This information is provided as a courtesy to real estate licensees and the general viewing public. To view the codified, or official, publication of the Louisiana Real Estate License Law, or any other state law, visit the web portal of the Louisiana State Legislature at www.legis.state.la.us.

As amended through August 2010  (See Section 1464 for the 2010 amended language)

§1430. Short title

This Chapter shall be known and may be cited as the "Louisiana Real Estate License Law."
Added by Acts 1983, No. 268, §1.

§1431. Definitions

As used in this Chapter the following words have the meaning ascribed to them in this Section unless the context clearly indicates otherwise:

(1) "Associate broker" means a person who holds a broker’s license and who is exclusively affiliated with and sponsored by another licensed real estate broker to participate in any activity described in this Section.

(2) "Commission" means the Louisiana Real Estate Commission.

(3) "Franchise agreement" means an agreement whereby one party, the franchisor, authorizes a real estate broker, the franchisee, to use registered trademarks or other advertising tools to create a common identity among several brokers nationally or regionally for marketing purposes.

(4) "Individual real estate broker" means an individual person licensed as a real estate broker and does not mean a licensed corporation, limited liability company, or partnership licensed as a real estate broker.

(5) "Qualifying broker" means the sponsoring broker for a licensed corporation, limited liability company, or partnership and is the individual real estate broker designated by a licensed corporation, limited liability company, or partnership, by resolution, as its representative in all matters relating to its real estate business activities in Louisiana and in administrative and regulatory matters before the commission.

(6) "Real estate" shall mean and include condominiums and leaseholds, as well as any other interest in land, with the exceptions of oil, gas and other minerals and whether the real estate is situated in this state or elsewhere.

(7) "Real estate activity" means any activity relating to any portion of a real estate transaction performed for another by any person, partnership, limited liability company, association, or corporation, foreign or domestic, whether pursuant to a power of attorney or otherwise, for a fee, commission, or other valuable consideration, or with the intention, in the expectation, or upon the promise of receiving or collecting a fee, commission, or other valuable consideration:

(a) Sells, exchanges, purchases, manages, rents, or leases, or negotiates the sale, exchange, purchase, rental, or leasing of real estate.

(b) Offers or attempts or agrees to negotiate the sale, exchange, purchase, management, rental, or leasing of real estate.

(c) Lists or offers or attempts or agrees to list for sale or lease any real estate or the improvements thereon.

(d) Buys or offers to buy, sells or offers to sell, or otherwise deals in options on real estate or the improvements thereon.

(e) Advertises or holds himself, itself, or themselves out as engaged in the business of selling, exchanging, purchasing, managing, renting, or leasing real estate.

(f) Assists or directs in the procuring of prospects or the negotiation or closing of any transaction, other than mortgage financing, which results or is calculated to result in the sale, exchange, managing, leasing, or renting of any real estate, other than a provider of information, ideas, and materials to guide homeowners in the sale of their own property.

(g) Is engaged in the business of charging an advance fee or contracting for collection of a fee in connection with any contract whereby he undertakes primarily to promote the sale, exchange, purchase, rental, or leasing of real estate through its listing in a publication issued primarily for such purpose, or for referral of information concerning such real estate to brokers, or both.

(h) Sells or attempts to sell or offers or attempts to negotiate the sale of any business whose assets include real estate or leases of real estate.

(i) Lists or offers or attempts or agrees to list for sale any business whose assets include real estate or leases of real estate.

(8) "Real estate salesperson" means a person, other than an associate broker, sponsored by a licensed real estate broker to participate in any activity described in this Section.

(9) "Timeshare developer" means an individual, partnership, limited liability company, corporation, or other legal entity, or the successor or assignee thereof, who creates a timeshare plan or who is in the business of making sales of timeshare interests which it owns or purports to own.

(10) "Timeshare interest salesperson" means a person who directly sells or offers to sell any timeshare interest.

(11) "Timeshare registrant" means timeshare interest salespersons or timeshare developers registered by the commission.

(12) "Real estate school" includes any place or institution certified by the commission which is open to the public for the instruction or training of individuals to engage in the selling of real estate.

(13) "Sponsoring broker" means any individual real estate broker who sponsors associate brokers or real estate salespersons who participate in any activity described in this Section.

(14) "Real estate continuing education vendor" means any school, place, individual, or institution certified by the Louisiana Real Estate Commission which offers courses or seminars in real estate and related subjects to fulfill continuing education requirements for license or certificate renewal purposes.

(15) "Licensee" means any person who has been issued a license by the commission to participate in any activity described in this Section.

(16) "Active licensee" means any currently licensed person whose license has not been transferred to inactive status and who is authorized to act in the capacity of a real estate broker or salesperson as provided for in this Chapter.

(17) "Inactive licensee" means any currently licensed person whose license has been transferred to inactive status and who is not authorized to act in the capacity of a real estate broker or salesperson as provided for in this Chapter.

(18) "Property manager" means 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.

(19) Repealed by Acts 1995, No. 1207, §2.

(20) "Real estate transaction" means the selling, offering for sale, buying, offering to buy, soliciting for prospective purchasers, managing, offering to manage, leasing, offering to lease, renting, or offering to rent any real estate or improvements thereon, or any business or other entity whose assets include real estate or leases of real estate.

(21) "Seller" means the transferor in a real estate transaction, and includes an owner who lists real estate with an agent, whether or not a transfer results, or who receives an offer to purchase or lease real estate property of which he is the owner from an agent on behalf of another. "Seller" includes a lessor.

(22) "Client" means one who engages the professional advice and services of a licensee as his agent and whose interests are protected by the specific duties and loyalties imposed by that relationship.

(23) "Agent" means a licensee acting under the provisions of this Chapter in a real estate transaction.

(24) "Subagent" means a licensee, other than a listing agent or a buyer's agent, who acts in cooperation with a listing agent in a real estate transaction.

(25) "Listing agent" means a licensee who has obtained a listing of real estate to act as an agent for compensation.

(26) "Buyer's agent" means a licensee who is employed by and represents only the buyer in a real estate transaction, regardless of whether such agent's compensation is paid by the buyer directly or by the seller through a commission split with the listing agent.

(27) "Buyer" means the transferee in a real estate transaction, and includes a person who executes an offer to purchase or lease real estate from a seller, whether alone or through an agent, or who seeks the services of an agent with the object of entering into a real estate transaction. "Buyer" includes a lessee.

(28) "Commingling" means putting personal funds and funds belonging to other persons in one mass or mixing the funds together so they cannot be identified or differentiated.

(29) "Dealing in options" means a person, firm, partnership, limited liability company, association, or corporation directly or indirectly taking, obtaining, or using an option to purchase, exchange, rent, or lease real property or any interest therein with the intent or for the purpose of buying, selling, exchanging, renting, or leasing said real property or interests therein to another or others, whether or not said option is in his name and whether or not title to said property passes through the name of said person, firm, partnership, limited liability company, association, or corporation in connection with the purchase, sale, exchange, rental, or lease of such real property in interest.

(30) "Listing agreement" means a written document signed by all owners of real estate or their authorized attorney in fact authorizing a broker to offer or advertise real estate described in such document for sale or lease on specified terms for a defined period of time. A listing agreement shall only be valid if signed by all owners or their authorized attorney in fact.

(31) "Property management" means the marketing, leasing, or overall management of real property for others for a fee, commission, compensation, or other valuable consideration.

(32) "Broker" or "Real estate broker" means a licensed real estate broker performing activities as an individual real estate broker, a sponsoring broker or designated qualifying broker, or a corporation, partnership, or limited liability company which has been granted a real estate license through a designated qualifying broker.

(33) "Mold" means any form of multicellular fungi that live on plant or animal matter and in indoor or outdoor environments.  Types of mold often found in water-damaged building materials include but are not limited to cladosporium, penicillium, alternaria, aspergillus, fuarim, trichoderma, memnoniella, mucor, and strachybotrys chartarum.

Acts, 1978, No. 514, § 1. Amended by Acts 1979, No. 404, § 1; Acts 1981, No. 309, § 1; Acts 1983, No. 270, § 1; Acts 1983, No. 380, § 1; Acts 1983, No 381, §1; Acts 1983, No. 552, § 2; Acts 1986, No. 841, § 1; Acts 1989, No. 655, § 1, eff. Jan. 1, 1990; Acts 1990, No. 893, § 1; Acts 1991, No. 354, § 1, eff. Jan. 1, 1992; Acts 1995, No. 1207, § 1; Acts 1997, No. 845, § 1, Acts 2003, No. 1123, §1, eff. July 2, 2003; Acts 2006, No. 351, §1.

§1432. Louisiana Real Estate Commission; qualifications; terms of office

A. The Louisiana Real Estate Commission is hereby created within the office of the governor. The commission shall consist of eleven members appointed by the governor. One member shall be appointed from each of the seven supreme court districts. Two members shall be appointed at large. Two members shall be appointed from the following districts: one appointee from either the Fourth Congressional District or the Fifth Congressional District and one appointee from either the First, Second, Third, Sixth or Seventh Congressional District.  Each appointment by the governor shall be submitted to the Senate for confirmation.

B. Each appointment to the commission shall be for a six-year term.  No commissioner shall serve more than one six-year term.

C. Members of the commission shall be citizens and qualified electors of this state. Each member shall have actively engaged in the real estate business as a broker for at least five years next preceding the date of appointment.

D. A vacancy caused by any reason except the expiration of the term shall be filled by appointment by the governor for the remainder of the unexpired term.

E. The governor may remove any member of the commission for cause.

Acts 1978, No. 514, §1.  Amended by Acts 1980, No. 730, §1, eff. July 29, 1980; Acts 1989, No. 655, §1, eff. Jan. 1, 1990; Acts 1991, No. 436, §1; Acts 2001, No. 8, §12, eff. July 1, 2001; Acts 2005, No. 78, §1; Acts 2009, No. 104, §1.

§1433. Officers; quorum; meetings

A. The commission shall elect from its members a chairman and a secretary and shall select a vice-chairman to serve in the absence of the chairman.

B. (1) Five members of the commission shall constitute a quorum for all business. The commission shall meet quarterly or more often if necessary.

(2) Said commission shall be limited to two regularly scheduled meetings per month. Additional meetings may be called upon application of three members.

C. Members of the Louisiana Real Estate Commission shall be compensated at a rate of not more than fifty dollars a day for each meeting or for attending to commission business, however, a member attending two meetings on the same day shall not be compensated for more than one meeting on that day. Members shall also be reimbursed for their actual expenses covering travel, meals, lodging and other incidental expenses incurred while attending commission meetings or attending to commission business.

Acts 1978, No. 514, § 1; Amended by Acts 1989, No. 655, § 1, eff. Jan. 1, 1990.

§1434. Domicile

The domicile of the commission shall be in the city of Baton Rouge.

Acts 1978, No. 514, § 1.

§1435. Powers of commission

A. The commission shall have the full power and authority to:

(1) Regulate the issuance of real estate licenses, registrations, and certificates.

(2) To censure licensees, registrants, and certificate holders.

(3) Suspend or revoke licenses, registrations, and certificates.

(4) Impose additional continuing education requirements on licensees, registrants, or certificate holders.

(5) Purchase, acquire, develop, expand, sell, lease, maintain, mortgage, borrow funds, or otherwise contract with respect to immovable property and improvements thereon as it may deem necessary or appropriate to accomplish the provisions of this Chapter. Additionally, the commission shall have the authority to borrow funds with the approval of the State Bond Commission and to expend funds of the commission for the acquisition of immovable property and improvements thereon. In the event that the commission sells immovable property and improvements thereon, the revenue derived from the sale shall be retained by the commission and shall not be subject to the state general fund.

B. The commission shall adopt a seal by which it shall authenticate its proceedings.

C. The commission may:

(1) Adopt all necessary rules and bylaws for the enforcement of this Chapter;

(2) Require any satisfactory proof it may desire in reference to the honesty, truthfulness, reputation, and knowledge of any applicant for a real estate broker, or salesperson's license or registration as a timeshare interest salesperson or of any of the officers or members of any such applicant prior to the issuance of any license, or registration; and

(3) Promulgate and enforce rules and regulations relative to applications for licenses or registrations necessary to administer and enforce the provisions of this Chapter.

D. In addition to its general powers as above provided by way of extension and not of limitation, the commission is expressly granted the right to require any real estate broker or timeshare developer registrant to keep records as specified in this Chapter of all real estate or timeshare transactions. The commission is authorized to inspect such records at the offices of those licensees or registrants by its duly authorized representatives between the hours of 9:00 A.M. and 4:00 P.M., Saturdays, Sundays, and legal holidays excluded, and to subpoena any of the said records.

E. The commission shall have the right to subpoena any licensee, registrant, or witness for the purpose of holding any hearing or in furtherance of an authorized investigation. Failure by a licensee or registrant to comply with a subpoena or subpoena duces tecum shall be punishable by the commission as provided under the provisions of R.S. 37:1455.

F. The commission may also require that all real estate brokers and timeshare developer registrants shall deposit all monies or things of value received on behalf of clients in a separate banking account or accounts in a legally chartered financial institution. Said monies so received are not to be commingled with the personal funds of such licensees or registrants.

G. The commission shall appoint an executive director, who shall have such powers, authority, and responsibilities as the commission shall delegate. The commission shall establish the salary of the executive director, and may remove the executive director for cause.

H. The commission shall establish, through the adoption and promulgation of rules and regulations in accordance with the Administrative Procedure Act, procedures by which a determination may be made as to whom a disputed escrow deposit should be released.

Acts 1978, No. 514, §1.  Amended by Acts 1980, No. 387, §1; Acts 1983, No. 552, §2; Acts 1984, No. 943, §2, eff. July 20, 1984; Acts 1986, No. 837, §1; Acts 1989, No. 655, §1, eff. Jan. 1, 1990; Acts 1991, No. 642, §1; Acts 1995, No. 1207, §1; Acts 1999, No. 628, §1; Acts 2005, No. 78, §1.

§1436. Licensing and registration required

A. Licenses issued by the commission shall be classed as active and inactive.

B. It shall be unlawful for any person or entity, directly or indirectly, to engage in or conduct, or to advertise or hold himself out as engaging in or conducting the business, or acting in the capacity, of a real estate broker or real estate salesperson within the state without first obtaining a license as such broker or salesperson, and be classed as an active licensee, as provided in this Chapter, unless he is exempted from obtaining a license as specified herein.

C. It shall be unlawful for any person or entity, directly or indirectly, to engage in or conduct, or to advertise to hold himself or itself out as engaging in or conducting the business, or acting in the capacity of a timeshare interest salesperson or timeshare developer without first obtaining a registration as such a timeshare interest salesperson or timeshare developer, as provided in this Chapter, unless he is exempted from obtaining a registration as specified therein.

D. Any person, corporation, partnership, limited liability company, or other entity who, directly or indirectly for another, with the intention or upon the promise of receiving any valuable consideration, offers, attempts, or agrees to perform, or performs any single act described herein, whether as a part of a transaction, or as an entire transaction, shall be deemed a licensee or registrant within the meaning of this Chapter. The commission of a single act by such a person or entity required to be licensed or registered under this Chapter and not so licensed or registered shall constitute a violation of the provisions of this Chapter.

Acts 1978, No. 514, § 1. Amended by Acts 1989, No. 655, § 1, eff. Jan. 1, 1990; Acts 1997, No. 845, § 1.

§1437. Application for license

A. Any person desiring to act as a real estate broker or as a real estate salesperson, or any corporation, partnership, limited liability company, or any other legal entity desiring to conduct real estate activity in this state, shall file an application for a license with the commission. The application shall be in such form and detail as the commission shall prescribe, setting forth the following:

(1) The name and address of the applicant and the name under which the applicant intends to conduct business.

(2) The place or places, including the city or village with the street and street number, if any, where the business is to be conducted.

(3) Such other information as the commission shall require.

B. (1) Licenses shall be granted only to persons or entities who bear a good reputation for honesty, trustworthiness, integrity, and competence to transact real estate activities requiring licensing in this state in such a manner as to safeguard the interest of the public, and only after satisfactory proof of such qualifications has been presented to the commission.

(2) When an 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 a crime involving moral turpitude in any court of competent jurisdiction, such untrustworthiness of the applicant, and the conviction, may in itself be sufficient grounds for refusal of a license.

(3) When an applicant has made a false statement of material fact on his application, such false statement may in itself be sufficient grounds for refusal of a license.

(4) Grounds for suspension or revocation of a real estate license in Louisiana or any other jurisdiction, or the previous suspension or revocation, of a real estate license in Louisiana or any other jurisdiction shall also be grounds for refusal to grant a license.

C. (1) No individual real estate broker or salesperson's license shall be issued to any person who has not attained the age of eighteen years. No individual real estate broker or salesperson's license shall be issued to any person who is not a high school graduate or the holder of a certificate of high school equivalency.

(2) (a) All applicants for an initial individual real estate broker's license shall have first served actively for four years as a real estate salesperson and shall show evidence satisfactory to the commission that they have satisfactorily completed at least one hundred fifty hours or its equivalent of instruction in real estate courses approved by the commission prior to licensure. Satisfactory completion includes passage of an examination on course contents. [Note: Any person accruing time as a real estate salesperson prior to January 1, 2009 shall serve actively as a salesperson for two years prior to application for an initial real estate broker's license.]

(b) At least thirty hours of the broker educational requirement shall be obtained in coursework emphasizing broker responsibilities.

(c) Each person obtaining  an initial real estate broker's license shall complete forty-five post-license education hours within one hundred eighty days after the initial license date. Such hours shall be in subjects required by the commission including but not limited to laws, rules and regulations changes, finance, and the handling of funds. Post-license education hours may be used to satisfy eight hours of the twelve-hour annual continuing education requirement; however, post-license education hours shall not satisfy the four-hour mandatory continuing education topic specified by the commission.

(3) The commission, through its education division, may accept real estate related credit hours from an accredited college or university as partial substitution of the broker licensing educational requirement.

(4) The commission shall have the authority to accept experience in the real estate business or related fields as credit toward fulfillment of the education requirements set forth herein.

(5) (a) All applicants for a salesperson's license shall show evidence satisfactory to the commission that they have completed ninety hours or its equivalent of instruction in real estate coursework approved by the commission prior to licensure. Satisfactory completion includes passage of an examination on course contents.

(b) Each person obtaining an initial salesperson's license shall complete forty-five post-license education hours within one hundred eighty days after the initial license date. Such hours shall be in subjects required by the commission including but not limited to laws, rules and regulations changes, finance, and the handling of funds. Post-license education hours may be used to satisfy eight hours of the twelve-hour annual continuing education requirement; however, post-license education hours shall not satisfy the four-hour mandatory continuing education topic specified by the commission.

(6) (a) (i) In addition to the other education requirements set forth in this Chapter, the license of an individual real estate broker or salesperson shall not be renewed unless the broker or salesperson shall furnish proof of completion of twelve hours per year of continuing education pertaining to matters, including but not limited to laws, rules and regulations relative to licensing, appraisal, finance, taxes, zoning, environmental quality, and the United States Department of Housing and Urban Development. Four of the required annual continuing education hours shall be in subjects specified by the commission. Post-license education hours may be used to satisfy eight hours of the twelve-hour annual continuing education requirement; however, post-license education hours shall not satisfy the four-hour mandatory continuing education topic specified by the commission.

(ii) The commission shall promulgate rules and regulations necessary to implement the continuing education requirement and may mandate the completion of courses in specific real-estate related subjects. Such rules and regulations may require passage of an examination in order to satisfy the continuing education requirement.

(b) Repealed by Acts 1995, No. 1207, § 2.

(c) Repealed by Acts 1999, No. 452, § 3.

D. Every applicant for a license shall submit a sworn statement attesting that he has knowledge of and understands the provisions of the Fair Housing Act of 1968 and the Louisiana Equal Housing Opportunity Act¹, and any amendments thereto or any successor legislation subsequently following, and that he shall not induce or attempt to induce any person to sell or rent any dwelling by representations regarding the entry or prospective entry into an area, subdivision, or neighborhood of a person or persons of a particular race, color, religion, or national origin.

E. A nonresident may obtain a broker's or salesperson's license and engage in the real estate business in this state under conditions prescribed by the commission.

Acts 1978, No. 514, § 1. Amended by Acts 1978, No. 658, § 1; Acts 1979, No. 404, § 1; Acts 1980, No. 492, § 1; Acts 1981, No. 309, § 1; Acts 1989, No. 655, § 1, eff. Jan. 1, 1990; Acts 1991, No. 642, § 1; Acts 1993, No. 886, § 1; Acts 1995, No. 1207, § 1; Acts 1997, No. 220, § 1; Acts 1997, No. 845, § 1; Acts 1999, No. 629, § 1; eff. January 1, 2000; Acts 2001, No. 924, §1; Acts 2008, No. 254, § 1.

¹In subsection D, 42 U.S.C.A. § 3601 et seq., and R.S. 51:2601 et seq., respectfully (as of July 1, 1999, the "Louisiana Open Housing Act" is changed to the "Louisiana Equal Housing Opportunity Act" by Acts 1997, No. 1141, eff. July 1, 1999).

§1437.1. Timeshare registration

§1437.1.  Timeshare registration

A.  Any person or entity desiring to engage directly in the business of selling timeshare interests must register with the commission.

B.(1)(a)  The application for registration shall be in such form as may be required by the commission and in accordance with R.S. 9:1131.9 so that only persons who have a good reputation for honesty, trustworthiness, and integrity may be so registered.

(b)  The commission shall approve or deny such applications for registration within forty-five days from receipt of the application by the commission.

(2)  When an 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 a crime involving moral turpitude in any court of competent jurisdiction, such untrustworthiness of the applicant, and the conviction, may in itself be sufficient grounds for refusal of a timeshare interest sales registration.

(3)  When an applicant has made a false statement of material fact on his application, such false statement may in itself be sufficient grounds for refusal of a timeshare interest sales registration.

(4)  Grounds for suspension or revocation of a registration, or real estate license, or the previous revocation of a real estate license or registration in Louisiana or any other jurisdiction, shall be grounds for refusal to grant a timeshare interest sales registration.

(5)  No timeshare registration shall be issued to any person who has not attained the age of eighteen years.  No timeshare interest sales registration shall be issued to any person who is not a high school graduate or the holder of a certificate of high school equivalency.

C.  The provisions of this Section with regard to registering as timeshare interest salespersons do not apply to a licensed real estate broker or salesperson or to employees of a developer registered under this Section.

D.  Notwithstanding any other provisions of law, a timeshare developer may not avoid liability to timeshare purchasers for the acts of timeshare interest salespersons or licensees on the basis that the timeshare interest salesperson is merely an independent contractor.

E.  Every non-developer timeshare sales registrant shall file and maintain with the Louisiana Real Estate Commission a bond issued by a surety company authorized to do business in this state in the amount of ten thousand dollars.  This bond shall be in favor of the state for the use, benefit, and indemnity of any person who suffers any damage or loss as a result of the sale registrant's unfair or deceptive practice or other violation of law in connection with the sale offer or solicitation to sell of a timeshare interest.

F.  Except for the provisions contained in R.S. 9:1131.12, the changes and additions affected by Act No. 999 of the 1985 Regular Session of the Legislature shall not apply to any timeshare project which has filed and been approved to operate as a timeshare project by the Louisiana Real Estate Commission on or before June 1, 1985, and for which protection under the federal bankruptcy law has not been filed and whose developer has not been suspended by the Louisiana Real Estate Commission, and which, if approved prior to July 20, 1984, has been actively and consistently marketed as a timeshare project.

G.  Any timeshare interest salesperson or seller of a timeshare interest shall comply with the provisions of the Louisiana Real Estate License Law and the rules adopted pursuant thereto, including licensure, unless otherwise exempt.  The Louisiana Real Estate License Law shall not apply to a developer registered under this Section solely acting for itself as sole owner or sole lessor with reference to real estate solely owned or solely leased by the developer or a registered affiliated entity or registered wholly-owned subsidiary of the developer, or an existing timeshare owner who, for compensation, refers prospective purchasers, but only if the existing timeshare owner refers no more than twenty prospective purchasers in any calendar year and limits his or her activities to referring prospective purchasers of timeshare interests to the developer or the developer's employees or agents, and does not show, discuss terms or conditions, or otherwise participate in negotiation with regard to timeshare interests.

Added by Acts 1983, No. 552, §2; Acts 1984, No. 943, §2, eff. July 20, 1984; Acts 1985, No. 999, §§2,4; Acts 1989, No. 655, §1, eff. Jan. 1, 1990; Acts 2003, No. 978, §1.

{{NOTE: SEE ACTS 1985, NO. 999, §5.}}

§1437.2  CORPORATIONS; LIMITED LIABILITY COMPANIES; PARTNERSHIPS; REAL ESTATE  BROKERS' LICENSES

1. Any corporation, limited liability company, or partnership formed under the laws of this state or any foreign corporation, limited liability company, or partnership which has been granted a certificate of authority to do business in this state may be granted a real estate broker's license by the commission upon application and compliance with the requirements of this Chapter.
    

2. Every application for a corporate, limited liability company, or partnership real estate broker's license shall be submitted by a licensed individual real estate broker who has been chosen by the corporation, limited liability company, or partnership as its qualifying broker.  An individual real estate broker may serve as a qualifying broker for more than one corporation, limited liability company, or partnership.
    

3. Upon dissolution, a corporation, limited liability company, or partnership shall return the license of the designated qualifying broker, and the license of every sponsored licensee to the commission within ten days of the dissolution.
   
   Upon termination of a qualifying broker's affiliation with a corporation, limited liability company, or partnership for any reason, the corporation, limited liability company, or partnership shall notify the commission and designate a new qualifying broker within five working days.  A corporation, limited liability company, or partnership may designate a new qualifying broker at any time.
   
   Upon the merger or consolidation with another corporation, limited liability company, or partnership the corporation, limited liability company, or partnership shall notify the commission not later than five working days following the effective date of the merger or consolidation.
    

4. Sections F through I repealed by Acts 1999, No. 452, §3.

Added by Acts 1983, No. 380, §1.  Amended by Acts 1989, No. 655, §1, eff. Jan.1, 1990; Acts 1995, No. 1207, §1; Acts 1997, No. 845, §1.

§1437.3:  INACTIVE LICENSE

1. Effective January 1, 1990, an inactive license status shall be established.
    

2. Any licensee in good standing with the commission may elect to place his license in an inactive license status with the commission provided he applies for a transfer to an inactive status and remits the applicable fees as set forth in the Chapter.  Former licensees may, within the three-month delinquency period and upon payment of appropriate renewal and inactive license transfer fees, transfer their license to inactive status.
    

3. During the period the license is in inactive status, the licensee shall be prohibited from engaging in any activity requiring a real estate license.  The licensee shall be required to renew the inactive license on a yearly basis by filing the required renewal application and paying the annual inactive renewal fees as specified in this Chapter.
    

4. The licensee may request transfer from inactive status to active status any time, provided the inactive license has been renewed as provided for in this Chapter and is current at the time the request is received at the commission.
    

5. An inactive licensee will not be required to fulfill the continuing education requirement established for active licensees on a yearly basis; however, upon application to return to active license status the licensee must have completed the continuing education specified in the following Paragraphs:

(1) Licensees remaining in the inactive status from one to five years shall complete the number number of hours of continuing education specified for the period of inactivity indicated below:

a.  One to three years of inactive status - twenty hours of continuing education
b.  Three to five years of inactive status - forty hours of continuing education.

(2) If the licensee remains in the inactive status for two to five renewal periods,  he  must complete a four-hour course covering Louisiana real estate license  law and commission rules and regulations as part of the hours specified in Paragraph (1) of this Subsection to be eligible to return to active license status.  This required four-hour course must be completed within one year prior to the date of the transfer of the license to the active status.

(3) The licensee may remain in the inactive license status indefinitely, provided he  complies with the yearly inactive renewal procedures.  Licensees remaining on inactive status for longer than a five-year period will be required to complete a maximum of eighty hours of approved continuing education within the five-year period immediately preceding the request to return to active license status.  Such continuing education shall include a four-hour Louisiana  real estate license law and commission rules and regulations course which  must be completed within one year prior to the date of the transfer of the license to the active status.  However, any applicant who has continued to obtain continuing education in the required areas during the period that he is in inactive status may cumulate those hours and be eligible to reactivate his license at any time.

Added by Acts 1989, No. 655, §1, eff. Jan.1, 1990; Acts 1995, No. 1207, §1.  Amended by Acts 1997, No. 845, §1; Acts 1999, No. 629, §1; eff. Jan.1, 2000

§1438:  APPLICABILITY

1. The provisions of this Chapter shall not apply to:

(1)  Any person, partnership, limited liability company, association or corporation, foreign or domestic, which has not been granted a real estate license  in Louisiana and in which, as owner or lessor, either individually or through an employee or representative and performs acts of ownership with reference to property owned by him, except person in the business of selling or managing timeshare interests. 

(2)  The service rendered by an attorney at law on behalf of a client which may be required in the normal course of other legal representation.

(3)  A receiver, trustee in bankruptcy, administrator, executor, tutor, or civil sheriff  for any parish of this state.

(4)  A trustee selling under a deed of trust or a mortgage.

(5)  Any individual, corporation, partnership, trust, limited liability company, joint venture or other entity which sells, exchanges, leases, or manages its own  property, except persons, corporations, partnerships, trusts, limited liability companies, joint ventures and other entities who are in the business of selling timeshare interests.   

(6)  Any salaried person employed by a licensed real estate broker for and on behalf of the owner of any real estate which the licensed broker has contracted to manage for the owner,  if the salaried employee is limited in his employment to: 

(a)  Delivering a lease application, a lease, or any amendment thereof  to any person.

(b)  Receiving a lease application, lease, or amendment thereof, a security deposit, rental payment, or any related payment for delivery to and made payable to a property manager or owner. 

(c)  Showing a rental unit to any person, as long as the employee is acting under the direct  instructions of the broker, including the execution of  leases or rental agreements, provided the broker is responsible for the actions of his employees. 

(d)  Providing information about a rental unit, a lease, an application for lease, or the status of a security deposit or the payment of rent to any person. 

(e)  Assisting in the performance of property management functions by carrying out administrative, clerical, or maintenance tasks.

   B.  Repealed by Acts 1995, No. 1207, §2.

   C.  Repealed by Acts 1995, No. 1207, §2.

Acts 1978, No. 514, §1.  Amended by Acts 1979, No. 404, §1; Acts 1984, No. 552, §2; Acts 1986, No. 835, §1; Acts 1989, No. 655, §1, eff. Jan.1, 1990; Acts 1990, No. 893, §1; Acts 1995, No. 1207, §1.

§1438.1 to 1438.4:  (Blank)

These section numbers were vacated by the amendment and reenactment of Chapter 17 of Title 37 by Acts 1978, No. 514, §1.  For disposition of the subject matter of these former sections of Chapter 17, See R.S. 37:1437 and R.S. 37:1440.

§1439:  ISSUANCE OF LICENSE, CERTIFICATE, OR REGISTRATION

1. Upon compliance with the provisions of this Chapter and with the rules and regulations of  the commission, the commission shall issue the appropriate license, certificate, or registration and shall prescribe the form of such license, certificate, or registration. 
    

2. Each individual real estate broker's license and each corporation, limited liability company,  or partnership real estate broker's license shall show the name and street address of the  business and shall also show the mailing address of the business if it is different  from the street address.
    

3. Each sales or associate broker license shall show the name of the license.  The license shall also show the name of the sponsoring individual real estate broker, or the name of  the corporation, partnership, or limited liability company or other entity under which the  license is issued.  The license of each associate broker or salesperson shall be delivered or mailed to and kept in the custody and control of the individual real estate broker or designated qualifying broker by whom the associate broker or salesperson is sponsored.
    

4. Each timeshare developer registration shall show the name and street address of the developer and shall also show his mailing address if it is different from the street address. 
    

5. Each timeshare sales registration shall show the name and residential address of the registrant and shall also show his mailing address if it is different from the residential address.   Each individual timeshare sales registration shall show the name of the developer by whom the registrant is employed.  The registration shall be delivered or mailed to the developer by whom the registrant is employed.  The registration shall be delivered or mailed to the developer and shall be kept in the custody and control of that developer.
    

6. Associate brokers, salespersons, and timeshare interest salesperson shall not conduct any activities requiring licensing or registering until their license or registration has been issued and is in the custody of their sponsoring broker or employing timeshare developer, or the sponsoring broker or employing timeshare developer has received written authorization from the commission authorizing such activity pending the issuance of the license or timeshare registration by the commission.

Acts 1978, No. 514, §1, Amended by Acts 1986, No. 670, §1; Acts 1995, No. 1207, §1; Acts 1997, No. 845, §1, Acts 1999, No. 452, §2.

§1439.1, 1439.2:  REPEALED BY ACTS 1995, NO. 1207, §2

Former R.S. 37:1439.1, enacted by Acts 1989, No. 655, §1, related to the form of licenses.  Former R.S. 37:1439.2, enacted by Acts 1989, No. 655, §1 related to issuance of registrations.  See, now, R.S. 37:1439.

§1440:  EXAMINATION

1. Professional competency as referred to in this Chapter shall be established by an examination prepared by or under the supervision of the commission.  The examination shall be of a scope sufficient in the judgment of the commission to determine that a person  is professionally competent to act as a real estate broker or salesperson.  The commission shall make all necessary rules and regulations governing the time, place, and method of conducting such examinations.
    

2. The examination shall consist of such technical and professional subjects relating to the real estate business as the commission shall prescribe or believe applicable in order to determine the professional competency of the applicant and to protect the interests of the public.  
    

3. Examinations shall be conducted, administered, and scored by either the Department of State Civil Service or by a national testing service. 

Acts 1978, No. 514, §1, Amended by Acts 1980, No. 492, §1; Acts 1989, No. 655, §1, eff. Jan.1, 1990.

§1441:   RETURN OF LICENSE OR REGISTRATION UPON  TRANSFER OR TERMINATION

1. When the association of an associate broker or salesperson with his sponsoring broker is  terminated by either party for any reason, the sponsoring broker shall send the associate broker's  or salesperson's license, by hand delivery or by certified or registered mail, to the commission within five days of such termination.  No associate broker or salesperson, shall act as such, either directly or indirectly, under authority of such license after the date the license has been dispatched to the commission.  Such associate broker or salesperson, upon sponsorship by another licensed broker, shall be entitle to transfer the license upon written request and payment of the required fee; however, not more than  one license shall be issued to any associate broker or salesperson for the same period of time. 
    

2. When the association of a timeshare sales registrant with his registered developer is terminated by either party for any reason, the developer shall send the sales registration certificate, by hand delivery or certified or registered  mail, to the commission within five days of such termination.  Any timeshare sales registrant who wishes to begin a new business relationship with another developer shall notify the commission, in writing and by  certified or registered mail, prior to beginning that business relationship.  No timeshare sales registrant shall act as such, either directly or indirectly, under authority of such  registration after the certificate has been dispatched to the commission.  Such timeshare registrant shall, upon acceptance by a new developer, be allowed to transfer his registration to that developer upon receipt of all appropriate fees and paperwork. 
    

3. When the association of a designated qualifying broker with a corporation, limited liability company, or partnership is terminated by either party for any reason, the following  actions shall be taken: 

(1)  The designated qualifying broker shall notify all associate brokers and salesperson sponsored by him in writing by certified or registered mail of the termination and the effective date of the termination.

(2)  Neither the licensed corporation, limited liability company, or partnership, nor any associate broker or salesperson sponsored by the terminated designated qualifying broker, shall engage in any real estate activity requiring licensing until an new qualifying broker has been designated by the corporation, limited liability company, or partnership and the designation has been reflected  in the files of the commission  

(3)  Upon designation of a new qualifying broker, the outgoing qualifying broker shall deliver the licenses of all sponsored licensees to the new designated qualifying broker.

(4)  The new designated qualifying broker shall inform all associate brokers or salespersons licensed with the corporation, limited liability company, or partnership in writing by certified or registered mail of his designation as qualifying broker and of the effective date of the designation not later than five days following the effective date of the designation. 

(5)  The outgoing qualifying broker shall return his license as qualifying broker for the corporation, limited liability company, or partnership to the commission within five days following the effective date of the designation of the new qualifying broker. 

Acts 1978, No. 514, §1.  Amended by Acts 1986, No. 839, §1; Acts 1995, No. 1207, §1; Acts 1997, No. 845, §1.    

§1441.1:  REPEALED BY ACTS 1995, NO. 1207, §2

Former R.S. 37:1441.1, enacted by Acts 1989, No. 655.§1, related to return and transfer of licenses of associates and salespersons upon termination of the association with the sponsoring broker. See now, R.S. 37:1441.

§1442:  LICENSE, CERTIFICATE, AND REGISTRATION ISSUANCE AND RENEWAL

1. Each license, certificate, or registration issued under this Chapter shall be issued for a  period of one year and shall expire on December thirty-first following the date upon which it is issued.  Each license, certificate, or registration shall be renewed annually.  Conducting  any activity authorized by the license, certificate, or registration after the expiration of the  license, certificate, or registration shall be deemed a violation of this Chapter.  Licenses,  certificates, or registrations not renewed by January first shall be considered expired.
    

2. Any licensee or registrant who fails to renew timely may thereafter renew upon payment of the appropriate renewal and delinquent fees and upon filing of a complete renewal application.  The period for delinquent renewal of an expired license or registration shall be limited to the three-month period immediately following the expiration date of the active license or registration.  Failure to delinquently renew an expired license or registration during this three-month period shall result in a forfeiture of renewal rights and shall require the former licensee or registrant to apply as an initial applicant and meet all requirements of an initial applicant.
    

3. Any inactive licensee who fails to renew timely may thereafter renew upon payment of the appropriate renewal fees and filing of a complete renewal application.  The period for delinquent renewal of an expired delinquent inactive license will be limited to the three-month period period immediately following the expiration date of the inactive license.  Failure to renew delinquently an expired inactive license during the  three-month period period will result in the forfeiture of renewal rights and will require the former licensee to apply as an initial applicant and meet all requirements of an initial applicant.
    

4. Timeshare registrants who fail to renew timely may thereafter renew within the three months of the expiration of their registration upon payment of a delinquency renewal fee; however,  registered developers of timeshare projects who qualify under Section 5 of Act No. 999 of the 1985 Regular Session of the Legislature, but who fail to renew timely shall no longer qualify under that Section.

Acts 1978, No. 514, §1.  Amended by Acts 1983, No. 269, §1; Acts 1983, No. 552, §2; Acts 1986, No. 840, §1; Acts 1989, No. 655, §1, eff. Jan. 1, 1990; Acts 1995, No. 1207, §1, Acts 1999, No. 452, §2; Acts 2007, No. 35, §1.   

§1443:  FEES

The Commission may charge:

(1) Initial fees for licensing or certification:

(a) Individual real estate broker's license $120.00

(b) Corporate, partnership, or limited liability company real estate broker's license $120.00

(c) Branch office license $45.00

(d) Real estate salesperson's license $45.00

(e) School certification $650.00

(f) Instructor certification $35.00

(g) Instructor certification reexamination $35.00

(h) Continuing education vendor $300.00

(2) Renewal fees for licensing or certification:

(a) Real estate active broker's license $70.00

(b) Real estate inactive broker's license $35.00

(c) Branch office license $45.00

(d) Real estate active salesperson's license $35.00

(e) Real estate inactive salesperson's license $35.00

(f) School certification $300.00

(g) Instructor certification $35.00

(h) Continuing education vendor $150.00

(3) Fees for timeshare registration:

(a) Initial public offering statement filing fee $500.00

(b) Additional public offering statement filing fee $250.00

(c) Initial timeshare developer registration $120.00

(d) Timeshare developer renewal fee $70.00

(e) Initial timeshare interest salesperson fee $45.00

(f) Timeshare interest salesperson renewal fee $35.00

(g) Timeshare prize registration $150.00

(4) Delinquent fees, in addition to the renewal fee, if not renewed by December thirty-first of the applicable license, registration, or certification period:

(a) January 1 - February 15      $50.00

(b) February 16 - March 31     $200.00

(5) Transfer fees:

(a) Active status to inactive status $45.00

(b) Inactive status to active status $45.00

(c) All other transfers $35.00

(6) Processing fee $25.00

(7) License verification $25.00

(8) Continuing education course registration $15.00

Acts 1978, No. 514, § 1. Amended by Acts 1981, No. 309, § 1; Acts 1983, No. 552, § 2; Acts 1985,No. 999, § 2; Acts 1989, No. 655, § 1, eff. Jan. 1, 1990; Acts 1995, No. 1207, § 1; Acts 1997, No. 845, § 1; Acts 2007, No. 35, §1.

§1444:  BROKER, PLACE OF BUSINESS; BRANCH OFFICE LICENSE

The business address registered by a broker with the commission shall be considered as the place of business from which the broker will conduct real estate activities requiring licensing in Louisiana.  If a broker conducts business from more than one place of business, a branch office license shall be required for each place of business maintained by the broker.

Acts 1978, No. 514, §1.  Amended by Acts 1995, No. 1207, §1.

§1445:   UNLICENSED PERSONS CANNOT RECOVER BROKERAGE CHARGES

No action or suit shall be instituted, nor recovery be had, in any court of this state by any person for compensation for any act done or service rendered, the doing or rendering of which is prohibited under the provision of this Chapter to other licensed brokers or licensed salespersons unless such person was duly licensed under this Chapter as a broker or salesperson prior to the time of offering to perform any such act or service or procuring any promise to contract for the payment of compensation for any such contemplated act of service.

Acts 1974, No. 514, §1.  Amended by Acts 1984, o. 814, §1; Acts 1984, No. 943, §2, eff. July 20, 1984; Acts 1989, No. 655, §1, eff. Jan.1, 1990.

1445.1:  REPEALED BY ACTS 1956, NO. 556, §9

The repealed section, derived from Acts 1952, No. 232, related to suspension of licenses for failure to renew.  See, now, R.S. 37:1442.

§1446:  COMPENSATION; INDEPENDENT CONTRACTOR STATUS OF SALESPERSONS AND ASSOCIATE BROKERS

A.  No payment of a commission or compensation shall be made by any licensee or registrant to any person who has not first secured his license or registration under the provisions of this Chapter.  This Subsection shall not apply to a broker who is currently licensed in his state of residence.

B.  No payment of a commission or other compensation shall be made by any broker to any licensee or registrant when the paying broker has knowledge that the receiving licensee or registrant has agreed to pay or intends to pay or otherwise deliver a portion of the commission or compensation to an unlicensed person or entity.

C.  Associate brokers, salespersons, and timeshare interest salespersons shall not pay or offer to pay any commission or valuable consideration for the performance of any act herein specified.

D.  Payment of commission or compensation may be made to and accepted by former licensees and registrants for transactions negotiated by them while duly licensed or registered by the commission. 

E.  Current licensees who transfer their licenses from one broker to another broker may accept compensation from their former broker for business transactions which were  instituted while still with that broker, so long as the compensation is transmitted through their current sponsoring broker.

F.  Associate brokers and salespersons shall not accept a commission or other valuable consideration for the performance of any act herein specified, or for performing any act  relating thereto, from any person, except their sponsoring or qualifying broker.

G.  Associate brokers and salespersons may assign or direct that commissions or other compensation earned in connection with a real estate transaction be paid by their licensed sponsoring broker to an unlicensed corporation of which the associate broker or salesperson is the sole officer, director, and shareholder, or an unlicensed limited liability company of which the associate broker or salesperson is the sole manager.

H.  A real estate salesperson or associate broker shall be an independent contractor of the broker with whom he is affiliated for all purposes and shall not be an employee of the broker if all of the following conditions are met:

(1)  The real estate salesperson or associate broker is a licensee.

(2)  Substantially, all of the real estate salesperson's or associate broker's remuneration for the services performed are directly related to sales or other output rather than the number of hours worked.

(3)  There is a written agreement between the real estate salesperson or associate broker and the broker that specifies that the real estate salesperson or associate broker will not be treated as an employee.

Acts 1978, No. 514, §1.  Amended by Acts 1989, No. 655, §1, eff. Jan.1, 1990; Acts 1995, No. 1207, §1; Acts 1997, No. 845, §1; Acts 1999, No. 452, §2, Acts 2003, No. 321,  §1, Acts 2006, No. 332, §1, eff. July 1, 2006.

§1447:  Referral fees; interference with brokerage relationships

A.(1) It is unlawful for any person, including but not limited to a relocation company, to directly or indirectly solicit or request a referral fee or similar payment for the referral of a buyer or seller unless the person seeking the referral fee has reasonable cause.  Reasonable cause shall not exist unless:

(a) The person seeking the referral fee introduced the client to the licensee or registrant from whom the referral fee is being sought; or

(b) The person seeking the referral fee has a written contractual relationship with the licensee or registrant for a referral fee or similar payment; and

(c) The licensee or registrant has received the client referral prior to the client contracting to buy or list real estate with the licensee or registrant.

B. It is unlawful to interfere with a real estate brokerage relationship.  The demand for a referral fee from a licensee or registrant when reasonable cause for payment does not exist constitutes interference with a real estate brokerage relationship.  A threat by a third party to reduce, withhold, or eliminate any relocation benefits in order to generate a referral fee from a licensee or registrant when reasonable cause does not exist also constitutes interference with a brokerage relationship.  Notwithstanding the foregoing, communications between an employer or its representative and an employee concerning relocation policies and benefits shall not constitute interference with a real estate brokerage relationship.

C. It is unlawful for any person, licensed or unlicensed, to interfere with the contractual relationship between a licensee or registrant and a client by counseling a client or another licensee or registrant on how to terminate or amend an existing contractual relationship between a licensee or registrant and a client.  Communicating a company's relocation policy or benefits to an employee or consumer shall not be considered a violation of this Subsection as long as the communication does not involve advice or encouragement on how to terminate or amend an existing contractual relationship between a licensee or registrant and a client.

D. A prevailing party in any action for violations of this Section may be awarded actual damages, plus reasonable attorney fees.  In addition to bringing an action in court, violations of this Section may be addressed through mediation services.  Such mediation services shall include but shall not be limited to mediation through real estate entities who specifically offer programs for resolving complaints involving real estate referral fees.

Acts 2001, No. 261, §1.

B. The revocation or suspension of a broker's license shall automatically suspend the license of every associate broker or salesperson who is sponsored by the broker whose license was suspended or revoked. The sponsoring broker shall, within seventy-two hours of notification by the commission of the final action on the revocation or suspension of his license, return to the commission all licenses of the licensees sponsored by him.

C. A sponsoring broker shall, within seventy-two hours of notification by the commission return his license or the license of any associate broker or salesperson sponsored by him when such license has been suspended or revoked by the commission.

Acts 1978, No. 514, §1. Amended by Acts 1981, No. 309, §1; Acts 1995, No. 1207, §1; Acts 2003, No. 713,  §1.

Acts 2005, No. 229, §1.

Acts 1978, No. 514, § 1. Amended by Acts 1984, No. 943, § 4, eff. July 20, 1984; Acts 1989, No. 655, § 1, eff. Jan. 1, 1990; Acts 1991, No. 642, §1; Acts 1995, No. 1207, § 1; Acts 1997, No. 845, § 1; Acts 2003, No. 1123,  §1.

§1449.1.  Duty of real estate licensees to use purchase agreement forms

A. A licensee representing either the buyer or seller of residential real property shall complete the Purchase Agreement Form prescribed by the Louisiana Real Estate Commission in making an offer to purchase or sell residential real property. No person shall alter the Purchase Agreement Form; however, addendums or amendments to the Purchase Agreement Form may be utilized.

B. The promulgation of this form shall be conducted in accordance with the Administrative Procedure Act no later than July 1, 2007.

C.(1) As used in this Section, the term "Purchase Agreement Form" shall mean a document in a form prescribed by the Louisiana Real Estate Commission as a written agreement for the sale or purchase of residential real property.

(2) As used in this Section, the term "residential real property" means 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.

D. The provisions of this Section shall apply to the sale of residential real property on or after January 1, 2008.

Acts 2006, No. 333, §1

§1450. Duty of licensees, registrants, and certificate holders to report legal action pertaining to real estate activities

Acts 1978, No. 514, § 1. Amended by Acts 1981, No. 594, § 1; Acts 1983, No. 552, § 2; Acts 1989, No. 655, § 1, eff. Jan. 1, 1990; Acts 1995, No. 1207, § 1.

§1451. Death or incapacity of a real estate broker

Acts 1978, No. 514, § 1. Amended by Acts 1983, No. 552, § 2; Acts 1986, No. 842, § 1; Acts 1989, No. 655, § 1, eff. Jan. 1, 1990; Acts 1995, No. 1207, § 1.

Acts 1978, No. 514, §1.  Amended by Acts 1979, No. 404, §1; Acts 1980, No. 388, §1; Acts 1983, No. 552, §2; Acts 1984, No. 943, §2, eff. July 20, 1984; Acts 1986, No. 838, §1; Acts 1986, No. 841, §1; Acts 1989, No. 655, §1, eff. Jan. 1, 1990; Acts 1991, No. 354, §1, eff. Jan. 1, 1992; Acts 1995, No. 1207, §1; Acts 1997, No. 32, §1; Acts 1997, No. 1141, §2; Acts 1999, No. 452, §2; Acts 2003, No. 308, §2, eff. June 13, 2003; Acts 2003, No. 713, §1; Acts 2005, No. 78, §1.

1In par. A(28), 42 U.S.C.A. § 3601 et seq. R.S. 51:2601 et seq., the Louisiana Open Housing Act, is changed, as of July 1, 1999, to the Louisiana Equal Housing Opportunity Act, by Acts 1997, No. 1141, eff. July 1, 1999.

§1456. Notice of charges; hearing; censure, suspension, or revocation of license, registration, or certificate; criminal action

A. (1) Before censuring, suspending, or revoking any license or registration, or certification, or imposing continuing education requirements, the Louisiana Real Estate Commission shall, except for the reasons set forth in R.S. 37:1463(G), notify in writing the licensee or person registered of any charges made, at least twenty days prior to the date set for the hearing, and shall afford him an opportunity to be heard in person or by counsel. Notice shall be satisfied by mailing a copy of the charges by certified mail to the licensee's, registrant's, or certificate holder's address on file with the commission or by commission personnel hand delivering a copy of the charges to the licensee, registrant, or certificate holder.

(2) The written notice may be served either personally on a broker or salesperson or the registered agent for a corporation, limited liability company, or partnership, or sent by registered or certified mail to the last known business address of the licensee or registered agent.

(3) If the licensee is an associate broker or a salesperson, the commission also shall inform the sponsoring broker of the specific charges against the associate broker or salesperson by sending notice thereof by registered or certified mail to the broker's last known business address.

(4) If the licensee is a corporate, partnership, or limited liability broker, the commission shall inform the designated qualifying broker and the registered agent of the specific charges against the licensee by sending notice thereof by registered or certified mail to the last known business address of the qualifying broker or the registered agent.

(5) If the licensee is a designated qualifying broker for one or more licensed corporations, limited liability companies, or partnerships, the commission shall inform each corporation, limited liability company, or partnership represented by the broker of the specific charges against the broker by sending notice thereof by registered or certified mail to the registered agent for each corporation, limited liability company, or partnership represented by the broker.

(6) The commission shall have the power to subpoena and issue subpoenas duces tecum and to bring before it any person in this state, or take testimony by deposition, in the same manner prescribed by law in judicial proceedings in the courts of this state, or to require production of any records relevant to an inquiry or hearing by the commission. Any final decision or determination of the commission shall be reviewable by the Nineteenth Judicial District Court in the parish of East Baton Rouge.

B. (1) The hearing on the charges shall be at a time and place prescribed by the commission and in accordance with the provisions of Chapter 13 of Title 49 of the Louisiana Revised Statutes of 1950.

(2) The commission may make findings of fact and shall deliver or mail such findings to the licensee charged with an offense under the provisions of this Part. Any finding of fact by the commission pursuant to the provisions of this Subsection shall be conclusive.

(3) The Nineteenth Judicial District Court of the state may review questions of law involved in any final decision of the commission. Any application for review made by an aggrieved party shall be filed within thirty days after the final decision of the commission.

(4) If the court finds that the Louisiana Real Estate Commission has regularly pursued its authority and has not acted arbitrarily, it shall affirm the decision, order, or ruling of the commission. If a petition to review the final decision of the commission is filed, the case shall be specifically fixed for trial within thirty days from the filing of an answer by the commission.

C. Administrative proceedings under this Chapter before the commission are not exclusive remedies.  Criminal action under the terms of this Chapter may be simultaneously instituted and maintained against the accused for any violation of this Chapter.  The commission may also separately or simultaneously bring and carry on an action by injunction to restrain a licensed or unlicensed individual from further violation of any of the provisions of this Chapter, during the pendency of the criminal proceeding or proceedings before the commission and against any unlawful practice thereafter.

§1459. Real estate activity; unlicensed person

A.(1)  In addition to any other civil remedy or civil penalty provided for in this Chapter, the commission may issue a subpoena to any person or persons who the commission has probable cause to believe has engaged in real estate activity without a currently valid license.

(2)  Subpoenas issued by the commission shall comply with the notice requirements of R.S. 49:955.  These subpoenas shall be served upon the unlicensed individual personally or by any type of mailing requiring a return receipt and shall include a statement of the manner in which the unlicensed person shall be required to respond to the commission.

B.  The commission may impose a civil penalty of no more than five thousand dollars upon any unlicensed person who, after a hearing or informal resolution in accordance with all provisions of this Chapter and the Administrative Procedure Act, is found to have engaged in real estate activity without the benefit of a currently valid license having been issued by the commission pursuant to the provisions of this Chapter.  In addition, the commission may assess costs and attorney fees against the unlicensed person found to have been engaged in real estate activity without a current license.

C.  The fact that any person engages in or performs or offers to engage in or perform any of the practices, acts, or operations set forth in R.S. 37:1431(7) is prima facie evidence that such person is engaged in the illegal practice of real estate.

D.  No person engaged in real estate activity without a currently valid license shall have the right to receive any compensation for services so rendered.  In addition to any other penalties imposed under R.S. 37:1455 and 1458, the commission may require that any person  engaged in real estate activity without a license return any fees collected for engaging in real estate activity.

§1460. Certification and regulation of real estate schools, instructors and continuing education vendors