Only $35.99/year

Terms in this set (65)

The commission may censure a licensee, registrant, or certificate holder or conditionally or unconditionally suspend or revoke any license, registration, or certificate issued under this chapter, levy fines or impose civil penalties not to exceed five thousand dollars, or impose continuing education requirements on licensees, registrants, or certificate holders if, in the opinion of the commission, a licensee, registrant, or certificate holder is performing, attempting to perform, has performed, or has attempted to perform any of the following acts:

(1) Committing any act in violation of the Louisiana Real Estate License Law not specified in this section.

(2) Violating any rule or regulation promulgated by the commission in the interest of the public and consistent with the provisions of this chapter.

(3) Committing any act in violation of the Louisiana Timesharing Act.

(4) Failure to account for any money coming into his/her possession belonging to others.

(5) Failure to properly disburse money which belongs to others upon its coming into his/her possession.

(6) Commingling the money or other property of his principals with his/her own.

(7) Accepting, giving, or charging any undisclosed commission, rebate, or direct profit on
expenditures made for a principal.

(8) Representing or attempting to represent a real estate broker or real estate agency other than the licensed broker or agency listed on the real estate license issued by the Commission.

(9) Acting in the dual capacity of agent and undisclosed principal in any transaction. However, such a relationship shall not constitute dual agency if the licensee is the seller or lessor of property that he owns or if the property is owned by a real estate business of which the licensee is the sole proprietor and agent and the same is disclosed to the buyer or tenant.

(10) Guaranteeing or authorizing any person to guarantee future proits which may result from the resale of real property.
(11) Offering real estate for sale or lease without the written consent of the owner or his/her authorized agents.

Undivided real estate may be offered for sale or lease with the written consent of the owner of the property to be sold or leased as to his/her undivided portion of the property.

(12) Offering real estate for sale or lease on terms other than those authorized by the owner or his/her authorized agent.

(13) Offering any inducement to or in any way encouraging a party to a written contract involving the sale, lease, or management of real estate to break such contract for the purpose of substituting, in lieu thereof, a new contract with another principal or licensee.

(14) Negotiating the sale, exchange, lease, or management of real estate directly with an owner or lessor of the real estate if he/she knows that such owner or lessor has a written outstanding contract in connection with such real estate granting an exclusive agency or an exclusive right to sell, exchange, lease, or manage the real estate to another broker.

(15) Knowingly making any false representations to any party in a real estate transaction.

(16) Acting for more than one party in a real estate transaction without the written
acknowledgment of all parties to the transaction.

(17) Failure by an associate broker or salesperson to place, as soon after receipt as practicable, in the custody of his/her licensed broker any deposit money or other money or funds entrusted to him/her by any person dealing with him/her as the representative of his/her licensed broker or in connection with any transaction involving the sale, lease, or management of real property.

(18) Representing to any lender, guaranteeing agency, or any other interested party, either verbally or through the preparation of false documents, an amount in excess of the true and actual sale price of the real estate or terms differing from those actually agreed upon.

(19) Knowingly permitting a sponsored licensee to operate as an individual real estate broker.

(20) Knowingly permitting a sponsored licensee or an employee to conduct real estate activities in violation of this chapter.
(21) Failure of a licensee to provide the parties to a real estate transaction with an agency disclosure informational pamphlet and, where applicable, a dual agency disclosure form.

(22) Failure to advise all parties to a real estate transaction in writing of compensation being received from any source in connection with that real estate transaction.

(23) Failure without just cause to surrender unto the rightful owner, upon demand, any document or instrument received by a licensee or registrant in the course of a real estate transaction.

(24) Accepting anything other than cash as earnest money or good faith deposit unless that fact is communicated to the owner prior to the acceptance of the offer to purchase and such fact is shown on the face of the purchase and sale agreement.

(25) Failure of a licensee to inform the buyer and seller at the time an offer is presented that either party may be expected to pay certain costs such as discount points, etc. and the approximate amount of said costs.

(26) Failure to reduce a bonafide offer to writing when a proposed purchaser requests that a written offer be submitted.

(27) Failure to disclose to a buyer a known material defect regarding the condition of real estate of which a broker, salesperson, or timeshare interest salesperson has knowledge.

(28) Having been finally adjudicated and found guilty for refusing because of race, color, national origin, sex, or ethnic group to show, sell, or rent any real estate for sale or rent to qualified purchasers or renters or for any violation of the Fair Housing Act of 1968 or the Louisiana Equal Housing Opportunity Act and/or any amendments thereto or any successor legislation subsequently following.

(29) Having been convicted of a felony or entered a plea of guilty or nolo contendere to a felony charge.

(30) Refusing to appear or testify under oath at any hearing held by the Commission.

(31) Procuring a license, registration, or certificate for him/herself or anyone else by fraud,
misrepresentation, or deceit.

(32) Failure to comply with an order or consent order issued or approved by the Commission pursuant to adjudicatory proceedings.

(33) Failure by a licensee to provide a buyer or seller with a written property disclosure form for sales and certain leases involving residential real property pursuant to R.S. 9:3195 et seq.

(34) Engaging in real estate activity or attempting or offering to engage in real estate activity within the state during any period of suspension or revocation of a real estate license by the Commission.

(35) Using advertising that is misleading or inaccurate.
The Commission shall have the full power and authority to regulate the issuance of real estate licenses, censure licensees, suspend or revoke licenses, impose additional continuing education requirements on licensees, and fine licensees up to $5,000.

The Commission may:
Adopt all necessary rules and bylaws for the enforcement of the License Law;

Require any satisfactory proof it may desire in reference to the honesty, truthfulness, registration, and knowledge of any applicant for a real estate broker or salesperson's license,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
Promulgate and enforce rules and regulations relative to applications for licenses.

The Commission is expressly granted the right to require any real estate broker to keep records for five years of all real estate transactions as specified in this chapter. The Commission is authorized to inspect such records at the ofices of those licensees by its duly authorized representatives between the hours of 9:00 A.M. and 4:00 P.M. (excluding Saturdays, Sundays, and legal holidays) and to subpoena any of the records.

The Commission shall have the right to subpoena any licensee or witness for the purpose of holding any hearing. Failure by a licensee or registrant to comply with a subpoena shall be punishable by the Commission as provided under the provisions of the law. The Commission may also take testimony by deposition.

The Commission:
Requires that all real estate brokers deposit all monies or things of value received on behalf of clients in a sales escrow account or accounts in a legally chartered financial institution. Said monies so received are not to be commingled with the personal or business funds of such licensees;

May establish procedures by which it may determine to whom a disputed escrow deposit should be released;

May not prosecute anyone. This is handled by the courts. Anyone accused of selling real estate without a license will be turned over to the courts;

May only involve themselves in disputes between licensees and principals.They will not get involved in problems between licensees.
A licensee engaged in any real estate transaction is the agent of the person they are working with unless there is a written agreement to the contrary and that agreement is disclosed to all parties.

Licensees shall provide the parties to a real estate transaction with an agency disclosure pamphlet.

Ministerial Acts ‐ the acts that a licensee may perform for a person that are informative in nature. Examples:

Responding to phone inquiries by persons as to the availability and pricing of brokerage services.

Responding to phone inquiries from a person concerning the price or location of property.

Conducting an open house and responding to questions about the property from a person.

Setting an appointment to view property.

Responding to questions from persons walking into a licensee's ofice concerning brokerage services offered or particular properties.

Accompanying an appraiser, inspector, contractor, or similar third party on a visit to a property.

Describing a property or the property's condition in response to a person's inquiry.
Completing business or factual information for a person represented by another licensee on an offer or contract to purchase.

Showing a person through a property being sold by an owner on his or her own behalf. Referral to another broker or service provider.(LA RS 9:3891)

Agency law states licensees shall treat all customers honestly and fairly and when representing a client in a real estate transaction may provide assistance to a customer by performing ministerial acts.

Performing those ministerial acts shall not be construed in a manner that would violate the brokerage agreement with the client, and performing those ministerial acts for the customer shall not be construed in a manner as to form a brokerage agreement with the customer.