Louisiana License Law and the Real Estate Commission
Louisiana real estate practice is governed by the Louisiana Real Estate License Law in Title 37 of the Revised Statutes and the rules of the Louisiana Real Estate Commission (LREC). This chapter reviews the Commission's authority, broker sponsorship, and Louisiana's distinctive E&O insurance requirement.
The Louisiana Real Estate Commission
The Louisiana Real Estate Commission (LREC) administers and enforces the Louisiana Real Estate License Law under Title 37 of the Revised Statutes. It licenses salespersons and brokers, approves education providers, investigates complaints, and imposes discipline. Anyone who sells, leases, or manages real estate for others for compensation must be licensed unless statutorily exempt.
Broker Sponsorship
A Louisiana salesperson must be sponsored by and licensed under a Louisiana broker. The sponsoring broker is responsible for the salesperson's licensed activity, advertising, and the handling of client funds. A salesperson cannot conduct real estate business independently of a sponsoring broker.
Mandatory Errors and Omissions Insurance
Louisiana requires all active licensees to carry errors and omissions (E&O) insurance as a condition of active licensure. The Commission makes a group policy available, but a licensee may obtain equivalent coverage independently. Allowing E&O coverage to lapse affects a licensee's ability to practice.