Louisiana Real Estate Questions with Detailed
Verified Answers
If a course approval expires, Ans: the Commission will not accept any credits
submitted for that course after the expiration date.
Errors & omissions insurance must be carried by Ans: all active licensees who are not
converting to inactive status.
Instead of buying the E & O policy negotiated and contracted for by the Commission,
licensees are free to obtain their E & O policy independently, provided that Ans: the
coverage in the independent policy satisfies the Commission's minimum requirements.
What is a Certificate of Authority? Ans: It is the LREC's permission for a real estate
school to operate.
Passage of a course examination is Ans: required for credit in any post-license course.
What is the maximum premium for the state E&O insurance policy? Ans: $500
Which of the following is a topic that is required by the License Law to be included in
the 90-hour pre-license course? Ans: The civil law pertaining to real estate
transactions
What kind of insurance is mandated by law for every active licensee? Ans: Errors &
omissions insurance
Do Certificates of Authority expire? Ans: Yes, every year on December 31 unless
renewed
Real estate education vendors are not allowed to issue credit for any post-license
education course unless the student Ans: passes an exam on the course content.
,Each licensee is notified by the LREC of the E&O policy requirements Ans: at least 30
days before the annual renewal date.
Who determines the terms and conditions of the mandated errors & omissions
insurance? Ans: The Real Estate Commission does.
A licensee who has an individual insurance policy must demonstrate compliance with
the insurance mandate by Ans: filing a certificate of coverage with the Commission by
the license renewal date.
Broker pre-license education is divided into 3 courses which include all of the
following EXCEPT for which? Ans: Economics of real estate
Once an individual has successfully completed an approved education course, when
will the education provider issue a certificate to the individual? Ans: Immediately
Under what conditions does a licensee have the right to obtain the insurance
mandated by law from an independently chosen provider instead of from the provider
contracted by the Commission? Ans: The policy must comply with the minimum
standards established by the Commission.
What must a licensee do in order to receive credit for completing a post-license
course? Ans: Pass an exam on the course's content.
The certification on a completed exam for a distance education course must be signed
by Ans: the student, attesting that the course and exam work are the student's own.
Each year, the Commission specifies a topic for Ans: the four-hour continuing
education course mandatory for all licensees.
What is the purpose of the surety bond for real estate schools and vendors? Ans: It is
to reimburse students in case the students' contractual rights are breached.
© Get it right 2025 Getaway - Stuvia US All rights reserved
,The retaining of transaction records for inspection by the Commission is Ans: a
practice the Commission has the power to require.
What is the fee all applicants for a license must pay to the Recovery Fund ? Ans: $10
Brokers and developers are required to deposit escrow money given to them by
clients in Ans: a non-interest bearing checking account in a legally chartered financial
institution.
Who is responsible for issuing real estate licenses in Louisiana? Ans: The Real Estate
commission
An education provider cannot be certified by the Commission if the provider Ans: is
an immediate family member of a commissioner.
Real estate education providers cannot be Ans: members of the Commission or
immediate family members of members of the Commission.
Jane Franklin is a resident of Louisiana and a registered voter. Is she eligible to be a real
estate commissioner? Ans: Yes, if she has been an active broker for at least 5 years.
In regards to rules and regulations which of the following is TRUE? Ans: The
Commission MAY make rules and regulations to enforce the law.
If a claim is a paid from the Recovery Fund against a licensee, what will happen? Ans:
The licensee's license will be automatically revoked.
All of the following are powers of the Real Estate commissioners except Ans: deciding
in what city the Commission will be domiciled.
What are brokers required to do with clients' funds entrusted to their care? Ans: Put
them in an escrow account in a legally chartered bank
© Get it right 2025 Getaway - Stuvia US All rights reserved
, When the ownership of escrowed funds is disputed, the question will be resolved by
Ans: procedures established by the Real Estate Commission.
Which of the following statements is TRUE? Ans: The governor has the authority to
remove a commissioner for any reason.
What is the purpose of the Louisiana Real Estate Research and Education Fund? Ans:
To promote the advancement and efficient administration of the real estate industry
and thus to protect the public
Which of the following is NOT a power of the Commission? Ans: To award merits
for good conduct by licensees
The members of the Real Estate Commission are appointed by Ans: the governor.
What is the salary for a member of the Real Estate Commission? Ans: No salary
To qualify for a payment from the Fund, a person must meet all of the following
conditions, EXCEPT which? Ans: Has received compensation from the guilty party
What is the maximum length of time a commissioner may serve on the Commission?
Ans: One six-year term
The rules and regulations adopted by the Commission Ans: have the force of law and
if violated by a licensee that licensee may be punished.
A timeshare registration applicant's application form must be signed by who? Ans: The
applicant and a representative of the developer for whom the applicant will work
What is shown on a salesperson's license? Ans: The licensee's name and the name of
the sponsoring broker or business entity
© Get it right 2025 Getaway - Stuvia US All rights reserved
Verified Answers
If a course approval expires, Ans: the Commission will not accept any credits
submitted for that course after the expiration date.
Errors & omissions insurance must be carried by Ans: all active licensees who are not
converting to inactive status.
Instead of buying the E & O policy negotiated and contracted for by the Commission,
licensees are free to obtain their E & O policy independently, provided that Ans: the
coverage in the independent policy satisfies the Commission's minimum requirements.
What is a Certificate of Authority? Ans: It is the LREC's permission for a real estate
school to operate.
Passage of a course examination is Ans: required for credit in any post-license course.
What is the maximum premium for the state E&O insurance policy? Ans: $500
Which of the following is a topic that is required by the License Law to be included in
the 90-hour pre-license course? Ans: The civil law pertaining to real estate
transactions
What kind of insurance is mandated by law for every active licensee? Ans: Errors &
omissions insurance
Do Certificates of Authority expire? Ans: Yes, every year on December 31 unless
renewed
Real estate education vendors are not allowed to issue credit for any post-license
education course unless the student Ans: passes an exam on the course content.
,Each licensee is notified by the LREC of the E&O policy requirements Ans: at least 30
days before the annual renewal date.
Who determines the terms and conditions of the mandated errors & omissions
insurance? Ans: The Real Estate Commission does.
A licensee who has an individual insurance policy must demonstrate compliance with
the insurance mandate by Ans: filing a certificate of coverage with the Commission by
the license renewal date.
Broker pre-license education is divided into 3 courses which include all of the
following EXCEPT for which? Ans: Economics of real estate
Once an individual has successfully completed an approved education course, when
will the education provider issue a certificate to the individual? Ans: Immediately
Under what conditions does a licensee have the right to obtain the insurance
mandated by law from an independently chosen provider instead of from the provider
contracted by the Commission? Ans: The policy must comply with the minimum
standards established by the Commission.
What must a licensee do in order to receive credit for completing a post-license
course? Ans: Pass an exam on the course's content.
The certification on a completed exam for a distance education course must be signed
by Ans: the student, attesting that the course and exam work are the student's own.
Each year, the Commission specifies a topic for Ans: the four-hour continuing
education course mandatory for all licensees.
What is the purpose of the surety bond for real estate schools and vendors? Ans: It is
to reimburse students in case the students' contractual rights are breached.
© Get it right 2025 Getaway - Stuvia US All rights reserved
,The retaining of transaction records for inspection by the Commission is Ans: a
practice the Commission has the power to require.
What is the fee all applicants for a license must pay to the Recovery Fund ? Ans: $10
Brokers and developers are required to deposit escrow money given to them by
clients in Ans: a non-interest bearing checking account in a legally chartered financial
institution.
Who is responsible for issuing real estate licenses in Louisiana? Ans: The Real Estate
commission
An education provider cannot be certified by the Commission if the provider Ans: is
an immediate family member of a commissioner.
Real estate education providers cannot be Ans: members of the Commission or
immediate family members of members of the Commission.
Jane Franklin is a resident of Louisiana and a registered voter. Is she eligible to be a real
estate commissioner? Ans: Yes, if she has been an active broker for at least 5 years.
In regards to rules and regulations which of the following is TRUE? Ans: The
Commission MAY make rules and regulations to enforce the law.
If a claim is a paid from the Recovery Fund against a licensee, what will happen? Ans:
The licensee's license will be automatically revoked.
All of the following are powers of the Real Estate commissioners except Ans: deciding
in what city the Commission will be domiciled.
What are brokers required to do with clients' funds entrusted to their care? Ans: Put
them in an escrow account in a legally chartered bank
© Get it right 2025 Getaway - Stuvia US All rights reserved
, When the ownership of escrowed funds is disputed, the question will be resolved by
Ans: procedures established by the Real Estate Commission.
Which of the following statements is TRUE? Ans: The governor has the authority to
remove a commissioner for any reason.
What is the purpose of the Louisiana Real Estate Research and Education Fund? Ans:
To promote the advancement and efficient administration of the real estate industry
and thus to protect the public
Which of the following is NOT a power of the Commission? Ans: To award merits
for good conduct by licensees
The members of the Real Estate Commission are appointed by Ans: the governor.
What is the salary for a member of the Real Estate Commission? Ans: No salary
To qualify for a payment from the Fund, a person must meet all of the following
conditions, EXCEPT which? Ans: Has received compensation from the guilty party
What is the maximum length of time a commissioner may serve on the Commission?
Ans: One six-year term
The rules and regulations adopted by the Commission Ans: have the force of law and
if violated by a licensee that licensee may be punished.
A timeshare registration applicant's application form must be signed by who? Ans: The
applicant and a representative of the developer for whom the applicant will work
What is shown on a salesperson's license? Ans: The licensee's name and the name of
the sponsoring broker or business entity
© Get it right 2025 Getaway - Stuvia US All rights reserved
