A real estate corporation in Louisiana wants to engage in brokerage activities. The corporation's sole owner, Pierre, holds a Louisiana broker license. Under Louisiana Real Estate License Law, which of the following statements is correct regarding the corporation's ability to engage in brokerage?
Correct Answer
B) The corporation must obtain its own real estate license, and Pierre must be designated as its principal broker with LREC.
Under La. R.S. 37:1430 et seq. and LREC regulations, a corporation, partnership, or other business entity that wishes to engage in real estate brokerage must obtain its own real estate license from LREC. Additionally, a licensed broker must be designated as the principal broker of that entity and registered with LREC as responsible for the firm's operations. Pierre's personal broker license does not automatically authorize the corporation to conduct brokerage.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
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