Louisiana License Law

Return of License: Transfer, Termination

Any licensee who wishes to transfer to another broker must notify his present broker in writing by certified mail. A sponsoring broker shall, within a five days' notice of a salesperson's wish to transfer to another company, hand deliver or send by registered mail the salesperson's license to the Commission. No licensee shall act as such after their license has been sent to the Commission. Upon acceptance of sponsorship by another broker, the licensee shall be entitled to transfer the license after written request is made by new sponsoring broker and payment of transfer fee is made. No more than one license shall be issued to a licensee for the same period of time. Whenever the Commission demands that a license be returned by a sponsoring broker because of the suspension or revocation of a license, the broker shall comply immediately (72 hours maximum). The broker must comply with the Commission's request or else he/she will be subject to suspension or revocation of his/her license.

Out-of-State Broker Cooperation

A Louisiana broker may cooperate with a licensed broker from another state on appraisals or sales in Louisiana within the limits provided in the License law. The appraisal or sale must be handled under the direct supervision of the Louisiana broker who shall take full responsibility for all actions of the out of state broker. Both brokers agree to sign all required written reports and agreements and to comply with Louisiana License Law. One copy of any cooperating agreement must be filed with the Commission before the sale or appraisal is made.

Internet Advertising

A real estate broker's, associate broker's, or salesperson's advertising or marketing on a website on the Internet must include the following data on each page of the site on which the advertisement appears: The broker's, associate broker's, or salesperson's name as registered with the Commission; The city and state in which the broker's, associate broker's, or salesperson's main ofice is located; The regulatory jurisdiction(s) in which the broker, associate broker, or salesperson holds a real estate brokerage license. A real estate broker, associate broker, or salesperson using any Internet electronic communication for advertising or marketing, including but not limited to: e‐mail, e‐mail discussion groups, and bulletin boards, must include the following data on the first and last page of all communications: The broker's, associate broker's, or salesperson's name as registered with the Commission; The city and state in which the broker's, associate broker's, or salesperson's main ofice is located; The regulatory jurisdiction(s) in which the broker holds a real estate brokerage license.

Escrow Accounts

Sales Escrow: Brokers who accept any deposit on behalf of a client in connection with the sale of real estate shall open and maintain a sales escrow account in a financial institution in the state of Louisiana. All sales deposits shall be deposited into the account unless all parties having an interest in the funds have agreed otherwise in writing. Rental Trust: If the broker is involved with property management, another account titled "Rental Trust Account" shall be opened in the same fashion as the sales account. Security Deposit Trust: If the broker is involved with collecting security deposits, a "Security Deposit Trust Account" shall be opened in the same fashion as the sales account.

Provision of Contract

Licensees acting in the capacity of an agent shall insure that their respective principal party signing any document in a real estate transaction is provided a copy of the document immediately after the signing of the document. Licensees shall insure that persons signing any document in a real estate transaction which pertains to more than one party are provided with a copy of the completed document bearing the signatures of all parties to the transaction within five days after the final signature is affixed to the document.

Renewal of License

Licenses are issued for one year and must be renewed by December 31st. Failure to renew on time shall automatically suspend the license starting January 1st. Any practice of the business of real estate while the license is suspended is a violation of the law. Renewal applications received after December 31st require payment of a delinquent fee as well as a signed affidavit attesting to what, if any, real estate practice has taken place since the expiration of the license and the delinquent renewal date. January 1st until February 15th = $50 delinquent fee February 16th until March 31st = $200 delinquent fee After March 31st, the licensee must meet all requirements and retake exam. All renewals must be accompanied by correct fees, proof of Errors and Omissions insurance, and credit for twelve hours of continuing education for the preceding license period.

Granting of a License

Licenses shall be granted upon proof of a person's integrity, reputation, honesty, and competency to transact business in such a manner as to safeguard the public.

Qualifications for a Salesperson License

Must be at least 18 years of age. Must be a high school graduate or have a certiicate of high school equivalency (GED) Does not have to have lived in Louisiana for any particular length of time. Non‐ residents can be granted licenses under certain circumstances. Must have completed 90 hours of instruction in a course approved by the Commission and passed a state exam. Licensees are required to take an additional 45hour post licensing course within the irst 180 days of licensure. Applicants have 90 days to ind a sponsoring broker after passing the state exam.

Powers of the Commission

The Commission shall have the full power and authority to regulate the issuance of real estate licenses, censure licensees, suspend or revoke licenses, impose additional continuing education requirements on licensees, and fine licensees up to $5,000. The Commission may: Adopt all necessary rules and bylaws for the enforcement of the License Law; Require any satisfactory proof it may desire in reference to the honesty, truthfulness, registration, and knowledge of any applicant for a real estate broker or salesperson's license,registration as a timeshare interest salesperson, or of any of the officers or members of any such applicant prior to the issuance of any license or registration; and Promulgate and enforce rules and regulations relative to applications for licenses. The Commission is expressly granted the right to require any real estate broker to keep records for five years of all real estate transactions as specified in this chapter. The Commission is authorized to inspect such records at the ofices of those licensees by its duly authorized representatives between the hours of 9:00 A.M. and 4:00 P.M. (excluding Saturdays, Sundays, and legal holidays) and to subpoena any of the records. The Commission shall have the right to subpoena any licensee or witness for the purpose of holding any hearing. Failure by a licensee or registrant to comply with a subpoena shall be punishable by the Commission as provided under the provisions of the law. The Commission may also take testimony by deposition. The Commission: Requires that all real estate brokers deposit all monies or things of value received on behalf of clients in a sales escrow account or accounts in a legally chartered financial institution. Said monies so received are not to be commingled with the personal or business funds of such licensees; May establish procedures by which it may determine to whom a disputed escrow deposit should be released; May not prosecute anyone. This is handled by the courts. Anyone accused of selling real estate without a license will be turned over to the courts; May only involve themselves in disputes between licensees and principals.They will not get involved in problems between licensees.

Investigations of Licensees

The Commission shall investigate licensees upon a signed written complaint. The Commission may, upon their own motion, investigate licensees. Licensees will be automatically investigated for violations of the Fair Housing Act.The licensee will be given a 20 day notice before the hearing and, if found guilty, their license will be revoked. Licensees must cooperate fully with the Commission's investigative personnel regarding any investigation conducted by the Commission. Failure to cooperate may result in suspension or revocation of license.

Broker Responsibilities

PLACE OF BUSINESS: The business address registered by a broker with the Commission shall be considered as the place of business from which the broker will conduct real estate activities requiring licensing in Louisiana. If a broker conducts business from more than one place of business, a branch ofice license shall be required for each place of business maintained by the broker. Branch ofice locations must be supervised by a broker. RETENTION OF RECORDS: Brokers shall retain readily available and properly indexed records for a period of five years which will include the bank statements, copies of deposit slips, canceled checks on all escrow or trust accounts, and copies of all documents which in any way pertain to real estate transactions wherein they or licensees sponsored by them have appeared in a licensing capacity. Listing agreements shall specify a definite expiration date which shall not be subject to qualifying terms or conditions.

Sales Licensees and Brokers

Real estate licensees in Louisiana must follow not only the laws of the state but also Rules and Regulations created by the Real Estate Commission.

Louisiana Real Estate Commission

The Louisiana Real Estate Commission consists of eleven members appointed by the Governor. One member is appointed from each of the seven Supreme Court Districts. Two members are appointed at large. The final two members shall be appointed from the following districts: one appointee from either the Fourth Congressional District or the Fifth Congressional District and one appointee from either the First, Second, Third, Sixth or Seventh Congressional District. Each appointment by the governor shall be submitted to the Senate for confirmation. Term Limit: Real Estate Commission members shall serve six year terms. No commissioner will be allowed to serve more than one six year term. Terms of Commissioners are staggered. Qualification: Members of the Commission shall be citizens and qualified electors of this state. Each member shall have actively engaged in the real estate business as a broker for at least five years preceding the date of appointment. Vacancy: A vacancy caused by any reason except the expiration of the term shall be filled by appointment by the Governor for the remainder of the unexpired term. Removal: The Governor may remove any member of the Commission for cause. Compensation: Members of the Louisiana Real Estate Commission shall be compensated at a rate of not more than fifty dollars a day for each meeting or for attending to Commission business. Domicile:The domicile of the commission shall be in the city of Baton Rouge.

Research and Education Fund

The Louisiana Research and Education Fund was established to promote the advancement and more efficient administration of the real estate industry and thereby serve the public. In addition to the licensing fees, the Commission may charge upon initial issuance and renewal an amount not to exceed ten dollars for each license period to be included in the Education Fund. The Commission at its discretion may use the funds for the following purposes: To establish real estate chairs at state Universities; To contract for particular research projects in the field of real estate.

Real Estate Recovery Fund

The Real Estate Recovery Fund provides reimbursement to any person having suffered monetary damages involving the sale of real property in Louisiana by a licensee violating the License Law. Licensees and the spouses of licensees are not eligible to recover from the fund on any loss related to a transaction in which that licensee was involved. The Commission may levy a fee to maintain the "fund". This fee is collectible at the issuance and renewal of licenses. The fund must maintain a minimum balance of $400,000, including interest. Any excess amounts over $400,000 will be moved to the Research and Education Fund on December 31st of each year.

Causes for Censure, Suspension, or Revocation of License (1-10)

The commission may censure a licensee, registrant, or certificate holder or conditionally or unconditionally suspend or revoke any license, registration, or certificate issued under this chapter, levy fines or impose civil penalties not to exceed five thousand dollars, or impose continuing education requirements on licensees, registrants, or certificate holders if, in the opinion of the commission, a licensee, registrant, or certificate holder is performing, attempting to perform, has performed, or has attempted to perform any of the following acts: (1) Committing any act in violation of the Louisiana Real Estate License Law not specified in this section. (2) Violating any rule or regulation promulgated by the commission in the interest of the public and consistent with the provisions of this chapter. (3) Committing any act in violation of the Louisiana Timesharing Act. (4) Failure to account for any money coming into his/her possession belonging to others. (5) Failure to properly disburse money which belongs to others upon its coming into his/her possession. (6) Commingling the money or other property of his principals with his/her own. (7) Accepting, giving, or charging any undisclosed commission, rebate, or direct profit on expenditures made for a principal. (8) Representing or attempting to represent a real estate broker or real estate agency other than the licensed broker or agency listed on the real estate license issued by the Commission. (9) Acting in the dual capacity of agent and undisclosed principal in any transaction. However, such a relationship shall not constitute dual agency if the licensee is the seller or lessor of property that he owns or if the property is owned by a real estate business of which the licensee is the sole proprietor and agent and the same is disclosed to the buyer or tenant. (10) Guaranteeing or authorizing any person to guarantee future proits which may result from the resale of real property.

Applicability of License

The provisions of the License Law shall not apply to: Any person who performs acts such as leasing and selling with reference to property owned by himself. An attorney at law on behalf of a client required in the normal course of legal representation. The selling of the real estate must be secondary to the purpose for which he was hired. A receiver, trustee, administrator, executor, tutor, or civil sheriff for any parish. Any person, partnership, association, or corporation acting individually or through their employees engaged in selling or leasing with reference to property owned by them.

Advertising

When the broker advertises any property for sale, each ad shall include the company name as shown on the broker license. The broker must have written authority from the owner to advertise. Advertisements must contain the telephone number of the broker (company phone) and contain up to date information about the property. Salesperson's name and home telephone number may be used in the ad. No advertisement can be made with a telephone number alone. Advertisements by agents selling their own personal real estate must include "owner agent" in the ad. Brokers must not offer or advertise appraisal services unless the licensee is a state‐certified real estate appraiser. Brokerage firms affiliated with franchise operations must include the phrase "Individually Owned and Operated" in all ads except for yard signs.

Real estate

shall mean and include condominiums and leaseholds, as well as any other interest in land, with the exceptions of oil, gas, and other minerals and whether the real estate is situated in this state or elsewhere.

INACTIVE TO ACTIVE STATUS

·1 3 years=20 hours ·4 5 years=40 hours ·Over 5 years=80 hours

Client

means one who engages the professional advice and services of a licensee as his agent and whose interests are protected by the speciic duties and loyalties imposed by that relationship.

Property manager

means one who, for a fee, commission, or other valuable consideration, manages real estate, including the collection of rents, supervision of property maintenance, and accounting for fees received for another.

Commingling

means putting personal funds and funds belonging to other persons in one mass or mixing the funds together so they cannot be identiied or differentiated.

Dual agent

means the listing broker represents both the buyer and the seller with the knowledge and consent of both parties.

Real estate transaction

means the selling, offering for sale, buying, offering to buy, soliciting for prospective purchasers, managing, offering to manage, leasing, offering to lease, renting, or offering to rent any real estate or improvements thereon.

Buyer

means the transferee in a real estate transaction and includes a person who executes an offer to purchase or lease real estate from a seller whether alone or through an agent or who seeks the services of an agent with the purposeof entering into a real estate transaction. "Buyer" includes a lessee.

Seller

means the transferor in a real estate transaction and includes an owner who lists with an agent whether or not a transfer results or who receives an offer to purchase or lease real property of which he is the owner from an agent on behalf of another. "Seller" includes a lessor.

Causes for Censure, Suspension, or Revocation of License (11-20)

(11) Offering real estate for sale or lease without the written consent of the owner or his/her authorized agents. Undivided real estate may be offered for sale or lease with the written consent of the owner of the property to be sold or leased as to his/her undivided portion of the property. (12) Offering real estate for sale or lease on terms other than those authorized by the owner or his/her authorized agent. (13) Offering any inducement to or in any way encouraging a party to a written contract involving the sale, lease, or management of real estate to break such contract for the purpose of substituting, in lieu thereof, a new contract with another principal or licensee. (14) Negotiating the sale, exchange, lease, or management of real estate directly with an owner or lessor of the real estate if he/she knows that such owner or lessor has a written outstanding contract in connection with such real estate granting an exclusive agency or an exclusive right to sell, exchange, lease, or manage the real estate to another broker. (15) Knowingly making any false representations to any party in a real estate transaction. (16) Acting for more than one party in a real estate transaction without the written acknowledgment of all parties to the transaction. (17) Failure by an associate broker or salesperson to place, as soon after receipt as practicable, in the custody of his/her licensed broker any deposit money or other money or funds entrusted to him/her by any person dealing with him/her as the representative of his/her licensed broker or in connection with any transaction involving the sale, lease, or management of real property. (18) Representing to any lender, guaranteeing agency, or any other interested party, either verbally or through the preparation of false documents, an amount in excess of the true and actual sale price of the real estate or terms differing from those actually agreed upon. (19) Knowingly permitting a sponsored licensee to operate as an individual real estate broker. (20) Knowingly permitting a sponsored licensee or an employee to conduct real estate activities in violation of this chapter.

License Status

"Active licensee"means any currently licensed person whose license has not been transferred to inactive status and who is authorized to act in the capacity of a real estate broker or salesperson as provided for in the law. "Inactive licensee"means any currently licensed person whose license has been transferred to inactive status and who is not authorized to act in the capacity of a real estate broker or salesperson as provided for in the law. During inactive status, the licensee does not have to meet continuing education requirements or carry errors and omissions insurance. The inactive status must be renewed every year. Any request by an inactive licensee to transfer to active status shall be accompanied by the payment of the prescribed fees and proof of completion of the appropriate educational hours as follows:

Causes for Censure, Suspension, or Revocation of License (21-35)

(21) Failure of a licensee to provide the parties to a real estate transaction with an agency disclosure informational pamphlet and, where applicable, a dual agency disclosure form. (22) Failure to advise all parties to a real estate transaction in writing of compensation being received from any source in connection with that real estate transaction. (23) Failure without just cause to surrender unto the rightful owner, upon demand, any document or instrument received by a licensee or registrant in the course of a real estate transaction. (24) Accepting anything other than cash as earnest money or good faith deposit unless that fact is communicated to the owner prior to the acceptance of the offer to purchase and such fact is shown on the face of the purchase and sale agreement. (25) Failure of a licensee to inform the buyer and seller at the time an offer is presented that either party may be expected to pay certain costs such as discount points, etc. and the approximate amount of said costs. (26) Failure to reduce a bonafide offer to writing when a proposed purchaser requests that a written offer be submitted. (27) Failure to disclose to a buyer a known material defect regarding the condition of real estate of which a broker, salesperson, or timeshare interest salesperson has knowledge. (28) Having been finally adjudicated and found guilty for refusing because of race, color, national origin, sex, or ethnic group to show, sell, or rent any real estate for sale or rent to qualified purchasers or renters or for any violation of the Fair Housing Act of 1968 or the Louisiana Equal Housing Opportunity Act and/or any amendments thereto or any successor legislation subsequently following. (29) Having been convicted of a felony or entered a plea of guilty or nolo contendere to a felony charge. (30) Refusing to appear or testify under oath at any hearing held by the Commission. (31) Procuring a license, registration, or certificate for him/herself or anyone else by fraud, misrepresentation, or deceit. (32) Failure to comply with an order or consent order issued or approved by the Commission pursuant to adjudicatory proceedings. (33) Failure by a licensee to provide a buyer or seller with a written property disclosure form for sales and certain leases involving residential real property pursuant to R.S. 9:3195 et seq. (34) Engaging in real estate activity or attempting or offering to engage in real estate activity within the state during any period of suspension or revocation of a real estate license by the Commission. (35) Using advertising that is misleading or inaccurate.

Grounds for Refusal of a License

A license can be refused if the applicant has been convicted of forgery, embezzlement, larceny, extortion, conspiracy to defraud, theft, or a crime involving moral turpitude. A license can be refused by the applicant making a false statement on an application or the previous revocation of his/her license.

Change of Address

A change of address or telephone number, either residence or business, must be reported to the Commission within ten days of the change. The Commission may suspend or revoke a license if this is not done.

Agency

A licensee engaged in any real estate transaction is the agent of the person they are working with unless there is a written agreement to the contrary and that agreement is disclosed to all parties. Licensees shall provide the parties to a real estate transaction with an agency disclosure pamphlet. Ministerial Acts ‐ the acts that a licensee may perform for a person that are informative in nature. Examples: Responding to phone inquiries by persons as to the availability and pricing of brokerage services. Responding to phone inquiries from a person concerning the price or location of property. Conducting an open house and responding to questions about the property from a person. Setting an appointment to view property. Responding to questions from persons walking into a licensee's ofice concerning brokerage services offered or particular properties. Accompanying an appraiser, inspector, contractor, or similar third party on a visit to a property. Describing a property or the property's condition in response to a person's inquiry. Completing business or factual information for a person represented by another licensee on an offer or contract to purchase. Showing a person through a property being sold by an owner on his or her own behalf. Referral to another broker or service provider.(LA RS 9:3891) Agency law states licensees shall treat all customers honestly and fairly and when representing a client in a real estate transaction may provide assistance to a customer by performing ministerial acts. Performing those ministerial acts shall not be construed in a manner that would violate the brokerage agreement with the client, and performing those ministerial acts for the customer shall not be construed in a manner as to form a brokerage agreement with the customer.

Notice of Charges, Hearings, Suspension, or Revocation of License

A licensee is notified at least 20 days prior to hearing by registered mail. The sponsoring broker will also be notified of the licensee's hearing. The Commission has the power to subpoena any person in the state and take testimony by deposition. The final decision of the Commission may be reviewed by the Nineteenth Judicial District Court in the Parish of East Baton Rouge. Application for review (appeal) by the aggrieved party shall be filed within 30 days of the Commission's decision. The suspension or revocation of the license is not effective until final judgment of the court. If the licensee is found guilty of the violation, his/her license will be suspended or revoked.

Ownership Disclosure

A licensee shall not acquire an interest in or purchase for himself any property listed with his company without making his true position known in writing to the owner.

REALTOR

A licensee who is a member of the local Board of REALTORS, affiliated with the State Board of REALTORS and the National Association of REALTORS. Members are expected to conduct themselves under a Code of Ethics. The REALTORS are a professional real estate organization that provides educational, political and business support to the industry.

Payment from the Fund

A person who is eligible to file a claim may do so to the amount equal to the unsatisfied portion of the judgment or $20,000, whichever is less. When payment is made, the Commission has the right to try to collect and replace the money in the Fund. Any payments arising from the same transaction shall be limited to $20,000 regardless of the number of claimants or parcels involved. Any payments for claims based on a judgment against any one licensee (one licensee involved in several claims) shall not exceed in the aggregate $50,000. Any time a claim is paid on behalf of judgment damages caused by a licensee, the licensee's license is automatically revoked.

General Rules Regarding Escrow/Trust Accounts:

Branch Ofice Accounts: Accounts may be opened for branch ofices located in parishes other than the main ofice location. Additional Accounts: If the interests of the principal parties would be served and all parties have agreed in writing, the broker may open an additional account in any parish for the purpose of that transaction or series of transactions. Non-Interest Bearing Bank Account: Every sales and rental trust account will be non‐ interest bearing unless all the parties to the transaction have agreed otherwise in writing. Money may be withdrawn by mutual consent, Commission order, or for the purpose of depositing monies into the registry of the court in a concursus proceeding. The broker has the authority to distribute the escrow to whomever he thinks deserves it. This must be done within 90 days of the conflict. The broker may keep up to $2,500 of company funds in the escrow or rental trust accounts to cover service charges. Upon revocation, suspension, or lapse of his license for any reason or upon bankruptcy, a broker shall continue and maintain the sales escrow and rental trust accounts until all deposits have been disbursed according to law. This is to be reported to the Commission 10 days after closing the account.

The Legislature

Elected Representatives and Senators enact laws that Regulate the Real Estate industry in Louisiana. The Commission grants Licenses but also has the power to take them away. It is important to become very familiar with the Law and Rules in order to keep your license in good standing.

The Louisiana Real Estate Commission

Enforces laws concerning real estate and establishes Rules and Regulations for licensees. Their primary purpose is to protect the public.

Governor

Has the authority to appoint Commissioners to serve on the Real Estate Commission

Penalty (CIVIL) - non-licensed persons

For violations of any part of the license law: A fine of not more than $2,000 Not more than five years imprisonment *Both Unlicensed persons cannot recover brokerage charges. No action or suit shall be instituted, nor recovery be had, in any court of this state by any unlicensed person for compensation for any act done or service rendered in which the doing or rendering requires a license.

Duty to Report Any Legal Action Against Licensee

It shall be the duty of every licensee and registrant to notify the commission within ten days by registered or certified mail or by hand delivery of the following actions: The institution of criminal prosecution by arrest or indictment, the subject matter of which involves a real estate transaction in which he/she was acting as a licensee; The rendering of a final judgment against him/her by a court of competent jurisdiction, the subject matter of which involves a real estate transaction in which he/she was acting as a licensee; Any final conviction of the licensee by a court of competent jurisdiction for forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, theft, or any other felony or crime involving moral turpitude. It shall be the duty of every licensee who is the custodian of client funds to report the institution of bankruptcy proceedings to the commission in writing and by registered or certified mail or hand delivery within ten days of institution of such proceedings.

Death of a Broker

In the event of the death of a sponsoring broker, any licensee in the broker's ofice may continue the business for 180 days for the purpose of closing all pending business. No new business may be started.

Qualifications for a Broker License

Must have completed 150 hours of instruction in a course approved by the Commission and passed a state exam. Licensees are required to take an additional 45hour post licensing course within the irst 180 days of licensure. Must have been licensed as an active agent for at least four years. Does not have to have lived in Louisiana for any particular length of time. Non‐residents can be granted licenses under certain circumstances. All applicants must submit a sworn statement (on their application) attesting that they have knowledge of and understand the provisions of the Fair Housing Act.

Trade Names and Names of Licensees

Not more than one broker license shall be issued in the same or substantially similar trade name. All trade names, symbols, and logos must be registered with the Louisiana Real Estate Commission. Every partnership or corporation must designate on the license a qualifying broker.

Licensing Reciprocity

The Commission may enter into reciprocal agreements with other states to allow one of their licensees to obtain a nonresident Louisiana broker or salesperson license if that state will afford our licensees that same privilege. The non‐resident must be an active licensee in his home state. The non‐resident must provide the Louisiana Real Estate Commission proof that he or she haspassed their home state's licensing exam within the last five years. Reciprocal States are: Arkansas, Alabama, Colorado, Mississippi, Pennsylvania, Tennessee, Georgia

Conditions for Recovery: Eligibility

The aggrieved person has received a final judgment from a competent court that their cause of action is based on a violation of the Louisiana License Law; The aggrieved person has determined that the defendant (licensee) does not have enough assets to satisfy the judgment against him; All such claims must be filed with the Commission within 180 days of termination of all judicial process. (The Commission is allowed to reply to any such legal action by intervening on the behalf of the licensee or take recourse on behalf of the defendant.)

Termination Responsibilities

The licensee must return all listing information, contracts, keys, copied records, or any other pertinent information acquired while with the sponsoring broker. The licensee shall not induce clients to terminate the business relationship with the sponsoring broker. A broker who believes licensee is encouraging clients to leave his/her company should document all suspicions and if any violation is noted, the broker's recourse would be civil action in the courts.

Revocation or Suspension of Broker's License

The revocation or suspension of a sponsoring broker's license shall automatically suspend every associate broker and salesperson license sponsored by that broker. Any licensee whose license has been revoked or suspended will be considered an unlicensed person during that period. There will be no charge for transfer to a new sponsoring broker if done within 60 days.

Action of Associate Broker or Salesperson Not Imputed to Sponsoring Broker

The sponsoring broker is not responsible for violations of any provisions of the License Law by an associate broker or salesperson unless the broker had knowledge of the violation. It is the sponsoring broker's responsibility to inform all sponsored licensees of any changes in the License Law and Rules and Regulations.

Cooperative Transactions

Written offers which are presented to a listing broker by a cooperating broker shall be presented to the owner immediately. Offers must be presented without considering other possible pending offers of which the salesperson or broker may be aware. The listing broker (salesperson) shall handle all negotiations with the owner. The listing broker shall provide for the insertion of time of day, date, and acknowledgment of receipt of all written offers. Offers rejected shall be marked "Rejected" and signed by owner.The listing broker may be granted authority to reject offers but must still obtain the owner's signature.

Licensee

means any person who has been issued a license by the Commission to participate in any activity described in this section.

Unlicensed person

means any person who has not been issued a license by the Commission to participate in any activity described in this section. Unlicensed persons cannot receive any brokerage commission, nor can they sue for commission. Real estate licensees shall not offer or pay a fee or any other compensation to an unlicensed person for the purpose of obtaining any listing, sale, or other real estate business.

Qualifying broker

is the sponsoring broker for a corporation, limited liability company, or partnership, and it is the individual real estate broker designated by a corporation, limited liability company, or partnership by resolution as its representative in all matters relating to its real estate business activities in Louisiana and in matters before the Commission.

Principal

is usually the seller (vendor) or buyer (vendee) in a transaction.

Agent

means a licensee acting under the provisions of this chapter in a real estate transaction.

Listing agent

means a licensee who has obtained a listing of real estate to act as an agent for compensation.

Buyer's agent

means a licensee who is employed by and represents only the buyer in a real estate transaction regardless of whether such agent's compensation is paid by the buyer directly or by the seller through a commission split with the listing agent.

Real estate salesperson

means a person other than an associate broker who is sponsored by a licensed real estate broker to participate in any activity described in this section.

Timeshare interest salesperson

means a person who directly sells or offers to sell any timeshare interest.

Associate broker

means a person who holds a brokers license and who is exclusively affiliated with and sponsored by another licensed real estate broker to participate in any activity described in this section. NOTE: If the applicant is applying to become an associate broker, the application must be signed by the present sponsoring broker.

Individual Real Estate Broker

means an individual person licensed as a real estate broker and does not mean a corporation, limited liability company, or partnership licensed as a real estate broker.

Real estate activity

means any activity relating to real estate performed by any person, partnership, limited liability company, association, or corporation, foreign or domestic, who for another, whether pursuant to a power of attorney or otherwise, for a fee, commission, or other valuable consideration or with the intention, in the expectation, or upon the promise of receiving or collecting a fee, commission, or other valuable consideration: Sells, exchanges, purchases, manages, rents, or leases or negotiates the sale, exchange, purchase, rental, leasing or auctioning of real estate; Offers, attempts, or agrees to negotiate the sale, exchange, purchase, management, rental, or leasing of real estate; Lists, offers, attempts, or agrees to list for sale or lease any real estate or the improvement thereon; Buys or offers to buy, sells or offers to sell, or otherwise deals in options on real estate or the improvements thereon; Advertises or holds himself or themselves out as engaged in the business of selling, exchanging, purchasing, managing, renting, or leasing real estate; Assists or directs in the procuring of prospects or the negotiation or closing of any transaction other than mortgage inancing, which results or is calculated to result in the sale, exchange, managing, leasing, or renting of any real estate other than a provider of information, ideas, and materials to guide homeowners in the sale of their own property.

Sponsoring broker

means any individual real estate broker who sponsors associate brokers or real estate salespersons who participate in any activity described in this section.