LOUISIANA REAL ESTATE RULES AND REGULATIONS
(As amended through March 2019)
The Louisiana Real Estate Commission has adopted the following Rules and Regulations pursuant to
the authority granted in the Louisiana Revised Statutes, Title 37, Section 1435. The Rules and
Regulations serve as an extension of the Real Estate License Law and assist the Commission in the
enforcement and administration thereof. This information is provided as a courtesy to real estate
licensees and the general viewing public.
Chapter 1. Authority
§101. Adoption
A. The rules and regulations of the Louisiana Real Estate Commission contained herein
have been adopted pursuant to and in compliance with R.S. 37:1430 et seq., and any
violation of these rules or regulations, or of any real estate licensing law, shall be
sufficient cause for any disciplinary action permitted by law.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:37 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 37:2998 (October 2011).
Chapter 3. Initial License Applications
§301. Forms
A. Initial license applications shall be in such form and detail as prescribed by the
commission and shall be accompanied by the fees prescribed in R.S. 37:1443.
B. Initial license applications shall be classed in the following categories:
1. salesperson;
2. broker―individual;
3. broker―corporation, partnership, limited liability company;
4. broker―branch office.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:37 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1445 (August 2006), LR 37:2999 (October 2011).
§303. Sponsorship
A. Applicants for a salesperson license shall be sponsored by an active licensed broker and
shall submit the Affidavit of Sponsorship Form (Part B) prescribed by the commission
as proof of sponsorship.
B. The Affidavit of Sponsorship Form (Part B) may be submitted with the initial license
application, but no later than 90 days after passing the license examination.
C. If the Affidavit of Sponsorship Form (Part B) is not received within the prescribed 90
days, an inactive license shall be issued to the salesperson applicant who shall then be
subject to the Louisiana Real Estate License Law and the commission rules and
regulations regarding inactive licensees. An active license shall not be issued until such
time as the Transfer to Active Status Form prescribed by the commission is received.
D. Applicants for a broker license who elect to be sponsored by an active licensed broker
shall be exclusively affiliated as an associate broker of the sponsoring broker.
E. Active licensed brokers who elect to sponsor an applicant for a real estate license shall
be subject to the duties and penalties prescribed for sponsoring brokers in the
Louisiana Real Estate License Law and commission rules and regulations and shall bear
the responsibility for the license activity of any sponsored licensee, which shall also
include ensuring timely license renewal prior to the practicing of real estate.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:37 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1445 (August 2006), LR 37:2999 (October 2011).
§305. Documentation
A. All initial license applications for an individual real estate broker or salesperson license
shall be submitted with the following documentation:
1. proof of completion of the real estate instruction hours prescribed by R.S.
37:1437;
a. real estate pre-license instruction hours obtained in other jurisdictions
may be accepted for full or partial credit at the discretion of the
commission and shall be based on the applicability of the subject matter
to current pre-license education requirements;
b. real estate pre-license instruction hours obtained from nationally
recognized institutes may be accepted for full or partial credit at the
discretion of the commission and shall be based on the applicability of
the subject matter to current pre-license education requirements;
c. every applicant for a Louisiana real estate license shall provide proof of
at least 30 classroom hours of pre-license instruction that includes the
Louisiana Real Estate License Law, rules and regulations of the
commission, Louisiana Civil Law, as it relates to real estate, and any
other instruction hours the commission deems necessary and
appropriate;
2. license history verification from each jurisdiction in which the applicant has held
or currently holds a real estate license;
3. verification of passing an equivalent real estate license examination, if the
applicant is currently or was previously a resident licensee in another
jurisdiction;
4. copy of any trade name or trademark registration issued by the Secretary of
State for use by the individual broker or salesperson applicant in real estate
license activities.
5. applicants for an initial individual real estate broker license shall provide proof
that they have been licensed as an active real estate licensee for four years, with
two of the four years occurring immediately preceding submission of a broker
license application.
B. Every application for a corporation, partnership or limited liability company broker
license shall be submitted by the designated qualifying broker with the following
documentation:
1. copy of the resolution or other document executed by a principal of the
corporation, partnership or limited liability company designating an individual
real estate broker as the qualifying broker;
2. copy of the registration certificate issued by the Secretary of State;
3. copy of any trade name or trademark registration issued by the Secretary of
State for use by the corporation, partnership or limited liability company in real
estate license activities.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
32:1445 (August 2006), repromulgated LR 37:2999 (October 2011), amended LR 42:1886
(November 2016).
§307. Names on Licenses, Registrations and Certificates; Trade Names
A. Licenses, registrations and certificates issued to individual real estate brokers, real
estate salespersons, timeshare registrants, and real estate school instructors shall be
issued in the legal name of the individual person.
B. Licenses, registrations and certificates issued to a corporation, partnership or limited
liability company for any purpose shall be issued in the identical name as registered
with the Secretary of State. A license, registration or certificate shall not be issued to
any corporation, partnership, or limited liability company not registered and in good
standing with the Secretary of State.
C. Names on licenses, registrations and certificates issued by the commission shall not
include a trade name unless the trade name is registered with the Secretary of State
and a copy of the registration is on file at the commission.
D. The name of a licensee whose real estate license has been revoked by the commission
shall not appear on any license in a manner that represents, suggests, or implies that
the former licensee is licensed by the commission.
E. Any name or trade name used by a licensee, registrant or certificate holder in any
manner shall be a clearly identifiable entity that can be distinguished from that of
another licensee, registrant or certificate holder.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:2999 (October 2011).
Chapter 5. Examinations
§501. Authorization
A. The commission shall issue an examination authorization to each eligible applicant. The
examination authorization shall be valid for one examination and shall expire 90 days
after the date it is issued.
B. It shall be the responsibility of each applicant that has received an examination
authorization from the commission to contact the designated national testing service
for an appointment to take the examination.
C. An applicant whose examination authorization expires prior to the applicant taking the
examination shall receive a new examination authorization upon submission of a
written request and the processing fee prescribed in R.S. 37:1443.
D. The commission shall provide each applicant with a license information bulletin that
contains the examination procedures established by the commission and the
designated testing service. Failure to comply with the procedures contained in the
license information bulletin may result in disqualification from the examination and the
forfeiture of all fees.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:38 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1446 (August 2006), repromulgated LR 37:3000 (October 2011).
§503. Disqualification of Applicants
A. Any applicant who copies or communicates or attempts to copy or communicate
examination content shall be considered in violation of examination security, which
shall be grounds for denial of a license and the forfeiture of all fees.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:38 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1446 (August 2006), LR 37:3000 (October 2011).
§505. Prohibited Activities
A. Licensees, certificate holders, registrants, school owners or school directors, and
persons employed by or associated with a licensee, certificate holder, registrant, school
owner or school director, shall not obtain or attempt to obtain by deceptive or
fraudulent means any copyrighted test questions and/or confidential test material used
by or belonging to any national testing service currently or previously contracted with
the commission. Violations of this Section shall be cause for censure, suspension, or
revocation of a license, certificate, or registration.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:38 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1446 (August 2006), repromulgated LR 37:3000 (October 2011).
§507. Failure of Examination
A. Any applicant who fails an examination may apply to retake the examination by
submitting a copy of the fail notice and a new examination processing fee to the
commission. After one year the applicant shall be required to submit a new application
and remit all prescribed fees to be eligible for the licensing examination.
B. An applicant who does not pass both portions of the examination shall be required to
retake the failed portion only; however, the score on the passed portion shall remain
valid for a period of one year, after which time the applicant shall be required to retake
it.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:38 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1446 (August 2006), LR 37:3000 (October 2011).
Chapter 7. Fees
§701. Duration of Fees
A. Fees for licenses, certificates, and registrations shall cover a period of one calendar year
and shall not be prorated.
B. Except as otherwise provided in these rules and regulations all fees submitted to the
commission are non-refundable.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:39 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1447 (August 2006), repromulgated LR 37:3000 (October 2011).
§705. Returned Checks
A. Payment of any fee with a check that is returned by a financial institution, wherein the
reason for not paying the check is not a fault of the financial institution, shall be
grounds for cancellation of the transaction for which the fee was submitted and/or the
censure, suspension, or revocation of a license, registration or certificate.
B. Persons issuing checks that are returned to the commission by a financial institution
for any reason shall be notified by certified mail at the most current address of record.
Within 10 days from the date of the notification, the person issuing the check shall
remit a certified check, cashier's check, or money order, to the commission in the
amount of the returned check, plus the processing fee prescribed in R.S. 37:1443.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:39 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1447 (August 2006), LR 37:3000 (October 2011).
Chapter 9. Renewal of Licenses, Registrations and Certificates
§901. Timely Submission of License, Registration, or Certificate Renewal
A. It shall be the responsibility of the individual licensee, registrant, or certificate holder
to ensure that the renewal of an individual license, registration, or certificate has been
fully completed and timely submitted to the commission with the required fees.
B. The renewal license of a salesperson or associate broker shall not be issued before the
license of the sponsoring broker is renewed.
C. A licensee, registrant, or certificate holder who fails to renew by December 31 is
prohibited beginning January 1 from engaging in any activities requiring a license,
registration, or certificate until such time as the license, registration, or certificate is
renewed.
D. A licensee whose sponsoring broker fails to renew by December 31 is prohibited
beginning January 1 from engaging in any activities requiring a license until such time
as the sponsoring broker has renewed or the licensee transfers to a new sponsoring
broke r.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:39 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1447 (August 2006), LR 37:3001 (October 2011).
§907. Education Hours Required for Renewal
A. Each licensee shall complete 12 hours of approved course work prior to license
renewal. Four of the 12 hours shall be completed in the annual mandatory topic
designated by the commission.
B. All initial licensees shall complete 45 post-license hours within 180 days of the initial
license date. The hours shall satisfy eight of the 12 continuing education hours required
for annual renewal. The remaining four hours shall be in the annual mandatory topic
designated by the commission.
C. Licensees shall not receive duplicate credit for attending the same continuing
education course from the same vendor in the same year.
D. Education that is not obtained through an approved real estate continuing education
vendor shall be submitted to the commission prior to renewal for review and approval
towards the annual continuing education requirement prescribed in R.S.
37:1437.C.6(a)(i).
E. Course work completed by licensees through non-approved providers will be
considered for credit by the commission on an individual basis.
F. Licensees seeking approval for course work obtained through non-approved providers
must apply directly to the Education Division for credit toward the license renewal
requirement. Each submission shall include a cover letter that contains the licensee’s
complete name, mailing address, and telephone number, with the following
documentation:
1. certificate of completions;
2. hours completed;
3. date of completion;
4. detailed course content information;
5. verification of successful completion of an examination on course content, if
applicable.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:40 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1447 (August 2006), LR 37:3001 (October 2011).
Chapter 15. Transfers and Terminations
§1501. Forms
A. A request to terminate sponsorship of a licensee or to transfer a licensee to a new
broker shall be submitted on forms prescribed by the commission and shall be
accompanied by the fees prescribed in R.S. 37:1443.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:40 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1448 (August 2006), repromulgated LR 37:3001 (October 2011).
§1503. Fee Exemptions
A. A request for license transfer that is submitted within 60 days of any of the following
circumstances shall be exempt from the transfer fee or delinquent renewal fee
prescribed in R.S. 37:1443:
1. the sponsoring broker has died;
2. the sponsoring broker has failed to renew his license;
3. the license of the sponsoring broker has been suspended or revoked;
4. the license of the sponsoring broker has been transferred to the inactive
status;
5. the sponsoring broker elects to discontinue the sponsorship of a licensee.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:40 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1448 (August 2006), repromulgated LR 37:3001 (October 2011).
§1505. Purchase or Acquisition of Agencies
A. When a licensed agency purchases or otherwise acquires another licensed agency, the
sponsoring or qualifying broker of the acquiring agency shall notify the commission in
writing no later than the fifth working day following the date of acquisition.
B. The notice shall specify the date of acquisition and shall request a transfer to the
acquiring agency for all licensees sponsored by the acquired agency.
1. The sponsoring broker for the acquired agency shall return the licenses of all
sponsored licensees to the commission no later than the fifth working day
following the date of acquisition.
2. The commission shall issue new licenses to the acquiring agency for each
licensee sponsored by the acquired agency. The effective date of transfer to the
acquiring agency shall be the date of acquisition specified in the notification.
C. The notification of acquisition shall certify continuous errors and omissions insurance
coverage for all licensees that are transferred to the acquiring agency. If the transfer of
licensees necessitates payment to the commission for coverage under the commission
group errors and omission insurance policy, a listing of all licensees for which coverage
is requested and all applicable fees shall accompany the notification.
D. The sponsoring broker of the acquiring agency shall give written notice to all licensees
transferred to the acquiring agency within five working days following the date of
acquisition.
E. Any licensee of the acquired agency who elects to transfer from the acquiring agency
shall do so in accordance with the provisions of R.S. 37:1441.A and §1501.A of this
Chapter.
F. Any licensee of the acquired agency who is terminated by the acquiring agency shall be
transferred in accordance with the provisions of R.S. 37:1441.A and §§1501.A and
1503.A.5 of this Chapter.
G. The acquiring agency shall provide a written report to the commission on the status of
all former licensees of the acquired agency within 15 days following the acquisition.
1. The notification shall include a listing by category that identifies:
a. each licensee that requested the return of their license to the
commission;
b. each licensee that is being terminated by the acquiring agency;
c. each licensee that will remain with the acquiring agency.
2. The notification shall include the following documentation and fees:
a. the license of each licensee that will not remain with the acquiring
agency;
b. copies of the written notification to and/or from each licensee as
required by §1505.D of this Chapter;
c. payment of the transfer fee prescribed in R.S. 37:1443 for each licensee
who was sponsored by the acquired agency and who will remain with
the acquiring agency;
d. payment of the errors and omissions insurance fee prescribed in
§1505.C of this Chapter, if applicable.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:41 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1448 (August 2006), LR 37:3001 (October 2011).
§1507. Change of Licensing Status
A. A request to transfer a license from active to inactive status or from inactive to active
status shall be submitted on forms prescribed by the commission and shall be
accompanied by the fees prescribed in R.S. 37:1443, unless exempt as prescribed in
§1503 of this Chapter.
B. Corporate, partnership and limited liability company broker licenses shall remain in the
active license status.
C. An individual broker that elects to become exclusively affiliated with a sponsoring broker
shall submit a request to transfer on forms prescribed by the commission, which shall be
accompanied by the fees prescribed in R.S. 37:1443. Prior to submitting the request to
transfer, the individual broker shall notify any sponsored licensees of the intended
transfer by certified mail and send the associate broker’s license or salesperson’s license,
by hand delivery or by certified or registered mail, to the commission within five days of
such notification.
D. A licensee may transfer to inactive status without completing the applicable education
requirement; however, the commission shall not transfer the licensee to active status
until such time that the education requirement is complete.
E. The post-license education hours may be used to satisfy the continuing education hours,
or a portion of the continuing education hours required for active status as follows:
1. one to five years of inactive status―45 hours of post-license education in lieu of
the required continuing education. Any licensee remaining in the inactive status
for more than one year shall also complete a four-hour continuing education
course covering the Louisiana Real Estate License Law and/or commission rules
and regulations within one year prior to the date of the transfer to active status;
2. more than five years of inactive status―45 hours of post-license education and
at least 35 hours of continuing education. Any licensee remaining in the inactive
status for more than one year shall also complete a four-hour continuing
education course covering the Louisiana Real Estate License Law and/or
commission rules and regulations within one year prior to the date of the transfer
to active status.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:41 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 28:485 (March 2002), amended LR 32:1449 (August 2006), LR 37:3002
(October 2011).
Chapter 17. Termination Responsibilities
§1701. Relinquishment of Business Related Property and Data
A. A licensee whose business relationship with a sponsoring broker has been terminated for
any reason shall immediately relinquish all business related property to the sponsoring
broker, including:
1. the keys to any and all properties listed with the broker;
2. any documents that in any way pertain to real estate transactions wherein a
broker or licensees sponsored by the broker has appeared in a licensing capacity.
This does not preclude the licensee from retaining copies of such documents.
B. A sponsoring broker who alleges the failure of a former sponsored licensee to comply
with §1701.A of this Chapter shall submit a signed written report of such failure to the
commission. The signed report shall constitute a written complaint filed with the
commission and shall list the specific business related data and property that was not
relinquished to the sponsoring broker. The sponsoring broker shall provide a copy of the
report to the licensee.
AUTHORITY NOTE: Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:41 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1449 (August 2006), repromulgated LR 37:3002 (October 2011).
§1703. Financial Obligations; Commissions and Dues; Disputes
A. The commission shall not intervene or become otherwise involved in employment
disputes or disputes pertaining to financial obligations that are the result of a business
relationship between a broker and a sponsored licensee or a timeshare developer and
timeshare sales registrant, including the payment of commissions and dues to
professional organizations. Such disputes shall be settled by the respective parties or by
a court of competent jurisdiction.
B. Employment disputes or disputes over financial obligations, commissions, or dues shall
not be cause for the failure of a sponsoring broker to return a license or registration to
the commission.
AUTHORITY NOTE: Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:41 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1449 (August 2006), repromulgated LR 37:3002 (October 2011).
Chapter 18. Broker Responsibilities
§1801. Broker Supervision
A. A broker must provide a sponsored licensee with written notice and acknowledgment
of the activities that the broker authorizes the sponsored licensee to engage in under
R.S. 37:1431(24).
B. A broker who sponsors licensees or is a qualifying broker for a corporation shall have
written policies and procedures to ensure the following:
1. each sponsored licensee maintains their license in the active status at all
times while they are engaging in real estate activities as described in R.S.
37:1431(24).
2. each sponsored licensee complies with the advertising and team rules;
3. a method and process for the sponsored licensee to provide documents to
the broker for compliance with record keeping.
C. Listings and other agreements for real estate brokerage services must be solicited
under the name of the broker corporation or supervising broker. These
agreements shall be signed by the broker or by a sponsored licensee acting under
written authority of the sponsoring broker.
D. A broker must maintain the rental trust account, the sales escrow account, and the
security deposits trust account with appropriate controls for deposits and
disbursements of funds received on behalf of consumers; and
E. When the broker is a business entity, the qualifying broker is the person responsible
for the broker responsibilities under this Section.
AUTHORITY NOTE: Promulgated in accordance with R.S. 37:1435.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
43:954 (May 2017).
§1803. Record Keeping
A. In a format that is readily available to the commission and for a period of no less than
five years a broker must maintain at minimum the following records:
1. disclosures;
2. listing agreements, buyer representation agreements, other written
agreements that authorize licensees to advertise or represent property for
sale or lease, other written agreements that authorize licensees to receive
compensation;
3. contracts and related addenda;
4. receipts and disbursements of compensation for services as defined under
R.S. 37:1431(24);
5. property management agreements;
6. appraisal, broker price opinions, and comparative market analyses;
7. sponsorship agreements and termination paperwork; and
8. independent contract agreements between brokers and sponsored
salespersons.
AUTHORITY NOTE: Promulgated in accordance with R.S. 37:1435.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
43:954 (May 2017).
§1805. Compensation
A. Licensees who are part of a group or team shall not receive compensation for acts or
services subject to R.S. 37:1431(24) from anyone within their team.
AUTHORITY NOTE: Promulgated in accordance with R.S. 37:1435.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
43:954 (May 2017), amended LR 44:771 (April 2018).
Chapter 19. Real Estate Teams and Groups
§1901. Definitions
A. For the purpose of this Chapter, team or group shall mean a collective name used by
two or more real estate licensees, who represent themselves to the public as a part of
one entity that performs real estate license activities under the supervision of the
same sponsoring broker.
AUTHORITY NOTE: Promulgated in accordance with R.S. 37:1430 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
40:2245 (November 2014).
§1903. Sponsorship
A. Team or group members shall be sponsored by the same broker and, if applicable, shall
conduct all real estate license activity from the office or branch office where their
individual license is held.
B. Licensees shall not form a team or group without written approval from the sponsoring
broke r.
C. The sponsoring broker shall designate a member of each approved team or group as the
contact member responsible for all communications between the broker and the team.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1430 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
40:2245 (November 2014).
§1905. Team or Group Names
A. Team or group names shall not contain terms that could lead the public to believe that
the team or group is offering real estate brokerage services independent of the
sponsoring broker. These terms shall include, but are not limited to:
1. real estate;
2. brokerage or real estate brokerage;
3. realty;
4. company.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1430et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
40:2245 (November 2014).
§1907. Team or Group Leaders
A. The sponsoring broker shall be responsible for all license activity of team or group
members sponsored by the broker.
B. The designated contact member of each team or group shall maintain a current list of all
team or group members, which shall be provided to the sponsoring broker upon
formation of the team or group and immediately upon any change thereafter.
C. A current record of all team or group names, and the members thereof, shall be
maintained by the sponsoring broker in a manner that can be made readily available to
the LREC upon request, including record inspections.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1430 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
40:2245 (November 2014).
§1909. Team Advertising
A. A team or group name shall not be used in advertising without the written approval of
the sponsoring broker.
B. The term “team” or “group” may be used to advertise real estate license activities
provided that:
1. the use of the term does not constitute the unlawful use of a trade name and is
not deceptively similar to a name under which any other person or entity is
lawfully doing business;
2. the team or group is composed of more than one licensee;
3. the advertising complies with all other applicable provisions of this Chapter and
LAC 46:LXVII.Chapter 25 of these rules and regulations.
C. An unlicensed person shall not be named, acknowledged, referred to, or otherwise
included in any team or group advertising.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1430 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
40:2245 (November 2014).
§1911. Disputes
A. The commission shall not intervene or become otherwise involved in team or group
disputes, including those pertaining to financial obligations that are the result of a
business relationship between a team or group, team or group member, branch manager,
sponsoring broker, or any combination thereof, including the payment of commissions
and dues to professional organizations. Such disputes shall be settled by the respective
parties or by a court of competent jurisdiction.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1430et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
40:2245 (November 2014).
Chapter 21. Concurrent Licenses and Registrations
§2101. Broker or Salesperson License; Timeshare Interest Salesperson Registration
A. A broker may be concurrently licensed as an individual and as the designated qualifying
broker of one or more corporations, limited liability companies, and/or partnerships.
B. Associate brokers and salespersons shall not be sponsored by more than one sponsoring
broke r.
C. A real estate license and a timeshare interest salesperson registration shall not be issued
concurrently to any person. A broker shall not concurrently conduct real estate activities
as an individual real estate broker and as an associate broker exclusively affiliated with
another real estate broker.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:42 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1450 (August 2006), repromulgated LR 37:3003 (October 2011).
Chapter 23. Branch Offices
§2301. Branch Office License
A. An office established by a broker or sponsored licensee for conducting any real estate
license activity at a separate address from the registered address of the broker, wherein
the name and telephone number of the broker or agency is advertised in any way, shall
be considered a branch office and shall be licensed as such.
B. An application for a branch office license shall be submitted on the forms prescribed by
the commission and accompanied by the fees prescribed in R.S. 37:1443.
C. Every branch office shall be under the direct supervision of a licensed individual broker
who shall be designated in writing as the branch office manager. A copy of the
designation shall be submitted to the commission within five days following the date of
the original designation or any changes thereto. Nothing shall preclude a sponsoring
broker from acting as the branch office manager for one or more branch offices.
D. A broker designated as a branch office manager shall be subject to the duties and
penalties prescribed for sponsoring brokers in R.S. 37:1430 et seq.; however, this shall
not relieve the sponsoring broker of the ultimate responsibility for the branch office
operation.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:42 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 28:829 (April 2002), amended LR 32:1450 (August 2006), LR 37:3003 (October
2011).
Chapter 25. Advertising; Disclosures; Representations
§2501. Disclosures and Representations
A. Agreements between brokers to allow property data to be shared and disseminated to
clients, customers, or prospective clients, including but not limited to web-based or email
multiple listing service property data, IDX or VOW property data does not constitute
advertising or advertisement as to the property data shared.
B. All advertising for property listed by or services performed by a licensed individual real
estate broker or a licensed corporation, limited liability company, or partnership, and any
advertising for property listed by or services performed by a licensed individual real
estate broker or a licensed corporation, limited liability company, or partnership by
sponsored licensees or employees, shall be under the direct supervision of and approved
by the licensed individual real estate broker or designated qualifying broker of the
licensed corporation, limited liability company, or partnership.
C. Any trade name used by a licensee, registrant or certificate holder in advertising shall be
a trade name that is a clearly identifiable entity that will distinguish itself from other
licensees, registrants or certificate holders.
D. All advertising by a licensed salesperson, associate broker, individual real estate broker,
or licensed corporation, limited liability company, or partnership shall include their
business name, which for the purpose of these rules shall mean the name in which that
salesperson, associate broker, individual real estate broker, or licensed corporation,
limited liability company, or partnership is on record with the commission as doing
business as a licensee of the commission or, in the case of a trade name, that which is
registered with the Secretary of State and on record with the commission.
E. A group or team name may be used in an advertisement only with the approval of the
sponsoring broker. Any person listed as a group or team member in the advertisement
must be a licensee sponsored by the sponsoring broker.
F. In all advertising, the salesperson or associate broker must include the name and
telephone number of the sponsoring broker. The broker’s name and telephone number
must be conspicuous, discernible and easily identifiable by the public.
G. If allowed by the sponsoring broker, the salesperson or associate broker may include in
the advertisement:
1. The salesperson's or associate broker's personal logo or insignia, which cannot be
construed as that of a company name, and which must include the name and
telephone number of the sponsoring broker;
2. The salesperson's or associate broker's contact information;
3. a group or team name, as long as the advertising complies with all other
applicable provisions of this Chapter and LAC 46:LXVII.Chapter 19 of these rules
and regulations; and
4. a slogan that may not be construed as that of a company name.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:42 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 28:829 (April 2002), LR 29:127 (February 2003), LR 32:1450 (August 2006), LR
37:3003 (October 2011), LR 40:2244 (November 2014).
§2503. Owner Authorization
A. No broker or licensee sponsored by said broker shall in any way advertise property
belonging to other persons as being for sale or rent or place a sign on any such property
offering the property for sale or rent without first obtaining the written authorization to
do so by all owners of the property or their authorized attorney in fact.
B. 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 undivided portion of the property.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:43 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3004 (October 2011).
§2505. Accuracy in Advertising
A. All advertising shall be an accurate representation of the property advertised. No broker
or licensee sponsored by said broker shall use advertising which is misleading or
inaccurate or in any way misrepresents any property, terms, value, policies, or services
of the business conducted. The advertising shall not include any name or trade name of
any franchiser or real estate organization or association of which the licensee is not a
member or franchisee.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:43 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3004 (October 2011).
§2507. Advertisements of Residential Property
A. All printed advertisements for the sale or lease of residential real estate shall indicate the
month and year the advertisement is printed, published, or distributed. Advertisements
printed or published in newspapers, real estate trade publications and commercial
magazines and brochures bearing an issue or publication date will be considered in
compliance with this Section.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:43 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3004 (October 2011).
§2509. Advertisements by Franchise Organizations
A. Any licensed broker or salesperson affiliated with a franchise organization must disclose
to the public that the real estate brokerage firm is independently owned and operated in
all advertising.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:43 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3004 (October 2011).
§2511. Agent Owner-Licensed Agent
A. A licensed broker or salesperson who offers property in which he or she owns any interest
as being for sale or rent shall state in any advertising, and on any sign placed on the
property, that he or she is a licensed real estate agent.
B. Any licensed broker or salesperson that advertises, or offers to purchase or rent property
for his or her own full or partial interest shall state in any advertisement that he or she is
a licensed real estate agent.
C. Including the term "licensed real estate agent" in any advertisement or on any sign shall
be sufficient to satisfy this requirement.
D. This Section is not applicable to the sale, rental, or acquisition of property by licensees
under a contractual agreement with a licensed Louisiana real estate broke r.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:43 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 37:3004 (October 2011).
§2515. Internet Advertising
A. A real estate broker advertising or marketing on a site on the Internet must include the
following data on each page of the site on which the advertisement appears:
1. the broker's name or trade name as registered with the commission;
2. the city and state in which the broker's main office or branch office is located.
3. the regulatory jurisdiction(s) in which the broker holds a real estate brokerage
license.
B. A real estate broker using any Internet electronic communication for advertising or
marketing, including but not limited to, e-mail, email discussion groups, and bulletin
boards, must include the following data on the first or last page of all communications:
1. the broker's name or trade name as registered with the commission;
2. the city and state in which the broker's main office or branch office is located.
3. the regulatory jurisdiction(s) in which the broker holds a real estate brokerage
license.
C. An associate broker or salesperson advertising or marketing on a site on the Internet
must include the following data on each page of the site on which the licensee's
advertisement or information appears:
1. the associate broker's or salesperson's name;
2. the name or trade name of the licensed broker or agency listed on the license of
the salesperson or associate broker;
3. the city and state in which the broker's main office or branch office is located.
4. the regulatory jurisdiction(s) in which the broker holds a real estate brokerage
license.
D. An associate broker or salesperson using any Internet electronic communication for
advertising or marketing, included but not limited to, e-mail, email discussion groups,
and bulletin boards, must include the following data on the first or last page of all
communications:
1. the associate broker's or salesperson' name;
2. the name or trade name of the licensed broker or agency listed on the license of
the salesperson or associate broker;
3. the city and state in which the broker's main office or branch office is located.
4. the regulatory jurisdiction(s) in which the broker holds a real estate brokerage
license.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:43 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 28:829 (April 2002), LR 37:3004 (October 2011), LR 38:1022 (April 2012).
Chapter 26. Residential Property Management
§2601. Definitions
Property Management — the marketing, leasing, or overall management of real property for
others for a fee, commission, compensation, or other valuable consideration.
Property Manager — 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.
Residential Real Property — real property consisting of one or not more than four residential
dwelling units, which are buildings or structures each of which are occupied or intended for
occupancy as single-family residences.
AUTHORITY NOTE: Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
45:421 (March 2019).
§2603. Management Authorization
A. Licensees shall not engage in property management on behalf of another without
written authorization from the property owner(s). Salespersons and associate brokers
shall not conduct property management functions on behalf of another, except through
their sponsoring broker.
B. Written authorization to manage property must at minimum include the following:
1. the duties and responsibilities of the property manager;
2. the authority and powers given by the property owner to the property manager;
3. the period of the agreement; and
4. the management fees charged to the property owner
AUTHORITY NOTE: Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
45:422 (March 2019).
§2605. Trust Funds, Deposits, and Accounts for Property Management
A. Licensees engaged in property management on behalf of another shall open and
maintain accounts in accordance with Chapter 27 of the rules and regulations of the
commission.
B. All security deposit and rental trust funds shall not be withdrawn for any purpose
except:
1. upon the mutual written consent of all parties having an interest in the funds;
2. upon court order;
3. to deposit funds into the registry of the court in a concursus proceeding;
4. to disburse funds upon a reasonable interpretation of the contract that authorizes
the broker to hold such funds, provided that the disbursement is not made until 10
days after the broker has notified all parties and licensees in writing;
5. to cover the payment of service charges on security deposit and rental trust accounts;
6. upon approval by the commission in connection with the sale or acquisition of a
licensed entity;
7. to comply with the provision of 9:3251 or any other state or federal statute governing
the transfer of rents, security deposits or other escrow funds.
C. Deposits shall be disbursed within 30 days of an agreement between the principles in a
real estate transaction.
D. A licensee who receives funds on behalf of another for property management shall
maintain a ledger for each property managed. This ledger must clearly document all
funds received and disbursed to, and on behalf of, the property owner.
E. A licensee who accepts cash payments on behalf of an owner must retain written
receipts. These receipts must include at minimum the date, the amount, the property
address, the reason for the payment, the tenants name, and the name and signature of
the licensee or employee who received the funds on behalf of the brokerage.
AUTHORITY NOTE: Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
45:422 (March 2019).
§2607. Property Management Records
A. Licensees engaged in property management shall retain all of the following records,
readily available and properly indexed, for a period of five years:
1. Bank statements, deposit slips, management agreements, lease agreements, owner
ledgers or statements, deposit slips, disbursement checks, invoices, cash receipts,
and any other documents that pertain to the management of the property.
2. Copies of all documents that pertain in any way to real estate transactions wherein
the individual real estate broker or licensees sponsored by the individual real estate
broker have appeared in a licensing capacity.
B. The requirement regarding copies shall not be altered by the transfer of a broker to that
of an associate broker, an unlicensed person, or an inactive licensee.
AUTHORITY NOTE: Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
45:422 (March 2019).
§2609. Exemptions
A. The provisions of this section shall not apply to an unlicensed person, partnership,
limited liability company, association or corporation, foreign or domestic, who performs
acts of ownership regarding the property, either individually or through an employer or
representative.
AUTHORITY NOTE: Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
45:422 (March 2019).
Chapter 27. Escrow and Trust Accounts
§2701. Resident Broker Requirements
A. A resident broker, including corporations, partnerships and limited liability companies,
who accepts any funds on behalf of clients in a real estate sales transaction shall open
and maintain a sales escrow checking account in a financial institution in the state of
Louisiana. All sales escrow accounts shall be titled in the identical wording as stated on
the broker's license and the wording "Sales Escrow Account" shall be imprinted on all
checks and bank statements issued in connection with this account. Except as otherwise
provided in this Chapter, all funds received by a broker in connection with the sale of real
estate shall be deposited in this account when there is a written contract to buy and sell
real estate that has been fully executed and accepted by both buyer and seller.
B. A resident broker, including corporations, partnerships and limited liability companies,
engaged in the management of property owned by other persons shall open and
maintain a rental trust checking account in a financial institution in the state of Louisiana.
All rental trust accounts shall be titled in the identical wording as stated on the broker's
license and the wording "Rental Trust Account" shall be imprinted on all checks and bank
statements issued in connection with this account. Except as otherwise provided in this
Chapter, all funds collected as rental payments from or on behalf of clients in connection
with the management of properties owned by other persons shall be deposited into this
account.
C. A resident broker, including corporations, partnerships and limited liability companies,
engaged in the collection of rental security or damage deposits in connection with
property management activities on behalf of clients shall open a security deposit trust
checking account in a financial institution in the state of Louisiana. All security deposit
trust accounts shall be titled in the identical wording as stated on the broker's license
and the wording "Security Deposit Trust Account" shall be imprinted on all checks and
bank statements issued in connection with this account. Except as otherwise provided in
this Chapter, all funds collected as rental security or damage deposits from or on behalf
of clients shall be deposited into this account.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:44 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1451 (August 2006), LR 37:3005 (October 2011).
§2703. Non-Resident Broker Requirements
A. Non-resident brokers shall open and maintain sales escrow checking accounts, rental
trust checking accounts, and security deposit checking accounts, as provided in §2701 of
this Chapter; however, these accounts shall be opened and maintained in a Louisiana
financial institution or a financial institution located in the resident state of the broker.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:44 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1451 (August 2006), LR 37:3005 (October 2011).
§2705. Change in License Status; Associate Broker and Inactive Broker Requirements
A. Associate brokers are prohibited from opening and maintaining a sales escrow checking
account, rental trust checking account, or security deposit trust checking account. All
funds received by an associate broker in any real estate transaction shall be placed in the
custody of the sponsoring broker.
B. An associate broker previously licensed as an individual broker or an active broker
transferring to inactive status:
1. shall maintain all sales escrow checking accounts, rental trust checking accounts,
or security deposit trust checking accounts for the limited and specific purpose
of completing pending transactions and disbursing all deposits contained therein;
2. shall not deposit additional funds in sales escrow checking accounts, rental trust
checking accounts, or security deposit trust checking accounts as of the effective
date of affiliation with a sponsoring broker or transfer to inactive status
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:44 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1451 (August 2006), LR 37:3005 (October 2011).
§2707. Branch Office Accounts
A. A broker may open additional sales escrow checking accounts, rental trust checking
accounts, and security deposit trust checking accounts to accommodate business
transacted out of a branch office.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:44 (January 2000), amended by the Office of the Governor, Louisiana Real
Estate Commission, LR 32:1452 (August 2006), repromulgated, LR 37:3005 (October 2011).
§2708. Signatory Rights on Checking Accounts
A. An individual real estate broker shall be an authorized signatory on each sales escrow
checking account, rental trust checking account, or security deposit trust checking
account and shall be responsible for the proper maintenance and disbursal of any funds
contained therein The addition of sponsored licensees and/or employees of the broker
as signatories on the accounts shall not relieve the individual real estate broker of this
responsibility.
B. The qualifying broker of a licensed corporation, partnership or limited liability company
shall be an authorized signatory on sales escrow checking accounts, rental trust checking
accounts and security deposit trust checking accounts maintained by the licensed entity
and shall be responsible for the proper maintenance and disbursal of any funds contained
therein. The addition of sponsored licensees, principals and/or employees of the licensed
entity as signatories on the accounts shall not relieve the qualifying broker of this
responsibility.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
32:1452 (August 2006), repromulgated LR 37:3005 (October 2011).
§2709. Additional Accounts
A. Where the interest of the principal parties to a transaction or series of transactions would
be served thereby, and with the prior written consent of the principal parties, a broker
or non-resident broker may open an additional sales escrow checking account, rental
trust checking account or security deposit trust checking account, as prescribed in
§§2701 and 2703 of this Chapter, and shall deposit therein all funds received in trust on
behalf of the parties to the transaction or series of transactions.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:44 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1452 (August 2006), repromulgated LR 37:3006 (October 2011).
§2711. Non-Interest Bearing Checking Accounts
A. Every sales escrow checking account, rental trust checking account or security deposit
trust checking account shall be opened as a non-interest bearing checking account unless
all parties having an interest in the funds to be deposited therein have agreed otherwise
in writing.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:44 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1452 (August 2006), repromulgated LR 37:3006 (October 2011).
§2713. Personal Funds in Escrow and Trust Checking Accounts
A. A sum not to exceed $2,500 may be kept in each sales escrow checking account, rental
trust checking account, and security deposit trust checking account, which sum shall be
specifically identified and deposited to cover bank service charges relating to the
accounts, and shall not be used for any other purpose.
B. A broker engaged in property management activities may keep funds in excess of $2,500
in a rental trust checking account for the temporary, limited, and specific purpose of
enabling the broker to satisfy financial obligations for or on behalf of clients.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:44 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1452 (August 2006), LR 37:3006 (October 2011).
§2715. Withdrawal
A. Funds deposited into a sales escrow checking account, rental trust checking account, or
security deposit trust checking account shall not be withdrawn for any purposes except:
1. upon the mutual written consent of all parties having an interest in the funds;
2. upon court order;
3. to deposit funds into the registry of the court in a concursus proceeding;
4. to disburse funds upon a reasonable interpretation of the contract that
authorizes the broker to hold such funds, provided that the disbursement is not
made until 10 days after the broker has notified all parties and licensees in
writing;
5. to return the funds to a buyer at the time of closing;
6. to cover the payment of service charges on sales escrow checking accounts, rental
trust checking accounts, and security deposit trust checking accounts;
7. upon approval by the commission in connection with the sale or acquisition of a
licensed entity;
8. to comply with the provisions of R.S. 9:3251 or any other state or federal statute
governing the transfer of rents, security deposits or other escrow funds.
B. Deposits shall be disbursed within 30 days of an agreement between the principles in a
real estate transaction.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:44 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1452 (August 2006), LR 37:3006 (October 2011).
§2717. Deposits
A. Funds received in a real estate sales, lease or management transaction shall be deposited
in the appropriate sales escrow checking account, rental trust checking account or
security deposit trust checking account of the listing or managing broker unless all parties
having an interest in the funds have agreed otherwise in writing.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:45 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1453 (August 2006), repromulgated, LR 37:3006 (October 2011).
§2719. Account Closing
A. No sales escrow checking account, rental trust checking account, or security deposit trust
checking account may be closed until such time as all deposits therein have been
properly disbursed.
B. Bankruptcy and/or the revocation, suspension, or lapse of a broker license for any reason
shall not be cause to close or discontinue maintenance of any sales escrow checking
account, rental trust checking account, or security deposit trust checking account.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:45 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1453 (August 2006), repromulgated, LR 37:3006 (October 2011).
§2721. Transfer of Trust Funds on Sale or Acquisition of Agency
A. When a licensed agency is sold or otherwise acquired by another licensed agency the
sponsoring broker of the acquiring agency shall notify the commission in writing of the
acquisition and the anticipated date of the transfer of trust funds. The notice shall specify
the name of the acquired agency and account numbers of the sales escrow checking
accounts, rental trust checking accounts, or security deposit trust checking accounts
from which the funds will be transferred and the account numbers of the accounts into
which the funds will be deposited.
B. A letter requesting approval to transfer the funds shall be jointly signed by the sponsoring
brokers of the acquired agency and the acquiring agency and shall accompany the
notification to the commission.
C. The transfer of funds shall not occur without written approval from the commission, as
prescribed in §2715.A.9 of this Chapter.
D. Within five working days following the transfer of funds a letter jointly signed by the
sponsoring brokers of the acquired agency and the acquiring agency shall be forwarded
to the commission certifying that all trust funds have been transferred. The letter shall
include the following:
1. certification that all sales escrow checking account, rental trust checking account,
and security deposit trust checking account funds have been transferred to and
received by the acquiring agency;
2. certification that supporting documents for all trust funds have been delivered to
and received by the acquiring agency;
3. a listing of all sales escrow checking accounts, rental trust checking accounts, or
security deposit trust checking accounts from which a transfer was made and the
amount of funds transferred from each account;
4. a listing of all sales escrow checking accounts, rental trust checking accounts, and
security deposit trust checking accounts into which funds were deposited and the
amount of funds deposited into each account.
E. Within 10 days following the transfer of funds, the sponsoring broker of the acquired
agency shall close the escrow accounts and trust accounts from which the funds were
transferred and shall advise the commission in writing when such action has been
completed.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:45 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1453 (August 2006), repromulgated, LR 37:3007 (October 2011).
Chapter 29. Disbursement of Escrow Deposits
§2901. Escrow Disputes
A. When a dispute exists in a real estate transaction regarding the ownership or entitlement
to funds held in a sales escrow checking account, the broker holding the funds shall send
written notice to all parties and licensees involved in the transaction. Within 60 days of
the scheduled closing date or knowledge that a dispute exists, whichever occurs first, the
broker shall do one of the following:
1. disburse the funds upon the written and mutual consent of all of the parties
involved;
2. disburse the funds upon a reasonable interpretation of the contract that
authorizes the broker to hold the funds. Disbursement may not occur until 10
days after the broker has sent written notice to all parties and licensees;
3. place the funds into the registry of any court of competent jurisdiction and proper
venue through a concursus proceeding;
4. disburse the funds upon the order of a court of competent jurisdiction.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:46 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1454 (August 2006), LR 33:2422 (November 2007), LR 37:3007 (October
2011), LR 42:53 (January 2016).
Chapter 31. Change of Address and/or Telephone Number
§3101. Reporting Change of Address and/or Telephone Number
A. The commission shall be notified in writing within 10 days of any change in the mailing
address, physical address, and/or telephone number of a licensee’s, certificate holder’s,
or registrant’s business or residence.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:47 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1454 (August 2006), LR 37:3007 (October 2011).
Chapter 35. Disclosure by Licensee
§3501. Licensee as Principal in a Real Estate Transaction
A. The license status of a principal in a real estate transaction, whether individually or
through an entity in which an interest is held by the licensee, shall be disclosed in writing
to all other principals in the real estate transaction prior to entering into negotiations
concerning the execution of a real estate contract.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:47 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 32:1454 (August 2006), LR 37:3007 (October 2011).
§3503. Buyer Broker Compensation; Written Disclosure and Acknowledgment
A. Buyer broker compensation shall not be included as part of closing costs paid by the
seller, unless such compensation is disclosed in a written offer and accepted by the seller,
which specifically states the amount of compensation being paid to the licensee.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
39:3074 (November 2013).
Chapter 36. Residential Property Disclosure
§3601. Property Disclosure Document for Residential Real Estate
A. In accordance with R.S. 9:3196 through 9:3200, unless exempted therein, the seller of
residential real property shall complete a property disclosure document in a form
prescribed by the Louisiana Real Estate commission or a form that contains at least the
minimum language prescribed by the commission.
AUTHORITY NOTE:Promulgated in accordance with R.S. 9:3195 et seq.
HISTORICAL NOTES: Promulgated by the Office of the Governor, Real Estate Commission, LR
30:1192 (June 2004), amended LR 37:3008 (October 2011).
Chapter 37. Agency Disclosure
§3701. Agency Relationships in Real Estate Transactions
A. Effective March 1, 1998, agency relations in real estate transactions will be governed by
Chapter 4 of Code XV of Title 9 of the Louisiana Revised Statutes of 1950 comprised of
R.S. 9:3891-3899.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:47 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3008 (October 2011).
§3703. Agency Disclosure
A. Licensees shall provide the agency disclosure informational pamphlet or the agency
disclosure form to all parties to a real estate transaction involving the sale or lease of real
property.
B. Licensees shall ensure that the pamphlets and forms are the most current versions
prescribed by the commission and that reproductions of the pamphlet and form contain
the identical language prescribed by the commission.
C. Licensees shall provide the agency disclosure informational pamphlet or the agency
disclosure form to prospective sellers/lessors and buyers/lessees at the time when
substantive contact is made between the licensee and customer, i.e. any specific financial
qualifications of the customer or the motives or objectives in which the customer may
divulge any confidential, personal or financial information, which, if disclosed to the
other party to the transaction, could harm the party’s bargaining position, when
performing any real estate related activity involving the sale or lease of real property,
other than a ministerial act as defined in R.S. 9:3891(12).
D. Licensees providing agency disclosure informational pamphlets or agency disclosure
forms to prospective sellers/lessors and buyers/lessees at the time when substantive
contact is made shall ensure that the recipient signs and dates the pamphlet or form. The
licensee providing the pamphlet or form shall sign as a witness to the signature of the
recipient, and the licensee shall retain the signed pamphlet or a copy of the form for a
period of five years.
E. Licensees providing agency disclosure informational pamphlets or agency disclosure
forms to prospective sellers/lessors and buyers/lessees by email or other form of
electronic transmission shall ensure that the recipient acknowledges receipt of the
pamphlet or form by a document verifying the time and date of receipt. The licensee
providing the pamphlet or form shall retain the signed pamphlet or a copy of the form
for a period of five years.
F. In any circumstance in which a seller/lessor or a buyer/lessee refuses to sign the agency
disclosure informational pamphlet receipt or the agency disclosure form, or refuses to
provide a document verifying receipt of the pamphlet or form, the licensee shall prepare
written documentation that includes the nature of the proposed real estate transaction,
the time and date the pamphlet or form was provided to the seller/lessor or
buyer/lessee, and the reasons given by the seller/lessor or buyer/lessee for not signing
the pamphlet or form, or providing a document verifying receipt of the pamphlet or form.
This documentation shall be retained by the licensee for a period of five years.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:47 (January 2000), amended LR 29:349 (March 2003), amended by the
Office of the Governor, Real Estate Commission, LR 32:1454 (August 2006), LR 37:3008
(October 2011).
§3705. Dual Agency Disclosure
A. The dual agency disclosure form will be used by licensees acting as a dual agent under
R.S. 9:3897.
B. Licensees are responsible for ensuring that the form is the most current version
prescribed by the commission and that reproductions of the form contain the identical
language prescribed by the commission.
C. Licensees shall ensure that the dual agency disclosure form is signed by all clients at the
time the brokerage agreement is entered into or at any time before the licensee acts as
a dual agent. A copy of this documentation shall be retained by the licensee for a period
of five years.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:47 (January 2000), amended LR 29:349 (March 2003), repromulgated LR
29:580 (April 2003), amended by the Office of the Governor, Real Estate Commission, LR
32:1455 (August 2006), LR 37:3008 (October 2011).
Chapter 38. Mold Disclosure
§3801. Mold Informational Pamphlets
A. The United States Environmental Protection Agency (EPA) shall be the official source of
any mold informational pamphlet approved by the Louisiana Real Estate Commission.
B. A licensee who chooses to deliver mold information to a buyer shall be deemed in
compliance with R.S. 37:1470.A(1) if the licensee performs at least one of the following:
1. delivers "A Brief Guide to Mold, Moisture, and Your Home" (EPA 402-K-02-003),
or any successor thereof, to a residential buyer; or
2. delivers "Mold Remediation in Schools and Commercial Buildings" (EPA 402-K-01-
001, March 2001), or any successor thereof, to a commercial buyer; or
3. directs a buyer to the mold informational pamphlets maintained on the United
States Environmental Protection Agency (EPA) website at
http://www.epa.gov/iaq/molds/index.html, or any successor thereof.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Louisiana Real Estate
Commission, LR 30:1477 (July 2004), repromulgated LR 37:3008 (October 2011).
Chapter 39. Presentation of Offers and Counter Offers
§3900. Purchase Agreement Forms
A. The purchase agreement form used by licensees representing the buyer or seller in a
residential real estate transaction shall be the Residential Agreement to Buy or Sell, or
any successor thereof, prescribed by the Louisiana Real Estate Commission.
B. The Residential Agreement to Buy or Sell, or any successor thereof, shall be used in
accordance with the provisions of R.S. 37:1449.1.
C. The official source of the prescribed purchase agreement form shall be the Louisiana Real
Estate Commission website.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 33:2423 (November 2007), effective January 1, 2007, amended LR 37:3009
(October 2011).
§3901. Timely Presentation of Offers and Counter Offers
A. All written offers and counter offers for the purchase of real estate shall be presented to
all buyers and/or sellers for their consideration and decision immediately, without delay.
B. The licensee who prepares an offer or counter offer in a real estate transaction shall
ensure that the time of day and date the offer or counter offer was signed by the offering
party are included in the document.
C. The licensee who presents an offer or counter offer in a real estate transaction shall
ensure that the time of day and date the offer or counter offer was accepted, rejected or
countered are included in the document.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:48 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3009 (October 2011).
§3903. Negotiations in Exclusive Agency Contracts
A. Negotiations concerning property listed exclusively with a broker shall be carried on with
the listing broker or agent designated by the listing broker, not the owner, except with
the expressed consent of the listing broker.
B. Negotiations with a buyer who has entered into an exclusive buyer agent contract with a
licensed broker shall be carried on with the licensed broker, or agent designated by the
licensed broker, not the buyer, except with the express consent of the licensed broker.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:48 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3009 (October 2011).
§3905. Transactions
A. Designated agents receiving written offers or counter offers in transactions shall
annotate the offers or counter offers to indicate the time of day and date the offers or
counter offers were received.
B. It shall be the responsibility of each of the designated agents to make reasonable efforts
to contact and notify the designated agent of the other party of the existence of an offer
or counter offer.
1. It shall be the responsibility of the designated agent who transmits or delivers the
written offer or counter offer to document the date, time of day, place, and
method of delivery.
2. Such documentation as to the date, time of day, place and method of
transmission or delivery of the written offer or counter offer may include, but will
not be limited to, annotation by the delivering designated agent, a dated and
timed facsimile transmission receipt or a dated and timed electronic mail receipt.
3. Such documentation shall be retained pursuant to R.S. 37:1449.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:48 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 29:1087 (July 2003); LR 30:41 (January 2004), amended by the Office of the
Governor, Real Estate Commission, LR 37:3009 (October 2011).
§3907. Rejection of Offers and Counter Offers
A. All written offers and counter offers presented to a seller and/or buyer and not accepted
shall be clearly marked as rejected and signed by the seller and/or buyer. In any
circumstance in which a seller and/or buyer refuses to sign a rejected offer or counter
offer, the licensee making the presentation of the offer or counter offer shall annotate
this fact indicating the time of day and date of the rejection of the offer or counter offer
by the seller and/or buyer. A copy of the rejected offer or counter offer signed by the
seller and/or buyer, or a copy of the rejected offer or counter offer bearing the
annotation of the licensee, shall be provided to the buyer and/or seller, and the rejected
offer or counter offer shall be returned to the prospective buyer and/or seller within five
days after the signature or annotation is affixed to the document.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:48 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3009 (October 2011).
§3909. Broker's Authority to Reject Offers or Counter Offers
A. In the event the owner (seller) is not available and grants authority to the listing broker
to reject an offer or counter offer, the listing broker or a licensee designated by the listing
broker shall mark the offer or counter offer as rejected and sign the offer or counter offer
as such in lieu of the owner (seller), but the listing broker or licensee designated by the
listing broker shall nevertheless forward a copy of the rejected written offer or counter
offer to the owner (seller) for his signature acknowledging the rejection of the offer or
counter offer. The copy of the rejected offer or counter offer signed by the owner (seller)
shall be retained in the files of the listing broker. In the case of a cooperative transaction,
the cooperating listing broker shall provide a copy of the rejected offer or counter offer
bearing the signature of the owner to the cooperating selling broker within five days after
the signed rejection is received from the owner.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:48 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3009 (October 2011).
Chapter 41. Investigations and Hearings
§4101. Complaints
A. Complaints alleging violations of the Louisiana Real Estate License Law and/or Rules and
Regulations of the commission shall bear the signature of the complainant or that of his
or her legal representative before any action will be taken thereon by the commission.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:48 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3010 (October 2011).
§4103. Addition of Respondents to Investigations
A. If during the conduct of an investigation documented probable cause is established
indicating that violations of the Louisiana Real Estate License Law and/or Rules and
Regulations of the commission have been committed by licensees, timeshare registrants,
or certificate holders other than the licensee, timeshare registrant, or certificate holder
against whom the original complaint was made, the additional licensees or timeshare
registrants may be added as respondents to the investigation in the absence of any
written complaint alleging such violation.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:48 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3010 (October 2011).
§4105. Executive Director May Authorize Investigations and Cease and Desist Orders
A. Upon documented probable cause, the executive director of the Louisiana Real Estate
Commission may issue written authorization to investigate apparent violations of the
Louisiana Real Estate License Law and/or the Rules and Regulations of the commission.
B. Upon documented probable cause that any or state law or commission regulation has
been violated, the executive director of the Louisiana Real Estate Commission may issue
a cease and desist order to any unlicensed entity, licensee, registrant, or certificate
holde r.
C. Upon documented probable cause that any or state law or commission regulation has
been violated, the executive director of the Louisiana Real Estate Commission may issue
a cease and desist order to any licensee.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:49 (January 2000), amended LR 37:3010 (October 2011).
§4107. Adjudicatory Proceedings
A. When, as a result of an investigation, it appears that violations of the Louisiana Real
Estate License Law may have been committed by a licensee, registrant or certificate
holder, the violations may be adjudicated through informal or formal adjudicatory
proceedings.
1. Informal Adjudicatory Proceedings
a. The complaint may be concluded informally without a hearing by the
commission on the recommendation of the hearing examiner and the
concurrence of the executive director.
b. A preliminary notice of adjudication will be issued to advise the
respondent of the violation or violations alleged and to advise the
respondent that the matter can be resolved informally should the
respondent desire to admit to committing the act or acts specified and
submits a written request that the matter be resolved informally.
c. A hearing officer will be appointed by the executive director to conduct
an informal hearing with the respondent.
d. At the informal hearing, no evidence will be presented, no witnesses will
be called and no formal transcript of the proceedings will be prepared by
the commission. Statements made during the informal proceedings may
not be introduced at any subsequent formal adjudicatory proceedings
without the written consent of all parties to the informal hearing.
e. Following an admission by the respondent at the informal hearing that
violations were committed as alleged, the hearing officer may enter into
a recommended stipulations and consent order to include the imposition
of any sanctions authorized by the Louisiana Real Estate License Law. In
the written document the respondent must stipulate to having
committed an act or acts in violation of the Louisiana Real Estate License
Law or the Rules and Regulations of the commission, accept the
sanctions recommended by the hearing officer, and waive any rights to
request a rehearing, reopening, or reconsideration by the commission,
and the right to judicial appeal of the consent order.
f. If at the informal hearing the respondent does not admit to having
committed the act or acts specified, does not accept the sanctions
recommended by the hearing officer, or does not waive the specified
appellate rights, the alleged violations shall be referred to a formal
adjudicatory hearing.
g. The executive director of the Louisiana Real Estate Commission may
authorize a respondent to execute a Stipulations and Consent Order
before a duly commissioned and qualified notary in lieu of participating
in an informal hearing with a Hearing Officer in cases where the sanction
for the alleged violation has been previously approved by the
commission.
h. If a respondent does execute a stipulations and consent order, the
executive director shall submit the document to the commission at the
next regular meeting for approval and authorization for the executive
director to execute the consent order in the name of the commission.
i. The actions of the commission relative to all consent orders shall be
noted in the minutes of the meeting at which the consent order is
considered and at which authorization is granted to the executive
director to execute the order in the name of the commission.
j. Any consent order executed as a result of an informal hearing shall be
effective on the date approved by the commission.
2. Formal Adjudicatory Proceedings
a. All formal public adjudicatory hearings shall be conducted under the
auspices of R.S. 37:1456 and Chapter 13 of Title 49 of the Louisiana
Revised Statutes.
b. The order issued by the commission pursuant to any formal public
adjudicatory proceeding shall become effective on the eleventh day
following the date the order is issued by the commission and entered
into the record at the proceedings.
c. The date of entry is the date the order is issued by the commission and
entered into the record at the formal adjudicatory proceedings.
d. If a request for rehearing, reopening, or reconsideration of the order of
the commission is timely filed and denied by the commission, the order
of the commission shall become final on mailing of the notice of the
commission's final decision on the request.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:49 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 37:3010 (October 2011).
§4109. Appellate Proceedings
A. Rehearings
1. An order of the commission shall be subject to rehearing, reopening or
reconsideration by the commission on receipt of a written request from a
respondent. An application for rehearing, reopening or reconsideration must be
postmarked or received at the office of the commission within 10 days from the
date of entry of the order rendered by the commission.
2. The request shall be reviewed by the commission attorney for compliance with
the Administrative Procedure Act. A finding by the commission attorney that the
request does not establish grounds for rehearing, reopening or reconsideration
shall result in a denial of the request.
B. Judicial Review
1. Proceedings for judicial review of an order issued by the commission may be
instituted by filing a petition for judicial review in the Nineteenth Judicial District
Court in the parish of East Baton Rouge.
2. In the event a request for rehearing, reopening or reconsideration has been filed
with the commission, the party making the request shall have 30 days from the
final decision on the request within which to file a petition for judicial review.
3. If a request for rehearing, reopening or reconsideration is not filed with the
commission, the Petition for Judicial Review must be filed in the Nineteenth
Judicial District Court within 30 days after the mailing of the order of the
commission.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development Real Estate
Commission, LR 26:49 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3011 (October 2011).
§4111. Stay of Enforcement
A. The filing of a petition for judicial review by a respondent licensee does not itself stay
enforcement of an order issued by the commission. A stay of enforcement will be granted
only when directed by the court conducting a judicial review of adjudication.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:50 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3010 (October 2011).
§4113. Costs of Adjudicatory Proceedings
A. On a finding that a respondent has committed the violations as alleged in any formal
or informal adjudicatory proceedings, the commission may assess the respondent the
administrative costs of the proceeding, as determined by the commission. Payment
of these costs shall be a condition of satisfying any order issued by the commission.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:50 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 37:3011 (October 2011).
Chapter 43. Licensee, Registrant, and Certificate Holder Responsibilities
§4301. Knowledge of the Law
A. It shall be the duty of all licensees, certificate holders, and registrants to have knowledge
and be aware of all laws regulating the real estate industry in Louisiana including, but not
limited to, these rules and regulations and the Louisiana Real Estate License Law as set
forth in Chapter 17, Title 37 of the Louisiana Revised Statutes.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:50 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 37:3011 (October 2011).
Chapter 45. Franchise Operations
§4501. Registration of Franchise Name
A. Unless registered in Louisiana with the Louisiana Real Estate Commission as hereinafter
specified, no person, partnership, limited liability company, or corporation shall offer for
sale, lease, rent, or use in any way, any franchise name to be publicly utilized or used by
a licensed Louisiana real estate broker.
B. Any name or trade name used by a franchisor or franchisee shall be a name or trade
name that is a clearly identifiable entity that will distinguish it from other franchisors or
franchisees.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:50 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 28:830 (April 2002), LR 37:3011 (October 2011).
§4503. Registration of Franchise Operation
A. Unless registered in Louisiana with the Louisiana Real Estate Commission as hereinafter
specified, no person, partnership, limited liability company, or corporation engaged in
a franchise operation of real estate brokerage firms shall operate in Louisiana.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:50 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3011 (October 2011).
§4505. Application for Registration
A. Any person, partnership, limited liability company, or corporation which intends to
operate or do business as a franchiser of real estate brokerage firms in Louisiana shall
make application to the Louisiana Real Estate Commission for registration. Applications
for registration shall contain the following information and supporting documents:
1. name, address, and whether the applicant is a person, partnership, limited
liability company, or corporation;
2. partnership and limited liability company—the names and addresses of all
partners or principals;
3. corporation—names and addresses of officers and members of the board of
directors and the place of incorporation;
4. partnership, limited liability company, or corporation—a certified copy of the
articles of incorporation or the document establishing the partnership or limited
liability company;
5. a certified, audited financial statement disclosing the current financial condition
of the applicant;
6. a statement of the business activities of the applicant, including a description of
the franchise agreement to be used in connection with the Louisiana real estate
brokers, and a list of the states in which the franchiser is qualified to do and/or is
doing business.
B. Upon receipt of the application for registration, the commission may require such
additional information as it deems necessary.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:50 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3011 (October 2011).
§4507. Agent for Service of Process
A. If the applicant is not a resident of Louisiana, it shall appoint a licensed active Louisiana
individual real estate broker to act as the applicant's agent for the service of all judicial
process or legal notices directed to such applicant. Service upon the agent so designated
shall be equivalent to personal service upon the applicant.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:50 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3012 (October 2011).
§4509. Annual Registration
A. If the requirements set forth herein are met the commission shall register the franchiser
for a period of one year. The franchiser shall then renew each year by furnishing the
commission with all information as would modify or change the information previously
submitted.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:50 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3012 (October 2011).
§4511. Renewal Requirements
A. Each application for renewal by a franchiser shall be submitted on or before January 15
of each year and shall reflect the information required by the commission for the
preceding year.
B. Any application for renewal by the franchiser shall also include the name and address of
any licensed Louisiana broker that is operating under a franchise agreement with the
franchiser.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:51 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3012 (October 2011).
§4513. Penalty
A. Any person, partnership, limited liability company, or corporation which operates in
Louisiana as a franchiser of real estate brokerage firms, without the specific authority to
do so as granted by the Louisiana Real Estate Commission, shall be subject to a penalty
of the refusal by the commission to allow said person, partnership, limited liability
company, or corporation to operate or do business in Louisiana for a period of at least
one year.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:51 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3012 (October 2011).
§4515. Violations of Law
A. The commission shall have the power to withdraw any registration and/or issue a cease
and desist order, after a hearing, to any franchiser that is subject to these rules and
regulations, upon determination that any federal or state law or commission regulation
has been or will be violated.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:51 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3012 (October 2011)
Chapter 47. Waiver of Renewal Requirements
§4701.Veteran Waiver
A. Licensees who are inducted into military service or those licensees in the military who
are transferred out of state shall, upon furnishing appropriate evidence of their
honorable service, be entitled to renewal of their licenses, without penalty, provided
application is filed within six months following discharge. The provisions of this Section
shall extend to spouses of persons described hereinabove who were licensed at the time
of such induction or transfer.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:51 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3012 (October 2011).
Chapter 49. Reciprocity
§4901. Licensing
A. The commission may enter into a reciprocal agreement with the appropriate authority of
any other state to permit any resident of that other state who is licensed there as a real
estate broker or salesperson to obtain an equivalent Louisiana non-resident license and
engage in the real estate business in Louisiana if that other state agrees to similarly grant
a non-resident license to any Louisiana resident broker or salesperson and permit the
licensee to engage in the real estate business in that other state.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:51 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3012 (October 2011)
§4903. Requirements for License
A. Any person residing in and licensed as a real estate broker or salesperson in a state whose
appropriate authority has entered into a reciprocal agreement with the commission shall
be granted an equivalent non-resident license by the commission upon applying and
complying with the following requirements:
1. providing the commission with sufficient proof of his licensing by his resident
state;
2. paying all fees prescribed for an equivalent Louisiana resident license;
3. filing an irrevocable appointment of agent for service of process with the
commission appointing the executive director as the licensee's agent for service
of process in all matters arising out of or in conjunction with any real estate
activities conducted by the licensee in Louisiana;
4. corporation—procuring a certificate of authority to do business in Louisiana from
the Louisiana Secretary of State and providing the commission with a copy; and
5. partnership or limited liability company—procuring a certificate of registry as a
foreign partnership from the Louisiana Secretary of State and providing the
commission with a copy.
B. A license applicant who has been a resident of Louisiana for not more than 90 days may
be considered by the commission as a non-resident for purposes of this Section.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:51 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 37:3013 (October 2011).
§4905. Non-resident Licensee
A. The non-resident licensee is bound, in all respects, by the provisions of the Louisiana Real
Estate License Law (R.S. 37:1431 et seq.) and these regulations.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:51 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3013 (October 2011).
Chapter 51. Out-of-State Broker Cooperation
§5101. Broker Cooperation
A. A Louisiana broker may cooperate with a licensed broker of another state in the sale,
exchange, purchase, rental, leasing, or management of real property located in Louisiana
within the limits provided in the Louisiana Real Estate License Law and rules and
regulations of the commission under the following conditions.
1. The sale, exchange, purchase, rental, leasing, or management of Louisiana real
property shall be handled under the direct supervision and control of the
Louisiana broker who shall take full responsibility for all actions of the out-of-state
broker. All advertising of any kind must contain the names of both the Louisiana
licensed broker and the out-of-state broker. The out-of-state broker may place a
sign on real property located in Louisiana with the written consent of the
Louisiana licensed broker.
2. Any funds collected on behalf of others shall be maintained in the Louisiana
broker's sales escrow checking account, rental trust checking account or security
deposit trust checking account unless all parties having an interest in the funds
to be deposited therein have agreed otherwise in writing.
3. In each instance herein where a Louisiana broker enters into a cooperating
agreement with an out-of-state broker for the sale, exchange, purchase, rental,
leasing, or management of Louisiana real property, the Louisiana broker must file
one copy of a cooperating agreement with the Louisiana Real Estate Commission
prior to the property being advertised, shown, or any contract taken. A written
cooperating agreement must be filed for each separate transaction. This
agreement must contain verbiage wherein both the Louisiana broker and the out-
of-state broker agree to sign all written reports and contracts and comply with
the Louisiana Real Estate License Law and rules and regulations of the
commission in all respects.
4. Any fee or commission received as a result of a cooperative transaction shall be
paid to the Louisiana broker who will, in turn, compensate the out-of-state broker.
The percentage of fees or commission to be received by the Louisiana broker and
the out-of-state broker shall be negotiable between the two parties and shall be
agreed upon, in writing, by the parties in their cooperative agreement.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:51 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 37:3013 (October 2011).
§5103. Referral Fees
A. A licensed broker in this jurisdiction may divide or share a real estate commission with a
licensed broker in another jurisdiction whenever the licensed broker in the other
jurisdiction acts only as a referral agent who is not involved in the actual negotiations,
execution of documents, collections of rent, management of property, or other real
estate brokerage activity in a real estate transaction which involves more than the mere
referral of a client or customer to the licensed broker of this jurisdiction.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:52 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3013 (October 2011).
§5105. Jurisdiction over Out-of-State Activities
A. The commission shall have the power to impose any sanction permitted by R.S. 37:1430
et seq., on any licensee of this jurisdiction who performs or attempts to perform any of
the acts of a licensee on property located in another jurisdiction without first having been
properly licensed in that jurisdiction or otherwise having fully complied with that
jurisdiction's laws regarding real estate brokerage.
B. It shall be the duty of every licensee, registrant, and certificate holder to notify the
commission within 10 days by registered or certified mail or hand delivery of any sanction
imposed on the licensee, registrant, or certificate holder by another jurisdiction.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:52 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 37:3013 (October 2011)
Chapter 53. Real Estate Schools
§5301. Approval of schools
A. This Chapter shall apply to real estate schools seeking approval to conduct a course of
education in real estate pre-license subjects.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3014 (October 2011).
§5303. Certifications; Applications and Procedures
A. Any individual or entity desiring to conduct business in this state as a real estate school
shall file an application for certification with the commission.
B. The application shall be in such form and detail as prescribed by the commission and
shall be accompanied by all documentation requested therein and the certification fee(s)
prescribed in R.S. 37:1443.
C. 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.
D. The commission may deny an application for certification as a real estate school for any
of the following reasons.
1. The applicant has been convicted of forgery, embezzlement, obtaining money
under false pretenses, larceny, extortion, conspiracy to defraud, or theft, or has
been convicted of a felony or crime involving moral turpitude in any court of
competent jurisdiction.
2. An application contains a false statement of material fact.
3. A professional license or certification held by an applicant has been revoked.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3014 (October 2011).
§5305. Surety Bonds
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.
B. Bonds shall be in favor of the state of Louisiana and conditioned for the protection of the
contractual rights of students who attend real estate courses offered by the real estate
school.
C. Bonds shall remain effective and in force throughout the certification period of the real
estate school.
D. Proof of bond renewal shall be provided to the commission annually.
E. Failure to maintain a bond shall be cause for revocation or suspension of a certification.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3014 (October 2011).
§5307. Certificates of Authority; Initial and Renewal Certifications
A. The certification to operate as a real estate school shall be issued in the form of a
certificate of authority and shall include an assigned certification number that shall be
included in all advertisements of approved courses and on all forms, documents, and
reports filed with the commission.
B. A certificate of authority shall not be issued or renewed for any real estate school
applicant that holds a real estate broker license and whose school is designed, intended,
and/or primarily used for instruction of the broker's future salesperson or broker
affiliates.
C. A certificate of authority for an initial application that is submitted and approved after
October 31 may be issued effective January 1 of the following year.
D. A certificate of authority shall be issued for a maximum period of one calendar year and
shall expire annually on December 31 unless an application for renewal is submitted.
E. Failure to renew a certificate of authority by December 31 shall result in the automatic
suspension of all course approvals issued under the certificate of authority. The
commission shall not accept any pre-license education courses for credit, if the courses
were offered after the expiration of the certificate of authority.
F. Applications for delinquent renewal of a certificate of authority shall not be accepted by
the commission after January 31. Failure to renew an expired Certificate of Authority
during the prescribed delinquent period of January 1 through January 31 shall result in
the forfeiture of renewal rights. Any real estate school that becomes ineligible to renew
a Certificate of Authority shall apply as an initial applicant.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3014 (October 2011).
§5309. Colleges and Universities, Vocational-Technical Schools, and School Boards
A. All Louisiana state and private colleges and universities that offer a real estate course as
part of a regular curriculum are exempt from obtaining a certificate of authority;
however, if courses are offered through a continuing education division, the college or
university shall be required to comply with the provisions of this Chapter. State
vocational-technical schools and parish schools boards that provide courses in real estate
shall be required to apply for a certificate of authority and shall meet the requirements
of a real estate school.
B. The designation of "college" or 'university" shall not be used in any manner by a real
estate school, unless the school has met the standards and qualifications of such, and is
approved by the state agency having such jurisdiction.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3014 (October 2011).
§5311. Designated School Director; Duties
A. All real estate schools shall designate a director, whose duty it shall be to ensure that the
operations of the school, and all training locations, adhere to the requirements of the
Louisiana Real Estate License Law and the rules and regulations of the commission, and
who shall be held responsible to the commission for any violations thereof. The
commission shall be notified in writing within 10 days if the designated director for a real
estate school is changed.
B. Directors shall coordinate and disseminate information pertaining to amendments in the
license law, rules and regulations, or policies and procedures of the commission to all
staff, instructors, and employees.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by by the Office of the Governor, Real Estate Commission, LR
37:3015 (October 2011).
§5313. Facilities and Inspections
A. Real estate schools shall provide adequate space, seating, equipment, and instructional
material to accommodate the number of enrolled students.
B. The commission may inspect any facility used by a real estate school at any time during
regular business hours.
C. Real estate schools shall be subject to periodic audits and review, as determined by the
commission, to ensure that courses are conducted in accordance with the provisions set
forth in this Chapter and R.S. 37:1460. This may include the observation and evaluation
of classroom activities, course content, instructor proficiency, and/or the audit of
reporting/attendance records.
D. If the real estate school is found deficient in any part of this Section, the commission shall
prepare a report specifying the areas of deficiency.
E. Any real estate school that receives a report of deficiencies shall correct the deficiencies
by the date designated by the commission and shall submit a report to the commission
that outlines the corrective action.
F. Failure to respond to a report of deficiencies, in accordance with the deadline designated
by the commission, may result in payment of a fine or the suspension or revocation of
the certificate of authority for any school found to be in violation of this requirement
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3015 (October 2011).
§5315. Record Keeping
A. Real estate schools shall maintain accurate and properly indexed records on all students
for at least five years after course completion and shall produce those records for
inspection upon request of the commission. Electronic records shall be maintained in a
readily available format that does not prohibit, delay, or otherwise impede inspection.
B. 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.
C. Real estate schools shall provide any student who requests it with a duplicate copy of
his/her course completion records. The real estate school shall determine any fee
associated with providing the records.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3015 (October 2011).
§5317. Tuition, Fees, and Contracts
A. Each real estate school shall enter into a written contract with each student that shall
clearly set forth the tuition and fees charged by the school for a specific course of
instruction and the school refund policy.
B. A copy of the contract, signed by an authorized representative of the school, shall be
provided to the student immediately after both parties sign the contract.
C. Any additional fees charged for supplies, materials, or required books shall be clearly
itemized in the school contract, and such supplies, materials, or books shall become the
property of the student upon payment.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3015 (October 2011).
§5319. Pre-license Instructors; Initial and Renewal Applications; Guest Lecturers
A. No person shall act as pre-license instructor at any real estate school, and no real estate
school shall hire or otherwise permit any person to act as a pre-license instructor for the
school, unless that person has been certified as such by the commission.
B. The application to become certified as a pre-license instructor shall be in such form and
detail as prescribed by the commission and shall be accompanied by all documentation
requested therein and the certification fee(s) prescribed in R.S. 37:1443.
C. Applicants for a pre-license instructor certification shall provide proof of instructor
experience and shall have satisfied at least one of the following qualifications:
1. bachelor’s degree with a major in real estate from an accredited college or
university;
2. bachelor’s degree from an accredited college or university and at least two years
experience in real estate brokerage;
3. real estate broker license and a minimum of five years experience in the area of
proposed instruction;
4. juris Doctorate degree or the equivalent from an accredited law school and a
minimum of three years experience in the area of proposed instruction;
5. two years experience as a qualified instructor or professor in the business, finance
or economics department of an accredited college or university;
6. any qualifications determined by the commission to be the equivalent of at least
one of the qualifications prescribed in Paragraphs 1-5 of this Section, or any
combination thereof.
D. Upon a determination by the commission that a pre-license real estate instructor
applicant has met the minimum requirements, as prescribed in §5319.C.1-6, the
applicant shall be required to pass the real estate pre-license instructor assessment
examination specified by the commission. The application shall not be considered
complete, and a certification number shall not be issued, until such time that the
applicant submits the examination results to the commission.
E. The commission shall approve or deny a pre-license instructor application within 45
calendar days after it is received. Incomplete applications, or a request for additional
information, may be a cause for delay beyond 45 calendar days.
F. The commission may deny an application for certification as a pre-license instructor if:
1. the applicant has been convicted of forgery, embezzlement, obtaining money
under false pretenses, larceny, extortion, conspiracy to defraud, or theft, or has
been convicted of a felony or crime involving moral turpitude in any court of
competent jurisdiction;
2. an application contains a false statement of material fact;
3. a professional license or certification held by an applicant has been revoked;
4. the applicant fails to meet the minimum requirements prescribed in Section
5319.C.1-6;
5. the applicant fails to meet the qualifying score on the pre-license instructor
assessment examination.
G. A pre-license instructor certificate shall be issued for a maximum period of one calendar
year and shall expire annually on December 31, unless an application for renewal is
submitted.
1. Renewal of a pre-license instructor certificate shall require annual completion of
12 hours of approved continuing education during the current certification
period. The 12 hours shall include four hours in the mandatory topic prescribed
by the commission.
2. Completed continuing education hours shall not include actual instruction hours.
H. Failure to renew a pre-license instructor certificate by December 31 shall result in the
following action:
1. Approval to provide real estate instruction shall be automatically suspended;
2. The commission shall not accept any education courses for credit if the courses
were instructed after the expiration of the pre-license instructor certificate;
3. Delinquent applications for renewal of a pre-license instructor certificate shall not
be accepted by the commission after January 31. Failure to renew during the
prescribed delinquent period of January 1 through January 31 shall result in the
forfeiture of renewal rights. Any pre-license instructor that becomes ineligible to
renew shall be required to apply as an initial applicant.
I. A guest lecturer shall meet at least one of the following qualifications:
1. a college or university professor in real estate, finance, economics, or a related
field;
2. a specialist with a degree or professional designation with expertise in the specific
topic of instruction;
3. a real estate licensee with at least five years experience in the area of proposed
instruction.
J. Guest lecturers shall not instruct any pre-license course pertaining to the Louisiana Real
Estate License Law or the commission rules and regulations.
K. Guest lecturers shall not provide more than two presentations of pre-license education
for a certified real estate school in a calendar year.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3015 (October 2011), amended LR 38:3171 (December 2012).
§5321. Prohibitions
A. It shall be prohibited for any real estate brokerage firm to operate a real estate school
under the same legal entity as the real estate brokerage firm.
B. Any activity that is designed to influence or solicit a pre-license education student to
work under the sponsorship of any real estate broker shall be considered recruiting and
is prohibited while on the premises of a real estate school.
C. A real estate school shall not provide the name(s) of any licensee or student, whether
potential or enrolled, to anyone other than the Louisiana Real Estate Commission.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3016 (October 2011).
§5323. Change of Address
A. The commission shall be notified within 10 calendar days after any change in the business
address or telephone number of any real estate school and the residence or business
address or telephone number of any owner, director or instructor thereof.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3016 (October 2011).
§5325. School Advertising
A. Advertising by real estate schools shall not be false or misleading.
B. Advertisements shall state that the school is certified by the Louisiana Real Estate
Commission and shall include the school certificate of authority number.
C. The commission may require a real estate school to furnish proof of any advertising
claims. The commission may order the retraction of advertising that violates the
provisions of this Section. Such retractions shall be published in the same manner as the
original claim and shall be paid for by the real estate school.
D. Certified real estate schools shall not guarantee the passing of the state real estate
licensing examination.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3016 (October 2011).
§5327. Investigations and Hearings
A. The commission shall have the authority on its own motion, or following receipt of a
complaint, to investigate any real estate school to determine compliance with the
Louisiana Real Estate License Law and the rules and regulations of the commission.
B. If an investigation by the commission determines that a violation has occurred, the
commission shall follow the provisions of R.S. 37:1456 et seq.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3017 (October 2011).
§5329. Suspension or Revocation of a School Certificate of Authority or Pre-license
Instructor Certification
A. The commission shall have the authority to impose fines, suspend, or revoke a school
certificate of authority or pre-license instructor certification for the following acts
committed by a school owner, director, or pre-license instructor:
1. violating any rule or regulation promulgated by the commission;
2. obtaining or attempting to obtain by deceptive or fraudulent means any
copyrighted test questions and/or confidential test material used by or belonging
to any national testing service currently or previously contracted with the
commission;
3. having been convicted of a felony or entered a plea of guilty or nolo contendere
to a felony charge;
4. refusal to appear or testify under oath at any hearing held by the commission;
5. falsely certifying hours of attendance for any student;
6. having a salesperson, broker, or timeshare interest salesperson license suspended
or revoked by the commission;
7. recruiting students or knowingly allowing others to use classroom facilities to
discuss sponsorship or potential licensees for any real estate brokerage firm;
8. failure of a real estate school to enter into a written/electronic contract with any
student;
9. ailure of a real estate school director to inform pre-license instructors on changes
to the Louisiana Real Estate License Law or commission rules and regulations.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by Office of the Governor, Real Estate Commission, LR
37:3017 (October 2011).
§5331. Pre-license Education Courses Offered by Real Estate Schools
A. 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:
a. real estate principles and practices;
b. Louisiana real estate license law;
c. commission rules and regulations;
d. law of agency, as contained in Title 9 of the Louisiana Revised Statutes;
e. civil law, as it pertains to real estate transactions.
B. Broker pre-license education courses offered by real estate schools shall be structured in
the following manner:
1. Real Estate 201―90-hour course on basic real estate fundamentals;
2. Real Estate 202―30-hour course that shall include, and be limited to, the
following topics:
a. Louisiana real estate license law;
b. commission rules and regulations;
c. law of agency, as contained in Title 9 of the Louisiana Revised Statutes;
d. civil law, as it pertains to real estate transactions;
e. ethics and professionalism;
3. Real Estate 203―mandatory 30-hour course on broker responsibilities.
C. It shall be the responsibility of the real estate school to amend each course as necessary
to provide for any applicable law or rule change that is enacted during the course
approval period. A fee shall not be required when a real estate course is amended to
accommodate law or rule changes.
D. In addition to pre-licensing courses, any state certified real estate school may offer post-
license and continuing education courses provided that the school applies for and
receives approved continuing education vendor status. No additional initial or renewal
fees will be required of the school; however, filing fees for each additional course
approval request will be required as provided in R.S. 37:1443. A separate Louisiana Real
Estate Commission vendor number will be assigned to the school upon compliance with
post-license and/or continuing education vendor requirements.
E. Real estate schools shall not issue pre-license education credit for attendance at post
license education courses or continuing education courses.
F. Real estate schools shall not incorporate post-license education with pre-license education
instruction.
G. Real estate schools shall not incorporate continuing education with pre-license education
instruction.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3017 (October 2011).
§5333. Methods of Instruction; Classroom Training, Distance Education
A. Classroom training that is led by an instructor and held in a physical location, or delivered
via a network, may be used to present pre-license courses and shall be in such format
and detail as prescribed by the commission.
B. Distance education, for the purpose of this Chapter, shall mean any of the following
methods of instruction:
1. interactive Internet-based instruction;
2. combination courses.
C. Combination courses, for the purpose of this Chapter, shall mean any distance education
course that includes supplemental classroom instruction or assistance. Combination
courses shall be registered with the commission as distance education and shall follow
all guidelines established in this Chapter for the approval of distance education.
Combination courses shall be clearly advertised as distance education. Classroom time
for all instruction or assistance portions of a combination course shall be reported to the
commission in accordance with §5337 of this Chapter.
D. Real estate schools that offer distance education courses shall apply for course approval
as follows.
1. Distance education courses shall be submitted to the commission for content
approval prior to any course offering.
2. Distance education courses that have been approved by the commission for
course content shall be submitted to the Association of Real Estate License Law
Officials (ARELLO) for certification of the delivery method prior to any course
offering. Loss of ARELLO certification for courses approved under this Section
shall automatically suspend commission approval of the course content.
3. Colleges and university academic credit courses for distance learning shall not be
required to be Association of Real Estate License Law Officials (ARELLO) approved
if part of a college or university curriculum. Any other distance learning courses
offered to the general public outside of a curriculum program shall be ARELLO
approved.
E. Final examinations for distance education courses shall consist of multiple choice
questions with four possible answers (a, b, c and d) as follows:
1. a minimum of 20 questions for each two hours of continuing education credit; or
2. a minimum of 150 questions for each post licensing final exam;
3. the examination that a student submits for grading shall include a signed and
dated statement that the student has personally completed the course and
examination.
F. Real estate schools shall certify students as successfully completing a course only if the
student completes any written assignments and passes the required examination on
course content.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3017 (October 2011).
§5335. Certificates of Completion
A. 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.
B. Certificates of completion will not be accepted from any real estate school that is not in
good standing with the commission on the date that the certificate is issued.
C. In lieu of the required certificate of completion, the commission may accept college or
university transcripts that reflect the completion of real estate related courses approved
by the commission. Such transcripts shall be issued by the college or university registrar
and shall include the course title and number, the date of completion, and the final grade.
D. Colleges or universities that do not issue transcripts for courses completed through a
division of continuing education shall provide a certificate of completion to students who
successfully complete a course of study.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3018 (October 2011).
§5337. Course Reporting Schedules and Attendance
A. Classroom course reporting schedule reports shall be submitted in such form and detail
as prescribed by the commission no less than 10 days prior to the course.
B. Attendance verification reports shall be submitted in such form and detail as prescribed
by the commission within 30 days after completion of the course.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3018 (October 2011).
Chapter 55. Real Estate Vendors; Post-licensing and Continuing Education
§5501. Real estate Vendor Approval; Applications and Procedures
A. This Chapter shall apply to real estate education vendors seeking approval to conduct a
course of education in real estate post-license and/or continuing education subjects.
B. Any individual or entity desiring to conduct business in this state as a real estate
education vendor shall file an application for certification with the commission.
C. The application shall be in such form and detail as prescribed by the commission and
shall be accompanied by all documentation requested therein and the certification fee(s)
prescribed in R.S. 37:1443.
D. The commission shall approve or deny a real estate education vendor 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.
E. The commission may deny an application for certification as a real estate education
vendor for any of the following reasons.
1. The applicant has been convicted of forgery, embezzlement, obtaining money
under false pretenses, larceny, extortion, conspiracy to defraud, or theft, or has
been convicted of a felony or crime involving moral turpitude in any court of
competent jurisdiction.
2. An application contains a false statement of material fact.
3. A professional license or certification held by an applicant has been revoked.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3018 (October 2011).
§5503. Surety Bonds
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.
B. Bonds shall be in favor of the state of Louisiana and conditioned for the protection of the
contractual rights of students who attend real estate courses offered by the real estate
education vendor.
C. Bonds shall remain effective and in force throughout the certification period of the real
estate education vendor
D. Proof of bond renewal shall be provided to the commission annually.
E. Failure to maintain a bond shall be cause for revocation or suspension of a certification.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3019 (October 2011).
§5505. Real Estate Vendor Certifications; Initial and Renewal Certificates
A. The commission shall issue a real estate education vendor certificate to all applicants
approved under this Chapter.
B. The commission shall assign a certificate number that shall be included in all
advertisements of approved courses and on all forms, documents, and reports filed with
the commission.
C. A vendor certification for an application that is submitted and approved after October 31
may be issued effective January 1 of the following year.
D. A vendor certification shall be issued for a maximum period of one calendar year and
shall expire annually on December 31 unless an application for renewal is submitted.
E. Failure to renew a vendor certification by December 31 shall result in the automatic
suspension of all course approvals issued under the certification, and the commission
shall not accept any post-license education or continuing education courses for credit, if
the courses were offered after the expiration of the certification.
F. Applications for delinquent renewal of a vendor certification shall not be accepted by the
commission after January 31. Failure to renew an expired vendor certification during the
prescribed delinquent period of January 1 through January 31 shall result in the forfeiture
of renewal rights. Any real estate vendor that becomes ineligible to renew a vendor
certification shall apply as an initial applicant.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3019 (October 2011).
§5507. Designated Contact Person; Duties
A. All real estate education vendors shall designate a contact person, whose duty it shall be
to ensure that the operations of the vendor, and all training locations, adhere to the
requirements of the Louisiana Real Estate License Law and the rules and regulations of
the commission, and who shall be held responsible to the commission for any violations
thereof.
B. The commission shall be notified in writing within 10 days if the designated contact
person for a real estate education vendor is changed.
C. The designated contact person shall coordinate and disseminate information pertaining
to amendments in the license law, rules and regulations, or policies and procedures of
the commission to all staff, instructors, and employees.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3019 (October 2011).
§5509. Inspections and Monitoring of Approved Vendors and Courses
A. Real estate education vendors shall provide adequate space, seating, equipment, and
instructional material to accommodate the number of enrolled students.
B. The commission may inspect any facility used by a real estate education vendor at any
time during regular business hours.
C. Real estate education vendors shall be subject to periodic audits and reviews, as
determined by the commission, to ensure that courses are conducted in accordance with
the provisions set forth in R.S. 37:1460 and this Chapter. This may include the observation
and evaluation of classroom activities, course content, instructor proficiency, and/or the
audit of reporting/attendance records.
D. If the real estate education vendor is found deficient in any part of this Section, the
commission shall prepare a report specifying the areas of deficiency.
E. Any real estate education vendor that receives a report of deficiencies shall correct the
deficiencies by the date designated by the commission and shall submit a signed, written
report to the commission that outlines the corrective action.
F. Failure to respond to a report of deficiencies, in accordance with the deadline designated
by the commission, may result in payment of a fine, or the suspension or revocation of
any certificate for a vendor found to be in violation of this requirement.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1435.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3019 (October 2011).
§5511. Record Keeping
A. Real estate education vendors shall maintain accurate and properly indexed records on
all students for at least five years after course completion and shall produce those
records for inspection upon request of the commission. Electronic records shall be
maintained in a readily available format that does not prohibit, delay, or otherwise
impede inspection.
B. Real estate education vendors shall maintain the following records on each student:
1. complete name, as licensed with the commission, and address;
2. course title, as approved by the commission;
3. credit hours received;
4. dates of attendance;
5. test scores or pass/fail indications.
C. Real estate education vendors shall provide any student who requests it with a duplicate
copy of his/her course completion records. The real estate education vendor shall
determine any fee associated with providing the records.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3019 (October 2011).
§5513. Post-license and Continuing Education Instructors
A. No person shall act as a post-license/continuing education instructor, and no real estate
vendor shall hire or otherwise permit any person to act as a post-license/continuing
education instructor, unless that person has been approved by the commission.
B. The application to become approved as a real estate post-license/continuing education
instructor shall be in such form and detail as prescribed by the commission and shall be
accompanied by any documentation requested therein and the certification fee(s)
prescribed in R.S. 37:1443.
1. Approval as a post-license/continuing education instructor shall be required per
vendor course and shall not qualify an approved instructor to instruct any other
post-license/continuing education courses.
2. The expiration of an approved post-license/continuing education course shall
result in the automatic expiration of all instructor approvals issued for that
course.
C. The commission shall approve or deny a post-license/continuing education instructor
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.
D. The commission may deny an application for approval as a post-license/continuing
education instructor for any of the following reasons.
1. The applicant has been convicted of forgery, embezzlement, obtaining money
under false pretenses, larceny, extortion, conspiracy to defraud, or theft, or has
been convicted of a felony or crime involving moral turpitude in any court of
competent jurisdiction.
2. An application contains a false statement of material fact.
3. A professional license or certification held by an applicant has been revoked.
4. The applicant fails to meet the minimum requirements prescribed by the
commission.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3020 (October 2011), amended LR 38:3172 (December 2012).
§5515. Supplemental Post-License/Continuing Education Instructors
A. Real estate vendors may hire or otherwise permit a supplemental course instructor to
participate with a primary instructor in the instruction of an approved post-
license/continuing education course, provided the supplemental course instructor is
named as such in the application for post-license/continuing education instructor
submitted by the primary instructor.
B. A supplemental course instructor shall work under the direct supervision of the approved
primary course instructor and shall be limited to no more than 25 percent of the total
course instruction. In instances where there is more than one supplemental course
instructor, the supplemental course instructors shall be limited to a combined total of no
more than 25 percent of the total course instruction.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
38:3172 (December 2012).
§5517. Change of Address
A. The commission shall be notified within 10 calendar days of any change in the business
address or telephone number of any real estate education vendor and the residence or
business address or telephone number of any owner, designated contact person, or
instructor thereof.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3020 (October 2011).
§5519. Vendor Advertising
A. Advertising by estate education vendors shall not be false or misleading.
B. Advertisements shall state that the vendor is certified by the Louisiana Real Estate
Commission and shall include the vendor certification number.
C. The commission may require a real estate education vendor to furnish proof of any
advertising claims. The commission may order the retraction of advertising that violates
the provisions of this Section. Such retractions shall be published in the same manner as
the original claim and shall be paid for by the real estate education vendor.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3021 (October 2011).
§5521. Investigations and Hearings
A. The commission shall have the authority on its own motion, or following receipt of a
complaint, to investigate any real estate education vendor to determine compliance with
the Louisiana Real Estate License Law and the rules and regulations of the commission.
B. If an investigation by the commission determines that a violation has occurred, the
commission shall follow the provisions of R.S. 37:1456 and the Louisiana Administrative
Procedure Act, R.S. 49:950, et seq.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3021 (October 2011).
§5523. Suspension or Revocation of a Vendor Certification or Post-License/Continuing
Education Instructor Approval
A. The commission may impose fines, and/or suspend or revoke a vendor certification
and/or post-license/continuing education instructor approval for the following acts
committed by a vendor, employee, or approved post-license/continuing education
instructor:
1. violation of any rule or regulation promulgated by the commission;
2. conviction of a felony or entering a plea of guilty or nolo contendere to a felony
charge;
3. refusal to appear or testify under oath at any hearing held by the commission;
4. false certification of course attendance hours for any student;
5. suspension or revocation of a salesperson, broker, or timeshare interest
salesperson license by the commission;
6. failure of a real estate vendor contact person to inform post-license/continuing
education instructors on changes to the Louisiana Real Estate License Law or
commission rules and regulations.
7. using designated course instruction time to teach, promote, advance, encourage,
or further personal opinion, information, data, statistics, facts, figures, material,
news, reports, intelligence, or knowledge that is not included in the approved
course curriculum.
B. Suspension or revocation of a post-license/continuing education instructor approval shall
include all courses for which the post-license/continuing education instructor approval
has been granted.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:-3021 (October 2011), amended LR 38:3172 (December 2012).
§5525. Course Approval; Applications and Procedures
A. Courses approved by the commission for instruction by real estate education vendors
shall be classed in the following categories:
1. post-license education;
2. continuing education.
B. Real estate education vendors shall file a course approval application with the
commission for each course that will be offered for credit toward renewal of a real estate
license. Real estate vendors shall not advertise as approved by the commission, or
otherwise schedule or offer a course, prior to receiving course approval from the
commission.
C. The course approval application shall be in such form and detail as prescribed by the
commission and shall be accompanied by the processing fee prescribed in R.S. 37:1443.
D. The commission shall approve or deny a course approval 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.
E. Each course approved by the commission shall remain active for three years and shall
expire on December 31 of the third year unless a renewal application for course approval
is filed with the commission. The commission shall not accept credit for a non-renewed
course that is presented after the date of expiration.
F. 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.
G. Real estate education vendors shall not amend the title or outline of any approved course
without first obtaining the written approval of the commission.
1. All requests to amend a course shall be accompanied by the new course outline
and the processing fee prescribed in R.S. 37:1443.
2. It shall be the responsibility of the real estate education vendor to amend each
course as necessary so as to provide for any applicable law or rule change that is
enacted during the course approval period. A fee shall not be required when a
real estate course is amended to accommodate law or rule changes.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3021 (October 2011).
§5527. Post License Education Courses
A. Post-license education courses offered by real estate education vendors shall be
developed in accordance with the content outline prescribed by the commission.
B. Real estate education vendors shall not issue credit for any post-license education course
unless the student has passed an examination on the course content. Post-license hours
shall be secured through and reported by one approved vendor.
C. Post-license education courses shall be open to all licensees regardless of broker
affiliation.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3021 (October 2011), amended LR 38:3172 (December 2012).
§5529. Continuing Education Courses
A. 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.
B. 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. The prescribed number of classroom hours may include time
devoted to examinations if a required part of the course. Time devoted to breakfasts,
luncheons, dinners, or other refreshments shall not be counted as instruction time.
C. Licensees shall not receive duplicate credit for attending the same continuing education
course from the same vendor in the same year. It shall be the responsibility of the real
estate education vendor to advise licensees that credit shall not be awarded for
completing duplicate courses within the same license period.
D. Course work completed by licensees through non-approved providers will be considered
for credit by the commission on an individual basis. Licensees seeking approval for course
work obtained through non-approved providers shall apply for such approval by
submitting documentation of attendance, hours completed, date of attendance, and
detailed course content information.
E. Continuing education courses shall be open to all licensees regardless of broker
affiliation.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3022 (October 2011), amended LR 38:3172 (December 2012).
§5531. Mandatory Courses
A. The commission shall mandate an annual four-hour continuing education course topic
and curriculum that licensees shall complete during each license period as a requirement
for license renewal.
B. Real estate education vendors shall not offer the mandatory course for credit unless a
course approval application has been approved by the commission.
C. There shall be no substitute curriculum for the mandatory course, including any
previously approved course that is similar in name and/or content, without prior
commission approval.
D. Any instructor used in the presentation of the mandatory course shall have first
completed the annual Train the Trainer instructor workshop developed specifically for
each mandatory course topic. Completion of a prior year train the trainer instructor
workshop shall not be substituted for completion of the current year workshop.
AUTHORITY NOTE: Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3022 (October 2011), amended LR 38:3173 (December 2012).
§5533. Methods of Instruction
A. Live classroom training that is led by an instructor and held in a physical location, or
delivered via a network, may be used to present post-license and continuing education
courses and shall be in such format and detail as prescribed by the commission.
B. Distance education, for the purpose of this Chapter, shall mean any of the following
methods of instruction:
1. interactive Internet-based instruction;
2. correspondence courses.
C. Correspondence courses, for the purpose of this Chapter shall be in such format and
detail as prescribed by the commission for post- license or continuing education distance
learning credit hours only. Passage of an examination on course content is a requirement
for all correspondence courses.
D. Real estate education vendors that offer distance education courses shall apply for course
approval as follows.
1. Distance education courses shall be submitted to the commission for content
approval prior to any course offering.
2. Distance education courses that have been approved by the commission for
course content shall be submitted to the Association of Real Estate License Law
Officials (ARELLO) for certification of the delivery method prior to any course
offering. Loss of ARELLO certification for courses approved under this Section
shall automatically suspend commission approval of the course content.
E. 1. Final examinations for distance education courses shall consist of multiple choice
questions with four possible answers (a, b, c and d) as follows:
a. a minimum of 20 questions for each two hours of continuing education credit;
or
b. a minimum of 150 questions for each post- license final exam.
2. The examination that a student submits for grading shall include a signed and dated
statement that the student has personally completed the course and examination.
F. All courses submitted for approval shall be in the exact format in which they will be sold
to licensees for post- license or continuing education credit.
G. Real estate education vendors shall not grade any written assignment or examination if
it is presented for grading before the time frame for course completion has been reached.
H. Real estate education vendors shall not grade any examination that does not contain the
signed certification required in Paragraph E.2 of this Section.
I. Real estate education vendors shall certify students as successfully completing a course
only if the student completes any written assignments and passes the required
examination on course content.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3022 (October 2011).
§5535. Certificates of Completion
A. 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.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1435.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3023 (October 2011).
§5537. Course Reporting; Schedules and Attendance
A. Real estate education vendors shall submit continuing education and post-license
education course schedules and attendance verification reports to the commission.
B. Course schedules shall be received by the commission at least 10 calendar days prior to
the beginning of each month.
C. Course schedules and attendance verification reports shall be submitted in such form
and detail as prescribed by the commission.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR
37:3023 (October 2011).
§5539. Non-certified Real Estate Education Vendors
A. Non-certified real estate education vendors may request commission approval to offer
continuing education courses under the following conditions.
1. Non-certified real estate education vendors shall comply with the course
approval and course reporting procedures specified in Section 5537.A-C of this
Chapter.
2. No more than two course approvals may be granted to each non-certified real
estate education vendor within a one-year period.
3. Each course approval issued to a non-certified real estate education vendor shall
be limited to a maximum of three presentations in locations that shall be
specified in the request for approval. The commission shall not grant credit for
any course presentation that exceeds the maximum specified in this Part.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by Office of the Governor, Real Estate Commission, LR
37:3023 (October 2011).
Chapter 57. Timeshares
§5701. Requirements for Processing
1. Every applicant for initial registration as a timeshare developer or timeshare salesperson
shall submit to the commission a fully completed application on a form provided by the
commission accompanied by the prescribed fees.
2. Every application for an initial timeshare salesperson registration shall contain the name
of the developer for whom the applicant will be working following registration and shall
be signed by a designated representative of that developer.
3. Applicants for registration as timeshare developers shall submit the following to the
commission at the time of filing for registration:
1. sample copies of the conveyance and financing forms and, when
applicable, copies of the public offering statement and a certified copy
of the timeshare declaration;
2. when applicable, an affidavit, signed by the chief executive officer or
managing partner of the developer and by any natural person having an
ownership interest exceeding 10 percent in either the developer or
entities which control it, that states under penalty of perjury that the
affiant has read the timeshare declaration and all attached documents,
and that they are true and correct.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:60 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3023 (October 2011).
§5703. Receipt of Application
A. Every application shall be received and approved by the commission prior to the date the
applicant engages in the business of selling timeshare interests within this state.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:60 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3023 (October 2011).
§5705. Bonds
A. At the time of initial application, each applicant for registration as a timeshare interest
salesperson shall provide evidence of one bond issued in favor of the state by a surety
company authorized to do business in this state in the amount of $10,000 in accordance
with R.S. 37:1437.1(E).
B. A new bond or a renewal or continuation of the original bond shall be required for each
registration period. If a continuous bond is filed, a new or renewal bond is not required
as long as the continuous bond remains in force and effect.
C. In the event a bond is revoked or canceled by the surety company, the timeshare
registration of the named bondholder shall automatically be suspended until such time
as a new bond is filed with the commission.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:60 (January 2000), amended by the Office of the Governor, Real Estate
Commission, LR 37:3023 (October 2011).
§5707. Fees
A. Registration fees shall cover a period of one calendar year and shall not be prorated.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:60 (2000), repromulgated by the Office of the Governor, Real Estate
Commission, LR 37:3023 (October 2011).
§5709. Automatic Suspension for Non-Renewal
A. If a developer's timeshare registration is suspended or revoked, no sales of timeshare
interests in that project may be conducted by that developer, by any timeshare sales
registrant working for that developer, or by any licensed real estate broker or salesperson
working with that developer.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:60 (2000), repromulgated by the Office of the Governor, Real Estate
Commission, LR 37:3023 (October 2011).
§5711. Terminations
A. A developer who wishes to terminate an association with a sales registrant shall return
the registrant’s sales registration certificate to the commission along with a properly
executed transfer form as provided by the commission.
B. A sales registrant who wishes to terminate an association with a developer shall request,
in writing, that the developer return that registrant's sales registration certificate to the
commission, and shall sign the appropriate transfer form as proof of the request.
C. A sales registrant may transfer to another developer upon submission of a property
executed transfer form signed by both the registrant and a designated representative of
the developer. This transfer request shall be accompanied by a new bond and
appropriate transfer fees.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:61 (2000), repromulgated by the Office of the Governor, Real Estate
Commission, LR 37:3024 (October 2011).
§5715. Establishment of Escrow Account
A. Where applicable, the developer of each timeshare plan that has timeshare property
located in Louisiana, or who maintains a sales office in Louisiana for the sale of timeshare
interests, shall establish interest bearing escrow accounts in the developer's name at a
financial institution in the parish where the timeshare property or sales office is located,
in accordance with R.S. 9:1131.16 and 17.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:61 (2000), repromulgated by the Office of the Governor, Real Estate
Commission, LR 37:3024 (October 2011).
§5717. Affidavit of Authority
A. Every developer of a timeshare plan shall submit to the commission notarized affidavits
attesting to the existence, location and account number of the developer's escrow
accounts. The affidavits shall authorize and empower the commission or its
representatives to examine, inspect, and/or copy the developer's escrow accounts.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:61 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3024 (October 2011).
§5719. Escrow Account Closing
A. Every developer shall notify the commission of his intention to close an escrow account
at least 10 days prior to the intended closing date.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:61 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3024 (October 2011).
§5721. Maintaining an Escrow Account
A. Upon revocation, suspension or lapse of registration, a developer shall nevertheless
continue to maintain all escrow accounts until such time as all monies have been
disbursed according to law.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:61 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3024 (October 2011).
§5723. Change of Address
A. Every registrant shall report in writing any change in business or residence address or
telephone number to the commission within 10 days of the change. Such notification
shall be by hand delivery or certified mail.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:61 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3024 (October 2011).
§5725. Payment to Non-Registrants
A. Timeshare registrants, in accordance with the provisions of R.S. 37:1446(A), shall not
offer or pay a fee or any other compensation of any kind to any unregistered person for
the purpose of obtaining any timeshare solicitations.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:61 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3024 (October 2011).
§5727. Developer Records
A. Every developer shall retain, for at least five years, readily available and properly indexed
copies of all documents which in any way pertain to the sale or solicitation of timeshare
interests in which he has acted as a developer.
AUTHORITY NOTE:Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate
Commission, LR 26:61 (January 2000), repromulgated by the Office of the Governor, Real
Estate Commission, LR 37:3024 (October 2011).
