Louisiana Real Estate Salesperson Exam — All Questions
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In Louisiana, who is responsible for maintaining the sales escrow or trust account that holds client funds such as deposits?
- a.Each individual salesperson
- b.The parish clerk of court
- c.The sponsoring broker✓
- d.The Louisiana Real Estate Commission
The sponsoring broker is responsible for the brokerage's sales escrow or trust account in Louisiana. Client funds such as deposits must be placed in that account, kept separate from the broker's own funds, and accounted for. Commingling client funds violates Louisiana license law.
The Louisiana Real Estate Recovery Fund is designed to:
- a.Guarantee a minimum commission to licensees
- b.Reimburse members of the public who obtain an unpaid court judgment against a licensee for certain violations, up to statutory limits✓
- c.Cover the Commission's administrative salaries
- d.Provide down-payment assistance to buyers
The Louisiana Real Estate Recovery Fund reimburses members of the public who obtain a valid but unpaid court judgment against a licensee for certain violations of the license law, subject to statutory per-transaction and per-licensee caps. A licensee who triggers a payout may have their license suspended until the fund is repaid.