Real Estate Express Unit 3

Question 1

Give a general description of those who are required by the License Law to have a Louisiana real-estate license.

Answer 1

Unless specifically exempted by law, anyone who plans to buy, sell, or manage real-estate or who already performs those activities, or anyone who sells a franchise and receives regular payments from it must have such a license. This includes persons, corporations, partnerships, limited liability companies, and other entities.

Question 2

Besides a license, what else must a person or entity have before engaging in any activities requiring a license?

Answer 2

The individual or entity must have a sponsoring broker, and that broker must have in hand either the sponsored licensee’s license or a written authorization from the Commission.

Question 3

What does the law require concerning a broker’s place of business?

Answer 3

The broker must conduct business at the address registered with the LREC. This can be the broker’s home or any other place, as long as it is registered. If the broker decides to do business at an additional location, that location must have a branch-office license.

Question 4

Which persons can legally sell real-estate without having a real-estate license?

Answer 4

Anyone selling his or her own property, acting as court -appointed tutor for a minor or administrator for a deceased person, a sheriff liquidating property to pay debt, or a trustee doing the same for a bankrupt. And finally, an attorney can sell property in settling the other legal problems, like divorce, he or she was previously hired to handle.

Question 5

What tasks can an unlicensed clerk who works for a licensed property manager legally perform for the manager?

Answer 5

The clerk can deliver and receive lease applications, show rental units under manager supervision, answer questions about rental units and leases, and conduct administrative, clerical, and maintenance tasks for the manager.

Question 6

What tasks are illegal for a clerk to perform?

Answer 6

The property management clerk cannot handle anything connected to properties for sale, nor receive commissions for work instead of a salary.

Question 7

List the eligibility requirements for applying to take the Louisiana Real Estate Exam as a candidate for a salesperson’s license.

Answer 7

An applicant must be at least 18 years old, have a high school diploma or GED, and have taken and passed 90 hours of pre-license real-estate courses.

Question 8

List the eligibility requirements for applying to take the Louisiana Real Estate Exam as a candidate for a broker’s license.

Answer 8

In addition to the salesperson’s requirements, an applicant must have completed 4 years of active work as a salesperson (2 years if licensed as before January 1, 2009) and 150 hours of real estate coursework, 30 of which are in broker responsibility courses.

Question 9

What post-license education is required for salespersons and brokers after they receive their licenses?

Answer 9

A salesperson must complete a 45 hour post-license course in the first 180 days. A broker must also take a 45-hour post-license course within the first six months of licensure. All licensees are required to complete the four-hour mandatory continuing education topic specified by the commission each year.

Question 10

What is the purpose of the Louisiana Real Estate Exam? Who determines its content, and who administers it?

Answer 10

The Exam is set up to determine if someone is professionally competent to act as a realtor. The LREC decides what goes in it, while the State Civil Service or a national testing service administers the test.

Question 11

What is the purpose of Part A of the application for the state licensing exam?

Answer 11

Part A shows that a person has completed the education requirements to be eligible to take the exam.

Question 12

What is the purpose of Part B of the application for the state licensing exam?

Answer 12

Part B shows that the would-be realtor, having passed the exam, has found someone to sponsor him or her, who will be the sponsoring broker.

Question 13

What kinds of criminal activity may disqualify an applicant from getting a real-estate license?

Answer 13

Felonies involving the fraudulent getting or handling of money, such as larceny, forgery, embezzlement, conspiracy to defraud, extortion and crimes showing “moral turpitude” are sufficient to disqualify an applicant.

Question 14

Why are sellers of timeshares not required to get real-estate licenses?

Answer 14

Timeshares are considered personal property, not real-estate.

Question 15

What is required of such sellers of timeshares?

Answer 15

They must be at least 18 years old, have a high school diploma or GED, and be registered with the LREC.

Question 16

Why must timeshare sellers file and maintain a surety bond in the amount of $10,000?

Answer 16

This is to pay back any citizen who might lose money from any deceptive practices or law infringements committed by the timeshare seller. Timeshare sellers and their customers are not covered by the Real Estate Recovery Fund.

Question 17

What are the classifications of license application types?

Answer 17

License applications are broken down into the four classifications:

Salesperson
broker-individual
broker-corporation, partnership, limited liability company
broker-branch office

Question 18

How many hours of post-license education is a broker required to take within the first 6 months of licensure?

Answer 18

45 hours

Question 19

What are the requirements for a broker to represent multiple corporations?

Answer 19

A qualifying broker can represent multiple corporations if properly licensed as a Louisiana broker and chosen by each corporation as its qualifying broker.

Question 20

What two requirements must a franchise operation meet?

Answer 20

A franchise operation must register with the Commission and appoint a Louisiana-licensed broker as its representative in the state.

Question 21

Who is required to sign Part B of an individual’s license application?

Answer 21

The sponsoring broker under whom the applicant will work

Question 22

Every branch office requires _____.

Answer 22

a licensed individual broker to act as its designated manager.

Question 23

A new salesperson licensee must complete 45-hours of post-license coursework within how long of becoming licensed?

Answer 23

6 months

Question 24

For how many years must a person have been active as a salesperson before applying for a broker’s license?

Answer 24

4 years

Question 25

A person wishing to become a broker must first have served as a salesperson for at least ______ and completed ________ of approved education.

Answer 25

A person wishing to become a broker must first have served as a salesperson for at least 4 years and completed 150 hours of approved education.