Unit 2 - Licensing Requirements

The BROKER's cost of renewing his/her license is $70 renewal fee plus _________ for research and education and a $10 fee for the recovery fund).

$10.00

The cost of renewing your license when you are delinquent is $____ from February 16 thru March 31.

$200

Cost of renewal for salespeople or inactive licenses are _____________.

$35 (plus $10 fee for the research and education fund, and a $10 fee for the recovery fund).

The cost of renewing your license when you are delinquent are $____ from January 1 thru February 15th.

$50

Types of Licenses

(1) Licensee (agent) (a) active (b) inactive (2) Broker Licenses (a) Individual Real Estate Broker (b) Qualifying Broker

To change your license from INACTIVE to ACTIVE you must:

(i) Have an inactive license in good standing and request commission change your status (ii) Pay $45 fee (iii) complete CE requirement required for change.

Criteria for changing license from ACTIVE to INACTIVE are:

(i) currently active (ii) Apply for transfer with Form (iii) Pay the $45 transfer fee

LREC states that each broker needs to have a minimum of _____ CE hours in LREC approved course work.

12

Active salespeople (licensees) must attend CE of a minimum of ________________ with (4 being in a topic mandated by the commission).

12 hours

If you are inactive for one year, you will have to complete ___________________.

12 hours of CE including the mandatory 4 hours.

LREC states that ______________________ hours that brokers need for CE each year need to be in a topic mandated by the Commission.

4 of the 12

Which of these is true: 1. Licenses are granted only to persons of good character; 2. If an applicant is convicted of a crime, he/she could be refused a RE license; 3. False statements of material fact on an application is grounds for refusal of a license. 4. Grounds for suspension or revocation of a RE license in LA or any other jurisdiction or previous suspension or revocation of license are grounds for refusal to grant a license. 5. All of the above.

5. All of the above.

If you are inactive between 5 years or more, you will have to _______________

80 hours

Timeshare Interest Salesperson

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

Conducting any activity authorized by the license, certificate or registration AFTER expiration thereof shall be deemed _________________.

A violation.

Types of Licenses (agent)

Active and Inactive

Timeshare Developer

An individual, partnership, limited liability company, corporation or other legal entity, or the successor or assignee thereof, who creates a timeshare plan or who is in the business of making sales of timeshare interests which it owns or purports to own.

Housing Authority (HUD) exemptions

Any person employed by the housing authority to manage its property or otherwise managing property of HUD is exempt from having a real estate license.

If you do not renew your license prior to January 1, you ______________.

Cannot practice.

New licensees (including salesperson and brokers) have additional renewal requirements, which include_____________.

Completing a 45 hour post-licensing LREC approved course within 180 days of their initial license date, which will satisfy 8 of the required 12 hours of continuing education for that year. The other four (4) hours are in the mandatory topic specified by the Commission.

Which broker licenses remain in "active" license status?

Corporate, partnership and limited liability company

Which of the following may sell real estate without having a real estate license? A. A Louisiana Sheriff. B. A Trustee appointed by a Court. C. A receiver in Bankruptcy. D. All of the above.

D. All of the above.

RE licenses expire on __________________.

December 31 of each year.

Limitations of a salaried person employed by a real estate broker are:

Delivering or receiving a lease application, lease, amendment thereof; receiving security deposit, rental payment or any related payment made payable to property manager or owner; showing a rental unit to any person, as long as the person is acting under the direct instructions of the broker - provided the broker is responsible for the actions of his employees; providing info about rental units, lease, application for lease or status of a security deposit or the payment of rent to any person; assisting in the performance or property management functions by carrying out administrative, clerical or maintenance tasks.

Brokers can pay for ____________________ insurance at the time of joining the LREC group policy).

Errors and Omissions

When a broker, salesperson or inactive licensee renews his/her license each year, he/she must furnish proof of ________________________.

Errors and Omissions Insurance

When switching from INACTIVE status back to ACTIVE status, you will have to complete CE based on ___________.

How long the license was inactive.

Types of Broker Licenses

Individual Real Estate Broker Qualifying Broker

If you are renewing an inactive license, continuing education is/is not REQUIRED.

It is not required

A real estate school cannot provide the name(s) of any licensee or student, whether potential or enrolled to anyone other than the _________________.

LREC.

Timeshare Registrants

Means timeshare interest salespersons or timeshare developers registered by the commission.

To be eligible for a license in Louisiana a person:

Must sign a sworn statement that he/she understands the Louisiana Opening Housing Laws

Two sources of your broker renewal form are ____________ and _____________.

Online and paper form.

Any activity that is designed to influence or solicit a pre-license education student to work under the sponsorship of any real estate broker is ________________.

Prohibited

________ is prohibited while on the premises of a real estate school.

Recruiting

The Commission may accept college credit and experience in the business instead of real estate school hours for ___________________ and ____________________ licenses.

Salesperson AND Broker

If the ___________________, you can request a license transfer within 60 days and you will be EXEMPT from the transfer fee or delinquent renewal fee as prescribed.

Sponsoring broker dies, fails to renew his license, has his licensed suspended or revoked, has been transferred to inactive status or elects to discontinue sponsorship.

Qualifying Broker

Sponsoring broker for a licensed corporation, LLC, partnership and is the individual real estate broker designated by al licensed corporation, LLC or partnership, by resolution, as its representative in all matters relating to its RE business activities in LA and in administrative and regulatory matters before the commission. Can be a sponsor.

If a sponsoring broker does not renew his/her/their license, the result will be _________________.

The automatic suspension of the real estate license of each associate broker or salesperson sponsored by that broker until he broker renews his license.

As a matter of practice, all licensees should complete ___________________.

The mandatory course every year regardless of any other education completed.

How do you change a license status?

There are forms you can use that need to be accompanied by the fees (all prescribed by the commission) unless you are exempt as prescribed by the commission.

One way to avoid sponsored associate brokers or sponsored salespersons from being suspended when their sponsored broker is suspended is to _______________.

Transfer the associate broker or salesperson's licenses to a new sponsoring broker.

Individual brokers who elect to become "exclusively" affiliated with a sponsoring broker can request to transfer by ______________.

Utilizing forms prescribed by the commission and accompanying the forms with the appropriate fees.

There can only be one no matter how large the company is, how many branch licenses it has.

What is a qualifying broker.

Associate Broker

a broker who works for another broker (or corporation/llc instead of him/herself. Associate brokers are sponsored by the broker or company.

Real Estate Sales Person

a person, other than an associate broker, sponsored by a licensed real estate broker to participate in any activity described in the Law.

RE Licensing Eligibility

a) 18 YO b) HS Diploma/GED c) 90 hours of RE Education in approved LREC course d) Comply with LREC application procedures e) Furnish license verification from any other jurisdiction detailing license history f) Pass RE salesperson license examination g) Be sponsored by licensed RE broker

Broker Licensing Eligibility

a) licensed and active salesperson for 4 years in LA b) HS Diploma or GED c) Proof of completion of 150 hours or equivalent in specified, approved LREC courses d) Of 150 hours, 30 specific to Broker Responsibilities e) Proof of other jurisdiction info: license verification and license history f) Comply with LREC application procedures g) Pass the broker license examination

Classification of license applications

a) salesperson b) broker-individual c) broker-corporation, partnership, LLC

Individual Real Estate Broker

an individual person licensed as a real estate broker and not a licensed corporation, limited liability company or partnership licensed as a real estate broker. IREBs can be sponsors.

Real Estate Activity requiring a real estate license

any activity relating to any portion of a real estate transaction performed for another by any person, partnership, limited liability company, association, or corporation, foreign or domestic, whether pursuant to a POA 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, a commission, or other valuable consideration.

Agricultural property exemptions

any person managing agricultural property is exempt from having a real estate license.

Exempted from having a real estate license:

attorney at law on behalf of client; receiver, trustee in bankruptcy, administrator, executor, tutor or civil sheriff for any parish; trustee selling under deed of trust or mortgage, individual, corporation, partnership, trust, llc, joint venture, other entity which sells, exchanges, leases or manages its own property; a salaried person employed by a licensed real estate broker for an on behalf of the owner of any real estate, which the licensed broker has contracted to manage for the owner, if the employee meets certain limitations.

If you are inactive between 1 to 3 years, you will have to _______________

complete 20 hours

If you are inactive between 3-5 years, you will have to _______________

complete 40 hours

Any license, certificate or registration not renewed by January 1 shall be deemed __________________.

expired

If you fail to renew your license before the expiration of the three-month period, then you will _______________ your renewal rights.

forfeit

If you lose your license through forfeiture, then in order to practice real estate, you will have to ________________.

go through the entire process as an initial applicant meaning going back to school and taking the test again.

Any active licensee who fails to comply with the applicable post-license or continuing education requirement as prescribed shall __________.

not be issued a license until that requirement is met.

RE licenses are for ___________________.

one year and must be renewed annually.

In order for a salesperson or inactive licensee to renew his/her license, he/she needs to renew their applications either ________________ or on paper form.

online

It is prohibited for any real estate brokerage firm to operate a ___________ under the same legal entity as the real estate brokerage firm.

real estate school

Only _________________ employees of property managers are exempt from having a real estate license under the law.

salaried

Examples of real estate activity includes:

sells, exchanges, purchases, manages, rents or leases or negotiations of same involving real estate.

The renewal license of a salesperson or associate broker shall not be issued before the license of the _____________ is renewed.

sponsoring broker

Who is responsible for the timely submission of a renewal application and payment of the required fees?

the individual

The period for delinquent renewal of an expired license or registration shall be limited to the _________ period immediately following the expiration date of the active license or registration.

three-month

If your sponsoring broker fails to renew by December 31, then ____________________.

you cannot practice either.