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2016 Regular Session
SENATE BILL NO. 259
BY SENATOR WHITE
REAL ESTATE. Provides relative to the Louisiana Real Estate License Law. (8/1/16)
1 AN ACT
2 To amend and reenact R.S. 37:1433, 1435(C)(1) and (2), (D)-(F) and (H), 1436, 1437,
3 1437.1, 1437.2, 1437.3, 1438, 1439, 1441, 1443(1)(f), (3)(g) and (4), 1446, 1449,
4 1451, 1465, 1466(F); and to repeal R.S. 37:1435(C)(3) and 1443(3)(g), relative to
5 the licensing of real estate brokers, timeshare interest salespersons, real estate
6 schools and vendors, and real estate instructors; to provide for commission power to
7 grant certain licenses, registrations, and certifications; to provide prohibitions for
8 individual licenses, registrations, and certificates; to provide for the activities of
9 partnerships, limited liability companies, associations, corporations, and other legal
10 entities with regard to the transactions of real estate; to prohibit certain real estate
11 activities without the proper license, registration, or certification; to provide for
12 active and inactive licenses; to provide with regard to timeshare interest
13 salespersons; to provide regarding the dissolution of any legal entity engaged in the
14 activities of real estate; to provide specific guidelines for unlicensed entities not
15 bound by the real estate licensing law; to provide relative to timeshare salespersons
16 registrants and timeshare developers; to provide for a fee schedule, including active
17 and inactive licenses; to provide certain terms, conditions and procedures; and to
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1 provide for responsibilities of the commission in the instance of the death of a
2 sponsoring broker; and to provide for related matters.
3 Be it enacted by the Legislature of Louisiana:
4 Section 1. R.S. 37:1433, 1435(C)(1) and (2), (D)-(F) and (H), 1436, 1437, 1437.1,
5 1437.2, 1437.3, 1438, 1439, 1441, 1443(1)(f), (3)(g) and (4), 1446, 1449, 1451, 1465, and
6 1466(F) are hereby amended and reenacted to read as follows:
7 §1433. Officers; quorum; meetings; compensation
8 A. The commission shall elect from its members a chairman and a secretary
9 and shall select a vice-chairman to serve in the absence of the chairman.
10 B.(1) Five Six members of the commission shall constitute a quorum for all
11 business. The commission shall meet quarterly or more often if necessary.
12 (2) Said The commission shall be limited to two regularly scheduled
13 meetings per month. Additional meetings may be called upon application of three
14 members.
15 C. Members of the Louisiana Real Estate Commission commission shall be
16 compensated at a rate of not more than fifty dollars a day for each meeting or for
17 attending to commission business, however, a member attending two meetings on
18 the same day shall not be compensated for more than one meeting on that day.
19 Members shall also be reimbursed for their actual expenses covering travel, meals,
20 lodging and other incidental expenses incurred while attending commission meetings
21 or attending to commission business.
22 * * *
23 §1435. Powers of the commission
24 * * *
25 C. The commission may:
26 (1) Adopt all necessary rules and bylaws for the administration and
27 enforcement of this Chapter;
28 (2) Require any satisfactory proof it may desire in reference as to the honesty,
29 truthfulness, reputation, and knowledge of any applicant for a real estate broker, or
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1 salesperson's license or registration as a timeshare interest salesperson or of any of
2 the officers or members of any such applicant, if applicable, to any of the
3 following: prior to the issuance of any license, or registration; and
4 (a) Real estate broker license.
5 (b) Real estate salesperson license.
6 (c) Real estate school or vendor certification.
7 (d) Timeshare interest salesperson registration.
8 (e) Real estate instructor approval or certification.
9 * * *
10 D. In addition to its general powers, as above provided by way of extension
11 and not of limitation, the commission is expressly granted the right to may require
12 any real estate broker or timeshare developer registrant all licensees, registrants,
13 and certificate holders to keep records, as specified in this Chapter of all real estate
14 or timeshare transactions. The commission is authorized to inspect such records at
15 the offices of those the licensees, registrants, and certificate holders, or registrants
16 by its duly authorized representatives between the hours of 9:00 A.M. and 4:00 P.M.,
17 with Saturdays, Sundays, and legal holidays excluded, and to subpoena any of the
18 said records.
19 E. The commission shall have the right to subpoena any licensee, registrant,
20 certificate holder or witness for the purpose of holding any hearing or in furtherance
21 of an authorized investigation. Failure by a licensee or registrant to comply with a
22 subpoena or subpoena duces tecum shall be punishable by the commission as
23 provided under the provisions of pursuant to R.S. 37:1455.
24 F. The commission may also shall have the right to require that all real
25 estate brokers licensees and registered timeshare developers registrants shall to
26 deposit all monies or things of value received on behalf of clients in a separate
27 banking account or accounts in a legally chartered financial institution. Said monies
28 so received are not to be commingled with the personal funds of such licensees or
29 registrants.
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1 * * *
2 H. The commission may shall establish, through the adoption and
3 promulgation of rules adopt rules, and regulations, and procedures in accordance
4 with the Administrative Procedure Act, procedures by which a determination may
5 be made as to whom a disputed escrow deposit should shall be released.
6 §1436. Licensing and registration required
7 A. Licenses issued by the commission shall be classed as active and inactive.
8 B. It shall be unlawful for any person or entity, directly or indirectly,
9 partnership, limited liability company, association, or corporation, foreign or
10 domestic, whether pursuant to a power of attorney or otherwise, for a fee,
11 commission, or other valuable consideration, or with the intention, in the
12 expectation, or upon the promise of receiving or collecting a fee, commission or
13 other valuable consideration, to engage in or conduct, or to advertise or hold
14 himself out as engaging in or conducting the business, or acting in the capacity, of
15 a real estate broker or real estate salesperson within the state without first obtaining
16 a license as such broker or salesperson, and being classed as an active licensee, as
17 provided in this Chapter, any real estate activity relating to any portion of a real
18 estate transaction performed for another, unless he is exempted, from obtaining
19 a license as specified herein.
20 C. It shall be unlawful for any person individual, partnership, limited
21 liability company, corporation, or other legal entity, directly or indirectly, or the
22 successor or assignee thereof, to engage in or conduct, or to advertise to hold
23 himself or itself out as engaging in or conducting the business, or acting in the
24 capacity of a timeshare interest salesperson or timeshare developer create a
25 timeshare plan, or to make sales of timeshare interests, which it owns or
26 purports to own or for another, without first obtaining a registration as such a
27 timeshare interest salesperson or timeshare developer, as provided in this Chapter,
28 unless he is exempted from obtaining a registration as specified therein.
29 D. Any person, corporation, partnership, limited liability company, or other
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1 legal entity who that, directly or indirectly for another, with the intention or upon
2 the promise of receiving any valuable consideration, offers, attempts, or agrees to
3 perform, or performs any single act described herein, whether as a part of a
4 transaction, or as an entire transaction, shall be deemed a licensee or registrant within
5 the meaning of this Chapter. The commission of a single act by such a person or
6 entity required to be licensed or registered under this Chapter and not so licensed or
7 registered shall constitute a violation of the provisions of this Chapter.
8 §1437. Application for license
9 A. Any person, desiring to act as a real estate broker or as a real estate
10 salesperson, or any corporation, partnership, limited liability company, partnership,
11 limited liability company, association, or corporation, or any other legal entity
12 desiring to conduct real estate activity in this state, shall file an application for a
13 license with the commission. The application shall be in such form and detail as the
14 commission shall prescribe, setting forth the following:
15 (1) The name and address of the applicant and the name under which the
16 applicant intends to conduct business.
17 (2) The place or places, including the city or village with the street and street
18 number, if any, where the business is to be conducted.
19 (3) Such other information as the commission shall require.
20 B.(1) Licenses shall be granted only to persons, partnerships, limited
21 liability companies, associations, corporations, or other legal entities who that
22 bear a good reputation for honesty, trustworthiness, integrity, and competence to
23 transact the real estate activities requiring licensing in this state defined in this
24 Chapter, in such a manner as to safeguard the interest of the public, and only after
25 satisfactory proof of such qualifications has been presented to the commission.
26 (2)(1) When an applicant has been convicted of forgery, embezzlement,
27 obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or
28 theft, or has been convicted of a felony or a crime involving moral turpitude in any
29 court of competent jurisdiction, such untrustworthiness of the applicant, and the
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1 conviction, may in itself be sufficient grounds for refusal of a license.
2 (3)(2) When an applicant has made a false statement of material fact on his
3 application, such false statement may in itself be sufficient grounds for refusal of a
4 license.
5 (4)(3) Grounds for suspension or revocation of a real estate license in
6 Louisiana or any other jurisdiction, or the previous suspension or revocation, of a
7 real estate license in Louisiana or any other jurisdiction shall also be grounds for
8 refusal to grant a license.
9 C.(1) No individual real estate broker or salesperson's license shall be issued
10 to any person who has not attained the age of eighteen years. No individual real
11 estate broker or salesperson's license shall be issued to any person who is not a high
12 school graduate or the holder of a certificate of high school equivalency.
13 (2)(a)(1)(a) All applicants for an initial individual real estate broker's license
14 shall have first served actively been licensed for four years as a real estate
15 salesperson, with two of the four years occurring immediately preceding
16 submission of a broker license application, and shall show evidence satisfactory
17 to the commission that they have satisfactorily completed at least one hundred fifty
18 hours of instruction, or its equivalent, of instruction in real estate courses approved
19 by the commission prior to licensure. Satisfactory completion includes passage of
20 an examination on course contents.
21 (b) At least thirty hours of the broker educational requirement shall be
22 obtained in coursework emphasizing broker responsibilities.
23 (c) Each person obtaining an initial real estate broker's license shall complete
24 forty-five post-license education hours within one hundred eighty days after the
25 initial license date. Such hours shall be in subjects required by the commission
26 including but not limited to laws, rules and regulations changes, finance, and the
27 handling of funds. Post-license education hours may be used in the year completed
28 to satisfy eight hours of the twelve-hour annual continuing education requirement;
29 however, post-license education hours shall not satisfy the four-hour mandatory
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1 continuing education topic specified by the commission.
2 (3)(2) The commission, through its education division, may accept real estate
3 related credit hours from an accredited college or university as partial substitution
4 of the broker licensing educational requirement.
5 (4)(3) The commission shall have the authority to accept experience in the
6 real estate business or related fields as credit toward fulfillment of the education
7 requirements set forth herein.
8 (5)(a)(4)(a) All applicants for a salesperson's license shall show evidence
9 satisfactory to the commission that they have completed ninety hours or its
10 equivalent of instruction in real estate coursework approved by the commission prior
11 to licensure. Satisfactory completion includes passage of an examination on course
12 contents.
13 (b) Each person obtaining an initial salesperson's license shall complete
14 forty-five post-license education hours within one hundred eighty days after the
15 initial license date. Such hours shall be in subjects required by the commission
16 including but not limited to laws, rules and regulations changes, finance, and the
17 handling of funds. Post-license education hours may be used in the year completed
18 to satisfy eight hours of the twelve-hour annual continuing education requirement;
19 however, post-license education hours shall not satisfy the four-hour mandatory
20 continuing education topics specified by the commission.
21 (6)(a)(i)(5)(a) In addition to all other education requirements set forth in this
22 Chapter, regardless of initial license date, the license of an individual real estate
23 broker or salesperson shall not be renewed unless the broker or salesperson shall
24 furnish proof of completion of twelve hours per year of continuing education
25 pertaining to matters, including but not limited to laws, rules, and regulations relative
26 to licensing, appraisal, finance, taxes, zoning, environmental quality, and the United
27 States Department of Housing and Urban Development. Four A minimum of four
28 of the required annual continuing education hours shall be in subjects specified by
29 the commission. Post-license education hours may be used to satisfy eight hours of
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1 the twelve-hour annual continuing education requirement; however, post-license
2 education hours shall not satisfy the four-hour mandatory continuing education
3 topics specified by the commission.
4 (ii)(b) The commission shall promulgate rules and regulations necessary to
5 implement the continuing education and post-license education requirement and
6 may mandate the completion of courses in specific real estate-related subjects. Such
7 rules and regulations may require passage of an examination in order to satisfy the
8 continuing education and post-license education requirement.
9 D. Every applicant for a license shall submit a sworn statement attesting that
10 he has knowledge of and understands the provisions of the Fair Housing Act of 1968
11 and the Louisiana Equal Housing Opportunity Act, and any amendments thereto or
12 any successor legislation subsequently following, and that he the applicant shall not
13 induce or attempt to induce any person to sell or rent any dwelling by representations
14 regarding the entry or prospective entry into an area, subdivision, or neighborhood
15 of a person or persons of a particular race, color, religion, or national origin.
16 E. A nonresident may obtain a broker's or salesperson's license and engage
17 in the real estate business in this state under conditions prescribed by the
18 commission.
19 §1437.1. Timeshare registration
20 A. Any person or entity desiring to engage directly in the business of selling
21 timeshare interests must register with the commission.
22 B.(1)(a) The application for registration shall be in such form as may be
23 required by the commission and in accordance with R.S. 9:1131.9 so that only
24 persons who have a good reputation for honesty, trustworthiness, and integrity may
25 be so registered.
26 (b)(1) The commission shall approve or deny such applications for
27 registration within forty-five days from receipt of the application by the commission.
28 (2) When an applicant has been convicted of forgery, embezzlement,
29 obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or
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1 theft, or has been convicted of a felony or a crime involving moral turpitude in any
2 court of competent jurisdiction, such untrustworthiness of the applicant, and the
3 conviction, may in itself be sufficient grounds for refusal of a timeshare interest sales
4 registration.
5 (3) When an applicant has made a false statement of material fact on his
6 application, such false statement may in itself be sufficient grounds for refusal of a
7 timeshare interest sales registration.
8 (4) Grounds for suspension or revocation of a registration, or real estate
9 license, or the previous revocation of a real estate license or registration in Louisiana
10 or any other jurisdiction, shall be grounds for refusal to grant a timeshare interest
11 sales registration.
12 (5) No A timeshare registration shall not be issued to any person who has not
13 attained the age of eighteen years. No A timeshare interest sales registration shall not
14 be issued to any person who is not a high school graduate or the holder of a
15 certificate of high school equivalency.
16 C. The provisions of this Section with regard to registering as timeshare
17 interest salespersons do shall not apply to a licensed real estate broker or salesperson
18 or to employees of a timeshare developer registered under this Section.
19 D. Notwithstanding any other provisions of law, a timeshare developer may
20 not avoid liability to timeshare purchasers for the acts of timeshare interest
21 salespersons or real estate licensees on the basis that the timeshare interest
22 salesperson or real estate licensee is merely an independent contractor.
23 * * *
24 F. Except for the provisions contained in R.S. 9:1131.12, the changes and
25 additions affected by Act No. 999 of the 1985 Regular Session of the Legislature
26 shall not apply to any timeshare project which has filed and been approved to operate
27 as a timeshare project by the Louisiana Real Estate Commission on or before June
28 1, 1985, and for which protection if all of the following conditions have been met.
29 (1) Protection under the federal bankruptcy law has not been filed and
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1 whose.
2 (2) The developer has not been suspended by the Louisiana Real Estate
3 Commission, and which, if approved prior to July 20, 1984,.
4 (3) The project has been actively and consistently marketed as a timeshare
5 project, if approved prior to July 20, 1984.
6 G. Any timeshare interest salesperson or seller of a timeshare interest shall
7 comply with the provisions of the Louisiana Real Estate License Law and the rules
8 adopted pursuant thereto, including licensure, unless otherwise exempt.
9 (1) The Louisiana Real Estate License Law shall not apply to a timeshare
10 developer registered under this Section, solely acting for itself as sole owner or sole
11 lessor with reference to of real estate solely owned or solely leased by the developer,
12 or a registered affiliated entity, or a registered wholly-owned subsidiary of the
13 developer, or an.
14 (2) The Louisiana Real Estate License Law shall not apply to an existing
15 timeshare owner who, for compensation, refers prospective purchasers, but only if
16 the existing timeshare owner refers for compensation, provided that the existing
17 timeshare owner adheres to all of the following:
18 (a) Refers no more than twenty prospective purchasers in any calendar year
19 limits his or her.
20 (b) Limits such activities to referring prospective purchasers of timeshare
21 interests to the developer or the developer's employees or agents, and does.
22 (c) Does not show, discuss terms or conditions, or otherwise participate in
23 negotiation with regard to timeshare interests.
24 §1437.2. Corporations; limited liability companies; partnerships; real estate brokers'
25 broker licenses
26 A. Any corporation, limited liability company, or partnership formed under
27 the laws of this state or any foreign corporation, limited liability company, or
28 partnership which that has been granted a certificate of authority to do business in
29 this state may be granted a real estate broker's license by the commission upon
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1 application and compliance with the requirements of this Chapter.
2 B. Every application for a corporate real estate broker license issued to a
3 corporation, limited liability company, or partnership real estate broker's license
4 shall be submitted by a licensed individual real estate broker who has been chosen
5 by the corporation, limited liability company, or partnership as its qualifying broker.
6 (1) An individual real estate broker may serve as a qualifying broker for more
7 than one corporation, limited liability company, or partnership.
8 (2) A corporation, limited liability company, or partnership may
9 designate a new qualifying broker at any time, as provided in R.S. 37:1441(C).
10 C. Upon dissolution, a corporation, limited liability company, or partnership
11 shall return the license of the designated qualifying broker, and the license of every
12 sponsored licensee to the commission within ten days of the dissolution. A
13 corporation, limited liability company, or partnership shall notify the
14 commission within five calendar days of its dissolution, accompanied by notice
15 of the termination of the broker license, as provided in R.S. 37:1441, for each
16 sponsored licensee, at which time the commission shall cancel the real estate
17 broker license of the corporation, limited liability company, or partnership,
18 thereby prohibiting such entity from performing any act for which a real estate
19 broker license is required.
20 D. Upon termination of a qualifying broker's affiliation with a corporation,
21 limited liability company, or partnership for any reason, the corporation, limited
22 liability company, or partnership shall notify the commission and designate a new
23 qualifying broker within five working days. A corporation, limited liability
24 company, or partnership may designate a new qualifying broker at any time.
25 E. Upon the merger or consolidation with another A corporation, limited
26 liability company, or partnership, the corporation, limited liability company, or
27 partnership shall notify the commission not later than within five working calendar
28 days following the effective date of the merger or consolidation with another
29 corporation, limited liability company, or partnership.
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1 §1437.3. Inactive license
2 A. Effective January 1, 1990, an inactive license status shall be established.
3 B. Any licensee in good standing with the commission may elect to place his
4 license in an inactive license status with the commission provided he applies for a
5 transfer to an inactive status and remits by submitting the appropriate transfer
6 application and remitting the applicable fees as set forth in this Chapter. Former
7 licensees may, within Within the six-month three-month delinquency period
8 immediately following the expiration of the last active license and upon payment
9 of appropriate renewal and inactive license transfer fees, former licensees may
10 transfer their license to the inactive status.
11 C. During the period the license is in the inactive status, the licensee shall be
12 prohibited from engaging in any activity requiring a real estate license. The licensee
13 shall be required to renew the inactive license on a yearly an annual basis by filing
14 the required renewal application and paying the annual inactive renewal fees as
15 specified in this Chapter.
16 D. The licensee may request transfer from inactive status to active status at
17 any time, provided the inactive license has been renewed as provided for in this
18 Chapter and is current at the time the request is received at the commission.
19 E. An inactive licensee will not be required to fulfill the continuing education
20 requirement established for active licensees on a yearly basis; however, upon
21 application to return to active license status the licensee must have completed the
22 continuing education specified in the following Paragraphs as follows:
23 (1) Licenses remaining in the active status for less than one year shall
24 have completed the twelve hour continuing education requirement for the
25 previous year.
26 (2) Licensees remaining in the inactive status from one to five years shall
27 complete the number of continuing education hours of continuing education
28 specified herein for the period following periods of inactivity indicated below:
29 (a) One to less than three years of in the inactive status - twenty hours of
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1 continuing education.
2 (b) Three to less than five years of in the inactive status - forty hours of
3 continuing education.
4 (2)(3) If the licensee remains in the inactive status for two to five renewal
5 periods,he the licensee must complete a four-hour course covering Louisiana real
6 estate license law and or commission rules and regulations as part of the hours
7 specified in Paragraph (1) (2) of this Subsection to be eligible to return to active
8 license status. This The required four-hour course must be completed within one
9 year prior to the date of the license transfer of the license to the active status.
10 (3)(4)(a) The licensee may remain in the inactive license status indefinitely,
11 provided he the licensee complies with the yearly annual inactive renewal
12 procedures. Licensees remaining on in the inactive status for longer than a five-year
13 period will five or more years shall be required to complete a maximum of eighty
14 hours of approved continuing education within the five-year period immediately
15 preceding the request to return to active license status.
16 (b) Such continuing education shall include a four-hour Louisiana real estate
17 license law and or commission rules and regulations course which must. The course
18 shall be completed within one year prior to the date of the license transfer of the
19 license to the active status.
20 (c) However, any applicant who Any licensee that has continued to obtain
21 annual continuing education in the required areas during the period that he the
22 licensee is in the inactive status may cumulate those hours and be eligible to
23 reactivate his license transfer to the active status at any time.
24 (4)(5) Any request by an inactive licensee to transfer to active status shall be
25 accompanied by payment of the prescribed fees and proof of completion of the
26 applicable continuing education hours.
27 §1438. Applicability
28 A. The provisions of this Chapter shall not apply to:
29 (1) Any unlicensed person, partnership, limited liability company,
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1 association, or corporation, foreign or domestic, which has not been granted a real
2 estate license in Louisiana and which, as owner or lessor, either individually or
3 through an employee or representative and performs acts of ownership with
4 reference to property owned by him, except persons in the business of selling or
5 managing timeshare interests. provided that the following requirements are met:
6 (a) The unlicensed person, partnership, limited liability company,
7 association, or corporation, foreign or domestic, is the owner or lessor of the
8 property.
9 (b) The unlicensed person, partnership, limited liability company,
10 association, or corporation, foreign or domestic, performs acts of ownership
11 regarding the property, either individually or through an employee or
12 representative.
13 (c) The provisions of this Section shall not include any unlicensed person,
14 partnership, limited liability company, association, corporation, foreign or
15 domestic, in the business of selling or managing timeshare interests.
16 (2) The service rendered by an attorney at law on behalf of a client which
17 that may be required in the normal course of other legal representation.
18 (3) A receiver, trustee in bankruptcy, administrator, executor, tutor, or civil
19 sheriff for any parish of this state.
20 (4) A trustee selling under a deed of trust or a mortgage.
21 (5) Any individual, corporation, partnership, trust, limited liability company,
22 joint venture, or other entity which that sells, exchanges, leases, or manages its own
23 property, except persons, corporations, partnerships, trusts, limited liability
24 companies, joint ventures, and other entities who that are in the business of selling
25 timeshare interests.
26 (6) Any salaried person employed by a licensed real estate broker for and on
27 behalf of the owner of any real estate which that the licensed broker has contracted
28 to manage for the owner, if the salaried employee is limited in his employment to the
29 following:
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1 (a) Delivering a lease application, a lease, or any amendment thereof to any
2 person.
3 (b) Receiving a lease application, lease, or amendment thereof, a security
4 deposit, rental payment, or any related payment for delivery to and made payable to
5 a property manager or owner.
6 (c) Showing a rental unit to any person, as long as the employee is acting
7 under the direct instructions of the broker, including the execution of leases or rental
8 agreements, provided the broker is responsible for the actions of his employees.
9 (d) Providing information about a rental unit, a lease, an application for lease,
10 or the status of a security deposit or the payment of rent to any person.
11 (e) Assisting in the performance of property management functions by
12 carrying out administrative, clerical, or maintenance tasks.
13 (7) Any person employed by a housing authority to manage its property or
14 otherwise managing property of the Department of Housing and Urban
15 Development, but only with respect to the management of such property.
16 (8) Any person managing agricultural property.
17 §1439. Issuance of license, certificate, or registration
18 A. Upon compliance with the provisions of this Chapter and with the rules
19 and regulations of the commission, the commission shall issue the appropriate
20 license, certificate, or registration and shall prescribe the form of such license,
21 certificate, or registration.
22 B. Each individual real estate broker's license and each corporation, limited
23 liability company, or partnership real estate broker's license shall show the name and
24 street address of the business and shall also show the mailing address of the business
25 if it is different from the street address A broker license issued to an individual,
26 partnership, limited liability company, association, corporation, or other legal
27 entity, shall include the business name, the street address of the business, and
28 the mailing address of the business, if it is different from the street address.
29 C. Each sales or associate broker license shall show the include the
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1 following information:
2 (1) The name of the licensee.
3 (2) The license shall also show the name of the sponsoring individual real
4 estate broker, or the name of the corporation, partnership, or limited liability
5 company or other entity partnership, limited liability company, association,
6 corporation, or other legal entity, under which the license is issued.
7 (3) The license of each associate broker or salesperson shall be delivered or
8 mailed to and kept in the custody and control of to the individual real estate broker
9 or designated qualifying broker by whom the associate broker or salesperson is
10 sponsored the partnership, limited liability company, association, corporation,
11 or other legal entity, under which the license is issued in the manner and mode
12 determined by the commission.
13 D. Each timeshare developer registration shall show include the name and
14 street address of the developer and, shall also show his the mailing address of the
15 developer, if it is different from the street address.
16 E. Each timeshare sales registration shall show the name and include all of
17 the following information:
18 (1) The name of the sales registrant.
19 (2) The residential address of the sales registrant, and shall also show his the
20 mailing address of the sales registrant, if it is different from the residential address.
21 (3) Each individual timeshare sales registration shall show the The name of
22 the developer by whom the registrant is employed who employs the sales
23 registrant.
24 F. The timeshare sales registration shall be delivered or mailed to the
25 developer in the manner and mode determined by the commission and shall be
26 kept in the custody and control of that developer.
27 F. G.(1) Associate brokers, salespersons, and timeshare interest salespersons
28 shall not conduct any activities requiring licensing or registering a license or
29 registration until their such license or registration has been issued and is in the
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1 custody of their the sponsoring broker or employing timeshare developer, or.
2 (2) This provision shall not apply if the sponsoring broker or employing
3 timeshare developer has received written authorization from the commission
4 authorizing such activity pending the issuance of the license or timeshare registration
5 by the commission.
6 * * *
7 §1441. Return of license or registration upon transfer or termination
8 A. When the association sponsorship of an associate broker or salesperson
9 with his sponsoring broker is terminated by either party for any reason, the
10 sponsoring broker terminating party shall send the associate broker's or
11 salesperson's license, by hand delivery or by certified or registered mail, submit a
12 form attesting to the termination to the commission, within five calendar days of
13 such termination.
14 (1) No associate broker or salesperson shall act as such, either directly or
15 indirectly, under authority of such license after the date the license has been
16 dispatched to the commission. Upon submission of a form indicating the
17 termination of sponsorship, the license of an associate broker or salesperson
18 shall no longer be in force or effect, and the associate broker or salesperson
19 shall be prohibited from conducting real estate activities, as defined in this
20 Chapter, until such time as the associate broker or salesperson shall obtain a
21 new sponsoring broker.
22 (2) Such An associate broker or salesperson, upon sponsorship by another
23 licensed broker, whose sponsorship has been terminated, shall be entitled to a
24 license transfer the license upon written request submission of a form indicating
25 the transfer to a new broker to the commission and payment of the required fee;
26 however, not more than one license shall be issued to any associate broker or
27 salesperson for the same period of time.
28 B.(1) When the association affiliation of a timeshare sales registrant with his
29 a registered developer is terminated by either party for any reason, the developer
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1 shall send the sales registration certificate, by hand delivery or certified or registered
2 mail, to notify the commission in writing within five days of such termination.
3 (2) Any timeshare sales registrant, who wishes to begin a new business
4 relationship with another developer whose affiliation with a registered developer
5 has been terminated, shall notify the commission, in writing and by certified or
6 registered mail, prior to beginning that business relationship an affiliation with
7 another registered developer.
8 (3) No timeshare sales registrant shall act as such, either directly or
9 indirectly, under authority of such registration after the certificate has been
10 dispatched to the commission. Such timeshare registrant shall, upon acceptance by
11 a new developer, be allowed to transfer his registration to that developer upon receipt
12 of all appropriate fees and paperwork. When an affiliate timeshare sales registrant
13 is terminated by a registered timeshare developer, such sales registration shall
14 no longer be in force or effect, until such time that the commission receives a
15 written notice that the timeshare sales registrant is affiliated with a new
16 developer and the prescribed fees have been remitted.
17 C. When the association of between a designated qualifying broker with and
18 a corporation, limited liability company, or partnership, limited liability company,
19 association, corporation, or other legal entity, foreign or domestic, is terminated
20 by either party for any reason, the following actions shall be taken:
21 (1) The terminating party shall submit a copy of the letter or resignation
22 or termination to the commission, within five calendar days of such termination.
23 (2) The designated outgoing qualifying broker shall notify all associate
24 brokers and salespersons sponsored by him in writing by certified or registered mail
25 sponsored licensees within five calendar days of the termination, including and
26 the effective date, by certified or registered mail of the termination.
27 (2)(3) Neither the licensed corporation, limited liability company, or
28 partnership, limited liability company, association, corporation, or other legal
29 entity, foreign or domestic, nor any associate broker or salesperson licensee
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1 sponsored by the terminated designated qualifying broker, shall engage in any real
2 estate activity requiring licensing a license until a new qualifying broker has been
3 designated by the corporation, limited liability company, or partnership, limited
4 liability company, association, corporation, or other legal entity, foreign or
5 domestic and the designation has been reflected in the files of the commission.
6 (4) Upon termination of a qualifying broker's association with a
7 partnership, limited liability company, association, corporation or other legal
8 entity, foreign or domestic, such entity shall designate a new qualifying broker
9 and shall notify the commission by submission of a form indicating the
10 designation of such broker within five calendar days of the termination.
11 (3)(5) Upon designation of a new qualifying broker, the outgoing qualifying
12 broker shall deliver provide custody of the licenses of all sponsored licensees to the
13 new designated qualifying broker.
14 (4)(6) The new designated qualifying broker shall inform all associate
15 brokers or salespersons licensed with the corporation, limited liability company, or
16 partnership in writing All sponsored licensees of the partnership, limited liability
17 company, association, corporation, or other legal entity, foreign or domestic
18 shall be informed of the change in the designation of a qualifying broker,
19 including the effective date, by certified or registered mail, of his designation as
20 qualifying broker and of the effective date of the designation not later than five
21 calendar days following the effective date of the designation.
22 (5) The outgoing qualifying broker shall return his license as qualifying
23 broker for the corporation, limited liability company, or partnership to the
24 commission within five days following the effective date of the designation of the
25 new qualifying broker.
26 * * *
27 §1443. Fees
28 The commission may charge:
29 (1) Initial fees for licensing or certification:
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1 (a) Individual real estate broker's license $ 120.00
2 (b) Corporate, partnership, or limited liability company real estate broker's
3 license $ 120.00
4 (c) Branch office license $ 45.00
5 (d) Real estate salesperson's license $ 45.00
6 (e) School certification $ 650.00
7 (f) Instructor application/certification $ 35.00
8 (g) Instructor certification re-examination $ 35.00
9 (h) Continuing education vendor $ 300.00
10 (2) Renewal fees for licensing or certification:
11 (a) Real estate active broker's license $ 70.00
12 (b) Real estate inactive broker's license $ 35.00
13 (c) Branch office license $ 45.00
14 (d) Real estate active salesperson's license $ 35.00
15 (e) Real estate inactive salesperson's license $ 35.00
16 (f) School certification $ 300.00
17 (g) Instructor certification $ 35.00
18 (h) Continuing education vendor $ 150.00
19 (3) Fees for timeshare registration:
20 (a) Initial public offering statement filing fee $ 500.00
21 (b) Additional public offering statement filing fee $ 250.00
22 (c) Initial timeshare developer registration $ 120.00
23 (d) Timeshare developer renewal fee $ 70.00
24 (e) Initial timeshare interest salesperson fee $ 45.00
25 (f) Timeshare interest salesperson renewal fee $ 35.00
26 (g) Timeshare prize registration $ 150.00
27 (4) Delinquent fees, in addition to the renewal fee, if not renewed by
28 December thirty-first of the applicable license, registration, or certification period:
29 (a) January 1 - February 15 Active and inactive Licensees$ 50.00
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1 (b) February 16 - March 31 Active Licensees $ 200.00
2 (c) February 16 - March 31 Inactive Licensees $ 200.00
3 (d) January 1 - January 31 Real estate schools, vendors, and
4 pre-license instructors $ 50.00
5 * * *
6 §1446. Compensation; independent contractor status of salespersons and associate
7 brokers
8 A. No payment of a commission or compensation shall be made by any
9 licensee or registrant to any person who has not first secured his a license or
10 registration under the provisions of this Chapter. This Subsection shall not apply to
11 a nonresident broker who is currently licensed in his state of residence.
12 B. No payment of a commission or other compensation shall be made by any
13 broker to any licensee or registrant when the paying broker has knowledge that the
14 receiving licensee or registrant has agreed to pay or intends to pay or otherwise
15 deliver a portion of the commission or compensation to an unlicensed person or
16 entity.
17 C. Associate brokers, salespersons, and timeshare interest salespersons shall
18 not pay or offer to pay any commission or valuable consideration for the
19 performance of any act herein specified.
20 D. Payment of a commission or compensation may be made to and accepted
21 by former licensees and registrants for transactions negotiated by them while duly
22 licensed or registered by the commission.
23 E. Current licensees who transfer their licenses from one broker to another
24 broker An active licensee may accept compensation from their former broker for
25 business transactions which transactions that were instituted initiated by the
26 licensee while under sponsorship of a former sponsoring or qualifying broker,
27 so long as provided that the compensation is transmitted through their the current
28 sponsoring or qualifying broker.
29 F. Associate brokers and salespersons An active real estate licensee shall not
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1 accept a commission or other valuable consideration for the performance of any act
2 herein specified, or for performing any act relating thereto, from any person, except
3 their sponsoring or qualifying broker.
4 G. Associate brokers and salespersons may assign or direct that commissions
5 or other compensation earned in connection with a real estate transaction be paid by
6 their licensed sponsoring broker to an unlicensed corporation of which the associate
7 broker or salesperson is the sole officer, director, and shareholder, or an unlicensed
8 limited liability company of which the associate broker or salesperson is the sole
9 manager.
10 H. A sponsored real estate salesperson or associate licensee shall be an
11 independent contractor of the sponsoring or qualifying broker with whom he is
12 affiliated for all purposes and shall not be an employee of the sponsoring or
13 qualifying broker, if all of the following conditions are met:
14 (1) The real estate salesperson or associate broker is a licensee.
15 (2) Substantially all of the real estate salesperson's or associate broker's
16 sponsored licensee's remuneration for the services performed is directly related to
17 sales or other output rather than the number of hours worked.
18 (3) There is a written agreement between the real estate salesperson or
19 associate broker sponsored licensee and the sponsoring or qualifying broker that
20 specifies that the real estate salesperson or associate broker sponsored licensee will
21 not be treated as an employee.
22 * * *
23 §1449. Broker to insure provision of contract; retention of records
24 A. Licensees acting in the capacity of an agent or subagent, and registrants
25 shall insure that their respective principal party signing any document in a real estate
26 transaction is provided a copy of the document immediately after the signing of the
27 document.
28 B. Licensees and registrants shall insure that persons signing any document
29 in a real estate transaction which that pertains to more than one party are provided
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1 with a copy of the completed document bearing the signatures of all parties to the
2 transaction within five days after the final signature is affixed to the document.
3 C. Written agreements for the sale or management of real estate shall specify
4 a definite expiration date which that shall not be subject to qualifying terms or
5 conditions.
6 D. Individual real estate brokers shall retain all of the following records,
7 readily available and properly indexed, for a period of five years, the bank:
8 (1) Bank statements, copies of deposit slips, and cancelled checks on all
9 escrow or trust accounts and copies.
10 (2) Copies of all documents which that pertain in any way pertain to real
11 estate transactions wherein they the individual real estate broker or licensees
12 sponsored by them the individual real estate broker have appeared in a licensing
13 capacity.
14 (3) This requirement The requirement regarding copies shall not be altered
15 by the change of status transfer of a broker to that of an associate broker, or an
16 unlicensed person, or transfer to inactive status an inactive license.
17 E. Corporate, limited liability company, and partnership Partnerships,
18 limited liability companies, associations, corporations, or other legal entities,
19 foreign or domestic real estate brokers shall maintain retain the following records,
20 readily available and properly indexed, for a period of five years, the bank:
21 (1) Bank statements, copies of deposit slips, and cancelled checks on all
22 escrow or trust accounts and copies.
23 (2) Copies of all documents which that pertain in any way pertain to real
24 estate transactions wherein they, their the partnership, limited liability company,
25 association, corporation, or other legal entity, foreign or domestic, the
26 designated qualifying broker, or licensees sponsored by them same, have appeared
27 in a licensing capacity.
28 (3) This requirement, regarding copies, shall not be altered by the failure of
29 the corporate, limited liability company, or partnership, limited liability company,
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1 association, corporation, or other legal entity, foreign or domestic, real estate
2 brokers to renew their license or the transfer of transferring the broker license to
3 the inactive status or failure to renew such license.
4 * * *
5 §1451. Death or incapacity of a real estate broker
6 A. In the event of the death of a sponsoring broker, any associate broker
7 affiliated with the deceased broker or, in the absence of an associate broker, a
8 salesperson sponsored by the deceased broker, may, after proper notification to and
9 approval in writing by the commission, complete, carry out, and enforce any
10 contracts to which the deceased broker was a party. The commission shall be
11 notified in writing when a sponsoring broker dies and shall have the authority
12 to appoint an active licensed associate broker or salesperson to complete, carry
13 out, and enforce any incomplete real estate business activities of the deceased
14 sponsoring broker, including real estate contracts left pending at the time of the
15 death.
16 (1) The associate broker or salesperson shall immediately notify all
17 sponsored licensees that the sponsoring broker has died. Such notice shall
18 advise the sponsored licensees that no new contracts shall be instituted.
19 (2) In the absence of any sponsored licensees, the commission shall have
20 the authority to appoint an active licensed broker to complete, carry out, and
21 enforce any incomplete real estate activities of the deceased sponsoring broker,
22 including real estate contracts left pending at the time of the death.
23 B. The associate broker or salesperson approved by the commission to
24 complete the real estate business activities of the deceased sponsoring broker shall:
25 (1) Immediately notify all sponsored licensees of the death of the broker.
26 (2) Advise all sponsored licensees that no new contracts shall be instituted
27 and that their licenses shall be returned to the commission.
28 (3) Return the licenses of the sponsored licensees to the commission within
29 five days.
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1 C. In the event that a deceased broker did not have any sponsored licensees,
2 the commission may designate a broker to monitor any pending real estate
3 transactions initiated by the deceased broker.
4 D. In the event of the physical or mental impairment of an individual real
5 estate broker, the commission may shall have the authority to appoint another
6 individual real estate broker to complete, carry out, and enforce any incomplete real
7 estate business activities of the impaired sponsoring broker, including real
8 estate contracts to which the impaired broker was a party left pending at the time
9 of the impairment.
10 E.C. In the event of the physical or mental impairment of a sponsoring
11 broker, an associate broker or, in the absence of an associate broker, a salesperson
12 sponsored by the broker may be appointed by the commission to temporarily assume
13 the duties and responsibilities of the broker.
14 F.D. In the event of the death or physical or mental incapacity of a qualifying
15 broker, the commission shall be immediately notified and the licensed corporation,
16 limited liability company, or partnership shall appoint a new qualifying broker
17 within five days.
18 * * *
19 §1465. Real estate franchises
20 No A person, partnership, limited liability company, association, or
21 corporation, foreign or domestic, acting in the capacity of a franchisor shall, as
22 a franchisor, not enter into a franchise agreement with a real estate broker in this
23 state unless the franchisor has appointed a Louisiana licensed real estate broker to
24 act as its representative in this state and registered with the commission in the
25 manner the commission requires by regulation.
26 §1466. Errors and omissions insurance; mandatory for all licensees
27 * * *
28 F. Each licensee shall be notified of the required terms and conditions of
29 coverage for the annual policy at least thirty days prior to the annual renewal date.
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1 A certificate of coverage, showing compliance with the required terms and
2 conditions of coverage, must be filed with the commission by the annual license
3 renewal date by each An active licensee who that elects to obtain independent
4 errors and omissions insurance shall file a form verifying that they have
5 independent coverage, as prescribed by the commission, with the annual license
6 renewal.
7 * * *
8 Section 2. R.S. 37:1435(C)(3) and 1443(3)(g) are hereby repealed.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Mary Dozier O'Brien.
DIGEST
SB 259 Original 2016 Regular Session White
Present law provides wide powers for the Louisiana Real Estate Commission regarding
licensing and certification and the duties of those involved in the real estate business in
Louisiana.
Proposed law provides that the commission may grant the following credentials: real estate
broker license, real estate salesperson license, real estate school or vendor certification,
timeshare interest salesperson registration and real estate instructor approval/certification.
Present law provides for the granting of general commission powers as to brokers and
timeshare developers.
Proposed law includes all licenses, registrants, and certificate holders.
Present law provides prohibitions for individual licensees, registrants, and certificate holders.
Proposed law provides that partnerships, limited liability companies, associations,
corporations are prohibited from conducting any real estate activities for valuable
consideration without a license.
Present law provides that certain actions taken in the area of timeshare interests are
prohibited without a license.
Proposed law adds the creation of a timeshare plan to the list of proscribed actions.
Present law requires four years experience as a real estate salesperson as a prerequisite for
licensing.
Proposed law provides that experience required for a broker's license shall include two of
the four years immediately precede the application for a broker's license.
Present law provides relative to liability of a timeshare developer for actions of brokers and
timeshare salespersons.
Proposed law disallows a previous waiver of liability of timeshare developers for actions of
brokers and timeshare salespersons on the basis that they operate as independent contractors.
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Present law provides with respect to the dissolution of a legal entity engaged in timeshare
development.
Proposed law provides that upon dissolution any of legal entity in possession of a broker's
license to notify the commission within five days of the dissolution.
Present law provides for the categories of active and inactive license.
Proposed law provides requirements for moving from an inactive license to active, including
continuing education requirements.
Present law provides that provisions of the licensing law shall not apply to certain unlicensed
entities.
Proposed law provides specific guidelines for unlicensed entities not bound by the Louisiana
Real Estate Licensing Law.
Present law provides relative to the issuance of a real estate broker license.
Proposed law provides for individual, partnership, limited liability company, association,
corporation and other legal entities in the provisions regarding issuance of licenses.
Present law provides relative to timeshare sales registrant and timeshare developer
requirements as they relate to real estate licensing law.
Proposed law adds requirements regarding the licensing of brokers and salespersons as they
function in the area of timeshare properties.
Present law provides for the return of licenses or registrations upon transfer or termination.
Proposed law provides requirements particularly regarding the termination of sponsorship
of associate brokers and salespersons.
Present law provides for a fee schedule.
Proposed law revises fee schedule and adds certain fees, particularly as to active and inactive
licenses and real estate schools, vendors, and pre-license instructors.
Present law provides relative to the death of a sponsoring broker.
Proposed law provides that the commission may appoint an active license broker to complete
transactions pending at the time of the death.
Present law provides that the commission may promulgate and enforce rules and
qualifications relative to applications for licenses or registration.
Proposed law deletes this language and provides that the commission may adopt all
necessary rules and by-laws for the administration and enforcement of the law.
Effective August 1, 2016.
(Amends R.S. 37:1433, 1435(C)(1) and (2), (D)-(F) and (H), 1436, 1437, 1437.1, 1437.2,
1437.3, 1438, 1439, 1441, 1443(1)(f), (3)(g) and (4), 1446, 1449, 1451, 1465, 1466(F), and
repeals R.S. 37:1435(C)(3) and 1443(3)(g))
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