A licensing exam helps to determine what? An applicants professional competency

Chapter One Louisiana License Law Flashcards Anyone who suffers financial losses because of the negligence of a timeshare salesperson can be indemnified by what?The surely bond of $10,000 maintained by each salesperson A licensing exam helps to determine what? An applicants professional competency Rachel McBride forgets to renew her real estate license by the end of the year, She must do what?Suspend all real estate work until she gets the license renewed Salesperson Sally was due to receive $3,000 commission from Broker Danny, but because Sally left to work for another broker before she was paid, Danny kept $500 of the commission owed to cover "admin cost." What action will the LREC take?The Commission does not get involved in commission disputes Clint funds received by a licensee are to be deposited into an escrow account in a legally chartered bank When the commissions summons an individual to appear at a hearing. It is exercising its right of?Subpoena If a business (corporation, LLC, partnership) wishes to engage in real estate it must be licensed by the Commission. To whim will the Commission grant the license for a business entity?A licensee chosen by the business to act as the qualifying broker What is the maximum length of time a stay of enforcement can be in effect?120 days A person wishing to become a broker must first have served as a salesperson for at least ____ and completed ______ of approved education.

• years, 150 hours

A non-developer timeshare registrant must maintain what?A surety bond of $10,000 What happens in the event that a timeshare registrant's bond is cancelled?The timeshare registration is suspended until a new bond is filed In addition to notifying the Commission of a conviction or indictment for certain crimes involving fraud, a licensee must also notify the Commission of what?The institution of bankruptcy proceeding if the licensee is a custodian of client funds The licensing exam helps to determine what? An applicant's professional competency Are salespersons and brokers required to register as timeshare sellers?No Someone who does business with Louisiana licensees can rely on their having preparation which includes continuing education each year on a topic of importance in the field, True or Fales?True Before the LREC can censure and impose penalties on any licensee it deems guilty of infringing real estate law, the Commission must do what?Allow the licensee(s) counsel to speak in the licensees defense

A licensee leaves her sponsoring broker to work for another in the same market area in violation of a non-compete agreement. If the broker wants to enforce the agreement, the broker will have to do what?ask a court to enforce the non-compete agreement If a licensee objects to the commission's decision to impose sanctions after a judicial proceeding, the licensee has the right to?seek judicial review by a district court Paula is a salesperson working for broker Norman. When will the Commission renew Paula's license? After Norman's license has been renewed or December 31st?ONLY after Normans license has been renewed will the Commission renew Paula's license If a licensee fails to renew his or her license during the delinquent period they will be required to do what?Successfully complete the licensing exam what happens if an applicant is caught cheating on the licensing exam?The applicant will forfeit all fees and be denied a license by the commission What is the maximum limit of time that can be set in a non-compete agreement?Two years The Real estate commission has no regulatory power over professors of real estate in Louisiana colleges and universities, True or False?True If a licensee changes his or her home address and business address, what, if anything, is her or she required to do?Notify the Commission of both within 10 days What is one of the real estate commission prerogatives?Revoking or suspending licensee's real estate licenses Sally Devine is 28 years old, has a G.E.D., and has never been convicted of a crime. Is she qualified to register as a timeshare seller?Yes, if she has never has a license or registration in any state revoked or suspended The real estate commission is merely exercising its legally granted powers if it Fires it executive director Which of the following is NOT grounds for the Commission to refuse an application for timeshare seller registration?Suspension/revocation of a driving license or a felony conviction?Suspension/revocation of a driving license How many members of the commission constitute a quorum?5 What is the purpose of the Louisiana Real Estate research and education fund?To promote the advancement of the real estate industry and thus to protect the public Which of the following is NOT exempt from being required to have a real estate license? A civil sheriff selling a property to satisfy a debt or A licensee selling a relative's property for a commission A licensee selling a relative's property for a commission Licensees are required to keep records of what by the real estate commission all copies of real estate related documentation To where are excess funds from the Recovery Fund generally transferred?the research and education fund

Who must the commission notify of a hearing against an associate broker?the associate broker and the associate brokers' sponsoring broker Members of the Real Estate Commission are appointed bythe governor Broker Stefano is licensed in Louisiana but has been selling real estate in Mississippi, where he is not licensed. If the Louisiana real estate commission becomes aware of this, what can it do?Impose sanctions on the broker for engaging in real estate in a state that he is not licensed in.The real estate commission can relocate the headquarters outside of Baton Rouge if it choses, True or Fales Fales, the commission is forbidden from moving the head quarters outside of Baton Rouge For a complaint to be resolved informally, the accused licensee must?admit he/she is guilty as accused and agree to accept punishment Broker Paul and Salesperson Jane agreed to a non-compete agreement in a contract. When the cease working together Paul thinks Jane is breaking this agreement and takes his complaint to the commission.What will the commission do?The commission does not get involved in non-compete disputes between licensees If Louisiana licensee fail to renew their licenses at the end of the calendar year, they may do what?Renew their licenses anytime during the first 3 months of the new year by paying the requisite fees If a Louisiana licensee fails to renew his or her real estate license by December 31st; the licensee can do no work requiring a license until the license has been renewed OR the licensee must get the sponsoring broker to renew it?the licensee can do no work requiring a license until the license has been renewed A licensee was reported to the commission for allegedly commingling escrow funds. The commission's investigation found no evidence of commingling but discovered the licensee was guilty of a different violation. What will happen?the commission may impose sanctions for the violation The commission may NOT make rules and regulations to enforce the law, True or False?Fales, the Commission can make rules and regulations to enforce the law Ultimate liability for a fraudulent act committed by a timeshare seller acting as an independent contractor for a developer rests with whom?The developer of the project the offending salesperson was selling A broker conducting licensed business activities from a location other than the on his license must have a branch office license, True or False?True The real estate commission is responsible for the administration of two special funds. What are they?The real estate recovery fund and the real estate research and education fund The salesperson's pre-license education does NOT include material on which, Louisiana civil law or Louisiana criminal law?Louisiana criminal law How many members are there on the LREC?11 To qualify for a payment from the Fund, a person must meet all of the following conditions, except which?A. Has received a final judgement in courtB. Has received compensation from the guilty partyC. Has notified the

commissionD. Has pursued all legal channels

• Has received compensation from the guilty party

Why was the recovery fund established?To pay damages if licensees proved guilty of fraud or other serious crimes