Free Louisiana Real Estate Practice Exam

Q1.Under Louisiana law, which of the following distinguishes the minimum experience requirement for a broker license applicant from that of a salesperson applicant?

• A.A broker applicant must have at least one year of active experience as a licensed salesperson, while no prior experience is required for a salesperson applicant
• B.A broker applicant must have at least two years of active experience as a licensed salesperson within the preceding five years, while no prior experience is required for a salesperson applicant
• C.A broker applicant must have at least three years of active experience as a licensed salesperson, while a salesperson applicant must have one year of experience as an unlicensed assistant
• D.Both a broker and a salesperson applicant must have two years of experience, but the broker must demonstrate experience in commercial real estate

Q2.In a designated agency arrangement, what happens to the confidential information shared by each party?

• A.All information must be shared between designated agents
• B.Each designated agent maintains confidentiality for their respective client
• C.Confidential information can only be shared with the broker
• D.No confidential information can be maintained in designated agency

Q3.A seller lists her home with a Louisiana broker under an exclusive right-to-sell listing agreement. The seller later sells the property herself directly to a neighbor who had no contact with the broker. Under the terms of a standard exclusive right-to-sell agreement in Louisiana, the broker is entitled to:

• A.No commission, because the broker did not procure the buyer
• B.A reduced commission equal to half the agreed rate, because the seller found the buyer
• C.The full agreed commission, because an exclusive right-to-sell entitles the broker to a commission regardless of who procures the buyer
• D.A commission only if the broker can prove it introduced the neighbor to the property at some point

Q4.In Louisiana, a licensed salesperson who wishes to become a broker must meet additional education requirements beyond those required for the salesperson license. Which of the following MOST accurately reflects this distinction under LREC rules?

• A.A broker applicant must complete the same pre-licensing education hours as a salesperson applicant, plus pass an additional ethics course
• B.A broker applicant must complete a greater number of LREC-approved pre-licensing education hours than what is required for a salesperson license
• C.A broker applicant needs no additional pre-licensing education if they have already completed the salesperson pre-licensing course
• D.A broker applicant must complete a college-level real estate degree program approved by the Louisiana Board of Regents

Q5.A Louisiana real estate salesperson is working with an unrepresented buyer while listing a seller's property. Which of the following duties does the salesperson owe to that unrepresented buyer?

• A.Honest and fair dealing
• B.Full confidentiality of information about the seller
• C.Undivided loyalty to the buyer's interests
• D.Negotiating the lowest possible price on the buyer's behalf

Q6.Under the Truth-in-Lending Act (TILA), the Annual Percentage Rate (APR) must include which of the following costs?

• A.Interest rate and loan origination fees
• B.Property taxes and homeowners insurance only
• C.Appraisal fees and title insurance
• D.Recording fees and transfer taxes

Q7.Under Louisiana law, a licensee who engages in real estate activities without being affiliated with a licensed real estate broker is guilty of which violation?

• A.A minor administrative infraction subject only to a written warning
• B.Practicing real estate without a proper broker affiliation, which is prohibited under La. R.S. 37:1431 et seq.
• C.A civil offense requiring the licensee to pay restitution to any affected buyers
• D.A zoning violation under Louisiana municipal code

Q8.What type of contract exists when only one party is legally bound to perform?

• A.Bilateral contract
• B.Executed contract
• C.Unilateral contract
• D.Express contract

Q9.Which of the following duties does a Louisiana licensee owe exclusively to a CLIENT, but NOT to a mere customer?

• A.Loyalty and confidentiality
• B.Honest dealing
• C.Disclosure of known material defects
• D.Timely presentation of all offers

Q10.A brokerage wants to demonstrate the Faragher-Ellerth / reasonable-care defense to a vicarious liability claim. What must it prove?

• A.That it had a written policy posted in the office
• B.That the discriminating agent acted alone
• C.That no prior complaints were filed
• D.(1) It exercised reasonable care to prevent and correct discriminatory conduct (written policy, training, multiple reporting channels, prompt investigation, documented discipline) AND (2) the complainant unreasonably failed to use the available remedies

Q11.Under federal regulations, which statement about lead-based paint disclosure requirements is correct for residential transactions?

• A.Disclosure is only required for properties built before 1950
• B.Lead disclosure is only required if the seller has actual knowledge of lead paint
• C.The requirement applies only to properties with children under age 6
• D.Sellers must provide a 10-day opportunity for lead inspection on properties built before 1978

Q12.Under Louisiana law, which of the following actions by a salesperson would constitute a prohibited practice that could result in license revocation or suspension under La. R.S. 37:1455?

• A.Referring a buyer client to a home inspector without disclosing a referral fee arrangement
• B.Showing properties listed by other brokers with the listing broker's permission
• C.Presenting all offers to the seller, including those the salesperson personally considers too low
• D.Advertising a property listing on multiple online platforms simultaneously

Q13.A Louisiana-licensed broker learns that one of her affiliated salespersons has been accepting referral fees directly from a title company without disclosing this arrangement to the clients involved. Under La. R.S. 37:1455 and LREC rules, which statement best describes the broker's statutory duty and potential liability in this situation?

• A.The broker bears no liability because the salesperson acted independently; the LREC can only discipline the salesperson directly.
• B.The broker has a statutory duty to supervise affiliated licensees and may be subject to LREC disciplinary action, including license suspension or revocation, for failing to prevent or correct the salesperson's prohibited conduct.
• C.The broker's only obligation is to terminate the salesperson's affiliation within 10 days of discovering the violation, after which all broker liability is extinguished.
• D.The broker is automatically exempt from discipline if she files a written complaint against the salesperson with the LREC within 30 days of learning about the conduct.

Q14.A purchase contract includes a provision that the sale is contingent upon the buyer selling their current home within 60 days. If the buyer's home does not sell within this timeframe, what happens to the contract?

• A.The contract automatically renews for another 60 days
• B.The seller can sue for specific performance
• C.The buyer must proceed with the purchase regardless
• D.The contract becomes voidable at the buyer's option

Q15.A Louisiana licensee is working with a buyer as a customer (not a client). According to La. R.S. 37:1430 et seq., which duty does the licensee owe to that buyer-customer but NOT necessarily to the public at large?

• A.Obedience to all lawful instructions given by the buyer
• B.Honest and fair dealing, including disclosure of known material defects in the property
• C.Confidentiality regarding the buyer's financial qualifications
• D.Loyalty placing the buyer's interests above all others