Broker Leadership & Compliance�2026 Broker Mandatory Course

(INSERT VENDOR NAME)

(INSERT VENDOR #)

Anti-trust Statement

Please be aware of the fact that all here present are in the real estate brokerage business and may be located in the same market area. As a result, anti-trust laws require that there be no discussion concerning certain competitive business practices including but not limited to fees, commissions, splits,broker compensation or business models. The instructor will stop the discussion if the conversation is moving into these areas.

Broker Supervision

Chapter 43. Licensee, Registrant, and Certificate Holder Responsibilities�

§4301. Knowledge of the Law

​

A. It shall be the duty of all licensees, certificate holders, and registrants to have knowledge and be aware of all laws regulating the real estate industry in Louisiana including, but not limited to, these rules and regulations and the Louisiana Real Estate License Law as set forth in Chapter 17, Title 37 of the Louisiana Revised Statutes.

​

Liability/Responsibility for Acts of �Associated Licensees

Rules and Regulations - §303. Sponsorship

E. Active licensed brokers who elect to sponsor an applicant for a real estate license shall be subject to the duties and penalties prescribed for sponsoring brokers in the Louisiana Real Estate License Law and commission rules and regulations and shall bear the responsibility for the license activity of any sponsored licensee, which shall also include ensuring timely license renewal prior to the practicing of real estate.

Rules and Regulations�Chapter 18 - Broker Supervision

When the broker is a business entity, the qualifying broker is the person responsible for the broker responsibilities under this Section.

36 Ways to Lose Your License

§1455. Causes for censure, suspension, or revocation of license, registration, or certification A. The commission may censure a licensee, registrant, or certificate holder or conditionally or unconditionally suspend or revoke any license, registration, or certificate issued under this Chapter, levy fines or impose civil penalties not to exceed five thousand dollars, or impose continuing education requirements on licensees, registrants, or certificate holders if, in the opinion of the commission, a licensee, registrant, or certificate holder is performing or attempting to perform or has performed or has attempted to perform any of the following acts:

36 Ways To Lose Your License

#19 - Knowingly permitting a sponsored licensee to operate as an individual real estate broker.

​

#20 - Knowingly permitting a sponsored licensee or an employee to conduct real estate activities in violation of this Chapter.

Responsibility to Train and Supervise

Supervised licensees DO need to be taught these things, �and re-taught at regular intervals.

 These parts of the law & rules mean: �

1. Supervised licensees may not store funds belonging to others but must turn over any funds collected to the managing broker immediately
2. Supervised licensees may not declare contracts null and void
3. Supervised licensees may not return deposits to buyers or grant them to sellers
4. Supervised licensees may not accept listings (only managing broker may do this)
5. Supervised brokers may not cancel listings (only managing broker may do this)

36 Ways To Lose Your License

#19 - Knowingly permitting a sponsored licensee to operate as an individual real estate broker.

​

#20 - Knowingly permitting a sponsored licensee or an employee to conduct real estate activities in violation of this Chapter.

Independent Contractor Status

Independent Contractors vs. Employees and the use of Independent Contractor agreements

License Law - §1446. Compensation; independent contractor status of salespersons and associate brokers

​

A real estate salesperson or associate broker shall be an independent contractor of the broker with whom he is affiliated for all purposes and shall not be an employee of the broker if all of the following conditions are met:

​

(1) The real estate salesperson or associate broker is a licensee.

​

(2) Substantially, all of the real estate salesperson's or associate broker's remuneration for the services performed are directly related to sales or other output rather than the number of hours worked.

​

(3) There is a written agreement between the real estate salesperson or associate broker and the broker that specifies that the real estate salesperson or associate broker will not be treated as an employee.

Independent Contractor Agreement ��vs. ��Office Policy Manual

Office Policy Manual

Office Policy Manual

• Creates consistency
• Risk management tool
• Reduces potential LREC and Fair Housing violations.

Office Policy Manual�The Basics

Availability

License Status & Maintenance

Advertising

Recordkeeping

Office Hours and Availability

When will you be in the office?

​

What is the best way for agents to reach you with questions?

Email

Phone Number

​

​

Rules and Regulations�Chapter 18 - Broker Supervision

A broker who sponsors licensees or is a qualifying broker for a corporation shall have written policies and procedures to ensure the following:

1. each sponsored licensee maintains their license in the active status at all times while they are engaging in real estate activities as described in R.S. 37:1431(24).

2. each sponsored licensee complies with the advertising and team rules;

3. a method and process for the sponsored licensee to provide documents to the broker for compliance with record keeping.

Rules and Regulations�Chapter 18 - Broker Supervision

A broker who sponsors licensees or is a qualifying broker for a corporation shall have written policies and procedures to ensure the following:

1. each sponsored licensee maintains their license in the active status at all times while they are engaging in real estate activities as described in R.S. 37:1431(24).

2. each sponsored licensee complies with the advertising and team rules;

3. a method and process for the sponsored licensee to provide documents to the broker for compliance with record keeping.

Legal and Administrative Compliance

Address Changes - Reporting Change of Address and/or Telephone Number. The commission shall be notified in writing within 10 days of any change in the mailing address, physical address, and/or telephone number of a licensee’s, certificate holder’s, or registrant’s business or residence. Updates to contact information can be made in the My LREC Portal

​

Name Change - Complete the name change Affidavit found on MyLREC.

License Renewal

Active Licenses

​

Each license, certificate, or registration issued shall be issued for a period of one year and shall expire on December thirty-first following the date upon which it is issued. Each license, certificate, or registration shall be renewed annually. Conducting any activity authorized by the license, certificate, or registration after the expiration of the license, certificate, or registration shall be deemed a violation. Licenses, certificates, or registrations not renewed by January first shall be considered expired.

License Renewal

Inactive Licenses

​

During the period the license is in the inactive status, the licensee shall be prohibited from engaging in any activity requiring a real estate license. The licensee shall be required to renew the inactive license on an annual basis by filing the required renewal application and paying the inactive renewal fee.

​

Renewal – on or before September 30.

License Renewal

Failure to renew by December 31.

​

Forfeits his renewal rights

​

Shall be required to apply as an initial applicant and meet all requirements of an initial applicant.

​

Does not have to complete the ninety hours of real estate coursework; however, they must pass the state and national exam.

​

Office Policy Manual�The Basics

What is your process for notifying agents of their duty to renew?

Office Policy Manual�The Basics

Email when renewal window opens on August 1.

Reminder email September 1.

Reminder email September 29.

Notify agents who have not renewed on October 3.

Reminder email November 3.

Reminder email December 29.

Notify agents who have not renewed Jan 1.

License Transfers

A request to terminate sponsorship of a licensee or to transfer a licensee to a new broker shall be submitted on forms prescribed by the commission and shall be accompanied by the fees prescribed in R.S. 37:1443. LREC has instituted a new online termination & transfer feature found through the MyLREC portal.

​

License Transfers

Fee Exemptions

​

A request for license transfer that is submitted within 60 days of any of the following circumstances shall be exempt from the transfer fee or delinquent renewal fee prescribed in R.S. 37:1443:

​

• the sponsoring broker has died;
• the sponsoring broker has failed to renew his license;
• the license of the sponsoring broker has been suspended or revoked;
• the license of the sponsoring broker has been transferred to the inactive status;
• the sponsoring broker elects to discontinue the sponsorship of a licensee.

​

New Agents - Postlicensing

Rule Interpretation

​

If new licensees do not take post licensing in the initial licensing year, they must take all 12 hours to renew – not just the mandatory.

​

Rules and Regulations�Chapter 18 - Broker Supervision

A broker who sponsors licensees or is a qualifying broker for a corporation shall have written policies and procedures to ensure the following:

1. each sponsored licensee maintains their license in the active status at all times while they are engaging in real estate activities as described in R.S. 37:1431(24).

2. each sponsored licensee complies with the advertising and team rules;

3. a method and process for the sponsored licensee to provide documents to the broker for compliance with record keeping.

LREC.gov

Office Policy Manual�The Basics

Advertising

Can your agents share listings within the office?

​

What if an agent from another company wants to share your listing on social media or via email?

MLS Rules

Signed agreement

Clear cooperation

Photographs

Only listing sign in yard

Nothing to do with what is on the sign

Has to be current – active, pending, etc

LREC Advertising Rules

Must have signature to advertise the property

​

Must have expiration date on the listing

​

All offers must be submitted

What are your advertising policies?

Regulatory advertising guidelines

​

Franchise guidelines

​

Style guides

​

​

​

​

​

Rules and Regulations�Chapter 18 - Broker Supervision

A broker who sponsors licensees or is a qualifying broker for a corporation shall have written policies and procedures to ensure the following:

1. each sponsored licensee maintains their license in the active status at all times while they are engaging in real estate activities as described in R.S. 37:1431(24).

2. each sponsored licensee complies with the advertising and team rules;

3. a method and process for the sponsored licensee to provide documents to the broker for compliance with record keeping.

Louisiana Revised �Statute 37:1449

Louisiana Revised Statutes 37:1449(D)(1) Individual real estate brokers shall retain all of the following records, readily available and properly indexed, for a period of five years:

(a) Bank statements, copies of deposit slips, and cancelled checks on all escrow or trust accounts.

(b) Copies of all documents that pertain in any way to real estate transactions wherein the individual real estate broker or licensees sponsored by the individual real estate broker have appeared in a licensing capacity.

Rules and Regulations�§1803. Record Keeping�

A. In a format that is readily available to the commission and for a period of no less than five years a broker must maintain at minimum the following records:

1. disclosures;

2. listing agreements, buyer representation agreements, other written agreements that authorize licensees to advertise or represent property for sale or lease, other written agreements that authorize licensees to receive�compensation;

3. contracts and related addenda;

4. receipts and disbursements of compensation for services as defined under R.S. 37:1431(24);

5. property management agreements;

6. appraisal, broker price opinions, and comparative market analyses;

7. sponsorship agreements and termination paperwork; and

8. independent contract agreements between brokers and sponsored salespersons.

​

Office Policy Manual�The Basics

Recordkeeping

What is the process that agents get this documentation to you?

​

Digital vs. Paper

​

What is your policy on destruction of records after 5 years?

Office Policy Manual�Teams

Tenure of REALTORS® on a Team

Teams

Chapter 19. Real Estate Teams and Groups�

§1901. Definitions�

A team or group is a collective name used by two or more real estate licensees, who represent themselves to the public as a part of one entity that performs real estate license activities under the supervision of the same sponsoring broker.����

Teams

§1903. Sponsorship��A. Team or group members shall be sponsored by the same broker and, if applicable, shall conduct all real estate license activity from the office or branch office where their individual license is held.��B. Licensees shall not form a team or group without written approval from the sponsoring broker.��C. The sponsoring broker shall designate a member of each approved team or group as the contact member responsible for all communications between the broker and the team.��

Teams

��§1905. Team or Group Names��A. Team or group names shall not contain terms that could lead the public to believe that the team or group is offering real estate brokerage services independent of the sponsoring broker. These terms shall include, but are not limited to:��1. real estate;��2. brokerage or real estate brokerage;��3. realty;��4. company.��

Teams

��§1907. Team or Group Leaders��A. The sponsoring broker shall be responsible for all license activity of team or group members sponsored by the broker.��B. The designated contact member of each team or group shall maintain a current list of all team or group members, which shall be provided to the sponsoring broker upon formation of the team or group and immediately upon any change thereafter.��C. A current record of all team or group names, and the members thereof, shall be maintained by the sponsoring broker in a manner that can be made readily available to the LREC upon request, including record inspections.��AUTHORITY NOTE: Promulgated in accordance with R.S. 37:1430 et seq.��HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR 40:2245 (November 2014). §jurisdiction.

Teams

�§1909. Team Advertising��A. A team or group name shall not be used in advertising without the written approval of the sponsoring broker.��B. The term "team" or "group" may be used to advertise real estate license activities provided that:�� 1. the use of the term does not constitute the unlawful use of a trade name and is not deceptively similar to a name under which any other person or entity is lawfully doing business;�� 2. the team or group is composed of more than one licensee;�� 3. the advertising complies with all other applicable provisions of this Chapter and LAC 46:LXVII.Chapter 25 of these rules and regulations.��C. An unlicensed person shall not be named, acknowledged, referred to, or otherwise included in any team or group advertising.��

Teams

���§1911. Disputes��A. The commission shall not intervene or become otherwise involved in team or group disputes, including those pertaining to financial obligations that are the result of a business relationship between a team or group, team or group member, branch manager, sponsoring broker, or any combination thereof, including the payment of commissions and dues to professional organizations. Such disputes shall be settled by the respective parties or by a court of competent jurisdiction.

Office Policy Manual�Teams

Are you going to allow teams?

​

Are you going to approve the team name?

​

How are the team leaders going to report to you when members of the team change?

​

Office Policy Manual�Teams

Agency questions?

​

Are they going to share confidential information? Need client's permission.

​

Dual Agency?

Number of Licensed Real Estate Team Members

16% of REALTORS® have personal assistants

Tasks Performed by Personal Assistants

51%�Licensed

49%

Unlicensed

vs.

Unlicensed Assistants Can:

​

1. Answer the phone and forward calls to licensee

2. Submit listings and changes to a multiple listing service

3. Follow up on loan commitments after a contract has been negotiated

4. Place signs on listed property

5. Order items of routine repair as directed by licensee

6. Prepare flyers and promotional information for approval by Licensee and supervising broker

​

Unlicensed Assistants Can:

​

7. Type contract forms as directed by Licensee and supervising broker

8. Act as courier service to deliver documents, pick up keys, etc.

9. Schedule appointments for Licensee to show listed property

10. Secure public information documents from courthouse, sewer district, water district, etc.

11. Have keys made for company listings

12. Write ads as directed by Licensee and supervising Broker and place advertising (promotional information, newspaper ads, etc.)

Unlicensed Assistants CANNOT:

1. Host an open house

2. Prepare promotional material or ads without the review and approval of Licensee and supervising broker

3. Show property listed for sale

4. Answer any questions on listing

5. Discuss or explain a contract, listing, or other real estate document with anyone outside the firm

6. Be paid on the basis of real estate activity, such as a percentage of commission, or any amount based on listings, sales, etc.

7. Negotiate or agree to any commission, commission split, management fee or referral fee on behalf of a licensee.

​

Activities Requiring a License�Paraphrased from R.S. 37:1431

In Louisiana, a real estate license is required for anyone—whether an individual, partnership, LLC, association, or corporation, domestic or foreign—who, for compensation or the expectation of compensation, engages in any part of a real estate transaction on behalf of someone else.

Activities Requiring a License�Paraphrased from R.S. 37:1431

This includes:

• Selling, buying, exchanging, leasing, or managing real estate, or negotiating any of those activities.
• Offering or agreeing to negotiate the sale, purchase, lease, or management of real estate.
• Assisting or directing others in finding clients, negotiating terms, or helping close a real estate transaction (excluding mortgage financing). This does not include businesses that merely provide resources for owners selling their own property.
• Advertising or promoting real estate for sale or lease in return for an advance fee or referral fee.
• Selling or attempting to sell a business where real estate or real estate leases are part of the business assets.
• Listing or offering to list for sale or lease any real estate or improvements on it.
• Buying, selling, or dealing in real estate options.
• Representing themselves as being in the business of selling, buying, leasing, renting, or managing real estate.

Employment law is a broad area encompassing all areas of the employer/employee relationship except the negotiation process covered by labor law and collective bargaining.

​

Employee vs. Independent Contractor

Facts that provide evidence of the degree of control �and independence fall into three categories:

Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?

Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)

Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?

Source: IRS.gov

Consequences of Treating an Employee as an Independent Contractor

If you classify an employee as an independent contractor and you have no reasonable basis for doing so, you may be held liable for employment taxes for that worker (the relief provisions, discussed below, will not apply). See Internal Revenue Code section 3509 for more information.

Independent Contractor (Self-Employed) or Employee?

Downloaded from IRS website - https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee

​

Federal Employment Laws

Fair Labor Standards Act - Wages and Overtime pay

Workers’ Compensation & Occupational Safety and Health Act (OSHA) - Workplace Safety and Health

Equal Opportunity Act - Protect from discriminatory hiring practices

Employee Retirement Income Security Act (ERISA) - Employee Benefit Security

Family Medical Leave Act

Employee Polygraph Protection Act

Agency Disclosure Pamphlet��or

Customer Information Form

Rules and Regulations Chapter 37 - §3703. D.

• Provide to prospective sellers/lessors and buyers/lessees.
• At the time when substantive contact is made.
• Ensure that the recipient signs and dates the pamphlet or form.
• The licensee shall sign as a witness to the signature of the recipient.
• The licensee shall retain the signed pamphlet or a copy of the form for five years.

What if they refuse to sign the pamphlet?

Annotate on the disclosure the day, date, time, name of the party and the fact they refused to sign.

​

Keep this disclosure in the property file.

​

Agents keep for 5 years – not only brokers.

Dual Agency

Must be signed by all parties before acting as dual agent.

​

When is the best time to get the form signed by the sellers?

​

When is the best time to get the form signed by the buyers?

​

Office Policy Manual�Safety Plan

Safety at the brokers office.

​

Personal safety during showings

​

Open house and Marketing precautions

​

Office Policy Manual�Safety Plan

Safety through technology

​

Financial and Cyber Security

​

General Risk Awareness

​

​

​

Office Safety

Always meet new clients at the office or in a public place before showing property.

Verify client identity—ask for a copy of their driver’s license and keep it on file.

Any injuries on the property should be reported to the broker immediately.

Safety During Showings

Avoid showing properties alone when possible; use a buddy system for remote or vacant locations.

Park on the street, not in the driveway, so you can leave quickly if necessary.

Position yourself so you have an exit route—don’t get cornered in basements or small rooms.

Open House and Marketing Precautions

Arrive early to unlock doors, check the property, and identify all exits.

Remove or secure personal items and valuables from the home to prevent theft.

Keep your car keys and phone on you at all times.

Have a clear end time for the open house and lock doors immediately after.

Safety Through Technology

Use smartphone safety apps (like Forewarn, Life360, or SafeShowings) to verify prospects and share your location in real time.

Keep your phone fully charged, with emergency contacts programmed on speed dial.

Utilize office check-in/check-out protocols—let someone know where you are and when you’ll be back.

Financial and Cyber Security

Warn clients and agents about wire fraud scams—always verify wiring instructions with a phone call to a known number.

Use secure Wi-Fi connections when sending client or transaction information.

Protect passwords and consider two-factor authentication for MLS, email, and transaction platforms.

General Risk Awareness

Trust your instincts—if something feels off, reschedule or bring another agent.

Be cautious about oversharing personal information on business cards, websites, or social media.

Keep a small emergency kit in your car (first aid, flashlight, charger, etc.).

Reporting Procedures

Who does the agent report safety issues to?

​

What happens if one agent sees another agent violating the safety protocols?

Review these policies �at least quarterly.

Code of Conduct

• Professionalism
• Social media policy – what they can and can’t post
• Anti-harassment
• EEOC
• Anti-Trust Policy

​

Code of Conduct

Protect your reputation as a company.

​

Working with other agents

​

How your brokerage is perceived by the public

​

Professionalism

Code of Conduct

Code of Ethics

• Article 1
• Article 15
• Article 16

​

Professionalism

Code of Conduct

Respectful Communication

Cooperation and Courtesy

Inter-Office Collaboration

Conflict Resolution

Professionalism

Code of Conduct

Consequences for Non-Compliance

​

Professionalism

Code of Conduct

Zero-tolerance

Define Harassment

Reporting & Responsibility

Disciplinary Action

​

​

​

Anti-Harassment Policy

Code of Conduct

Post Appropriately

What constitutes and inappropriate post?

Confidentiality

Prohibited Content

LREC Advertising Guidelines

Broker/Franchise Guidelines

Caution and Approval

​

Social Media Policy

Fair Housing Policy

I commit to the following principles:

Fair Housing Practices

Equal Professional Service

Continuous Learning

Inclusive Marketing

Respectful Communication

Consumer Education

Accountability

Zero Tolerance

Celebrating Diversity

Positive Leadership

By Transaction Type

https://projects.newsday.com/long-island/real-estate-agents-investigation/

​

Code of Conduct

EEOC Statement

​

​

​

EEOC

Policy Against Giving Legal and Tax Advice

Additional Questions For You To Answer

What forms are you going to use?

Some are mandatory

• Buy Sell
• PDD
• Agency/Dual Agency

​

Some are not

• Listing
• Buyer Representation
• Touring Agreements

​

E&O expectations

​

• General Liability/Umbrella/Auto coverage expectations

​

​

​

​

Compensation Splits, fees, referrals. etc

​

How much are you going to charge for your services?

​

​

​

Areas of Expertise

Residential

Commercial

Property Management

Rural/Land

​

Geographic expectations

​

Procedure when considering working outside area of competence.

​

​

​

What if your agent owns another company?

​

Of it is an immediate family member?

​

Inspector

Lender

Title company

Contractor

Acknowledgement

Signed and dated

Property Management Recordkeeping & Retention

Property Management

LA Rules and Regs Chapter 26 & 27

Also advertising rules and regs; especially if renting their own property

​

Louisiana Landlord and Tenant Act

​

Federal Fair Housing

Chapter 26 – Rules and Regulations

Property Management Rules and Regulations

Property Management Rules and Regulations

Chapter 26. Residential Property Management

​

§2601. Definitions

​

Property Management—the marketing, leasing, or overall management of real property for others for a fee, commission, compensation, or other valuable consideration.

Property Management Rules and Regulations

Chapter 26. Residential Property Management

​

§2601. Definitions

​

Property Manager—one who, for a fee, commission, or other valuable consideration, manages real estate, including the collection of rents, supervision of property maintenance, and accounting for fees received for another.

Property Management Rules and Regulations

Chapter 26. Residential Property Management

​

§2601. Definitions

​

Residential Real Property—real property consisting of one or not more than four residential dwelling units, which are buildings or structures each of which are occupied or intended for occupancy as single-family residences.

Property Management Rules and Regulations

§2603. Management Authorization

Licensees shall not engage in property management on behalf of another without written authorization from the property owner(s). Salespersons and associate brokers shall not conduct property management functions on behalf of another, except through their sponsoring broker.

​

Written authorization to manage property must at minimum include the following:

• the duties and responsibilities of the property manager;
• the authority and powers given by the property owner to the property manager;
• the period of the agreement; and
• the management fees charged to the property owner

Sample Property Management Agreement

LREC.gov

Property Management Rules and Regulations

§2605. Trust Funds, Deposits, and Accounts for Property Management

Licensees engaged in property management on behalf of another shall open and maintain accounts in accordance with Chapter 27 of the rules and regulations of the commission.

All security deposit and rental trust funds shall not be withdrawn for any purpose except:

• upon the mutual written consent of all parties having an interest in the funds;
• upon court order;
• to deposit funds into the registry of the court in a concursus proceeding;
• to disburse funds upon a reasonable interpretation of the contract that authorizes the broke to hold such funds, provided that the disbursement is not made until 10 days after the broker has notified all parties and licensees in writing;
• to cover the payment of service charges on security deposit and rental trust accounts;
• upon approval by the commission in connection with the sale or acquisition of a licensed entity;
• to comply with the provision of 9:3251 or any other state or federal statute governing the transfer of rents, security deposits or other escrow funds.

Property Management Rules and Regulations

§2605. Trust Funds, Deposits, and Accounts for Property Management

​

Deposits shall be disbursed within 30 days of an agreement between the principles in a real estate transaction.

​

Property Management Rules and Regulations

§2605. Trust Funds, Deposits, and Accounts for Property Management

​

A licensee who receives funds on behalf of another for property management shall maintain a ledger for each property managed.

​

This ledger must clearly document all funds received and disbursed to, and on behalf of, the property owner.

Property Management Rules and Regulations

§2605. Trust Funds, Deposits, and Accounts for Property Management

​

A licensee who accepts cash payments on behalf of an owner must retain written receipts.

​

These receipts must include at minimum

• the date,
• the amount,
• the property address,
• the reason for the payment,
• the tenants name, a
• the name and signature of the licensee or employee who received the funds on behalf of the brokerage.

​

Property Management Rules and Regulations

§2607. Property Management Records

Licensees engaged in property management shall retain all of the following records, readily available and properly indexed, for a period of five years:

Bank statements, deposit slips, management agreements, lease agreements, owner ledgers or statements, deposit slips, disbursement checks, invoices, cash receipts, and any other documents that pertain to the management of the property.

Copies of all documents that pertain in any way to real estate transactions wherein the individual real estate broker or licensees sponsored by the individual real estate broker have appeared in a licensing capacity.

The requirement regarding copies shall not be altered by the transfer of a broker to that of an associate broker, an unlicensed person, or an inactive licensee.

​

Property Management Rules and Regulations

§2609. Exemptions

​

The provisions of this section shall not apply to an unlicensed person, partnership, limited liability company, association or corporation, foreign or domestic, who performs acts of ownership regarding the property, either individually or through an employer or representative.

Louisiana Landlord Tenant Act

Source: https://www.ag.state.la.us/Files/Shared/Documents/MovingInOut.pdf

​

​

Lease Terms

Landlord/Tenant Obligations

Louisiana Deposit Act

Eviction

Death of Landlord �or Tenant

Art. 2717.  Death of lessor or lessee

​

A lease does not terminate by the death of the lessor or the lessee or by the cessation of existence of a juridical person that is party to the lease.

​

Acts 2004, No. 821, §1, eff. Jan. 1, 2005.

Sale of the property

• Art. 2712.  Transfer of immovable subject to unrecorded lease

​

• A third person who acquires an immovable that is subject to an unrecorded lease is not bound by the lease.

​

​

• Acts 2004, No. 821, §1, eff. Jan. 1, 2005.

​

Destruction of the Property/Expropriation

• Art. 2714.  Expropriation; loss or destruction

​

• If the leased thing is lost or totally destroyed, without the fault of either party, or if it is expropriated, the lease terminates and neither party owes damages to the other.

​

• Acts 2004, No. 821, §1, eff. Jan. 1, 2005

Landlord’s Obligations Under Louisiana Law

• To deliver the property to the tenant at the agreed time and in good condition for its leased purpose.

​

• To maintain the property in a suitable condition for the purpose for which it was leased.

​

• To protect the tenant’s right of peaceful possession for the duration of the lease.

​

• To refrain from making any alterations to the property.

​

• To pay taxes, assessments and other charges to the property.

Tenant’s Obligations Under Louisiana Law

• To pay the rent in accordance with the lease terms.

​

• To return the property in the same condition, except for normal “wear and tear,” as it was leased.

​

• To refrain from altering the premises without first obtaining written consent from the landlord.

​

• To allow the landlord to make all necessary repairs that cannot be postponed until the end of the lease.

​

Tenant’s Obligations Under Louisiana Law

​

• To use the property for the purpose for which it was leased. Any misuse by the tenant may cause the lease to be dissolved.

​

• To inform the landlord promptly when the property has been damaged or needs repair.

​

• The tenant is liable for damages to the property that exceed the normal “wear and tear” caused by the tenant or the tenant’s guests.

Lessee’s Deposit Act

• R.S. 9:3251-3254

​

• The Lessee’s Deposit Act requires the landlord to return deposits within one month after the end of the lease, provided the tenant fulfilled the lease obligations and left a forwarding address.

​

Lessee’s Deposit Act

​

• If any part of the deposit is retained, the landlord must send the tenant an itemized list of deductions and any remaining balance within one month. If the landlord fails to return the deposit or to send the itemized list within one month, the tenant may sue in Small Claims Court to recover the deposit.

​

Lessee’s Deposit Act

​

• If the landlord fails to account for the deposit within thirty (30) days of a tenant’s written request for a refund, then the law allows the tenant to recover actual damages (amount of damages made) or $200.00—whichever is greater. The judge may also award court costs and attorney fees to the person who wins the suit. The law does not permit the tenant to give up, or waive, this right in a lease.

Pet Deposits

• Money held as a pet deposit is recoverable under the Lessee’s Deposit Act.

​

• Money held as a “pet fee” or “pet charge” is not covered by the Act and may or may not be recoverable according to the terms of the lease.

Eviction

• Proper procedure must be strictly followed!

​

Eviction

​

• When the tenant breaches the lease agreement (i.e., failure to pay rent), the landlord must first deliver a written Notice to Vacate to the tenant.

​

• This notice gives the tenant five (5) days, not counting weekends or holidays, to vacate. CCP 4701

​

• If the tenant is not at home when the notice is given, then the notice may be posted on the door of the leased property. This has the same effect as delivering the notice to the tenant. CCP 4703

​

• If a tenant fails to vacate within five (5) days of notice, then the landlord will begin eviction proceedings by filing a petition with the justice of the peace or city court.

​

Eviction

The eviction trial will be heard three (3) days after the tenant has been served. CCP 4732

​

The tenant will then have to appear in court and state why he/she should or should not be ordered to vacate the property. CCP 4731

​

If the justice of the peace finds the landlord entitled to evict the tenant, or if the tenant fails to appear at the trial, then the court will rule in favor of the landlord.

​

The tenant will be ordered to vacate the property within twenty-four (24) hours. CCP 4732

Eviction

• If the tenant fails to vacate the premises within twenty four (24) hours after the landlord is granted a judgment of eviction, then the court must issue a warrant commanding the local sheriff, constable, or marshal to seize the leased property, remove the non-complying tenant, and return possession of the leased thing to the landlord. CCP4732

Eviction

• A tenant who has appeared at the trial and argued a defense can file a suspensive appeal. In addition, an appeal bond must be applied for, and filed within twenty-four (24) hours of judgment of eviction. (CCP 4735) A landlord cannot legally evict a tenant without this procedure.

​

• If the landlord locks the tenant out of the leased property, puts the tenant’s possessions on the street or otherwise takes the law into his/her own hands, the landlord may be liable for damages for wrongful eviction.

Collection of Past Due Rent

• A landlord may file a separate suit to collect past due rent and may seize personal items, such as furniture and appliances, found in the property.

​

• If the landlord is unable to locate the tenant, the court has a procedure which will still allow the landlord to get a judgment against the former tenant. The landlord may get a court order to seize personal property in the property without posting a bond or other security. If this happens, it is probably best to consult an attorney. If the landlord does not follow proper legal procedure, the tenant may be entitled to damages.

Fair Housing

The Fair Housing Act prohibits discrimination in housing because of:

Race

Color

National Origin

Religion

Sex

Familial Status

Disability

​

By Transaction Type

Service and Assistive Animals

HUD Guidance on Service �and Assistive Animals

https://www.hud.gov/helping-americans/assistance-animals#Obligations_of_Housing

The housing provider has not demonstrated that:

• Granting the request would impose an undue financial and administrative burden on the housing provider
• The request would fundamentally alter the essential nature of the housing provider’s operations
• The specific assistance animal in question would pose a direct threat to the health or safety of others despite any other reasonable accommodations that could eliminate or reduce the threat
• The request would not result in significant physical damage to the property of others despite any other reasonable accommodations that could eliminate or reduce the physical damage

​

Checklist for Avoiding Lawsuits

Pay attention to complaints

​

Handle complaints from tenants in a timely fashion.

​

Document, Document, Document (with care)

​

Get advice early when you see trouble brewing

Preventive Law

Take the right steps now to safeguard your business later.

​

​

Have written policies

Have a process and follow it.

Document, Document, Document

Written documentation is much easier to prove than oral discrepancies.

​

Creation – purpose, be neutral and Objective . Note: your documents are not private. They may be read by judges, attorneys, juries, or even the media. and professional procedures

​

Storage – physical vs. digital; time frames

Escrow Accounts and Commingling

Rules and Reg�Chapter 18 - Broker Supervision

A broker must maintain the rental trust account, the sales escrow account, and the security deposits trust account with appropriate controls for deposits and disbursements of funds received on behalf of consumers.

12/12/2025

Deposits & Commingling

​

#4 – Failure to account for any money coming into his possession belonging to others.

# 5 – Failure to properly disburse money which belongs to others upon its coming into his possession.

#6 – Commingling the money or other property of his principals with his own.

12/12/2025

36 Ways To Lose Your License��Contractual Issues

Purpose and Definition of Trust Accounts Sales Escrow Account

A resident broker, including corporations, partnerships and limited liability companies, who accepts any funds on behalf of clients in a real estate sales transaction shall open and maintain a sales escrow checking account in a financial institution in the state of Louisiana. All sales escrow accounts shall be titled in the identical wording as stated on the broker's license and the wording "Sales Escrow Account" shall be imprinted on all checks and bank statements issued in connection with this account. Except as otherwise provided in this Chapter, all funds received by a broker in connection with the sale of real estate shall be deposited in this account when there is a written contract to buy and sell real estate that has been fully executed and accepted by both buyer and seller.

Purpose and Definition of Trust Accounts�Sales Escrow Account

If you accept any funds on behalf of clients in a real estate sales transaction you must open and maintain a sales escrow checking account in a financial institution in the state of Louisiana.

​

It shall be titled EXACLTY what is on the broker's license and include the wording "Sales Escrow Account," and be on all checks and bank statements issued in connection with this account.

​

All funds received by a broker in connection with the sale of real estate shall be deposited in this account.

Paraphrased

Purpose and Definition of Trust Accounts�Rental Trust Account

If engage in the management of property owned by other persons you must open and maintain a rental trust checking account in a financial institution in the state of Louisiana.

​

It shall be titled EXACLTY what is on the broker's license and include the wording “Rental Trust Account," and be on all checks and bank statements issued in connection with this account.

​

All funds collected as rental payments from or on behalf of clients in connection with the management of properties owned by other persons shall be deposited into this account.

Paraphrased

Purpose and Definition of Trust Accounts�Security Deposit Trust Account

If engage in the collection of rental security or damage deposits in connection with property management activities on behalf of clients you must open and maintain a rental trust checking account in a financial institution in the state of Louisiana.

​

It shall be titled EXACLTY what is on the broker's license and include the wording “Security Deposit Trust Account," and be on all checks and bank statements issued in connection with this account.

​

All funds collected as rental security or damage deposits from or on behalf of clients shall be deposited into this account.

Paraphrased

Purpose and Definition of Trust Accounts

§2703. Non-Resident Broker Requirements

A. Non-resident brokers shall open and maintain sales escrow checking accounts, rental trust checking accounts, and security deposit checking accounts, as provided in §2701 of this Chapter; however, these accounts shall be opened and maintained in a Louisiana financial institution or a financial institution located in the resident state of the broker.

§2705. Change in License Status; Associate Broker and Inactive Broker Requirements

​

Associate brokers are prohibited from opening and maintaining escrow accounts.

​

All funds received by an associate broker in any real estate transaction shall be placed in the custody of the sponsoring broker.

§2705. Change in License Status; Associate Broker and Inactive Broker Requirements

​

An associate broker previously licensed as an individual broker or an active broker transferring to inactive status:

​

1. maintain escrow accounts for the limited and specific purpose of completing pending transactions and disbursing all deposits.

​

2. shall not deposit additional funds in escrow accounts as of the effective date of affiliation with a sponsoring broker or transfer to inactive status.

§2707. Branch Office Accounts

​

A broker may open additional escrow accounts to accommodate business transacted out of a branch office.

§2709. Additional Accounts

​

• A broker may open a separate escrow account for a transaction or series of related transactions.
• This is only allowed with prior written consent from all principal parties involved.

​

§2709. Additional Accounts

​

• The account must follow the rules set in §§2701 and 2703.
• All trust funds received for the transaction(s) must be deposited into this account.
• This option is intended to serve the interests of the principal parties more effectively.

§2708. Signatory Rights on Checking Accounts

�

Every sales escrow account must have the individual real estate broker listed as an authorized signatory.

​

The broker is fully responsible for making sure the account is maintained properly and that all funds are disbursed correctly.

​

Even if the broker adds sponsored agents or employees as additional signers, the broker still retains full responsibility for the account.

§2708. Signatory Rights on Checking Accounts

�The qualifying broker shall be an authorized signatory escrow accounts maintained by the licensed entity (Corporation, Partnership or LLC) and shall be responsible for the proper maintenance and disbursal of any funds contained therein.

​

The addition of sponsored licensees, principals and/or employees of the licensed entity as signatories on the accounts shall not relieve the qualifying broker of this responsibility.

​

§2711. Non-Interest Bearing Checking Accounts

​

The escrow account shall be opened as a non-interest bearing checking account unless all parties having an interest in the funds to be deposited therein have agreed otherwise in writing.

§2713. Personal Funds in Escrow and Trust Checking Accounts

​

​

​

A sum not to exceed $2,500 may be kept in each sales escrow account, which sum shall be specifically identified and deposited to cover bank service charges relating to the accounts, and shall not be used for any other purpose.

​

§2713. Personal Funds in Escrow and Trust Checking Accounts

​

​

​

A broker engaged in property management activities may keep funds in excess of $2,500 in a rental trust checking account for the temporary, limited, and specific purpose of enabling the broker to satisfy financial obligations for or on behalf of clients.

​

§2715. Withdrawal�

A. Funds deposited into a sales escrow checking account, rental trust checking account, or security deposit trust checking account shall not be withdrawn for any purposes except:

� 1. upon the mutual written consent of all parties having an interest in the funds;

2. upon court order;

3. to deposit funds into the registry of the court in a concursus proceeding;

4. to disburse funds upon a reasonable interpretation of the contract that authorizes the broker to hold such funds, provided that the disbursement is not made until 10 days after the broker has notified all parties and licensees in writing;

6. to return the funds to a buyer at the time of closing;

7. to cover the payment of service charges on sales escrow checking accounts, rental trust checking accounts, and security deposit trust checking accounts;

8. upon approval by the commission in connection with the sale or acquisition of a licensed entity;

9. to comply with the provisions of R.S. 9:3251 or any other state or federal statute governing the transfer of rents, security deposits or other escrow funds.�

B. Deposits shall be disbursed within 30 days of an agreement between the principles in a real estate transaction.

§2717. Deposits

​

Funds received in a real estate sales, lease or management transaction shall be deposited in the appropriate escrow or trust account of the listing or managing broker unless all parties having an interest in the funds have agreed otherwise in writing.

§2717. Deposits

​

Funds received in a real estate sales, lease or management transaction shall be deposited in the appropriate escrow or trust account of the listing or managing broker unless all parties having an interest in the funds have agreed otherwise in writing.

§2717. Deposits

​

Funds received in a real estate sales, lease or management transaction shall be deposited in the appropriate escrow or trust account of the listing or managing broker unless all parties having an interest in the funds have agreed otherwise in writing.

The buyer wants the seller to hold on to a check (not deposit it) until closing. Is this permissible?

No. According to the Louisiana Rules and Regulations, all deposits must be deposited.

§2719. Account Closing��

1. No escrow account may be closed until such time as all deposits therein have been properly disbursed.�
2. Bankruptcy and/or the revocation, suspension, or lapse of a broker license for any reason shall not be cause to close or discontinue maintenance of any sales escrow checking account, rental trust checking account, or security deposit trust checking account.

​

Notification Requirement - Broker must send written notice to all parties and licensees involved if there's a dispute over escrow funds.

​

Timeline - Action must be taken within 60 days of:

• The scheduled closing date, or
• The broker becoming aware of the dispute — whichever comes first.

​

§2901. Escrow Disputes

Options for Disbursement

• Mutual Consent: Disburse funds with written, mutual consent of all parties.
• Contract Interpretation:
• Broker may disburse funds based on a reasonable interpretation of the contract.
• Must wait 10 days after sending written notice before doing so.
• Court Registry (Concursus Proceeding):
• Deposit funds into the registry of a court with jurisdiction and venue.
• Court Order: Disburse funds per a court order from a court of competent jurisdiction.

​

§2901. Escrow Disputes

Joe Smith is working with a buyer who made an offer on a home. The buyer put�down a $1,000 deposit to be held by the listing broker as ABC Realty. The offer�was accepted. During the inspection period, the buyer found many deficiencies�and terminated the contract and asked to receive a return of the deposit.�ABC Realty returned the deposit. Below is a copy of the check:

CASE STUDY

Why was the broker’s license suspended for thirty days?

CASE STUDY

Commingling

“putting personal funds and funds belonging to other persons in one mass or mixing the funds together so they cannot be identified or differentiated.”

CASE STUDY

I’ve been working with and investor for years, helping him acquire rental property all over the city.�He now wants me to begin managing his rental houses. He insists that after collecting the security deposit, I transfer it to him at the end of the month.

Can he do that?

My owner wishes to hold all security deposits.�He specifically asked me to give him all security deposits at the end of the month.

Is that legal?

Yes. If proper procedure is followed.

First, the broker must have the bank account – not the salesperson.

​

Second, the deposit check is to be written to the brokerage firm and put in the security deposit trust account.

​

Next, BOTH parties must agree

​

Finally, once both parties have agreed in writing, the check may be sent from the security deposit trust account to the owner.

​

What if the owner wants the deposits written directly to his/her LLC? Does the broker have to run it through their trust account or could the tenant make it directly to the owner?

§2717. Deposit

A. Funds received in a real estate sales, lease or management transaction shall be deposited in the appropriate sales escrow checking account, rental trust checking account or security deposit trust checking account of the listing or managing broker unless all parties having an interest in the funds have agreed otherwise in writing.

What if the owner wants the deposits written directly to his/her LLC? Does the broker have to run it through their trust account or could the tenant make it directly to the owner?

​

§2717. Deposit “…unless all parties having an interest in the funds have agreed otherwise in writing.”

​

Both the lease agreement and the management agreement needs to say the deposit is to be held by the owner.

Commissions and Fees

§1453. Investigations

​

The commission shall not become involved in disputes between licensees or registrants in any matter regarding the entitlement to or payment of commissions, fees, or compensation involving the sale or lease of real estate.

§1446. Compensation; independent contractor status of salespersons and associate brokers

�Source of Compensation:

Active licensees may only accept compensation from their current sponsoring/qualifying broker.

Payment to Personal LLC or Corporation Allowed:

Salespersons and associate brokers may direct their sponsoring broker to pay earned commission to:

• An unlicensed corporation (where they are sole officer/shareholder), or
• An unlicensed LLC (where they are sole manager).

​

§1446. Compensation; independent contractor status of salespersons and associate brokers

�Unlicensed Recipients Prohibited:

No licensee may pay commission or compensation to any unlicensed person or entity.

Exception: A nonresident broker licensed in their home state may receive payment.

No Sharing with Unlicensed Parties:

A broker must not pay a licensee if they know that licensee will share the commission with an unlicensed person or entity.

​

​

§1446. Compensation; independent contractor status of salespersons and associate brokers

​

Brokers, Salespersons, Timeshare Salespersons:

May NOT pay or offer commissions or valuable consideration for any real estate acts.

Former Licensees:

May receive commission only for transactions they negotiated while they were properly licensed.

Switching Sponsoring Brokers:

A licensee may receive payment for a deal started under a former broker, but the payment must go through the current broker.

§1445. Unlicensed persons cannot recover brokerage charges

​

No action or suit shall be instituted, nor recovery be had, in any court of this state by any person for compensation for any act done or service rendered, the doing or rendering of which is prohibited under the provision of this Chapter to other licensed brokers or licensed salespersons unless such person was duly licensed under this Chapter as a broker or salesperson prior to the time of offering to perform any such act or service or procuring any promise to contract for the payment of compensation for any such contemplated act of service.

We Love Referrals!

§1447. Referral fees; interference with brokerage relationships

​

It is unlawful for any person, including but not limited to a relocation company, to directly or indirectly solicit or request a referral fee or similar payment for the referral of a buyer or seller unless the person seeking the referral fee has reasonable cause. Reasonable cause shall not exist unless:

​

• The person seeking the referral fee introduced the client to the licensee or registrant from whom the referral fee is being sought; or

​

• The person seeking the referral fee has a written contractual relationship with the licensee or registrant for a referral fee or similar payment; and

​

• The licensee or registrant has received the client referral prior to the client contracting to buy or list real estate with the licensee or registrant.

​

The solicitation or request of a referral fee or similar payment in accordance with this Subsection shall not create a legal right to be paid such fee or payment.

§1447. Referral fees; interference with brokerage relationships

​

It is unlawful to interfere with a real estate brokerage relationship.

​

The demand for a referral fee from a licensee or registrant when reasonable cause for payment does not exist constitutes interference with a real estate brokerage relationship.

​

A threat by a third party to reduce, withhold, or eliminate any relocation benefits in order to generate a referral fee from a licensee or registrant when reasonable cause for payment does not exist also constitutes interference with a real estate brokerage relationship. Notwithstanding the foregoing, communications between an employer or its representative and an employee concerning relocation policies and benefits shall not constitute interference with a real estate brokerage relationship.

We Love Referrals!

§1447. Referral fees; interference with brokerage relationships

​

It is unlawful for any person, licensed or unlicensed, to interfere with the contractual relationship between a licensee or registrant and a client by counseling a client or another licensee or registrant on how to terminate or amend an existing contractual relationship between a licensee or registrant and a client. Communicating a company's relocation policy or benefits to an employee or consumer shall not be considered a violation of this Subsection as long as the communication does not involve advice or encouragement on how to terminate or amend an existing contractual relationship between a licensee or registrant and a client.

We Love Referrals!

§1447. Referral fees; interference with brokerage relationships

​

A prevailing party in any action for violations of this Section may be awarded actual damages, plus reasonable attorney fees. In addition to bringing an action in court, violations of this Section may be addressed through mediation services. Such mediation services shall include but shall not be limited to mediation through real estate entities who specifically offer programs for resolving complaints involving real estate referral fees.

Finder’s Fees

It is unlawful to pay a finder’s fee to an unlicensed individual.

Finder’s Fees

The commission may issue a subpoena to any person or persons who the commission has probable cause to believe has engaged in real estate activity without a currently valid license.

Finder’s Fees

The commission may impose a civil penalty of no more than five thousand dollars upon any unlicensed person who is found to have engaged in real estate activity without the benefit of a currently valid In addition, the commission may assess license.

Finder’s Fees

In addition, the commission may assess costs and attorney fees against the unlicensed person found to have been engaged in real estate activity without a current license.

Finder’s Fees

The fact that any person engages in or performs or offers to engage in or perform any of the practices, acts, or operations constituting "real estate activity" is evidence that such person is engaged in the illegal practice of real estate.

Finder’s Fees

The commission may require that any person engaged in real estate activity without a license return any fees collected for engaging in real estate activity.