Free Louisiana State Law Practice Test — LicenseIQ

Question 1

Under the statute of frauds, a real estate sales contract must be:

Accepted Answer

The statute of frauds requires real estate sales contracts to be in writing and signed to be enforceable.

Question 2

A property manager receives a tenant's security deposit and advance rent. These funds must be deposited in the:

Accepted Answer

Money belonging to others goes into a trust account; depositing it in an operating account is commingling.

Question 3

A salesperson receives an earnest money check from a buyer. The salesperson should:

Accepted Answer

The broker manages the trust account; licensees must promptly deliver trust funds to the broker.

Question 4

A salesperson's license has been inactive for 3 years and 6 months. How many hours of continuing education are required to return to active status?

Accepted Answer

Under R.S. 37:1437.3, 3 to less than 5 years of inactivity requires 40 hours. 20 hours covers 1 to less than 3 years; 80 hours applies at 5 years or more.

Question 5

On the $20,000 commission above, the listing broker keeps 50% and pays 50% to the buyer's broker. How much does the buyer's broker receive?

Accepted Answer

$20,000 x 0.50 = $10,000 to the buyer's broker.

Question 6

A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $15,750 / $450,000 = 0.035 = 3.5%.

Question 7

In a life estate, the person who receives the property when the life tenant dies is the:

Accepted Answer

The life tenant has a present interest; the remainderman holds a future interest. If the property returns to the grantor, it is a reversion.

Question 8

Which action may a life tenant take WITHOUT the remainderman's consent?

Accepted Answer

A life tenant may occupy or lease the property for the duration of the life estate but cannot sell, mortgage or commit waste that harms the remainderman's future interest.

Question 9

How are the national and state portions of the Louisiana salesperson exam scored?

Accepted Answer

The Pearson VUE handbook describes 55 scored state items and a scaled passing score of 70 on the state portion; the portions are scored separately, so a candidate who fails one retakes only that portion.

Question 10

A home is co-owned by three siblings. Under the License Law, the listing agreement is valid only if

Accepted Answer

R.S. 37:1431 states a listing agreement is valid only if signed by all owners or their authorized attorney in fact. A majority is not enough.

Question 11

A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?

Accepted Answer

Net + other costs = $256,000, which equals 94% of the price (100% - 6%). Price = $256,000 / 0.94 = $272,340.43, about $272,340. Adding 6% to $256,000 ($271,360) understates the price.

Question 12

A home sells for $520,000 with a 5% commission. The listing broker pays 2.5% to the buyer's broker and splits the listing side 60/40 with the listing salesperson (salesperson gets 60%). How much does the listing salesperson earn?

Accepted Answer

Total = $520,000 x 0.05 = $26,000. Buyer broker gets 2.5% = $13,000, leaving $13,000 for the listing side. Salesperson = $13,000 x 0.60 = $7,800.

Question 13

A judgment against a licensee includes $14,000 actual damages, $4,000 attorney fees, and $3,000 court costs. What amount is recoverable from the fund?

Accepted Answer

R.S. 37:1463(A) limits recovery to actual damages and excludes attorney fees, court costs, and punitive damages. $14,000 is below the $20,000 cap.

Question 14

A seller's listing broker pays part of the commission to the buyer's broker. Under R.S. 9:3896, this payment

Accepted Answer

R.S. 9:3896 provides that payment of compensation is not determinative of whether an agency relationship exists.

Question 15

An applicant passed both exam portions. Before LREC issues the salesperson license, the applicant must also provide

Accepted Answer

The candidate handbook lists broker supervision and proof of E&O before issuance, plus the background check. The $10,000 bond applies to non-developer timeshare sellers, not salespersons.

Question 16

A seller refuses to close on a valid contract. Because each parcel of real estate is unique, the buyer may sue to force the sale through:

Accepted Answer

Specific performance compels the breaching party to perform; it is available because land is unique. The buyer could alternatively seek monetary damages.

Question 17

In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:

Accepted Answer

The ADA's accessibility rules primarily cover public accommodations and commercial facilities; housing accessibility is governed mainly by the Fair Housing Act.

Question 18

A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

Accepted Answer

Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.

Question 19

A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

Accepted Answer

In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)

Question 20

In a lease, the tenant holds a ____ estate and the landlord holds a ____.

Accepted Answer

The lessee has a leasehold (non-freehold) estate; the lessor retains the leased fee interest plus the reversion.

Question 21

Under R.S. 37:1448.1, how long does a licensee have to rescind a non-compete agreement?

Accepted Answer

The statute gives a rescission right until midnight of the third business day after signing or delivery. Seven calendar days is a distractor.

Question 22

When must a Louisiana license be renewed to avoid delinquent fees, and when does it expire?

Accepted Answer

R.S. 37:1442 makes renewal due by September 30, with licenses expiring December 31. A licensee may renew late through December 31 by paying delinquent fees.

Question 23

A broker received a 4.2% commission totaling $12,600. What was the sale price?

Accepted Answer

Sale price = commission / rate = $12,600 / 0.042 = $300,000.

Question 24

What minimum balance must the LREC maintain in the Real Estate Recovery Fund?

Accepted Answer

R.S. 37:1461(C) requires a minimum of four hundred thousand dollars. Surplus may be transferred to the research and education fund.

Question 25

What is the maximum fine the LREC may levy against a licensee for a violation under R.S. 37:1455?

Accepted Answer

R.S. 37:1455 authorizes censure, suspension, revocation, additional education, and fines of up to $5,000. $2,000 appears in the general criminal penalty section (R.S. 37:1458), not the Commission's administrative fine.

Louisiana real estate state law practice test

1. Under the statute of frauds, a real estate sales contract must be:

2. A property manager receives a tenant's security deposit and advance rent. These funds must be deposited in the:

3. A salesperson receives an earnest money check from a buyer. The salesperson should:

4. A salesperson's license has been inactive for 3 years and 6 months. How many hours of continuing education are required to return to active status?

5. On the $20,000 commission above, the listing broker keeps 50% and pays 50% to the buyer's broker. How much does the buyer's broker receive?

6. A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

7. In a life estate, the person who receives the property when the life tenant dies is the:

8. Which action may a life tenant take WITHOUT the remainderman's consent?

9. How are the national and state portions of the Louisiana salesperson exam scored?

10. A home is co-owned by three siblings. Under the License Law, the listing agreement is valid only if

11. A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?

12. A home sells for $520,000 with a 5% commission. The listing broker pays 2.5% to the buyer's broker and splits the listing side 60/40 with the listing salesperson (salesperson gets 60%). How much does the listing salesperson earn?

13. A judgment against a licensee includes $14,000 actual damages, $4,000 attorney fees, and $3,000 court costs. What amount is recoverable from the fund?

14. A seller's listing broker pays part of the commission to the buyer's broker. Under R.S. 9:3896, this payment

15. An applicant passed both exam portions. Before LREC issues the salesperson license, the applicant must also provide

16. A seller refuses to close on a valid contract. Because each parcel of real estate is unique, the buyer may sue to force the sale through:

17. In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:

18. A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

19. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

20. In a lease, the tenant holds a estate and the landlord holds a .

21. Under R.S. 37:1448.1, how long does a licensee have to rescind a non-compete agreement?

22. When must a Louisiana license be renewed to avoid delinquent fees, and when does it expire?

23. A broker received a 4.2% commission totaling $12,600. What was the sale price?

24. What minimum balance must the LREC maintain in the Real Estate Recovery Fund?

25. What is the maximum fine the LREC may levy against a licensee for a violation under R.S. 37:1455?

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