Louisiana Real Estate Course Unit 1
Describe the necessary qualifications for becoming a commissioner on the Louisiana Real
Estate Commission. - ANS-A person must be an American citizen, reside in Louisiana, be
registered to vote, and have worked as a licensed real estate broker for at least 5 years.
How many members of the Louisiana Real Estate Commission are there, where do they reside,
and how long do they serve? - ANS-One from each of the seven Supreme Court Districts
Two at large
One from either the 4th or 5th Congressional District
One from either the 1st, 2nd, 3rd, 6th, or 7th Congressional District.
They serve one term of 6 years.
Compare the duties of the executive director with those of the commissioners. - ANS-The
executive director runs the Real Estate Commission on a daily basis and directs its staff. The
commissioners are volunteers with their own businesses who merely supervise the
Commission's activities, when they meet at least once every 3 months and no more than twice
every month, if necessary.
What is the difference between what is covered by Errors and Omissions Insurance and what is
covered by the Recovery Fund? - ANS-The Errors and Omissions Insurance covers damages
from unwitting mistakes or omitted required actions, but nothing illegal. The Recovery Fund
covers damages resulting from fraudulent or illegal activities of licensees.
How much is in the Recovery Fund? Where do the monies come from and where do excess
funds go? - ANS-The Fund contains $400,000, no more, no less. Any surplus goes to the
Education Fund. Applicants for real estate licenses or those renewing their licenses must each
pay $10 into the Fund, which is then invested and dividends rolled back into it.
What is the first requirement for the eligibility of a claim against the Recovery Fund? -
ANS-There must be a final judgment from a competent court declaring the licensee guilty of
committing an act based on a violation of the license law.
What are the Recovery Fund's payout limits for a violation by a single agent in a single
transaction, and for violations by a single agent in multiple transactions? - ANS-The maximum
amount paid out of the Fund if there is one transaction and one agent involved is $20,000. The
maximum amount paid out of the Fund if there are multiple transactions and one agent involved
is $50,000.
List the steps a claimant against the Recovery Fund must go through to be reimbursed by the
Recovery Fund. - ANS-Someone who has suffered financial losses because of a broker's fraud
must have the supporting judgment of a court, and must make every effort to get reimbursed
Describe the necessary qualifications for becoming a commissioner on the Louisiana Real
Estate Commission. - ANS-A person must be an American citizen, reside in Louisiana, be
registered to vote, and have worked as a licensed real estate broker for at least 5 years.
How many members of the Louisiana Real Estate Commission are there, where do they reside,
and how long do they serve? - ANS-One from each of the seven Supreme Court Districts
Two at large
One from either the 4th or 5th Congressional District
One from either the 1st, 2nd, 3rd, 6th, or 7th Congressional District.
They serve one term of 6 years.
Compare the duties of the executive director with those of the commissioners. - ANS-The
executive director runs the Real Estate Commission on a daily basis and directs its staff. The
commissioners are volunteers with their own businesses who merely supervise the
Commission's activities, when they meet at least once every 3 months and no more than twice
every month, if necessary.
What is the difference between what is covered by Errors and Omissions Insurance and what is
covered by the Recovery Fund? - ANS-The Errors and Omissions Insurance covers damages
from unwitting mistakes or omitted required actions, but nothing illegal. The Recovery Fund
covers damages resulting from fraudulent or illegal activities of licensees.
How much is in the Recovery Fund? Where do the monies come from and where do excess
funds go? - ANS-The Fund contains $400,000, no more, no less. Any surplus goes to the
Education Fund. Applicants for real estate licenses or those renewing their licenses must each
pay $10 into the Fund, which is then invested and dividends rolled back into it.
What is the first requirement for the eligibility of a claim against the Recovery Fund? -
ANS-There must be a final judgment from a competent court declaring the licensee guilty of
committing an act based on a violation of the license law.
What are the Recovery Fund's payout limits for a violation by a single agent in a single
transaction, and for violations by a single agent in multiple transactions? - ANS-The maximum
amount paid out of the Fund if there is one transaction and one agent involved is $20,000. The
maximum amount paid out of the Fund if there are multiple transactions and one agent involved
is $50,000.
List the steps a claimant against the Recovery Fund must go through to be reimbursed by the
Recovery Fund. - ANS-Someone who has suffered financial losses because of a broker's fraud
must have the supporting judgment of a court, and must make every effort to get reimbursed
