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Louisiana Real Estate|99 FAQ Decoded:
Top Questions with Detailed Answers
The Commission is comprised of how many members? - โ โ 11
Commission members are appointed by who? - โ โ The
governor
Each appointment to the Commission shall be for a __ year term. No commissioner may serve more than that. - โ โ 6
The Commission must meet ______. - โ โ quarterly
A minimum of __ members is required for a ______ to conduct business. - โ โ 5
quorum
The Commission may meet more frequently if such meetings are deemed necessary and requested by a minimum of __ members. - โ โ 3
The Commission has power to require brokers to maintain and retain records of all real estate transactions in which they were involved for up to ___ years. - โ โ 5
Licenses issued by the LREC are classified as? - โ โ Active or Inactive
Exemptions from Licensing:
All advertisements of residential property must have a _____ that the advertisement is published or distributed on. - โ โ date
If the advertisement is published in a magazine or newspaper the date of the publication is sufficient.
Brokers affiliated with franchises must include what in all advertising? - โ โ The names of both the franchise and the broker
Salespersons and associate brokers may only receive payments of commissions from? - โ โ their sponsoring broker
Salespersons and brokers are required to present all offers to principals as soon as possible after they have been submitted. - โ โ
Under state licensing law, fully executed purchase or listing agreements must be delivered to all parties within ___ days of all signatures being obtained on the document. - โ โ 5
All sales escrow accounts shall include the wording "_____________", in their title in addition to the name of the broker as licensed by the commission to do business. - โ โ Sales Escrow Account
Research and Education Fund
Persons who ARE NOT eligible for Recovery fund compensation include: - โ โ -The spouse of the judgement debtor or personal rep of each spouse.
-A licensed broker or salesperson who acted as a principal or an agent in the transaction which is the subject of the claim.
Persons who are eligible under the license law to place a claim with the commission may recover from the fund an amount equal to the unsatisfied portion of the claimant's judgment or $_____ whichever is less, and only to the extent and the amount reflected in the judgment s being actual damages. - โ โ $20,
The $20,000 limit applies to claims including one transaction, while a $______ limit applies if two or more transactions are included. The limit is the total that the commission will pay out for a licensee. The number of claimants in each transaction does not affect the payment limits from the recovery fund. - โ โ $50.
If the Commission pays any amount from the fund to settle a claim on behalf of a licensee, the broker's or salesperson's license is? - โ โ Automatically revoked.
The License Law mandates that all active licensees must carry what? - โ โ errors and omissions insurance
Under Louisiana law a "________"(also known as a psychologically impacted property) is not considered a material defect in the property. As such a licensee does not have to disclose the details of the stigma. - โ โ stigmatized property
Whoever violates the provisions of the license law shall be fined not more than $______ or imprisoned not more than __ years, or both. - โ โ $2,
5
Every written lease or rental agreement executed by any licensee for residential immovable property and every written contract for sale of residential immovable property shall contain a notice of availability to the public of access to a statewide database disclosing the locations of individuals required to register pursuant to R.S. 15:540 et seq. The notice shall include the telephone number and internet site for the statewide database. - โ โ
A predial servitude may be lost by nonuse for ___ years. - โ โ 10
When the same person acquires both the dominant servient estates, the predial servitude ceases to exist. - โ โ Confusion
Similar to the common law term "merger".
The licensee must notify the commission within __ days of change of address. - โ โ 10
The law requires that the licensee provide the party with whom he is working in a real estate sales or lease transaction with an ______________. This is prescribed by the commission and must be given to the party at the time of the face to face contact when performing any real estate related activity involving the sale or lease of real property other than a ministerial act. The client must sign this ______________, which must be kept by the agent for __ years. - โ โ agency disclosure informational pamphlet
acknowledgment of receipt
The agency law requires the use of a ________ agent on behalf of the Seller and the Buyer. The broker is no longer the agent in a transaction, the licensee working with that buyer or seller is the agent! - โ โ designated
May be animate or inanimate, but they can be seen, felt or touched, such as land or buildings. - โ โ Corporeal things
May be understood or comprehended by the mind or thinking.
Ex-Rights of Inheritance, servitudes, and obligations. - โ โ Incorporeal things
May not be owned by anyone. These include the air and the high seas. - โ โ Common things
Are owned by individuals, other private entities such as corporations, limited liability companies, limited liability partnerships, or by the state or the government. - โ โ Private things
Some private things may be subject to public use, such as river banks or sidewalks. If there is a levee then the levee is considered to be the bank of the river, if not, the bank is the land lying between the natural high and low points of the water.
Are those things owned by the state or the local government. Ex-Running water, navigable waters, the seashore, streets, and parks. Available to the public for use, such as fishing, boating, driving, etc. May be subject to police powers of municipality. - โ โ Public things
In Louisiana, real property is divided into what two categories? - โ โ movables and immovables
Consist of land and its component parts, such as, buildings, timber, and unharvested fruits and crops when they belong to the owner of the land. - โ โ immovables
the structure. This includes building materials. - โ โ component by incorporation
Once incorporated into an immovable, the thing becomes an immovable.
Things, whether animate or inanimate, that move or can be moved from one place to another;
Building materials gathered for the construction or the erection of a new building, even if they came from the demolition of an old one. - โ โ corporeal movables
Things are considered permanently attached to a building or other construction if they cannot be removed without substantial damage to themselves or damage to the immovable to which they are attached. Things that are considered permanently attached to a building include such things as plumbing, heating, cooling, electrical, or other installations. Accordingly, the constitute component parts of the building or construction. - โ โ component by attachment
Things that would otherwise be classified as immovable may be classified as movable. The owner of an immovable may declare that machinery, appliances, and equipment owned by him and placed on the immovable, other than his private residence, for its service and improvement are deemed to be its component parts. The declaration must be filed for registry in the conveyance records of the parish
in which the immovable is located. If the declaration is not so filed, the machinery, appliances, and equipment remain classified as movables. - โ โ component by declaration and registry
In order for a mobile home to be considered an immovable, a declaration stating that it will remain permanently attached to the land must be filed in the public records of the parish in which the land is located. The wheels must be removed, the tongue cut off, and it must be tied down. - โ โ Act of Immobilization
A manufactured home may be deimmobilized by detachment or removal. But, to affect third persons, an authentic act of sale or mortgage or sale with mortgage must be filed in the appropriate mortgage and/or conveyance records. - โ โ detachment sale
French unit of measure about equal to 5/6 of an acre. It is also used as a linear measure about equal to 192 feet. - โ โ Arpent
In LA, there are two principal meridians.
The 91st West of the Mississippi River, called ________, and the 90th East of the Mississippi River, called the ________. - โ โ Louisiana Meridian
St. Helena Meridian
How many base lines run thru LA? - โ โ 1
Nontransferable real right of a natural person to dwell in the house or another. It may be established in the same manner as a usufruct. It terminates with the term provided or death of the person having it. Moreover, the personal servitude of habitation may not be alienated, let, or encumbered. - โ โ Habitation
A personal servitude that confers in favor of another person a specified use of an estate less than full enjoyment. The right of use is transferable and may be inherited, unless prohibited by law or contract. An example of the right of use would be a hunting license. - โ โ Right of Use
A charge on a servient estate for the benefit of a dominant estate and is similar to easement appurtenant under the common law. May be natural, legal, or voluntary or conventional. - โ โ Predial Servitude
Most common example is when one landowner obtains access aacross the property of the adjoi
The one benefiting from the servitude. - โ โ Dominant Estate
The one who gives the servitude. - โ โ Servient Estate
A property which lies at a lower elevation will naturally receive surface waters flowing from an adjoining property which is at a higher elevation. This running water may be used, but not stopped, nor diverted. - โ โ Natural ______
engaged in the transfer of real estate interests as part of other services provided for their clients. - โ โ Attorneys
A ______, ______, or __________ is a business entity, which has been issued a license by the State to function as a broker. - โ โ Corporate, partnership, or limited liability company
broker
Furthermore, upon dissolution of or termination by the corporation or partnership, the broker must return the licenses of every associate broker and salesperson sponsored by the corporation or partnership within ___ days of the dissolution or termination. - โ โ 10
To be eligible to apply for a broker's license, the applicant must hold an active salesperson license for a minimum of __ years prior to application. - โ โ 4
Before applying for a broker's license, anyone accruing time prior to January 1, 2009, shall have to serve as a salesperson for only __ years. - โ โ 2
Before applying for a broker's license, the applicant must show evidence of completion of ___ hours of current educational instruction in real estate courses approved by the real estate commission. At least ___ of those hours must be in courses emphasizing broker's responsibilities. - โ โ 150
30
If charges are brought against a licensee following a complaint and subsequent investigation, a written notice of the charges must be received by the licensee, at least ___ days prior to his/her scheduled hearing before the Commission. The licensee's broker sponsoring broker must be notified of the charges and the scheduled hearing as well. The hearing may be an ______ hearing or formal _____ hearing. - โ โ 20 days
Informal adjudicatory or formal adjudicatory
The broker's name and telephone number must appear in all advertising. - โ โ
All advertising must represent the property accurately. - โ โ
Licensed brokers or salespersons advertising property, which they own, must include the term _______ in all printed and other materials. - โ โ owner/agentServitudes
Limitations on ownership established by law for the benefit of the general public or for the benefit of particular persons. An owner of a building must keep his building in repair so that neither it nor its materials will fall on or damage a neighbor or passerby. The owner of a building near a wall, whether or not a common or party wall, must protect his neighbor against injury. Neither projections over boundaries nor water falling from a roof onto ground of a neighbor are
allowed. An owner of property may do with his estate whatever he pleases; however, this right is limited by his responsibility to not damage a neighbor. - โ โ Legal Servitudes
Rests half on one property and half on an adjoining property. The first person to build a wall may build half of the wall on a neighbor's land, if the first story is constructed of masonry not over 18 inches in width and 3 inches of plaster.
In order for a party wall to become a common wall, the neighboring landowner must pay ____ of its current value. - โ โ 1/
An owner without access to a public road may claim a right of passage to the nearest public road; however, he must pay for the damage occasioned as a result. The owner of the enclosed estate may construct the type of road necessary, along the shortest route, generally at a location least injurious to intervening lands. - โ โ Enclosed Estate
A predial servitude may be created by contract, that is by agreement of the parties.
Ex-Rights of passage, projection, view, etc. - โ โ Conventional Servitude (voluntary)
A servitude may be acquired by acquisitive prescription, that is by peaceable and uninterrupted possession of the right for 10 years in good faith and with just title of by
