LREC Ch. 1 Quiz Questions Units 1-14
If a licensee wishes to put his or her license on inactive status, what must he or she do? -
ANS-Complete the LREC's prescribed transfer form and pay the transfer fee.
ABC Realty is a licensed corporation. It has a designated qualifying broker, an associate broker,
and four salespersons. If the designated qualifying broker leaves the company, what will
happen? - ANS-The corporation and all of the licensees will have to cease real estate activities
until a new qualifying broker is registered with the LREC.
How long can a Louisiana license remain in inactive status? - ANS-Indefinitely
When an association between a salesperson or associate broker and a sponsoring broker is
terminated, how soon must the sponsoring broker send the licensee's license back to the
LREC? - ANS-Within 5 days
Licenses for companies_____ - ANS-must remain on active status.
Which of the following is NOT exempt from the license transfer fee? - ANS-A request for a
license transfer after the sponsoring broker and licensee agree to terminate their association.
When a new broker purchases the real estate company of an old broker, the NEW broker must
do all of the following EXCEPT - ANS-return the licenses of the sponsored licensees to the
LREC.
Inactive licenses - ANS-must be renewed on an annual basis.
An individual broker who becomes an associate broker - ANS-must work under a sponsoring
broker.
Philip Hawthorne has had an inactive license for 3 years. How much longer can he continue to
remain in this status? - ANS-As long as he chooses
If a broker decides to work exclusively under a sponsoring broker, he or she - ANS-becomes an
associate broker.
What changes when licensees allow their licenses to become inactive? - ANS-Louisiana
licensees with inactive licenses cannot conduct any real estate business requiring a license.
When a broker terminates a licensee, that broker must - ANS-return the licensee's license to the
LREC within 5 days of termination.
,There are exemptions to the license transfer fee, but which of the following would NOT be
exempt? - ANS-A request for a license transfer after the sponsoring broker and licensee agree
to terminate their association
The Real Estate Commission has no regulatory power over - ANS-professors of real estate in
Louisiana colleges and universities.
The Recovery Fund reimburses - ANS-persons adjudged to have lost money by the unlawful
actions of Louisiana licensees.
The Recovery fund is funded by - ANS-license fees and fees levied by the Commission.
Real estate education providers cannot be - ANS-members of the Commission or immediate
family members of members of the Commission.
The Rules and Regulations are best characterized as - ANS-means adopted by the Real Estate
Commission for the enforcement of the License Law.
When the Commission summons an individual to appear at a hearing, it is exercising its right of
- ANS-subpoena.
How often are the LREC commissioners required to meet? - ANS-Once every 3 months
Where is the Real Estate Commission's office located? - ANS-Baton Rouge
What power, if any, does the Commission have over continuing education providers in
Louisiana? - ANS-The Commission has the authority to certify, regulate and discipline
continuing education providers.
How does the Real Estate Commission get its chairman? - ANS-The Commission elects one of
its own members.
When the ownership of escrowed funds is disputed, the question will be resolved by -
ANS-procedures established by the Real Estate Commission.
The Real Estate Commission is merely exercising its legally-granted powers if it - ANS-fires its
executive director.
What is the purpose of the Real Estate Recovery Fund? - ANS-To reimburse persons harmed
by the illegal actions of a real estate licensee
An education provider cannot be certified by the Commission if the provider - ANS-is an
immediate family member of a commissioner.
, What is the maximum the Recovery Fund will pay to an injured party? - ANS-$20,000
The source of funding for the Recovery Fund is - ANS-license fees and other fees established
by the Commission.
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
A person may become a real estate commissioner in the State of Louisiana without -
ANS-having been a licensed broker for 10 years.
Who is responsible for issuing real estate licenses in Louisiana? - ANS-The Real Estate
commission
In regards to rules and regulations which of the following is TRUE? - ANS-The Commission may
make rules and regulations to enforce the law.
How many members are there on the LREC? - ANS-11 members
If a real estate commissioner dies - ANS-the governor names a replacement.
Any person desiring to become a real estate commissioner must have been - ANS-an active
broker in Louisiana for 5 years.
If a single broker has four judgments awarded against him for four separate transactions, and
each judgment is for $20,000, how much will the Fund pay to the four injured parties? -
ANS-$50,000 in total divided between the four principals
Following a judgment against a licensee, how long does the injured party have to file a claim
with the Recovery Fund? - ANS-Within 180 days from the date of the judgment
Which of the following is one of the Real Estate Commission's prerogatives? - ANS-Revoking or
suspending licensees' real estate licenses
Commissioners are compensated for attending Commission meetings. How much is the
commissioners compensation? - ANS-$50 per day
Licensees are required to keep records of what by the Real Estate Commission? - ANS-All
copies of real estate related documentation
If an LLC is being investigated for license law violations, who will the Commission serve the
written notice to? - ANS-The agent registered with the Commission for the company
If a licensee wishes to put his or her license on inactive status, what must he or she do? -
ANS-Complete the LREC's prescribed transfer form and pay the transfer fee.
ABC Realty is a licensed corporation. It has a designated qualifying broker, an associate broker,
and four salespersons. If the designated qualifying broker leaves the company, what will
happen? - ANS-The corporation and all of the licensees will have to cease real estate activities
until a new qualifying broker is registered with the LREC.
How long can a Louisiana license remain in inactive status? - ANS-Indefinitely
When an association between a salesperson or associate broker and a sponsoring broker is
terminated, how soon must the sponsoring broker send the licensee's license back to the
LREC? - ANS-Within 5 days
Licenses for companies_____ - ANS-must remain on active status.
Which of the following is NOT exempt from the license transfer fee? - ANS-A request for a
license transfer after the sponsoring broker and licensee agree to terminate their association.
When a new broker purchases the real estate company of an old broker, the NEW broker must
do all of the following EXCEPT - ANS-return the licenses of the sponsored licensees to the
LREC.
Inactive licenses - ANS-must be renewed on an annual basis.
An individual broker who becomes an associate broker - ANS-must work under a sponsoring
broker.
Philip Hawthorne has had an inactive license for 3 years. How much longer can he continue to
remain in this status? - ANS-As long as he chooses
If a broker decides to work exclusively under a sponsoring broker, he or she - ANS-becomes an
associate broker.
What changes when licensees allow their licenses to become inactive? - ANS-Louisiana
licensees with inactive licenses cannot conduct any real estate business requiring a license.
When a broker terminates a licensee, that broker must - ANS-return the licensee's license to the
LREC within 5 days of termination.
,There are exemptions to the license transfer fee, but which of the following would NOT be
exempt? - ANS-A request for a license transfer after the sponsoring broker and licensee agree
to terminate their association
The Real Estate Commission has no regulatory power over - ANS-professors of real estate in
Louisiana colleges and universities.
The Recovery Fund reimburses - ANS-persons adjudged to have lost money by the unlawful
actions of Louisiana licensees.
The Recovery fund is funded by - ANS-license fees and fees levied by the Commission.
Real estate education providers cannot be - ANS-members of the Commission or immediate
family members of members of the Commission.
The Rules and Regulations are best characterized as - ANS-means adopted by the Real Estate
Commission for the enforcement of the License Law.
When the Commission summons an individual to appear at a hearing, it is exercising its right of
- ANS-subpoena.
How often are the LREC commissioners required to meet? - ANS-Once every 3 months
Where is the Real Estate Commission's office located? - ANS-Baton Rouge
What power, if any, does the Commission have over continuing education providers in
Louisiana? - ANS-The Commission has the authority to certify, regulate and discipline
continuing education providers.
How does the Real Estate Commission get its chairman? - ANS-The Commission elects one of
its own members.
When the ownership of escrowed funds is disputed, the question will be resolved by -
ANS-procedures established by the Real Estate Commission.
The Real Estate Commission is merely exercising its legally-granted powers if it - ANS-fires its
executive director.
What is the purpose of the Real Estate Recovery Fund? - ANS-To reimburse persons harmed
by the illegal actions of a real estate licensee
An education provider cannot be certified by the Commission if the provider - ANS-is an
immediate family member of a commissioner.
, What is the maximum the Recovery Fund will pay to an injured party? - ANS-$20,000
The source of funding for the Recovery Fund is - ANS-license fees and other fees established
by the Commission.
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
A person may become a real estate commissioner in the State of Louisiana without -
ANS-having been a licensed broker for 10 years.
Who is responsible for issuing real estate licenses in Louisiana? - ANS-The Real Estate
commission
In regards to rules and regulations which of the following is TRUE? - ANS-The Commission may
make rules and regulations to enforce the law.
How many members are there on the LREC? - ANS-11 members
If a real estate commissioner dies - ANS-the governor names a replacement.
Any person desiring to become a real estate commissioner must have been - ANS-an active
broker in Louisiana for 5 years.
If a single broker has four judgments awarded against him for four separate transactions, and
each judgment is for $20,000, how much will the Fund pay to the four injured parties? -
ANS-$50,000 in total divided between the four principals
Following a judgment against a licensee, how long does the injured party have to file a claim
with the Recovery Fund? - ANS-Within 180 days from the date of the judgment
Which of the following is one of the Real Estate Commission's prerogatives? - ANS-Revoking or
suspending licensees' real estate licenses
Commissioners are compensated for attending Commission meetings. How much is the
commissioners compensation? - ANS-$50 per day
Licensees are required to keep records of what by the Real Estate Commission? - ANS-All
copies of real estate related documentation
If an LLC is being investigated for license law violations, who will the Commission serve the
written notice to? - ANS-The agent registered with the Commission for the company
