Free Louisiana Real Estate Broker State Examination Practice Questions

Sample Practice Questions

Try these 10 sample questions from the Louisiana Real Estate Broker State Examination practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1A Louisiana broker receives a subpoena issued by the Real Estate Commission for records relevant to an investigation. Which response is consistent with the Commission's statutory power?

   1. A. Produce the specified records as required by the subpoena
   2. B. Refuse unless a district court first retries the merits
   3. C. Produce records only if every client consents
   4. D. Ignore the subpoena because the Commission may inspect only schools

   Answer: A

   Explanation: The controlling text states: “The commission shall have the right to subpoena any licensee, registrant, certificate holder, or witness” for a hearing or authorized investigation.

   Reference: License Law | LREC — §1435.

2. 2A person expects compensation for negotiating the lease of Louisiana real estate for another. What does the License Law generally require?

   1. A. The owner exemption for managing one's own property
   2. B. The attorney exemption for services in ordinary legal representation
   3. C. The civil-sheriff exemption while acting in that official capacity
   4. D. A real estate license for compensated activity performed for another

   Answer: D

   Explanation: Licensure is required because §1436 makes it unlawful, for anticipated compensation, “to engage in any real estate activity relating to any portion of a real estate transaction performed for another, unless exempted.”

   Reference: License Law | LREC — §1436

3. 3A Louisiana brokerage advertises property to the public. Which name must the advertisement clearly identify under the Commission's advertising rules?

   1. A. The licensed business name recorded with the Commission
   2. B. Only the individual listing licensee's personal nickname
   3. C. Only the legal name of the property's current owner
   4. D. The settlement provider selected for the eventual closing

   Answer: A

   Explanation: The advertising rule states that licensee advertising “shall include their business name,” meaning the name on record with the Commission or an approved trade name.

   Reference: La Lac 46 Lxvii — §2501.

4. 4Which set reproduces Louisiana Civil Code article 448's divisions of things?

   1. A. Common, public, and private; corporeals and incorporeals; movables and immovables
   2. B. Separate and community; corporeals and incorporeals; successions and obligations
   3. C. Public and private; consumables and nonconsumables; testate and intestate
   4. D. Common and private; predial and personal; authentic and under private signature

   Answer: A

   Explanation: Article 448 states: “Things are divided into common, public, and private; corporeals and incorporeals; and movables and immovables.”

   Reference: Louisiana Laws - Louisiana State Legislature — §448 (CC 448; Art. 448)

5. 5Which activity is a ministerial act under Louisiana's Law of Agency?

   1. A. Giving a customer factual property information without exercising judgment or discretion
   2. B. Advising a customer what price the seller should accept
   3. C. Negotiating material terms for a person without an agency relationship
   4. D. Choosing which defects a client should conceal

   Answer: A

   Explanation: Section 3891 defines ministerial acts as acts “that are informative in nature,” including responding to factual inquiries and describing property.

   Reference: Law of Agency | LREC — §3891.

6. 6Which action may the Louisiana Real Estate Commission take to protect money belonging to clients?

   1. A. Set the interest rate on every escrow account
   2. B. Require client funds to be kept separate from a broker's own funds
   3. C. Transfer disputed deposits to the state treasury immediately
   4. D. Permit commingling whenever the broker keeps a ledger

   Answer: B

   Explanation: The separate-account rule controls: “The monies so received are not to be commingled with the personal funds of such licensees or registrants.”

   Reference: License Law | LREC — §1435.

7. 7Which person is generally exempt from Louisiana real estate licensing when acting solely with respect to the person's own property?

   1. A. The property owner
   2. B. A paid neighbor negotiating for the owner
   3. C. An unlicensed independent property manager
   4. D. A referral service collecting transaction-based fees

   Answer: A

   Explanation: The exemption covers an entity that “sells, exchanges, leases, or manages its own property,” subject to the statutory timeshare exception.

   Reference: License Law | LREC — §1438.

8. 8Under Louisiana rules, who must maintain written policies and procedures governing the real estate activities of sponsored licensees?

   1. A. The designated contact member of a real estate team
   2. B. The sponsoring broker
   3. C. The branch office manager for a separate branch
   4. D. The licensee who maintains the transaction file

   Answer: B

   Explanation: The supervision rule provides: “A broker who sponsors licensees or is a qualifying broker for a corporation shall have written policies and procedures” ensuring specified compliance.

   Reference: La Lac 46 Lxvii — §1801.

9. 9Under the Louisiana Civil Code, which item is a corporeal immovable by its nature?

   1. A. A tract of land
   2. B. A promissory note
   3. C. A movable dining table
   4. D. A brokerage commission claim

   Answer: A

   Explanation: Article 462 states: “Tracts of land, with their component parts, are immovables.”

   Reference: Louisiana Laws - Louisiana State Legislature — §462 (CC 462; Art. 462)

10. 10Which information is excluded from Louisiana's statutory definition of confidential information?

    1. A. Information made confidential by the client's written request
    2. B. Information the client permits disclosure by word or conduct
    3. C. Information whose disclosure could materially harm the client
    4. D. Information confidentially received during the brokerage agreement

    Answer: B

    Explanation: Confidential information excludes a matter when “The client permits the disclosure by word or conduct.”

    Reference: Law of Agency | LREC — §3891.