Real Estate License In Louisiana – So you’ve resolved to get your own Louisiana real estate license. Maybe you’re employed full time and wish to get started investing in real estate and handling your own deals. Perhaps you’re a stay-at-home parent and want the flexibility to make your own hours and go at your own pace. Whatever is driving your decision, this article will help you through the procedure of getting your real estate license in Louisiana so you can hit the ground running.
- The LREC. The governing authority for real estate agents in Louisiana is called the Louisiana Real Estate Commission (the “LREC”). The LREC handles software for new real estate agents, monitors compliance with continuing education requirements, and penalizes and disciplines brokers for violations of property legislation and principles in Louisiana. Fear the LREC. Seriously.
- Brokers. There are two types of real estate agents in Louisiana: salespersons and agents. Everyone starts out as a salesperson, and every salesperson needs to be connected with a broker. Consider it like an apprenticeship: brand new brokers in Louisiana “attach” to a broker, who is supposed to guide them through the regulatory, operational, and promotion measures involved in being an agent. After four decades as a salesperson–and a lot of extra classes–a salesperson could apply to become an agent.
- Realtor associations. The general public thinks of “brokers” and “realtors” as the same thing. Technically, however, a broker can call herself a “realtor” only if she is a member of the National Realtor Association (through at least one of its local chapters). And among the great prizes of being an agent–access to the multiple listing services–demands that you belong to some realtor institution. Therefore, though it’s technically not compulsory, almost all Louisiana brokers are members of a realtor association, and many Louisiana brokers require it.
Prerequisites for becoming a real estate agent in Louisiana are pretty straightforward. New brokers must:
- Be over 18 years old;
- possess a high school diploma (or GED equivalent);
- complete 90 hours of pre-licensing instruction from a licensed teacher in Louisiana;
- pass a criminal background check;
- pass standardized testing; and register using a Louisiana real estate agent and supply proof of errors and omissions insurance.
1 huge “hack” that you need to know about: the LREC will frequently accept college coursework or another schooling instead of some or the majority of the pre-licensing education requirement. For many, this could mean shaving off 40-60 hours of pre-licensing instruction requirements. To find credit for previous coursework, just submit your school transcripts into the LREC with a letter requesting credit. Here is the LREC’s contact info:
- Phone: -LRB-225-RRB- 925-1923
- Mail: email@example.com
After you receive credit line up to your prior coursework, submit the next Certification (available online) to the LREC to Receive your Louisiana real estate license:
- Salesperson License Application “Part A”: With this form, you inform the LREC all about yourself and authorize a background check. Technically, you can submit this “Part A” type before or when you complete your pre-licensing education, but you need to submit it until you choose the Louisiana property examination.
- Salesperson License Application “Component B”: This is actually the “Sponsorship Affidavit” form your new property agent needs to complete. You can submit this form before or when you complete your pre-licensing instruction and before or after you take the Louisiana real estate exam.
Next, you will have to take the Louisiana property exam. A company called PSI administers the real estate exam in Louisiana. To program the examination, go on the internet to PSI’s site, make an account, and schedule it (for a commission).
Speaking of penalties, you should know it may be somewhat of an investment to get your real estate license in Louisiana and cover all you want to begin. Here are the typical prices You’ll Be facing as a new real estate agent from the New Orleans area:
As a new realtor in Louisiana, you must affiliate with a licensed broker. Even though you will report to your agent–and your agent will be responsible for tracking what you do–the broker isn’t your own “boss” Except, in very rare circumstances, Louisiana real estate representatives are independent contractors–not workers–of brokers. This usually means that you have greater flexibility in the way you run your business and what hours you work. But in addition, it means you don’t get a regular paycheck: property agents “eat what they kill” and earn money only when they perform deals.
In return for the support and advice, your broker is (supposed) to provide, you split a part of the commission you get on any deal with your agent. The commission split with Louisiana real estate brokerages can vary substantially–from 25% or less to up to 60%. In other words, if you do a price to get a $10,000 commission, your agent may maintain somewhere between $2,500 to $6,000 of that commission.
Beware, too, that many Louisiana real estate brokerages bill their representative’s fees along with commission splits:
- Many Louisiana real estate brokerages charge monthly fees (allegedly for things such as email accounts, your own “private” web page, along with other “cutting edge” technology);
- many Louisiana real estate brokerages charge transaction fees for things such as “national dues,” overall marketing solutions, and neighborhood “royalty” fees which effectively increase the commission divide you pay as an agent; and
- many Louisiana real estate brokerages pass the whole cost of basic support services such as graphic design function and digital fax service on their agents.
Like an airline that provides “cheap” flights but fees passengers for soft drinks, carry-ons, and “updates” for items included on other flights. To be sure you’re comparing “apples to apples” when picking a real estate brokerage in Louisiana, you have to take into account the hidden costs of conducting business with that brokerage.