Educational Resources: Take Louisiana Real Estate Sample Tests, Application Steps and Tips

After satisfying pre-licensing requirements, the next step is passing the Louisiana Real Estate License Exam. This test demonstrates your grasp of concepts covered in pre-licensing courses.

Real Estate Exam Breakdown

The LREC partners with Pearson VUE to administer the test at approved testing centers across the state.¹

The Pearson VUE Candidate Handbook contains all the instructions on what to expect with the exam.²

You will need to create an account and then find a test center near you so you can schedule your exam.^{3, 4, 5}

Arrive early on exam day with an acceptable ID to check in and be seated.

The salesperson exam contains two distinct sections:

National Section (80 Questions)

• 80 multiple choice questions
• Covers general real estate principles, laws, contracts, financing, calculations
• Allows 105 minutes to complete
• Passing score is 56/80 questions correct (70%)

Content Outline

The national portion of the exam tests the following areas:

• Property ownership (Salesperson 7 items/Broker 6 items)
• Land use controls and regulations (Salesperson 5 items/Broker 5 items)
• Valuation and market analysis (Salesperson 8 items/Broker 6 items)
• Financing (Salesperson 6 items/Broker 7 items)
• General principles of agency (Salesperson 10 items/Broker 11 items)
• Property condition and disclosures (Salesperson 8 items/Broker 9 items)
• Contracts (Salesperson 11 items/Broker 12 items)
• Transfer of title (Salesperson 5 items/Broker 5 items)
• Practice of real estate (Salesperson 12 items/Broker 12 items)

Sample Questions:

1. Which of the following interests in property is considered an estate for years?

A. A life estate
B. A leasehold
C. An estate at will
D. A license

2. Which of the following statements BEST identifies the meaning of the term, “rescission of contract”?

A. A ratification of contract by all parties
B. A return of all parties to their condition before the contract was executed
C. A transfer or assignment of a particular responsibility from one of the parties to another
D. A review of the contract by the legal counsel of either party that may result in a cancellation without penalty or further obligation

3. Which of the following clauses in a mortgage allows the lender to demand loan repayment if a borrower sells the property?

A. Defeasance clause
B. Prepayment clause
C. Acceleration clause
D. Alienation clause

Louisiana State Section (55 Questions)

• 55 multiple choice questions
• Covers state-specific laws, regulations, practices, and disclosures
• Allows 75 minutes to complete
• Passing score is 40/55 questions correct (70%)

Content Outline

The state portion of the exam tests the following areas:

• Duties and Powers of the Real Estate Commission Salesperson-5 Items, Broker-5 Items)
• Licensing Requirements (Salesperson-6 Items, Broker-6 Items)
• Statutory Requirements Governing the Activities of Licensees (Salesperson-17 Items, Broker-17 Items)
• Louisiana Civil Law System (Salesperson-16 Items, Broker16 Items)

Sample Questions:

1. Which of the following must take the Louisiana Real Estate License Exam before they can practice real estate in Louisiana?

A. Broker associates only
B. Salespersons only
C. Both salespersons and broker associates
D. Neither salespersons nor broker associates

2. Which of the following terms is defined as “the authority to alter the legal relations between the principal and a third party”?

A. Disclosed dual agency
B. Express authority
C. Police power
D. Implied authority

3. Under Louisiana agency disclosure laws, licensees must ensure the agency disclosure pamphlet is received by the client:

A. Within 3 days of initial contact with the client
B. Prior to the preparation of an offer to buy or sell real estate
C. Within 1 day after first licensed meeting with the client
D. Prior to the signing of a listing agreement or buyer’s agreement

Both sections contain multiple choice questions and applicants take them together in one exam appointment.

In total, the exam includes 135 questions to be answered in 3 hours. You must pass both the national and state sections within 1 year to qualify for licensure.

You will take the exam on a computer at an approved Pearson VUE testing center. The $85 exam fee is paid directly to Pearson VUE during registration.

You can schedule your test date any time after receiving authorization from LREC.

The computer randomly draws from a large pool of possible questions during each test session. You will immediately know whether you passed or failed each section.

Diagnostic reports help focus your studies to the section you failed if you need to retake any sections.

If you fail one or both portions of the exam, you can schedule a retake through Pearson VUE directly. The $85 exam fee applies for each retake attempt.

Your exam authorization from LREC is valid for 12 months from date of issue. You must pass both National and State sections within the one-year expiration timeframe before needing to reapply.

It is advisable to prepare extensively using pre-licensing materials and practice exams before attempting the real thing. Give yourself the best opportunity to pass on the first try.

Completing Your Louisiana Real Estate Commission License Application: 6 Steps

Submitting a complete, accurate application with all supporting materials is vital for obtaining your Louisiana real estate license. The application process happens in stages involving several forms.

Here are the step-by-step application instructions:

Step 1: Submit the Initial Real Estate License Application: Part A

After finishing pre-licensing education, complete the Initial Real Estate Salesperson License Application-Part A. This form is available on the LREC website or through your real estate school.

Compile and submit:

• Completed Part A application form⁶
• $90 non-refundable application fee
• Certificate of completion for 90-hour pre-licensing courses

Send your application package to:

Louisiana Real Estate Commission
9071 Interline Avenue
Baton Rouge, LA 70809

Double-check that all information and documentation is complete and accurate before submitting. Processing delays happen if details are missing.

Expect 2-4 weeks to receive exam authorization from LREC.

Step 2: Start a Background Check

After scheduling your exam, you can now start the Background Check and Fingerprinting process.⁷ Request your criminal history background check through LREC’s approved provider, Clearbox.

They will submit prints and payment to the Louisiana State Police. This step was covered in detail previously in this guide.

Step 3: Schedule and Pass the Licensing Exam

Once approved to sit for the exam, LREC sends your exam eligibility information to Pearson VUE. You will receive instructions via email communication from Pearson VUE to set up your Pearson VUE account and schedule your test appointment through their website or by phone.²

Candidates must schedule the real estate exam within the 90 days that the authorization allows and pay the $85 exam fee directly to Pearson VUE.

The next step is to sit for the real estate licensing exam and pass both sections. Candidates must retake and pass any failed section/s within a year.

Step 4: Acquire Errors and Omissions Insurance

Louisiana mandates E&O insurance coverage for all actively licensed real estate salespersons and brokers. This protects agents against liability for professional errors, negligence or omissions that result in client financial harm.

There are 2 options for obtaining compliant E&O insurance:

Buy your own policy independently if the coverage matches LREC’s minimum requirements. For this option, you will need to submit the Independent Errors and Omissions Insurance form and your proof of coverage to LREC.⁸

Purchase coverage through LREC’s group policy that is administered by Rice Insurance Services Company LLC. The group plan costs $149 ($142 + $7 LREC transaction fee) annually for new salespersons.

Applicants are required to show proof of insurance.

Step 5: Submit Proof of Broker Sponsorship

Every active real estate salesperson in Louisiana is required to be sponsored by a state-licensed real estate broker. This broker will supervise you and your transactions for a mandated 2 years.

The Initial Real Estate License Application-Part B includes the broker sponsorship affidavit section. Your sponsoring broker must complete and sign this acknowledgment.

However, if you do not plan on practicing real estate immediately or you do not have a supervising broker, you can fill out the Request to Issue in the Inactive License Status form.⁶

Step 6: Submit the Initial Real Estate License Application Part B

The final step is submitting all remaining documentation to LREC:

• Completed Part B license application form with broker sponsorship⁶
• Proof of E&O insurance
• Any other missing items from previous steps

Once your complete application is approved, LREC will issue your new salesperson license in 2 to 4 weeks

Congratulations, you can now begin your real estate practice!

Following these steps carefully ensures your Louisiana salesperson license application gets processed promptly. Check the LREC website Salesperson Pre-Licensing Checklist for the most up-to-date forms, fees, and instructions.⁹

What’s the Anticipated Duration of the Real Estate Application?

The total timeline to earn your Louisiana real estate license ranges from 3 to 12 months for most candidates. Exact time frames vary based on these factors:

• How long it takes you to complete the 90 hours of pre-licensing education? Online self-paced courses allow you to finish your education quickly.
  In-person formats take longer.
• Waiting for LREC to approve your exam application
• Days or weeks between taking and passing the national and state exam portions
• Timelines for getting fingerprinted, background check completion, and LREC review
• Shopping for E&O insurance and securing broker sponsorship
• How quickly LREC handles reviewing and processing submitted applications

Here are typical time-frames for key steps:

• 2 to 8 months to complete 90 hours of pre-licensing education
• 1 to 6 weeks for criminal background check processing
• 2 to 4 weeks to schedule and pass the licensing exam
• 1 to 2 weeks to join a sponsoring brokerage and get insurance
• 4 to 6 weeks for the LREC application review and approval process

So, in total, you can reasonably expect the licensing process to take 2 to 6 months from start to finish. While it is possible to progress through licensing in as little as 6 to 8 weeks with diligence, budget around 8 to 12 months to complete the process comfortably.

Requesting Inclusion in the National Association of Realtors® (NAR)

While optional, membership in the National Association of Realtors® (NAR) is highly encouraged for all active real estate professionals. The NAR provides invaluable member benefits:

• Instant credibility from affiliation with the trusted Realtor® trademark
• Networking, conferences, and education opportunities
• Access to national listing databases like MLS through your local NAR association
• Discounts on products, services, insurance plans, travel, and technology
• Advocacy for legislative policies that benefit the real estate industry
• Continuing education courses and professional designation programs

Both salespersons and brokers are eligible for NAR membership. However, you must first join your local NAR-affiliated realtor® association, and then pay national NAR dues.

• Local Board/Association Fees: Vary by region. For example, New Orleans Board of Realtors® dues start at $160/year.
• MLS Fees: Vary but around $44/month
• Louisiana REALTOR® Dues: $175/year
• National Association Dues: $150/year and $150 joining fee

Although optional, membership in professional real estate organizations provides valuable resources for new agents. Factor in these costs when budgeting for your real estate business.