Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Lesson 2
Louisiana Law and Regulations – Part II
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Lesson 2 Objectives
Upon completion of this lesson, each student will be able to:

Explain the requirements for advertising
residential property including disclosures that
apply to print and Internet advertising.
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Lesson 2 Objectives
Upon completion of this lesson, each student will be able to:

List and explain the forms and mandated
disclosures used in real estate transactions.
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Lesson 2 Objectives
Upon completion of this lesson, each student will be able to:

Identify at least 10 of the 35 specific reasons
for which a licensee may have their license
revoked by the Louisiana Real Estate
Commission.
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Advertising

Disclosures

Representations
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Advertising (cont’d)

Salespeople

Associate brokers
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Accuracy In Advertising

Cannot be inaccurate

Cannot be misleading

Cannot misrepresent
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Advertisements of Residential Property

Print advertisements

Month and year

Commercial publications

Brochures
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Advertisements By Franchise Organizations

Disclosure to public
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Agent Owner – Licensed Agent

Licensee owned property

“Licensed real estate agent”

Licensee purchases

Exception for listed property
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Internet Advertising - Brokers

Broker’s name

Main office location
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Electronic Communication - Brokers

Broker’s name

Main office location
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Internet Advertising - Sponsored Licensees

Licensee’s name

Brokerage name

Main office location
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Electronic Communication - Sponsored
Licensees

Licensee’s name

Brokerage name

Main office location
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Licensee as a Principal
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Property Disclosure
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Agency Disclosure Pamphlet

Required in all transactions
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Agency Disclosure

The pamphlet

When to present
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Agency Disclosure (cont’d)

Signatures
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Agency Disclosure (cont’d)

Refusal to sign the pamphlet

Maintaining records
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Required Purchase Agreement Form
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Requirement to Use Purchase Agreement
Form

Required on all residential sales

Modifications not permitted
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Offender Notification

Residential rental or lease agreements

Residential sales agreements
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Mold Disclosure
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Mold Informational Pamphlet

Distributed to buyers

Timing for delivery

No additional information required
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Errors in Mold Pamphlet

Licensee not responsible

Must disclose material defects
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Timely Presentation

Offers

Counteroffers
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Negotiations

Listing broker

Designated listing agent

Buyer’s broker

Designated buyer’s agent
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Transactions

Date and time

Notify designated agent

Document delivery
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Rejections

Offers

Counteroffers
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Broker Rejection of Offers

Sign in lieu of owner

Copies

Maintain records
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Expiration Dates

Listing agreements

Management agreements
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Providing Copies

Immediately upon signing

Within 5 days for multiple signers
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Recordkeeping Requirements

Records of transactions must be maintained

LREC may inspect records

Records may be subpoenaed

Only brokers keep records
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Maintaining Documents

Bank statements

Cancelled checks

Deposit slips

Documents of transactions

5 year requirement
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Duty of Licensees to Report Legal Action

Final judgments

Prosecution, arrest, or conviction

Bankruptcy
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Reporting Legal Action

Report within 10 days
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Reporting Bankruptcy

Report within 10 days
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Knowledge of the Law

Licensee’s responsibility

Regular review is important
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Commission Investigations

Own motion

Complaints in writing

Financial disputes
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Suspension and Revocation

Return licenses

72 hours
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Thirty-Five Ways to Lose a License


Committing any act in violation of the
Louisiana Real Estate License Law not
specified in this Section.
Violating any rule or regulation promulgated
by the Commission in the interest of the
public and consistent with the provisions of
the License Law.
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Thirty-Five Ways to Lose a License (cont’d)


Committing any act in violation of the
Louisiana Timesharing Act.
Failure to account for any money coming into
his possession belonging to others.
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Thirty-Five Ways to Lose a License (cont’d)


Failure to properly disburse money which
belongs to others upon its coming into his
possession.
Commingling the money or other property of
his principals with his own.
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Thirty-Five Ways to Lose a License (cont’d)


Accepting, giving, or charging any
undisclosed commission, rebate, or direct
profit on expenditures made for a principal.
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.
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Thirty-Five Ways to Lose a License (cont’d)

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.
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Thirty-Five Ways to Lose a License (cont’d)


Guaranteeing, or authorizing any person to
guarantee, future profits which may result from
the resale of real property.
Offering real estate for sale or lease without the
written consent of the owner or his 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 undivided portion of the property.
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Thirty-Five Ways to Lose a License (cont’d)


Offering real estate for sale or lease on terms
other than those authorized by the owner or his
authorized agent.
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.
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Thirty-Five Ways to Lose a License (cont’d)

Negotiating the sale, exchange, lease, or
management of real estate directly with an
owner or lessor of the real estate, if he
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.
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Thirty-Five Ways to Lose a License (cont’d)


Knowingly making any false representations
to any party in a real estate transaction.
Acting for more than one party in a real
estate transaction without the written
acknowledgment of all parties to the
transaction.
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Thirty-Five Ways to Lose a License (cont’d)

Failure by an associate broker or salesperson
to place, as soon after receipt as practicable,
in the custody of his licensed broker, any
deposit money or other money or funds
entrusted to him by any person dealing with
him as the representative of his licensed
broker, or in connection with any transaction
involving the sale, lease, or management of
real property.
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Thirty-Five Ways to Lose a License (cont’d)

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.
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Thirty-Five Ways to Lose a License (cont’d)


Knowingly permitting a sponsored licensee to
operate as an individual real estate broker.
Knowingly permitting a sponsored licensee or
an employee to conduct real estate activities
in violation of the License Law.
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Thirty-Five Ways to Lose a License (cont’d)


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.
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.
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Thirty-Five Ways to Lose a License (cont’d)

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.
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Thirty-Five Ways to Lose a License (cont’d)

Accepting 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.
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Thirty-Five Ways to Lose a License (cont’d)

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.
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Thirty-Five Ways to Lose a License (cont’d)


Failure to reduce a bona fide offer to writing
when a proposed purchaser requests that a
written offer be submitted.
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.
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Thirty-Five Ways to Lose a License (cont’d)

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.
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Thirty-Five Ways to Lose a License (cont’d)



Having been convicted of a felony, or entered a
plea of guilty or nolo contendere, to a felony
charge.
Refusing to appear or testify under oath at any
hearing held by the Commission.
Procuring a license, registration, or certificate for
himself, or anyone else by fraud,
misrepresentation, or deceit.
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Thirty-Five Ways to Lose a License (cont’d)


Failure to comply with an order or consent
order issued or approved by the Commission
pursuant to adjudicatory proceedings.
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.
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Thirty-Five Ways to Lose a License (cont’d)


Engaging in real estate activity, or attempting
or offering to engage in real estate activity
within the state during any period of
suspension of a real estate license by the
Commission, or revocation of any real estate
license by the Commission.
Using advertising that is misleading or
inaccurate.
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Broker and Agent Responsibilities
© 2011 Louisiana Real Estate Commission
Returned Checks to LREC

Not the bank’s fault

10 days to pay with additional fee
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