Real Estate Unit 6
What happens after a school or vendor receives an audit?
After an audit, if the school or education vendor is found to be deficient, the Commission is required to prepare a report outlining the areas of deficiency. Schools or vendors receiving a deficiency report must correct the deficiencies by the date required on the report and submit a written report to the LREC outlining the positive steps taken to do so.
Describe the requirements regarding Errors and Omissions insurance and suggest reasons for the requirements.
All Louisiana licensees are required to have such insurance, meeting the terms and conditions decided on by the LREC either through the company the LREC negotiates with or an outside carrier, to cost no more than $500 per year. This law protects the public, specifically persons who suffer financial losses from the fraud or negligence of a licensee. These people will get reimbursed.
What is the yearly requirement of all licensees and brokers in continuing education? What is the rationale for such a requirement?
All licensees and brokers must do a 4-hour course on a special, new topic chosen by the LREC. In this way, professional real-estate people are kept abreast of current developments in the field.
Surety bonds for applicants for applicants for certification as a real estate education vendor shall submit proof of a $ __________
Applicants for certification as a real estate education vendor shall submit proof of a five thousand dollar ($5,000) surety bond issued by an insurance company that is authorized to conduct business in Louisiana.
Surety bonds for applicants for certification as a real estate school shall submit proof of a $__________
Applicants for certification as a real estate school shall submit proof of a $10,000 surety bond issued by an insurance company that is authorized to conduct business in Louisiana
Name the topics that continuing education courses cover. Are there topics omitted you think should be included?
Appraisal, finance, taxes, zoning, Louisiana Real Estate License Law/commission rules and regulations, environmental quality, property management, and federal laws affecting real estate such as HUD and fair housing regulations are the covered topics. Other possible topics, not listed, are commercial and investment real estate and foreclosure sales.
Inspections and audits for certificate holders:
Certificate holders are subject to periodic audits and reviews by LREC staff. Audits include classroom observation and examination of school records.
What are some guest lectures guidelines?
Guest lecturers shall not instruct any pre-license course pertaining to the Louisiana Real Estate License Law or the commission rules and regulations. [§5319 (J)] Guest lecturers shall not provide more than two presentations of pre-license education for a certified real estate school in a calendar year. [§5319 (K)] A guest lecturer is allowed to present pre-license instruction no more than twice a year and only in areas other than License Law and Rules and Regulations.
Continuing education courses:
Real estate education vendors may offer continuing education course topics that include, but are not limited to, appraisal, finance, taxes, zoning, Louisiana Real Estate License Law/commission rules and regulations, environmental quality, property management, and federal laws affecting real estate such as HUD and fair housing regulations. [§5529 (A)] *Continuing education courses offered by real estate education vendors shall be a minimum of two hours. A classroom hour is defined as sixty minutes, of which fifty minutes are instruction. [§5529 (B)]
What are some of the records real estate schools must keep on file?
Real estate schools shall maintain the following records on each student: 1. complete name and address; 2. total classroom hours taken and course title; 3. dates of attendance; 4. test scores or pass/fail indications; 5. method of completion; 6. copy of student contract
Describe the specifications for continuing education exams and propose possible justifications for these.
There must be an exam of at least 20 multiple-choice questions with 4 possible answers each for every 2 hours of continuing education credit and 150 such questions at the end of each course. Requiring such a detailed, lengthy exam shows that a course has content and that students have mastered the essential concepts.
What might the inspections and audits look like?
This may include the observation and evaluation of classroom activities, course content, instructor proficiency, and/or the audit of reporting/attendance records.
Each real estate school shall enter into a written contract with each student that shall clearly set forth:
tuition, miscellaneous fees, and refund policy.
What are some grounds for denial of an application?
1)Grounds for denial of certification: an applicant has been convicted of a felony, any thievery involving misuse of money or obtaining money illicitly, or any crime of "moral turpitude," which generally means a base violation of social duties, honesty, or good morals. 2)An application may be denied if it contains information that is untrue. It is unlawful to lie to the LREC. 3)An application may be denied if the applicant has had a professional license or certification revoked by another authority.
What is another way of saying "vendor certification"?
A Certificate of Authority
What is a guest lecturer?
A guest lecturer is an uncertified instructor. Only certified instructors are allowed to teach in real estate schools on a regular basis.
What is a real estate continuing education vendor?
A real estate continuing education vendor is an institution or entity that provides required continuing education for real estate licensees. The vendor must be certified by LREC.
What is a real estate instructor?
A real estate instructor is an individual who presents courses for a school or vendor. The instructor must be certified by LREC.
What is a real estate school?
A real estate school is a specialized institution where people acquire the knowledge about real estate that enables them to apply for a real estate license.
In terms of real estate school, what does "open to the public" intel ?
"Open to the public" in the definition means that the school is not operated by a brokerage to train its own future salespeople and broker associates.
Broker pre-license education courses offered by real estate schools shall be structured in the following manner:
-Real Estate 201 -- 90-hour course on basic real estate fundamentals; -Real Estate 202 -- 30-hour course that shall include, and be limited to, the following topics:Louisiana real estate license law;commission rules and regulations; -law of agency, as contained in Title 9 of the Louisiana Revised Statutes; -civil law, as it pertains to real estate transactions; -ethics and professionalism; Real Estate 203 -- 30-hour course on broker responsibilities. [§5331 (B)] *Broker pre-license education requires three courses: one of 90 hours on fundamentals, one of 30 hours on Louisiana laws and regulations and professional ethics, and one of 30 hours on broker responsibilities.
Salesperson pre-license education courses offered by real estate schools shall be structured in the following manner:
1)Real Estate 101 -- salesperson 90-hour course that shall include: -Real estate principles and practices; -Louisiana real estate license law; -Commission rules and regulations; -Law of agency, as contained in Title 9 of the Louisiana Revised Statutes; -Civil law, as it pertains to real estate transactions. *Salesperson pre-license education requires a 90-hour course on basic principles and Louisiana laws and regulations.
Guest lecturers are either:
1)professors of real estate, finance, economics, or a related field; 2)experts in the specific topic of instruction; or 3)real estate licensees with five or more years of experience in the topic of instruction. *They are not allowed to teach on the topics of License Law or Rules and Regulations in a pre-license course, and they are limited to two presentations per year in a certified school.
Real estate education vendors shall issue certificates containing the following information to students:
1. Complete name of the real estate education vendor and the vendor certification number; 2. name of the student as licensed with the commission; 3. real estate license number; 4. number of credit hours completed; 5. course title as approved by the commission 6. date of course completion; 7. signature of authorized representative; 8. indication of delivery method
Real estate schools shall issue certificates to students immediately upon completion of the course. Certificates shall contain the following information:
1. complete name of the real estate school and the certificate of authority number; 2. name of the student; 3. course title and level completed; 4. number of credit hours completed; 5. date of course completion; 6. signature of authorized school representative; 7. acknowledgment of student's successful completion of examination; 8. indication of delivery method.
What does ARELLO stand for?
Association of Real Estate License Law Officials
How does Louisiana law relating to brokerage affiliation, recruiting, and privacy protect the interests of students?
Brokerages cannot run schools; schools cannot be affiliated with brokerages, which protects students against pressure to please a future employer. And schools can't sell lists of their students' names to companies who might want to market their products among them. Finally, ads about schools must be accurate, with no misleading claims or statistics, and must feature the certification numbers of the schools or vendors, which shows prospective students that they are state certified, hence bona fide.
For what reasons would the LREC deny an applicant certification as a real-estate teacher or vendor?
If someone has been convicted of a felony, has been caught lying on the application to the LREC, or had an earlier certification revoked, these would be grounds for the LREC's denial of a candidate.
Louisiana is one of the few states that require:
Louisiana is one of the few states that require ALL ACTIVE REAL ESTATE LICENSEES to carry Errors and Omissions insurance.
Do State and private colleges and universities in Louisiana need certification to provide real estate courses as part of their regular curriculum?
NO State and private colleges and universities in Louisiana do not need certification to provide real estate courses as part of their regular curriculum.
What are the qualifications for someone to teach pre-licensing courses?
One of the following: -college degree with real estate major -college degree plus two years' real estate experience -law degree plus three years' experience in course subject area -two years' experience as college instructor or professor of business, finance, or economics
Regulated educational entities include:
Schools Vendors Instructors Guest lecturers
What kinds of schools are disqualified for certification? Which kinds don't need it?
Schools not run for the general public can't get certified, such as those run by a brokerage for people meant to be affiliated with it later. Colleges and universities can offer real-estate courses without getting certified by LREC.
What is the difference between real estate schools and entities such as continuing education divisions, vocation-technical schools, and parish schools in terms of certification for curriculum?
State and private colleges and universities in Louisiana do not need certification to provide real estate courses as part of their regular curriculum. However, continuing education divisions, vocation-technical schools, and parish schools that present real estate courses must meet the requirements for real estate schools and apply for certification.
Louisiana law states that distance education courses have to be submitted to the Association of Real Estate License Law Officials (ARELLO) for certification of the delivery method. Why do you think this law is in place?
Such a requirement guarantees an up-to-date system with the latest capabilities for on-line learning. It also makes on-line courses standardized, so that students aren't having to constantly learn new "delivery methods" as they take various continuing education courses.
How does Louisiana law about audits and contracts for schools and vendors protect the interests of students?
The LREC can drop in and observe classes or inspect teacher or vendor files—LREC's right to audit—which cuts down on poor teaching and inadequate record-keeping. Schools and vendors are required to clearly specify expenses in contracts between students and schools, which protects students from hidden fees.
LREC and ARELLO pertaining to education courses:
The LREC has adopted the ARELLO standards, and all Commission-approved distance education courses must be submitted and approved by ARELLO. If the ARELLO certification is lost, Commission approval is suspended and the course cannot be offered.
How long are real esate schools required to files of all education provided to students?
The LREC requires schools to keep files on all education provided to students for a minimum of five years after course completion. Upon request by the LREC, the school must produce said records. Electronic records are acceptable as long as they do not impede inspection by the LREC.
Inspections and audits
The Louisiana Real Estate Commission has the right to inspect real estate schools and education vendors during normal business hours
How long does the LREC have to accept or deny an application ?
The commission shall approve or deny an application within 45 calendar days after it is received. Incomplete applications or a request from the commission for additional information may be cause for delay beyond 45 calendar days. [§5303 (C)], [§5501 (D)]
What is the purpose of a "tracking number"
The commission shall assign a tracking number to each approved course that shall be used with the approved course title on all forms, documents, reports, and/or correspondence filed with the commission
Terms of coverage (errors and omission insurance)
The commission shall determine the terms and conditions of coverage mandated under this Section, including but not limited to the minimum limits of coverage, the permissible deductible, and permissible exemptions
What happens if a school or vendor allows its certification to lapse? If they don't renew it by the deadline for delinquents?
The courses and credits offered after the expiration date are no longer valid. Missing the delinquent renewal deadline means that renewal rights are lost and schools or vendors must start over with the application process, as if they had never been certified
Final examinations for distance education courses shall consist of
The law specifies that the final exam for internet-based courses must consist of 20 multiple-choice questions per two hours of continuing education credit and 150 questions per post-license exam. The student must sign a statement confirming that the exam is the student's own work.
The maximum premium for the State Errors and Omissions Insurance policy is $_______
The maximum premium for the State Errors and Omissions Insurance policy is $500 per year.
In terms of real estate schools and vendors, what might be the purpose of a surety bond?
The purpose of the surety bond is to protect the contractual agreement between the student and the school or vendor.
In order for the LREC to accept credits from a Real Estate School, what must happen first?
The school must be approved by the LREC before LREC will accept credit from courses delivered by that school.
Do continuing education divisions, vocation-technical schools, and parish schools that present real estate courses need certification to provide real estate courses as part of their curriculum?
YES continuing education divisions, vocation-technical schools, and parish schools that present real estate courses must meet the requirements for real estate schools and apply for certification.
Pre-license instructors must be certified, and no school can hire an uncertified person as a pre-license instructor. To become a certified instructor, an applicant must meet at least one education/experience requirement or its equivalent:
college degree with real estate major § college degree plus two years' real estate experience § law degree plus three years' experience in course subject area § two years' experience as college instructor or professor of business, finance, or economics
What does "moral turpitude" mean?
generally means a base violation of social duties, honesty, or good morals.