:
A. Only when acting as a dual agent.
B. the seller only
C. all parties to a real estate transaction involving the sale or lease of
real property.
D. the buyer only
C. all parties to a real estate transaction involving the sale or lease of
real property.
Which of the following is TRUE regarding non-resident broker’s escrow accounts?
Select one:
A. They may not have escrow accounts.
B. They must be at a financial institution in the state in which they reside.
C. They may be in financial institutions in Louisiana or in the state in which they reside.
D. They must be at a financial institution in Louisiana.
C. They may be in financial institutions in Louisiana or in the state in which they reside.
Every applicant for a license must submit a sworn statement attesting that he
or she has knowledge of
Select one:
A. the License Laws
B. the Fair Housing Act
C. Civil Law
D. the location of the Commission
B. the Fair Housing Act
When a sponsoring broker’s license is revoked, what happens to the
licenses of his agents?
Select one:
A. They are automatically transferred to another broker.
B. They are automatically revoked.
C. They are automatically suspended.
D. They are automatically placed on inactive status.
C. They are automatically suspended.
The examination authorization shall be valid for one examination and shall
expire 90 days after the date it is issued.
Select one:
True
False
True
What happens if a licensee fails to turn in the affidavit of sponsorship to the
Commission within 90 days after passing the licensing exam?
Select one:
a. The applicant must reapply.
b. The applicant will have to take the exam again.
c. The Commission will issue an inactive license.
d. The applicant will be charged a $90 fee.
c. The Commission will issue an inactive license.
How long must the licensee retain the signed portion of the agency disclosure
pamphlet?
Select one:
A. until the sale is closed
B. for 10 years
C. for 3 years
D. for 5 years
D. for 5 years
All of the following would constitute “substantive contact” EXCEPT:
Select one:
a. When performing ministerial acts for the customer
b. The customer divulges confidential information
c. When obtaining a listing agreement
d. When performing any real estate related activity with the customer
a. When performing ministerial acts for the customer
Who must sign the agency disclosure pamphlet?
Select one:
A. The licensee and prospective seller/lessor or buyer/lessee.
B. The licensee only.
C. The prospective seller/lessor or buyer/lessee.
D. Neither.
A. The licensee and prospective seller/lessor or buyer/lessee.
When should the dual agency disclosure form be presented and signed?
Select one:
a. At the closing.
b. At the time the brokerage agreement is entered into or at any time before the licensee acts as a dual agent.
c. When the property is shown.
d. When the listing agreement is signed.
b. At the time the brokerage agreement is entered into or at any time before the licensee acts as a dual agent.
What is the official source of any mold informational pamphlet approved by the
Louisiana Real Estate Commission?
Select one:
a. HUD
b. The Home Inspectors Association
c. MLS
d. The United State Environmental Protection Agency
d. The United State Environmental Protection Agency
What form must be used when entering into a dual agency transaction?
Select one:
A. No form is needed
B. Agent-Client Disclosure Form
C. Dual agency is illegal.
D. Dual Agency Disclosure Form
D. Dual Agency Disclosure Form
A copy of a rejected offer or counter offer shall be provided to the buyer or
seller within
Select one:
A. 5 days
B. 24 hours
C. 3 days
D. 2 days
A. 5 days
Licensees are required to use the Residential Agreement to Buy or Sell as
prescribed the Louisiana Real Estate Commission.
Select one:
True
False
True
If a licensee who chooses to deliver mold information to a buyer, which of the
following should he use?
Select one:
a. “A Brief Guide to Mold, Moisture, and Your Home”
b. “Mold Remediation in Schools and Commercial Buildings”
c. the United States Environmental Protection Agency (EPA) website
d. Any of the above
d. Any of the above
Upon documented probable cause ______ may issue written authorization to
investigate apparent violations of the Louisiana Real Estate License Law and/or
the Rules and Regulations of the commission.
Select one:
a. The executive director of the Louisiana Real Estate Commission
b. Any individual
c. Any licensee
d. Any state investigator
a. The executive director of the Louisiana Real Estate Commission
How many days does a respondent have in which to file a petition for judicial
review of the findings of the Commission resulting from an investigation?
Select one:
A. 10
B. 30
C. 90
D. 60
B. 30
If the respondent does not admit to having committed a violation, then the
violations must be addressed through
Select one:
A. none of the above
B. a court of law
C. a formal adjudicatory hearing
D. the 19th judicial court
C. a formal adjudicatory hearing
Whose duty is it to ensure that a licensee is aware of the laws regulating the
real estate industry?
Select one:
A. the licensee
B. the broker
C. the Commission
D. All of the above.
A. the licensee
In order to operate a real estate business under a franchise, the franchise name
must be
Select one:
A. a nationally recognized name
B. a registered trademark
C. registered with the Louisiana Real Estate Commission
D. none of the above.
C. registered with the Louisiana Real Estate Commission
If a franchise applicant is not a resident of Louisiana, which of the following
statements is TRUE?
Select one:
a. The applicant may not apply for a franchise in Louisiana.
b. The applicant shall appoint a licensed active Louisiana individual real estate broker to act as the applicant’s agent for the service of all judicial processes or legal notices.
c. The applicant must first obtain a Louisiana broker’s license.
d. The applicant may apply as an out-of-state applicant.
b. The applicant shall appoint a licensed active Louisiana individual real estate broker to act as the applicant’s agent for the service of all judicial processes or legal notices.
Franchise registrations must be renewed how often?
Select one:
a. Never
b. Every 5 years
c. Each year
d. Every two years
c. Each year
How many days does a respondent have in which to file a petition for judicial
review of the findings of the Commission resulting from an investigation?
Select one:
A. 10
B. 60
C. 30
D. 90
C. 30
If a complaint is made to the Commission alleging a violation of the License Law or Rules & Regulations, the complaint must be
Select one:
A. signed by the complainant
B. signed by an attorney
C. registered with the Clerk of Court
D. none of the above
A. signed by the complainant
It shall be the duty of every licensee to notify the commission within __ days by
registered or certified mail or hand delivery of any sanction imposed on the
licensee by another jurisdiction.
Select one:
a. 20 days
b. 60 days
c. 10 days
d. 5 days
c. 10 days
When a licensed broker elects to share a part of a real estate commission with
a licensed broker in another jurisdiction who is acting only as a referral agent
and is not involved in the actual negotiations, this payment is known as a
Select one:
A. stipend
B. referral fee
C. agent
D. This is illegal.
B. referral fee
Which of the following is true when a Louisiana broker elects to work with a
licensed broker of another state in the sale of property in Louisiana?
Select one:
A. Any monies collected on behalf of others must be placed in the
Louisiana broker’s escrow account.
B. Any advertising must contain the names of both brokers.
C. Any commissions must be paid to the Louisiana broker, who will then
compensate the out of state broker.
D. All of the above
D. All of the above
Licensees and their spouses who are on active military status and are transferred out of the state may renew their licenses without penalty for up to
Select one:
A. 9 months following honorable discharge
B. 1 year following honorable discharge
C. 3 months following honorable discharge
D. 6 months following honorable discharge
D. 6 months following honorable discharge
Any person residing in and licensed as a real estate broker or salesperson in a
state whose appropriate authority has entered into a reciprocal agreement with
the commission shall be granted an equivalent non-resident license by the
commission upon applying and complying with the applicable requirements.
Select one:
True
False
True
In order for an out of state applicant to apply for a reciprocal license in
Louisiana, the applicant may not have been a resident of Louisiana for more
than _____ days
Select one:
a. 60
b. 120
c. 90
d. 30
c. 90
Any applicant who takes and fails to pass the initial licensing exam must
Select one:
A. apply to the Commission to retake the exam and pay a processing fee.
B. go back to real estate school.
C. Can not get a real estate license.
D. Can retake the exam the next day.
A. apply to the Commission to retake the exam and pay a processing fee.
If an applicant for licensing does not take the state exam within 90 days after
turning in his license application to the Commission what will happen?
Select one:
A. The applicant must reapply to the Commission.
B. The applicant must wait six months.
C. The applicant must re-take the 90 hour course.
D. Nothing, the applicant has 6 months to take the exam.
A. The applicant must reapply to the Commission.
Out of state applicants applying for a Louisiana real estate license who are
currently or previously licensed in another state which does not have reciprocity
with Louisiana, and have taken an equivalent exam in that state must do which of the following?
Select one:
A. They do not have to take an exam.
B. They must begin as a new applicant.
C. They must take only the Louisiana portion of the exam.
D. They must take the full exam.
C. They must take only the Louisiana portion of the exam.
A licensee may not renew his license on active status unless he or she has
completed ____ hours of continuing education during the immediately preceding license period.
Select one:
A. 12
B. 8
C. 10
D. 4
A. 12
A salesperson or associate broker may not be issued a license until the license of his or her sponsoring broker has been renewed.
Select one:
A. False
B. True
B. True
A transfer fee will not be charged when the salesperson or associate broker
applies for transfer within 60 days of
Select one:
A. the death of the sponsoring broker
B. suspension or revocation of the sponsoring broker
C. transfer of the sponsoring broker
D. all of the above
D. all of the above
Licensees must complete ____ hours of continuing education each year.
Select one:
A. 12
B. 8
C. 16
D. None
A. 12
All licensees must complete 45 hours of post license work within ____ days.
Select one:
A. 180
B. 60
C. 30
D. 90
A. 180
Upon termination of a licensee’s relationship with a sponsoring broker, the
licensee shall turn over to the broker:
Select one:
A. all listing information, contracts, and agency forms
B. keys to listed properties
C. documents obtained from the sponsoring broker during the business
relationship.
D. All of the above.
D. All of the above.
The name on a license, registration or timeshare certificate must be
Select one:
A. the name of the individual licensee
B. the name of the corporation, partnership or limited liability company as
registered with the Secretary of State
C. trade names registered with the Secretary of State.
D. Any of the above.
D. Any of the above.
Any licensee who buys property or sells his own property must disclose
Select one:
A. the name of his broker
B. his license number
C. that he is a licensed agent
D. all of the above
C. that he is a licensed agent
Every branch office shall be under the direct supervision of a licensed individual
broker who shall be designated in writing as the branch office manager. A copy
of the designation shall be submitted to the commission within ___ days
following the date of the original designation or any changes thereto.
Select one:
a. 3
b. 10
c. 5
d. 2
c. 5
A broker advertising on an internet site or e-mail must include on each page
Select one:
A. the broker’s name
B. the city and state in which the broker’s office is located
C. Any trade name as registered with the Commission
D. All of the above.
D. All of the above.
For how many branch offices may a sponsoring broker be designated as the
managing broker?
Select one:
a. One.
b. One or more.
c. Three.
d. None.
b. One or more.
Who may open and maintain an escrow account?
Select one:
a. Individual brokers, associate brokers, and salespersons
b. Anyone
c. Individual real estate brokers
d. Individual brokers and associate brokers
c. Individual real estate brokers
Which of the following statements is TRUE regarding escrow accounts?
Select one:
A. A broker may open an additional escrow account when it is in the
interest of the principal parties to a particular transaction.
B. Escrow account must be non-interest bearing unless all parties having an interest in the funds deposited in the account have agreed otherwise in writing.
C. Personal funds of $2500 or less may be kept in an escrow account.
D. All of the above.
D. All of the above.
All funds collected as rental payments from or on behalf of clients in
connection with the management of properties owned by other persons shall be deposited into what type of account?
Select one:
a. Security Deposit Trust Account
b. Operating Account
c. Rental Trust Account
d. Sales Escrow Account
c. Rental Trust Account
A sum not to exceed _____ may be kept in each sales escrow checking account,
rental trust checking account, and security deposit trust checking account to cover bank service charges relating to the accounts.
Select one:
a. $5000
b. $250
c. $2500
d. $500
c. $2500
Within ___ days following the transfer of funds upon acquisition of a licensed
agency by another licensed agency, a letter jointly signed by the sponsoring
brokers of the acquired agency and the acquiring agency shall be forwarded to
the commission certifying that all trust funds have been transferred.
Select one:
a. 3
b. 2
c. 5
d. 10
c. 5
Within ___ days following the transfer of funds, the sponsoring broker of the
acquired agency shall close the escrow accounts and trust accounts from
which the funds were transferred and shall advise the commission in writing
when such action has been completed.
Select one:
a. 10
b. 2
c. 5
d. 3
a. 10
If a broker’s license is terminated for any reason, what happens to his escrow accounts.
Select one:
A. They must be closed.
B. They must be turned over to another broker.
C. They must be maintained until all monies are disbursed
D. They are taken over by the Commission.
C. They must be maintained until all monies are disbursed
How many days does a licensee, registrant, or certificate holder have to notify the Commission of a change of address for business or residence?
Select one
A. 10 days
B. 14 days
C. 5 days
D. 3 days
A. 10 days
If a licensee holds any interest in a property involved in a real estate transaction, his or her status as licensee must be disclosed in writing to all parties prior to entering into any negotiations concerning the execution of a real estate
contract.
Select one:
True
False
True
What should be done with escrow funds when there is a dispute as to ownership of the funds and an agreement cannot be reached?
Select one:
A. The broker may disburse the funds based on a reasonable interpretation of the contract.
B. The funds may be deposited into the registry of any court of competent
jurisdiction through a concursus proceeding.
C. The funds may be disbursed upon the written mutual consent of all
parties involved.
D. Any of the above.
D. Any of the above.
When involved in the sale or lease of real property, with whom must the licensee
provide an agency disclosure informational pamphlet?
Select one:
A. the seller and the buyer
B. the seller
C. the buyer
D. all parties to the transaction
D. all parties to the transaction
Education requirements for a salesperson are
Select one:
A. 90 hours pre-licensing
B. 120 hours pre-licensing
C. 90 hours pre-licensing and 45 hours post licensing
D. 150 hours pre-licensing
C. 90 hours pre-licensing and 45 hours post licensing
Which of the following is TRUE regarding non-resident broker’s escrow accounts?
Select one:
A. They may be in financial institutions in Louisiana or in the state in which they reside.
B. They must be at a financial institution in the state in which they reside.
C. They must be at a financial institution in Louisiana.
D. They may not have escrow accounts.
A. They may be in financial institutions in Louisiana or in the state in which they reside.
Which of the following can have an escrow account?
Select one:
A. any broker
B. any licensee
C. a sponsoring or qualifying broker
D. a sponsoring broker or an associate broker
C. a sponsoring or qualifying broker
The Board of Realtors has the power to do which of the following?
Select one:
A. investigate the licensee
B. prosecute the licensee
C. suspend a license
D. none of the above
D. none of the above
