Free Louisiana Real Estate Practice Exam

Q1.A real estate salesperson is working with a buyer who has a disability and uses a wheelchair. The buyer is interested in a second-floor condominium unit in a building constructed in 1992 that has no elevator. The salesperson knows the buyer would struggle with stairs. Under the Fair Housing Act, which of the following statements is MOST accurate?

• A.The building owner must allow the buyer to make reasonable modifications at the buyer's expense to make the unit accessible.
• B.The building owner is required to install an elevator because the building was built after 1988.
• C.The salesperson must disclose the accessibility limitations to the buyer but has no further obligation under federal law.
• D.The Fair Housing Act does not apply to condominium sales, only to rentals.

Q2.An email announces changed wire instructions and supplies a new phone number. What is the best next step?

• A.Call the number in the email.
• B.Reply and ask whether it is genuine.
• C.Verify through a previously known or independently obtained official channel.
• D.Forward it to the buyer without comment.

Q3.Under § 32-2175, how long must a property manager generally keep residential rental agreements after they expire, unless the documents are given to the owner under the statutory alternative?

• A.At least one year
• B.Exactly 30 days
• C.At least ten years
• D.No retention is required

Q4.The FinCEN Residential Real Estate Reporting rule that took effect August 1, 2024 requires reporting of non-financed residential transactions. Which buyer type triggers the reporting obligation?

• A.A natural person purchasing in their own legal name
• B.Any buyer using a conventional mortgage
• C.An LLC purchasing all-cash residential property
• D.A U.S. citizen purchasing a second home

Q5.Under Louisiana Property Disclosure requirements (La. R.S. 9:3198), when must a seller provide the completed Property Disclosure Document to a prospective buyer in a residential transaction?

• A.Prior to the execution of a purchase agreement or offer to purchase.
• B.Within 10 days after the purchase agreement is fully executed.
• C.At least 5 business days before the scheduled closing.
• D.Only if the buyer submits a written request for the disclosure.

Q6.Louisiana R.S. 37:1431 defines the LREC's jurisdiction. A managing broker learns that a salaried employee of a large property management company is negotiating lease renewals on behalf of the company without holding a real estate license. The broker wonders whether this activity falls under LREC jurisdiction. Which statement most accurately reflects Louisiana law?

• A.The employee's activity is fully exempt from licensure requirements because salaried employees of a single employer negotiating leases solely for that employer's property are generally exempt under R.S. 37:1431's employee exemption
• B.The employee must hold at least a salesperson license because any person negotiating lease terms for compensation, regardless of employment structure, must be licensed under R.S. 37:1431
• C.The activity is exempt only if the leases are residential and have terms of less than one year
• D.The LREC has no jurisdiction over property management lease negotiations whatsoever, as that falls exclusively under the jurisdiction of the Louisiana Department of Insurance

Q7.According to La. R.S. 37:1435, the Louisiana Real Estate Commission is composed of how many members, and who appoints them?

• A.Nine members appointed by the Governor with Senate confirmation
• B.Seven members appointed by the Lieutenant Governor
• C.Five members appointed by the Louisiana Legislature
• D.Eleven members appointed by the LREC chairperson

Q8.A broker is preparing a written independent contractor agreement with a newly licensed salesperson. Which federal law most directly governs how the classification of the salesperson as an independent contractor (rather than an employee) affects the broker's tax-withholding obligations?

• A.The Real Estate Settlement Procedures Act (RESPA)
• B.The Internal Revenue Code Section 3508, which provides a statutory safe harbor for real estate licensees classified as independent contractors if specific conditions are met.
• C.The Equal Credit Opportunity Act (ECOA)
• D.The Truth in Lending Act (TILA/Regulation Z)

Q9.A licensee wants to advertise with a nickname. What is the soundest instruction?

• A.A nickname is always forbidden.
• B.Use a name carried or authorized on the license record under R4-28-301(D), while satisfying brokerage-name rules.
• C.Any nickname is allowed if popular.
• D.Only the team leader decides.

Q10.Which type of ownership gives a person the most complete bundle of rights in real property?

• A.Life estate
• B.Leasehold estate
• C.Fee simple absolute
• D.Remainder interest

Q11.Under federal law, sellers of residential property built before 1978 must:

• A.Disclose known lead-based paint and hazards and provide an EPA pamphlet; buyers get a 10-day inspection period
• B.Test for lead paint before listing
• C.Remediate all lead paint before closing
• D.Obtain a lead clearance certificate from a licensed contractor

Q12.A Louisiana licensed salesperson receives a buyer's earnest money check on Monday. Under Louisiana law and LREC rules, by what time must these funds be deposited into the broker's properly designated sales escrow account?

• A.Within 24 hours of receipt, regardless of banking hours
• B.Within 3 business days of receipt of the funds
• C.No later than the next business day following receipt of the funds
• D.At the time the purchase agreement is fully executed by all parties

Q13.When a complaint is filed against a Louisiana real estate licensee, who has the authority to investigate that complaint?

• A.The Louisiana Attorney General's Office exclusively
• B.The local parish sheriff's department
• C.The Louisiana Real Estate Commission
• D.The licensee's employing broker only

Q14.Under Louisiana R.S. 37:1450, the LREC is authorized to establish and administer the Louisiana Real Estate Recovery Fund. A managing broker is named in a civil judgment obtained by a defrauded buyer. The buyer seeks payment from the Recovery Fund. Which of the following conditions, if true, would DISQUALIFY the buyer's claim from Recovery Fund payment?

• A.The buyer failed to first obtain a final, unsatisfied court judgment against the licensed broker
• B.The broker's license was active at the time the wrongful act occurred
• C.The buyer is a licensed real estate salesperson who was acting in the capacity of a principal in the transaction
• D.The judgment was entered in a Louisiana district court rather than a federal court

Q15.During a listing presentation, a homeowner tells her salesperson that she does not want the property shown to families with children because she is concerned about wear and tear. The salesperson lists the property and, following the seller's instructions, declines all showing requests from buyers who indicate they have minor children. Which of the following statements most accurately describes the legal exposure in this situation?

• A.Only the seller faces FHA liability because the salesperson was merely following a client's lawful instructions
• B.The salesperson has no liability because familial status discrimination is only actionable when it involves rental housing, not sales
• C.Both the seller and the salesperson face FHA liability, and the salesperson cannot rely on client instructions as a defense
• D.The salesperson is protected from liability under the First Amendment because refusing to show a property is protected expressive conduct