Louisiana Real Estate Course Unit 7
Broker Gary is representing a buyer client who is looking for a house. Gary is in the process of
selling his own property and the buyer likes it and makes an offer. Can Gary sell his house to
the client? - ANS-No, a broker cannot sell his or her own property to a buyer he or she
represents.
Is dual agency legal in Louisiana? - ANS-Yes, dual agency is legal provided the licensee has the
written acknowledgement of all the parties involved.
Broker Anna is confident that a desirable property will increase in value and tells her client that
he will make a big profit when he decides to resell the property. Which is TRUE? - ANS-It is a
violation of license law to make false guarantees and Anna is in violation of license law.
Who is a salesperson allowed to represent? - ANS-Only the broker or real estate agency listed
on his or her license
Suspension of a licensee's real estate license is - ANS-temporary.
Frances Paulson quietly rewards a client, Maxine Brule, for her business by rebating part of
Paulson's commission to Brule after closing. In doing so, Paulson has - ANS-given an illegal
rebate.
Which of the following is NOT a requirement for advertising? - ANS-The brokerage firm's tax ID
must be included in all advertising.
Broker Ellen's clients have been extremely helpful during the transaction and also provided
Ellen with several good referrals. Ellen wants to thank the clients and tells them she will give
them $300 from her commission fee after the closing. Can Ellen do this? - ANS-No, Ellen may
not provide gifts that are tied to her commission.
When a licensee has an exclusive listing with a property seller, other licensees acting as buyers'
agents - ANS-must negotiate with the listing agent only.
A license will be automatically revoked if the licensee - ANS-is convicted of a felony.
It is a violation to be both listing agent and owner of the property listed unless - ANS-the agent
informs the public of this prior to signing a purchase agreement.
If the LREC revokes a licensee's real estate license conditionally, it means that - ANS-the
licensee must cease practicing until he provides the Commission with required documentation
before a final decision.
, When does commingling occur? - ANS-When a broker mixes money belonging to others with
his or her own business or private funds
Dual agency is legal in Louisiana as long as - ANS-it is disclosed in writing to all parties.
Bill, an associate broker, is managing a branch office without any supervision from his
sponsoring broker, Mary. What is the violation of license law, if any? - ANS-Mary has committed
the violation of allowing a sponsored licensee to operate as an individual broker.
What will happen to a licensee who's actions violate the license law in general, but there is no
specific license law covering the licensee's actions? - ANS-Because license law 1455 (A)(1)
states that any act of violation is punishable even if it is not specified in the law, the licensee will
be punished.
Jeff O'Brien has an unwritten understanding with a seller that the seller will pay him a
commission if he shows up with a buyer. This is an example of - ANS-an illegal "back pocket"
listing.
Which of the following is the LREC NOT authorized to issue as a punishment for violations of
license law? - ANS-Require retaking the license exam
What may happen if a company is operating real estate franchises without the proper license to
do so? - ANS-The LREC will prevent the business from continuing to operate for at least 1 year.
Theresa McClure has been found guilty of doing real-estate business on an expired license.
Which of the following is a penalty the LREC can impose on her? - ANS-She can be required to
take training in the area of the violation.
Norman Spear lowers his commission rate by 2% to get Thomas Morton to choose him to list his
house rather than another agent he is considering. What is the violation, if any? - ANS-No
violation.
What will happen to a licensee's license if he or she is convicted of a felony? - ANS-The license
will be revoked by the Commission.
Salesperson Jane works for broker Pat in an independent contractor capacity. Broker Fay is
Jane's sister and asks Jane to help her sell a difficult property. Can Jill do this? - ANS-No, it is a
violation for a licensee to represent a broker other than the one listed on the licensee's license.
Broker Paul is confident that a property will substantially increase in value and tells his client
that if the client buys the property, he will make a large profit when he decides to resell the
property. Which is TRUE? - ANS-It is a violation of license law to make false guarantees, so
Paul is in violation of license law.
Broker Gary is representing a buyer client who is looking for a house. Gary is in the process of
selling his own property and the buyer likes it and makes an offer. Can Gary sell his house to
the client? - ANS-No, a broker cannot sell his or her own property to a buyer he or she
represents.
Is dual agency legal in Louisiana? - ANS-Yes, dual agency is legal provided the licensee has the
written acknowledgement of all the parties involved.
Broker Anna is confident that a desirable property will increase in value and tells her client that
he will make a big profit when he decides to resell the property. Which is TRUE? - ANS-It is a
violation of license law to make false guarantees and Anna is in violation of license law.
Who is a salesperson allowed to represent? - ANS-Only the broker or real estate agency listed
on his or her license
Suspension of a licensee's real estate license is - ANS-temporary.
Frances Paulson quietly rewards a client, Maxine Brule, for her business by rebating part of
Paulson's commission to Brule after closing. In doing so, Paulson has - ANS-given an illegal
rebate.
Which of the following is NOT a requirement for advertising? - ANS-The brokerage firm's tax ID
must be included in all advertising.
Broker Ellen's clients have been extremely helpful during the transaction and also provided
Ellen with several good referrals. Ellen wants to thank the clients and tells them she will give
them $300 from her commission fee after the closing. Can Ellen do this? - ANS-No, Ellen may
not provide gifts that are tied to her commission.
When a licensee has an exclusive listing with a property seller, other licensees acting as buyers'
agents - ANS-must negotiate with the listing agent only.
A license will be automatically revoked if the licensee - ANS-is convicted of a felony.
It is a violation to be both listing agent and owner of the property listed unless - ANS-the agent
informs the public of this prior to signing a purchase agreement.
If the LREC revokes a licensee's real estate license conditionally, it means that - ANS-the
licensee must cease practicing until he provides the Commission with required documentation
before a final decision.
, When does commingling occur? - ANS-When a broker mixes money belonging to others with
his or her own business or private funds
Dual agency is legal in Louisiana as long as - ANS-it is disclosed in writing to all parties.
Bill, an associate broker, is managing a branch office without any supervision from his
sponsoring broker, Mary. What is the violation of license law, if any? - ANS-Mary has committed
the violation of allowing a sponsored licensee to operate as an individual broker.
What will happen to a licensee who's actions violate the license law in general, but there is no
specific license law covering the licensee's actions? - ANS-Because license law 1455 (A)(1)
states that any act of violation is punishable even if it is not specified in the law, the licensee will
be punished.
Jeff O'Brien has an unwritten understanding with a seller that the seller will pay him a
commission if he shows up with a buyer. This is an example of - ANS-an illegal "back pocket"
listing.
Which of the following is the LREC NOT authorized to issue as a punishment for violations of
license law? - ANS-Require retaking the license exam
What may happen if a company is operating real estate franchises without the proper license to
do so? - ANS-The LREC will prevent the business from continuing to operate for at least 1 year.
Theresa McClure has been found guilty of doing real-estate business on an expired license.
Which of the following is a penalty the LREC can impose on her? - ANS-She can be required to
take training in the area of the violation.
Norman Spear lowers his commission rate by 2% to get Thomas Morton to choose him to list his
house rather than another agent he is considering. What is the violation, if any? - ANS-No
violation.
What will happen to a licensee's license if he or she is convicted of a felony? - ANS-The license
will be revoked by the Commission.
Salesperson Jane works for broker Pat in an independent contractor capacity. Broker Fay is
Jane's sister and asks Jane to help her sell a difficult property. Can Jill do this? - ANS-No, it is a
violation for a licensee to represent a broker other than the one listed on the licensee's license.
Broker Paul is confident that a property will substantially increase in value and tells his client
that if the client buys the property, he will make a large profit when he decides to resell the
property. Which is TRUE? - ANS-It is a violation of license law to make false guarantees, so
Paul is in violation of license law.
