Louisiana Real Estate Exam 2026 — 200
Practice MCQs questions with answers
and rationales
Key Areas Covered: Licensing requirements, Agency law, Contracts, Fair
Housing, Property ownership, Financing, Appraisal, Zoning, Louisiana-specific
civil law concepts (usufruct, redhibition, community property, naked
ownership), Environmental regulations, and Professional ethics
1. Under Louisiana law, what is the minimum age requirement to obtain a real estate
salesperson license?
A) 16 B) 18 C) 21 D) 19
(Correct Answer: B) 18 Rationale: Louisiana Revised Statutes require that all real estate
license applicants be at least 18 years of age at the time of application.
2. The Louisiana Real Estate Commission (LREC) is composed of how many members?
A) 7 B) 9 C) 12 D) 5
(Correct Answer: B) 9 Rationale: The LREC consists of 9 members — 8 licensees appointed
by the governor and 1 consumer member — all serving 4-year terms.
3. A real estate salesperson in Louisiana must complete how many hours of pre-licensing
education?
A) 60 hours B) 90 hours C) 150 hours D) 45 hours
(Correct Answer: B) 90 hours Rationale: Louisiana requires 90 hours of approved pre-
licensing coursework for salesperson candidates before they can sit for the licensing exam.
4. Which of the following best defines "earnest money" in a real estate transaction?
,A) The commission paid to the broker B) A deposit made by the buyer to show good faith C)
The lender's origination fee D) A fee paid to the title company
(Correct Answer: B) A deposit made by the buyer to show good faith Rationale: Earnest
money is a good-faith deposit submitted with a purchase offer to demonstrate the buyer's serious
intent to complete the transaction.
5. In Louisiana, real estate is governed primarily by which legal system?
A) Common law B) Statutory law C) Civil law D) Equity law
(Correct Answer: C) Civil law Rationale: Louisiana's legal system is rooted in the Napoleonic
Code (civil law), making it unique among U.S. states. This affects property rights, successions,
and contracts.
6. What is "usufruct" under Louisiana law?
A) A type of mortgage B) The right to use and enjoy another's property without owning it C) A
tax on property transfers D) A zoning restriction
(Correct Answer: B) The right to use and enjoy another's property without owning it
Rationale: Usufruct is a civil law concept unique to Louisiana allowing a person (usufructuary)
to use and derive profit from property owned by another (the naked owner).
7. A broker's license in Louisiana requires a minimum of how many years of active
salesperson experience?
A) 1 year B) 2 years C) 3 years D) 5 years
(Correct Answer: C) 3 years Rationale: Louisiana requires at least 3 years of active experience
as a licensed salesperson before an individual qualifies to apply for a broker's license.
8. Which type of listing gives the seller the right to sell the property themselves without
paying a commission?
A) Exclusive right-to-sell listing B) Open listing C) Net listing D) Exclusive agency listing
,(Correct Answer: D) Exclusive agency listing Rationale: In an exclusive agency listing, the
broker is the only agent authorized to sell, but if the owner finds the buyer themselves, no
commission is owed.
9. Under RESPA, a HUD-1 Settlement Statement must be provided to the buyer and seller:
A) 30 days before closing B) At or before settlement C) 10 days after closing D) Only upon
request
(Correct Answer: B) At or before settlement Rationale: RESPA (Real Estate Settlement
Procedures Act) requires the HUD-1 be made available to borrowers at or before the time of
settlement so they can review closing costs.
10. Which of the following is NOT a fiduciary duty owed by an agent to their client?
A) Loyalty B) Disclosure C) Accounting D) Profit maximization
(Correct Answer: D) Profit maximization Rationale: The fiduciary duties are OLDCAR:
Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care. Profit
maximization is not among them.
11. A "quitclaim deed" in Louisiana:
A) Guarantees clear title B) Transfers whatever interest the grantor may have, if any C) Is used
only in foreclosure sales D) Requires title insurance
(Correct Answer: B) Transfers whatever interest the grantor may have, if any Rationale: A
quitclaim deed conveys only what interest the grantor currently holds — no warranties of title
are made, making it the weakest form of deed.
12. The concept of "caveat emptor" means:
A) Let the seller beware B) Let the buyer beware C) Full disclosure required D) The agent bears
liability
(Correct Answer: B) Let the buyer beware Rationale: Caveat emptor is Latin for "let the
buyer beware," placing responsibility on buyers to investigate a property. However, this has been
largely reduced by mandatory disclosure laws.
, 13. Which federal law prohibits discrimination in housing based on race, color, religion,
sex, national origin, familial status, and disability?
A) Civil Rights Act of 1866 B) Fair Housing Act of 1968 C) Americans with Disabilities Act D)
Equal Credit Opportunity Act
(Correct Answer: B) Fair Housing Act of 1968 Rationale: The Fair Housing Act of 1968
(Title VIII of the Civil Rights Act) established seven protected classes and prohibits
discriminatory practices in the sale, rental, and financing of housing.
14. In Louisiana, who holds the earnest money deposit during a transaction?
A) The listing agent B) The buyer's attorney C) The title company or the broker's escrow account
D) The seller
(Correct Answer: C) The title company or the broker's escrow account Rationale:
Louisiana law requires that earnest money be deposited in a federally insured escrow or trust
account, typically held by the broker or the title company.
15. A "procuring cause" in real estate refers to:
A) The agent who files the listing B) The agent whose actions led directly to the sale C) The
lender who approved the loan D) The inspector who cleared the property
(Correct Answer: B) The agent whose actions led directly to the sale Rationale: Procuring
cause determines commission rights in a dispute — it is the broker/agent whose uninterrupted
efforts were the direct cause of a successful sale.
16. Under Louisiana law, a real estate license expires:
A) Every year on December 31 B) Every two years on the licensee's birthday C) Every two years
on December 31 D) Every three years
(Correct Answer: C) Every two years on December 31 Rationale: Louisiana real estate
licenses expire on December 31 of every even-numbered year, regardless of when the license
was issued.
Practice MCQs questions with answers
and rationales
Key Areas Covered: Licensing requirements, Agency law, Contracts, Fair
Housing, Property ownership, Financing, Appraisal, Zoning, Louisiana-specific
civil law concepts (usufruct, redhibition, community property, naked
ownership), Environmental regulations, and Professional ethics
1. Under Louisiana law, what is the minimum age requirement to obtain a real estate
salesperson license?
A) 16 B) 18 C) 21 D) 19
(Correct Answer: B) 18 Rationale: Louisiana Revised Statutes require that all real estate
license applicants be at least 18 years of age at the time of application.
2. The Louisiana Real Estate Commission (LREC) is composed of how many members?
A) 7 B) 9 C) 12 D) 5
(Correct Answer: B) 9 Rationale: The LREC consists of 9 members — 8 licensees appointed
by the governor and 1 consumer member — all serving 4-year terms.
3. A real estate salesperson in Louisiana must complete how many hours of pre-licensing
education?
A) 60 hours B) 90 hours C) 150 hours D) 45 hours
(Correct Answer: B) 90 hours Rationale: Louisiana requires 90 hours of approved pre-
licensing coursework for salesperson candidates before they can sit for the licensing exam.
4. Which of the following best defines "earnest money" in a real estate transaction?
,A) The commission paid to the broker B) A deposit made by the buyer to show good faith C)
The lender's origination fee D) A fee paid to the title company
(Correct Answer: B) A deposit made by the buyer to show good faith Rationale: Earnest
money is a good-faith deposit submitted with a purchase offer to demonstrate the buyer's serious
intent to complete the transaction.
5. In Louisiana, real estate is governed primarily by which legal system?
A) Common law B) Statutory law C) Civil law D) Equity law
(Correct Answer: C) Civil law Rationale: Louisiana's legal system is rooted in the Napoleonic
Code (civil law), making it unique among U.S. states. This affects property rights, successions,
and contracts.
6. What is "usufruct" under Louisiana law?
A) A type of mortgage B) The right to use and enjoy another's property without owning it C) A
tax on property transfers D) A zoning restriction
(Correct Answer: B) The right to use and enjoy another's property without owning it
Rationale: Usufruct is a civil law concept unique to Louisiana allowing a person (usufructuary)
to use and derive profit from property owned by another (the naked owner).
7. A broker's license in Louisiana requires a minimum of how many years of active
salesperson experience?
A) 1 year B) 2 years C) 3 years D) 5 years
(Correct Answer: C) 3 years Rationale: Louisiana requires at least 3 years of active experience
as a licensed salesperson before an individual qualifies to apply for a broker's license.
8. Which type of listing gives the seller the right to sell the property themselves without
paying a commission?
A) Exclusive right-to-sell listing B) Open listing C) Net listing D) Exclusive agency listing
,(Correct Answer: D) Exclusive agency listing Rationale: In an exclusive agency listing, the
broker is the only agent authorized to sell, but if the owner finds the buyer themselves, no
commission is owed.
9. Under RESPA, a HUD-1 Settlement Statement must be provided to the buyer and seller:
A) 30 days before closing B) At or before settlement C) 10 days after closing D) Only upon
request
(Correct Answer: B) At or before settlement Rationale: RESPA (Real Estate Settlement
Procedures Act) requires the HUD-1 be made available to borrowers at or before the time of
settlement so they can review closing costs.
10. Which of the following is NOT a fiduciary duty owed by an agent to their client?
A) Loyalty B) Disclosure C) Accounting D) Profit maximization
(Correct Answer: D) Profit maximization Rationale: The fiduciary duties are OLDCAR:
Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care. Profit
maximization is not among them.
11. A "quitclaim deed" in Louisiana:
A) Guarantees clear title B) Transfers whatever interest the grantor may have, if any C) Is used
only in foreclosure sales D) Requires title insurance
(Correct Answer: B) Transfers whatever interest the grantor may have, if any Rationale: A
quitclaim deed conveys only what interest the grantor currently holds — no warranties of title
are made, making it the weakest form of deed.
12. The concept of "caveat emptor" means:
A) Let the seller beware B) Let the buyer beware C) Full disclosure required D) The agent bears
liability
(Correct Answer: B) Let the buyer beware Rationale: Caveat emptor is Latin for "let the
buyer beware," placing responsibility on buyers to investigate a property. However, this has been
largely reduced by mandatory disclosure laws.
, 13. Which federal law prohibits discrimination in housing based on race, color, religion,
sex, national origin, familial status, and disability?
A) Civil Rights Act of 1866 B) Fair Housing Act of 1968 C) Americans with Disabilities Act D)
Equal Credit Opportunity Act
(Correct Answer: B) Fair Housing Act of 1968 Rationale: The Fair Housing Act of 1968
(Title VIII of the Civil Rights Act) established seven protected classes and prohibits
discriminatory practices in the sale, rental, and financing of housing.
14. In Louisiana, who holds the earnest money deposit during a transaction?
A) The listing agent B) The buyer's attorney C) The title company or the broker's escrow account
D) The seller
(Correct Answer: C) The title company or the broker's escrow account Rationale:
Louisiana law requires that earnest money be deposited in a federally insured escrow or trust
account, typically held by the broker or the title company.
15. A "procuring cause" in real estate refers to:
A) The agent who files the listing B) The agent whose actions led directly to the sale C) The
lender who approved the loan D) The inspector who cleared the property
(Correct Answer: B) The agent whose actions led directly to the sale Rationale: Procuring
cause determines commission rights in a dispute — it is the broker/agent whose uninterrupted
efforts were the direct cause of a successful sale.
16. Under Louisiana law, a real estate license expires:
A) Every year on December 31 B) Every two years on the licensee's birthday C) Every two years
on December 31 D) Every three years
(Correct Answer: C) Every two years on December 31 Rationale: Louisiana real estate
licenses expire on December 31 of every even-numbered year, regardless of when the license
was issued.
