LOUISIANA LAW FINAL EXAM 2026 QUESTIONS AND
SOLUTIONS GRADED A+
✔✔reimburse any person who has suffered monetary damages b/c of acts committed
by a licensee in a real estate transaction - ✔✔the purpose of the real estate recovery
fund is to:
✔✔$20,000 - ✔✔what is the maximum amount of payments that can be made for claims
arising out of the same transaction regardless of the number of claimants?
✔✔all of the above - ✔✔Which of the following is/are prohibited from owning a real
estate school?
Select one:
a. Legislators
b. Commissioners.
c. Relatives of Commissioners.
d. All of the above
✔✔errors and omission - ✔✔Licensees are required by the Commission to have:
Select one:
A. homeowner
B. errors and omissions insurance
C. flood insurance
D. broker
✔✔30 - ✔✔Each licensee shall be notified of the required terms and conditions of errors
and omissions coverage for the annual policy at least ____ days prior to the annual
renewal date.
Select one:
a. 30
b. 60
c. 20
d. 15
✔✔promote the advancement and more efficient administration of the real estate
industry and thereby serve to protect the public - ✔✔What is the purpose of the Real
Estate Research and Education Fund?
Select one:
A. To promote the advancement and more efficient administration of the real estate
industry and thereby serve to protect the public.
B. To provide funds for pre-licensing courses
C. To provide funds for payment of Commission employees
D. To provide funds for payment of claims against licensees.
, ✔✔false - ✔✔the fact that an occupant of a house was infected w/ AIDS is a material
defect: T/F?
✔✔None - ✔✔what is the penalty if a licensee fails to disclose to a buyer that the
property was psychologically impacted?
✔✔the form that is mandated by the commission - ✔✔What type of agency disclosure is
required of all licensees?
Select one:
a. The form that is mandated by the Commission.
b. The form that their broker provides.
c. Verbal or written notice.
d. None.
✔✔all of the above - ✔✔Notice of the availability to the public of access to a statewide
database disclosing the locations of sex offenders is required in which of the following?
Select one:
a. Written leases executed by licensees.
b. Purchase agreements executed by licensees.
c. Rental agreement written and executed by licensees.
d. All of the above
✔✔customer - ✔✔a person who is not represented by the licensee but for whom the
licensee is performing ministerial acts is the
✔✔designated agent - ✔✔when a broker appoints one agent from his company to
represent a client, that agent is known as the
✔✔al must disclose this info b/c it is a material defect - ✔✔Seller Sam tells his agent Al,
that the basement wall is cracked but it's not noticeable and he doesn't want to mention
it to prospective buyers. Which of the following statements is true?
Select one:
a. Al must disclose this information because it is a material defect.
b. Al cannot disclose this information because it was told to him in confidence by his
client.
c. If Al discloses the information he is breaching his fiduciary duty of obedience.
d. Al should tell Sam not to fill out the property disclosure form.
✔✔true - ✔✔A licensee representing a client does not breach a duty or obligation to the
client by showing alternative properties to prospective buyers or tenants or by showing
properties in which the client is interested to other prospective buyers or tenants: T/F?
SOLUTIONS GRADED A+
✔✔reimburse any person who has suffered monetary damages b/c of acts committed
by a licensee in a real estate transaction - ✔✔the purpose of the real estate recovery
fund is to:
✔✔$20,000 - ✔✔what is the maximum amount of payments that can be made for claims
arising out of the same transaction regardless of the number of claimants?
✔✔all of the above - ✔✔Which of the following is/are prohibited from owning a real
estate school?
Select one:
a. Legislators
b. Commissioners.
c. Relatives of Commissioners.
d. All of the above
✔✔errors and omission - ✔✔Licensees are required by the Commission to have:
Select one:
A. homeowner
B. errors and omissions insurance
C. flood insurance
D. broker
✔✔30 - ✔✔Each licensee shall be notified of the required terms and conditions of errors
and omissions coverage for the annual policy at least ____ days prior to the annual
renewal date.
Select one:
a. 30
b. 60
c. 20
d. 15
✔✔promote the advancement and more efficient administration of the real estate
industry and thereby serve to protect the public - ✔✔What is the purpose of the Real
Estate Research and Education Fund?
Select one:
A. To promote the advancement and more efficient administration of the real estate
industry and thereby serve to protect the public.
B. To provide funds for pre-licensing courses
C. To provide funds for payment of Commission employees
D. To provide funds for payment of claims against licensees.
, ✔✔false - ✔✔the fact that an occupant of a house was infected w/ AIDS is a material
defect: T/F?
✔✔None - ✔✔what is the penalty if a licensee fails to disclose to a buyer that the
property was psychologically impacted?
✔✔the form that is mandated by the commission - ✔✔What type of agency disclosure is
required of all licensees?
Select one:
a. The form that is mandated by the Commission.
b. The form that their broker provides.
c. Verbal or written notice.
d. None.
✔✔all of the above - ✔✔Notice of the availability to the public of access to a statewide
database disclosing the locations of sex offenders is required in which of the following?
Select one:
a. Written leases executed by licensees.
b. Purchase agreements executed by licensees.
c. Rental agreement written and executed by licensees.
d. All of the above
✔✔customer - ✔✔a person who is not represented by the licensee but for whom the
licensee is performing ministerial acts is the
✔✔designated agent - ✔✔when a broker appoints one agent from his company to
represent a client, that agent is known as the
✔✔al must disclose this info b/c it is a material defect - ✔✔Seller Sam tells his agent Al,
that the basement wall is cracked but it's not noticeable and he doesn't want to mention
it to prospective buyers. Which of the following statements is true?
Select one:
a. Al must disclose this information because it is a material defect.
b. Al cannot disclose this information because it was told to him in confidence by his
client.
c. If Al discloses the information he is breaching his fiduciary duty of obedience.
d. Al should tell Sam not to fill out the property disclosure form.
✔✔true - ✔✔A licensee representing a client does not breach a duty or obligation to the
client by showing alternative properties to prospective buyers or tenants or by showing
properties in which the client is interested to other prospective buyers or tenants: T/F?
