Louisiana Real Estate Broker Exam — All Questions

Louisiana's mandatory agency disclosure form must first be provided to a prospective client or customer:

• a.Only after the purchase agreement is signed
• b.Within 30 days after the act of sale
• c.Only if the consumer asks about representation
• d.At the first contact where confidential information is discussed, before an agreement is entered✓

Louisiana license law requires licensees to give the mandatory agency disclosure informational pamphlet/form at the first point where a designated agency relationship is discussed or confidential information is exchanged, before entering an agency agreement. Early disclosure lets consumers understand who represents them before they reveal negotiating positions. The disclosure itself does not create an agency relationship.

Under the Louisiana Residential Property Disclosure Act, the seller of residential property must generally provide the buyer with:

• a.A guaranteed home warranty policy
• b.A completed property disclosure document identifying known defects✓
• c.A certified appraisal paid for by the seller
• d.A parish tax clearance certificate

The Louisiana Residential Property Disclosure Act (La. R.S. 9:3196 et seq.) requires most residential sellers to complete and deliver a property disclosure document describing the property's known condition and defects. The licensee should ensure the form is delivered as required and must not help conceal known material defects. It is a disclosure of known conditions, not a warranty or appraisal.

A Louisiana broker wishes to have the firm represent both the buyer and the seller in the same transaction as a dual agent. This is permitted only if:

• a.The transaction is below a set dollar amount
• b.The LREC approves the specific transaction in advance
• c.Both parties give informed written consent to the dual agency✓
• d.Each party is represented by a different parish

Louisiana permits dual agency only with the informed written consent of both the buyer and the seller. Because a dual agent cannot fully advocate for either party, the licensee must disclose the limited representation and obtain written consent, and must not reveal one party's confidential information to the other. No advance LREC approval of individual transactions is required.