Topic 13

Question 1

Initial license applications shall be classed in the following categories:

Answer 1

1. ) Salesperson;
2. ) Broker―Individual;
3. ) Broker―Corporation, Partnership, Limited Liability Company.
4. ) broker―branch office.

Question 2

Applicants for a salesperson license shall be….

Answer 2

1.) sponsored by an active licensed broker 2.) shall submit the Affidavit of Sponsorship Form (Part B) prescribed by the commission as proof of sponsorship

Question 3

When should the Affidavit of Sponsorship form be submitted?

Answer 3

May be submitted with the initial license application, but no later than 90 DAYS after passing the license examination

Question 4

What happens if the Affidavit of Sponsorship Form (Part B) isn’t received in 90 days?

Answer 4

An inactive license shall be issued to the salesperson applicant

Question 5

All initial license applications for an individual real estate broker or salesperson license shall be submitted with the following documentation:

Answer 5

1. ) Proof of completion of the real estate instruction hours prescribed by R.S. 37:1437
2. ) License history verification from each jurisdiction in which the applicant has held or currently holds a real estate license
3. ) Verification of passing an equivalent real equivalent real estate license exam, if the applicant is currently or was previously a resident licensee in another jurisdiction
4. ) Copy of any trade name or trademark registration issued by the secretary of state for use by the individual broker or salesperson applicant in real estate license activities
5. ) Copy of the resolution or other document executed by a principal of the corporation, partnership, or limited liability company designating an individual real estate broker as the qualifying broker
6. ) Copy of the registration certificate issued by the secretary of state
7. ) Copy of any trade name or trademark registration issued by the secretary of state for use by the corporation, partnership, or limited liability company in real estate license activities

Question 6

Every application for a corporation, partnership, or limited liability company broker license shall be submitted by the designated qualifying broker with the following documentation:

Answer 6

1. ) Real estate pre-license instruction hours obtained in other jurisdictions may be accepted for full or partial credit at the discretion of the commission and shall be based on the applicability of the subject matter to current pre-license education requirements
2. ) Real estate pre-license instruction hours obtained from nationally recognized institutes may be accepted for full or partial credit t the discretion of the commission and shall be based on the applicability of the subject matter to current pre-license education requirements
3. ) Every applicant for a LA real estate license shall provide proof of at least 30 classroom hrs. of pre-license instruction that includes the LA Real Estate License Law, rules and regulations of the commission, LA Civil Law, as it relates to real estate, and any other instruction hrs. the commission deems necessary and appropriate

Question 7

The exam authorization shall be valid for ___ and expire____

Answer 7

1 exam

90 days after the date it’s issued

Question 8

Fees for licenses, certificates, and registrations shall cover a period of…

Answer 8

one calendar year and shall not be prorated

all fees submitted to the commission are non-refundable

Question 9

Returned checks not the fault of the bank…

Answer 9

• grounds for cancellation of the transaction
• person notified by certified mail
• person remits check within 10 days of the date of notification
• amount of returned check + processing fee

Question 10

Timely Submission of Renewal Applications

Answer 10

• responsibility of the licensee

- shouldn’t be issued before the license of the sponsoring broker’s renewed

Question 11

If you don’t renew by Dec. 31…

Answer 11

Prohibited from engaging in any activities requiring a license, registration, or certificate until such time as the license, registration, or certificate is renewed

Question 12

Education hours required for renewal

Answer 12

• 12 hrs. of approved coursework prior to license renewal
• 4 of these hrs. shall be completed in the annual mandatory topic designated by the commission
• All initial licensees shall complete 45 post-license hrs. within 180 days of the initial license date
• Hrs. shall satisfy 8 of the 12 continuing hrs. required for annual renewal. Remaining hours are for mandatory topic

Question 13

Licensees seeking approval for course work obtained through non-approved providers must apply directly to the ____ for credit toward the license renewal requirement.

Answer 13

Education Division

Question 14

Each submission for approval of non-approved providers must include…

Answer 14

1. ) cover letter (complete name, mailing address, phone number)
2. ) certificate of completions
3. ) hours completed
4. ) Date of completion
5. ) Detailed course content info
6. ) Verification of successful completion of an exam on course content, if applicable

Question 15

A request for license transfer that’s submitted within 60 DAYS of any of the following circumstances shall be exempt from the transfer fee or delinquent fee prescribed in:

Answer 15

1. ) the sponsoring broker has dies
2. ) the sponsoring broker has failed to renew his license
3. ) the license of the sponsoring broker has been suspended or revoked
4. ) the license of the sponsoring broker has been transferred to the inactive status
5. ) the sponsoring broker elects to discontinue the sponsorship of a licensee

Question 16

When a licensed agency purchases or acquires another licensed agency, the sponsoring or qualifying broker of the acquiring agency shall notify the commission ______ no later than ____.

Answer 16

in writing

the 5th working day following the date of acquisition

Question 17

The notice shall specify…

Answer 17

the date of acquisition and shall request a transfer to the acquiring agency for all licensees sponsored by the acquired agency

Question 18

The sponsoring broker for the acquired agency shall return the licenses of all sponsored licensees to the commission no later than…

Answer 18

the 5th working day following the date of acquisition

Question 19

The commission shall issue new licenses to the acquiring agency for each licensee sponsored by the acquired agency. The effective date of transfer to the acquiring agency shall be ____

Answer 19

the date of acquisition specified in the notification

Question 20

The notification of acquisition shall…

Answer 20

certify continuous errors and omissions insurance coverage for all licensees that are transferred to the acquiring agency.
-a listing for which coverage is requested and all applicable fees shall accompany the notification

Question 21

The sponsoring broker of the acquiring agency shall give written notice to all licensees transferred to the acquiring agency within…

Answer 21

5 working days following the date of acquisition

Question 22

The acquiring agency shall provide a written report to the commission on the status of all former licensees of the acquired agency within…

Answer 22

15 days following the acquisition

Question 23

The notification shall include a listing by category that identifies:

Answer 23

1. ) ea. licensee that requested the return of their license to the commission
2. ) ea. licensee that is being terminated by the acquiring agency
3. ) ea. licensee that will remain with the acquiring agency

Question 24

The notification shall include the following documentation and fees:

Answer 24

1. ) the license of ea. licensee that won’t remain with the acquiring agency
2. ) Copies of the written notification to and/or from ea. licensee as required
3. ) Payment if the transfer fee prescribed in R.S. 37:1443 for ea. licensee who was sponsored by the acquired agency and who will remain with the acquiring agency
4. ) Payment of the errors and omissions insurance fee prescribed in 1505.C of this Chapter, if applicable

Question 25

An office established by a broker or sponsored licensee for conducting any real estate license activity at a separate address from the registered address of the broker, wherein the name and telephone number of the broker or agency is advertised in any way, shall be considered a _____

Answer 25

branch office and shall be licensed as such.

Question 26

When can funds be withdrawn from an escrow acct?

Answer 26

1. upon the mutual written consent of all parties having an interest in the funds;
2. upon court order;
3. to deposit funds into the registry of the court in a concursus proceeding;
4. to disburse funds upon a reasonable interpretation of the contract that authorizes the broker to hold such funds, provided that the disbursement is not made until 10 days after the broker has notified all parties and licensees in writing;
5. to return the funds to a buyer at the time of closing;
6. to cover the payment of service charges on sales escrow checking accounts, rental trust checking accounts, and security deposit trust checking accounts;
7. upon approval by the commission in connection with the sale or acquisition of a licensed entity;
8. to comply with the provisions of R.S. 9:3251 or any other state or federal statute governing the transfer of rents, security deposits or other escrow funds.

Question 27

Deposits shall be disbursed within ___ days of an agreement between the principles in a real estate transaction.

Answer 27

30

Question 28

Within five working days following the transfer of funds 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. The letter shall include the following:

Answer 28

1. ) All funds transferred to and received by the acquiring agency
2. ) supporting docs have been sent to and received by acquiring agency
3. ) Listing of accounts a transfer was made and amount
4. ) Listing of accounts which a deposit was made and amount

Question 29

Within 90 days of the scheduled closing date or knowledge that an escrow dispute exists, whichever comes 1st, the broker shall do one of the following:

Answer 29

1. ) Disburse the funds upon the written and mutual consent of all of the parties involved
2. ) Disburse the funds upon a reasonable interpretation of the contract that authorizes the broker to hold the funds. Disbursement may not occur until 10 DAYS after the broker has sent written notice to all parties and licensees
3. ) Place the funds into the registry of any court of competent jurisdiction and proper venue through a concursus proceeding
4. ) Disburse the funds upon the order of a court of competent jurisdiction

Question 30

A licensee who chooses to deliver mold information to a buyer shall be deemed in compliance with R.S. 37:1470.A(1) if the licensee performs at least one of the following:

Answer 30

1. delivers “A Brief Guide to Mold, Moisture, and Your Home” (EPA 402-K-02-003), or any successor thereof, to a residential buyer; or
2. delivers “Mold Remediation in Schools and Commercial Buildings” (EPA 402-K-01-001, March 2001), or any successor thereof, to a commercial buyer; or
3. directs a buyer to the mold informational pamphlets maintained on the United States Environmental Protection Agency (EPA) website at http://www.epa.gov/iaq/molds/index.html, or any successor thereof.

Question 31

The purchase agreement form used by licensees representing the buyer or seller in a residential real estate transaction shall be the _______, or any successor thereof, prescribed by the Louisiana Real Estate Commission.

Answer 31

Residential Agreement to Buy or Sell

The official source of the prescribed purchase agreement form shall be the Louisiana Real Estate Commission website.

Question 32

All written offers and counter offers for the purchase of real estate shall be presented to all buyers and/or sellers for their consideration and decision ___

Answer 32

immediately, without delay.