Adrienne is a licensed salesperson in Louisiana. Without her principal broker's knowledge, she negotiates a lease of immovable property for a client and accepts a cash payment directly from the client as compensation. Under Louisiana Real Estate License Law, which of the following best describes the legal consequences Adrienne faces?
Correct Answer
D) Adrienne has violated Louisiana law by receiving compensation directly rather than through her principal broker, subjecting her license to suspension or revocation by LREC.
Under La. R.S. 37:1430 et seq. and LREC regulations, a salesperson is prohibited from receiving compensation for brokerage activities directly from any party to a transaction. All compensation must be paid through and distributed by the salesperson's principal broker. By accepting direct payment from the client, Adrienne has violated Louisiana Real Estate License Law, and LREC may impose disciplinary sanctions including suspension or revocation of her license. Negotiating leases of immovable property is also a brokerage activity requiring licensure and subject to the same compensation rules.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
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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