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Practice Of Real EstateLicensingMEDIUM

In Louisiana, an unlicensed person violates the licensing requirement after a cease-and-desist letter is served. Which statement is correct?

Correct Answer

A) The person may be fined up to $500 per day beginning five calendar days after certified-mail service, imprisoned up to three months, or both

La. R.S. 37:1436 sets the unlicensed-activity penalty at up to $500 per day beginning five calendar days after certified-mail cease-and-desist service, imprisonment up to three months, or both. Source basis: Louisiana Legislature official La. R.S. 37:1436, 37:1437, 37:1440, 37:1441, 37:1442, 37:1466, and Pearson VUE/LREC licensing requirements; checked 2026-04-30.

Answer Options
A
The person may be fined up to $500 per day beginning five calendar days after certified-mail service, imprisoned up to three months, or both
B
The applicant may proceed without meeting the statutory qualification if a broker sponsors the applicant.
C
The rule applies only to corporations and never to individual licensees.
D
The requirement is optional if the applicant passes the examination.

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Related Topics & Key Terms

Related Topics:

la.IIlicensing

Key Terms:

louisianala.IIlicensingunlicensed-penalty

Related Concepts

A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.

Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.

Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.

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