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Which Louisiana rule applies when a broker receives or is promised compensation?

Correct Answer

D) Payment or promise of compensation does not determine whether an agency relationship exists

La. R.S. 9:3896 states that payment or promise of payment to a broker is not determinative of whether an agency relationship has been created. Source basis: Louisiana Legislature official La. R.S. 9:3891, 9:3893, 9:3894, 9:3895, 9:3896, 9:3897, 9:3898, plus La. R.S. 37:1467; checked 2026-04-30.

Answer Options
A
The label used by the salesperson alone determines the agency relationship.
B
The licensee may disclose confidential information whenever it helps close the transaction.
C
A generic national agency rule replaces the Louisiana Law of Agency.
D
Payment or promise of compensation does not determine whether an agency relationship exists

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Related Topics & Key Terms

Related Topics:

la.Vagency

Key Terms:

louisianala.Vagencycomp-not-determinative
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