Bob Brooks Real Estate Salespersons (LA Licensing Law) – Flashcards
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Requirements to become a Salesperson (5)
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18 years old High School Grad or GED 90 hours pre licensing instructions 45 hours post licensing completed within 180 days 90 days to find sponsor
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Requirements to become a Broker (3)
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Active salesperson for 4 years 150 hours of pre licensing instruction 45 hours post licensing completed within 180 days
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Does not require Real Estate license to sell property (3)
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Property owner (personal/business inc employees Attorneys Receiver, Trustee, Administrator (wills) Executor, Tutor or Sheriff
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Trade Names
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Can not be similar to existing names must be assigned by Secretary of Sate. All trade names, symbols and logos used in advertising must be registered with the LREC
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Active Licensee renewal requirements (3)
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Must renew by December 31st Carry Errors and Omissions Insurance Take 12 hours of continuing education annually
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Inactive Licensee status
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can not do business and must renew status yearly
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Requirements to move form Inactive to active status (5)
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1-3 years- 20 hours 4-5 years- 40 hours over 5 years-80 hours not required to take state exam again. $45 fee
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Performing real Estate without license is illegal the penalties are (3)
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$2000 Fine 5 years imprisonment or both
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Licenses must be renewed by
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December 31 will be Automatically suspended on January 1st
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Renewal of License Delinquent Fees (3)
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Jan 1st-Feb 15th = $50 Feb 16th-March 31st = $200 After March 31st= Retake Exam
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change of address must be reported within
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10 days to LREC
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When to notify LREC of your legal actions (5)
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Must be reported within 10 DAYS Indictment of crime pertaining to Real Estate Judgment or Conviction pertaining to Real Estate Judgment or Conviction of a Felony Bankruptcy Proceedings
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Transfer License from Broker to Broker
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5 Days notice to send back license pay transfer fee
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When leaving a Broker
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Return all information, contracts, keys, copies of records and other pertinent information. (come with nothing/leave with nothing)
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Broker New Office requirements (3)
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1. Must have business address and obtain a license for each location 2. Branch offices must be supervised by Associate Broker 3. Must keep all records for 5 years
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Broker Banking Requirements
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1. All deposits must be deposited into proper non interest bearing accounts (Sales escrow, Rental Trust, Security Deposit Trust) 2. Must notify LREC within 10 when closing account 3. Broker may keep up to $2500 in the escrow to cover bank fees 4. When an affidavit attesting to an account is requested by the Commission, the broker must respond within 5 days
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Escrow Withdrawals (3)
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1. Mutual Consent (90 days) 2. After 90 days- the broker can decide where it goes or go to the Commission Order 3. Court Order- (Concursus Proceeding)
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Suspension of Broker's license
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All salesperson's licenses are suspended and have 60 days to transfer to another broker without fee
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Death of Broker
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Continue existing business 180 days No new business may be started
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LREC (How to become a member)
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1. Appointed or removed by the Governor 2. US Citizen 3. Broker for 5 years
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How may LREC members and what's a quorum
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11 members and 5 members = quorum
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LREC penalties
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1. Censure, Suspend or Term Licensees 2. Require Continuing Education/CE 3. Maximum $5000 fine
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LREC Investigative Process (7)
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1. investigate with signed complaint or own choice 2. can Suspend or Revoke licenses for failure to cooperate with investigation 3. Right to Subpoena 4. 20 day notice Prior to Hearing (to licensee) 5. Formal Hearing 6. Revoke License ruling can be appealed within 30 days by 19th Judicial District Court 7. Cannot prosecute
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Real Estate Recovery Fund (3)
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Provide reimbursement to someone suffering monetary damages involving the sale of real estate by licensee Maximum Balance is $400,000 License is auto revoked
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Research and Education Fund
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Used to fund research projects and fund real estate chairs at universities $10 max per year paid at renewal
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Out of Sate Broker
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In-state broker takes full responsibility One copy of the agreement sent to LREC
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Agency Disclosure Pamphlet
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Delivered at first substantive contact Not required for Ministerial Acts- the acts that a licensee may perform for a person that are informative in nature.
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Signage Advertising Requirements (5)
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1. Must have permission by owner 2. Broker/company name 3. Broker/company phone number 4. For Franchise- "Individually owned and operated" (not for yard signs) 5. For own property- "Owner Agent"
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Internet Advertising Disclosures (4)
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1. Must appear on each page 2. Company name and phone number 3. Broker or Salesperson Name 4. City, State and Jurisdiction (Licensed by LREC)
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Email Advertising Disclosures (4)
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1. Must appear on first or last page 2. Company name and phone number 3. Broker or Salesperson Name 4. City, State and Jurisdiction (Licensed by LREC)
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One Click Away
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Disclosure must be one click away form your social media post.
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LREC Term Limit
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6 years
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Real Estate Recovery Fund Claims
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Claims must be filed by 180 days from judgment $20,000 - One transaction $50,000- multiple transaction
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LREC duty
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Regulate Licenes In force real estate laws Resolve disputes between Licensee and Principals (protects the Public)
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If a sponsoring broker's license is revoked
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All salesperson licenses are auto suspended. The broker must return all licenses to the Commission within 5 days.
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From your initial exam, you may continue to retake the licensing exam for a period of
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1 year
