How to Become a Real Estate Broker in Louisiana? (license| income)

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To become a real estate broker in Louisiana, you must:

1. Meet the eligibility requirement;
2. Have at least four years of real estate salesperson experience;
3. Complete 150 hours of pre-licensing courses;
4. Pass the Louisiana Real Estate Broker Exam;
5. Submit an application and $165 to the Louisiana Real Estate Commission;
6. Go through the background check;
7. Maintain the broker license

If you have been working as a real estate agent in Louisiana for some time, and wish to bring your business to the next level, then upgrading your license to become a real estate broker could be a sensible choice.

Rather than making income solely based on your sales production, being a broker allows you to build a team of real estate agents. You’ll be recruiting, providing training and support to your underlying agents. In return, you would get a share of their commission.

In this guide, you’ll learn the steps to become a real estate broker, income updates, and FAQs on this profession.

But before we start, I want to give a brief disclaimer. This post is not intended as legal advice or state/federal real estate training. It is for general information only. Please always follow your State laws and best practices.

(P.S. If you are just starting the real estate career, but haven’t obtained the salesperson license yet, you should read over this starter guide first.)

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7 Steps to Become a Real Estate Broker in Louisiana

Step 1: Meet the eligibility requirement

You’ll need to be at least 18 years old, completed high school education, have a valid Social Security Number, Citizen of the United States or lawfully admitted alien.

Step 2: Fulfill the work experience

You need to have at least four years of salesperson experience. Of which, two of the four years must be immediately preceding submission of a broker license application. The work experience can be accumulated in state other than Louisiana.

Step 3: Complete the pre-licensing education

You must complete 150 hours of qualifying courses from an approved education provider. It must cover:

• Basic real estate fundamentals (90 hours)
• License law and rules & regulations (30 hours)
• Broker responsibility (30 hours)

Step 4: Pass the Louisiana Real Estate Broker Exam

Once you finish the broker courses, you need to submit the Initial Real Estate Broker License Application – Part A to the LREC. The total fee is $165. Then they will send you the form to register for the broker exam.

The exam is to make sure you have adequate real estate knowledge in becoming a broker. Similar to the salesperson exam, the broker exam is also administered by the PSI.

Most test centers would require you to bring at least two valid IDs to verify your identity. Don’t forget to bring them along. Else you won’t be able to write the exam.

I’ll include more details about the exam later in this post.

Step 5: Submit an application to the Louisiana Real Estate Commission

Similar to the registration process of being a salesperson, once you pass the exam, you need to submit the Part B of the Broker License Application.

If you are starting your firm and will no longer work with your current broker, then you need to fill out the Termination of Sponsorship form. Also, you might need to upgrade and transfer your E&O coverage.

Step 6: Go through background check

As part of the application process, they will conduct a background check on you. The purpose is to protect the public interest.

It will be done through an approved vendor, Clearbox. The fee is $49. However, the background check details are only available for 120 days. Therefore, you should wait until you pass the real estate exam before applying for it.

Step 7: Maintain the real estate license

All Louisiana real estate license holders must renew their license every year before Dec 31st. The best is to do so through the MyLREC Portal.

During each annual renewal period, you need to take at least 12 hours of Continuing Education.

The curriculum must consists of the mandatory course topic(s) specified by the Commission. For 2021, the mandatory CE topic is “Basics of Investment Property and Property Management”.

A Quick Table Summary of Becoming a Real Estate Broker in Louisiana

Here are more details about the Louisiana Real Estate Broker Exam

There are 130 questions in the Louisiana real estate broker exam.

What topics will be tested in the Louisiana real estate exam?

When you are studying for the exam, it is wise to spend more time on sections that are more heavily weighted.

Here’s the content of the National Portion:

Here is the State Portion Content Outline:

Here are some sample broker questions

SAMPLE BROKER QUESTIONS (SCENARIO-BASED) Scenario:

You are hosting an open house. Mr. and Mrs. Charles Martin come into the house. You greet them and show them the house. The Martins tell you the house is exactly what they are looking for and they are very interested in purchasing it. You then give them information showing the various types of financing available with down payment options and projected payments.

Mr. Martin tells you they have been working with Mary Hempstead of XX Realty, a competing real estate company. Before leaving, you thank them for coming and give them your business card.

A. The first thing on Monday morning, Mrs. Martin calls and indicates they have tried to reach Mary and cannot. They indicate they have a written buyer’s agent agreement with Mary’s broker. They are afraid someone else is going to buy the house. Which of the following should you do? Select the best answer.

1. Seek advice from your supervising broker.

2. Tell them to come to your office.

3. Ask them to bring the buyer’s agency agreement to you for your interpretation.

4. Tell them to be patient and continue trying to reach Mary.

5. Tell them to call Mary’s supervising broker or branch manager.

6. Tell them you are really sorry, but there is nothing you can do.

Quote from Louisiana Real Estate Examination Licensing Information Bulletin

How much does it cost to get a real estate broker license in Louisiana?

It costs approximately $644 to get a real estate broker license in Louisiana. Here’s the breakdown:

• Broker courses $345 (approx.)
• Exam fee $85
• Background check $49
• LREC fees $165 

However, if you were setting up a real estate brokerage, the cost of getting a broker license is only part of the expenses. There is also other office expenses such as salary of administrative staff, office lease, furniture, equipment, software subscriptions.

How long does it take to become a real estate broker in Louisiana?

It takes at least four years to get a real estate broker license in Louisiana. That is the required amount of real estate sales experience. But it also depends on the time it takes you to complete the pre-licensing courses, exam, background check, application.

You may speed up in getting the Louisiana real estate license by taking online courses. This way, you’ll have the flexibility to finish the pre-licensing education at a quicker pace.

Can you become a real estate broker with a felony in Louisiana?

An applicant with a felony may not obtain a real estate broker license if the Louisiana Real Estate Commission (LREC) determines that the offense is too severe. They would typically be more alarmed on incidents that impact the applicant’s honesty, trustworthiness, character, and integrity.

What is the nature of the crime? Does it have anything to do with the honesty, truthfulness, and reputation of the applicant? Is the applicant currently under probation or parole? All these are factors that may affect a real estate license application.

The LREC will review each case independently. They may also require you to provide further documents and explanation about the incident.

But don’t get discouraged as everyone has a past. The most important is that you can demonstrate that you will serve the public in a fair, honest, and open manner.

Here’s an article that covers how to apply for a real estate license with a felony record. In there, you’ll find practical ideas which could help your application.

How Much do Real Estate Brokers Make in Louisiana?

Real estate brokers in Louisiana earn an average yearly income of $50,590. It typically ranges between $37,760 and $64,080. Top earning real estate brokers are making $76,570. (*)

Your earning depends on many factors. For example, the amount of time per week you are dedicated to run the business and the number of agents in your sales team. Having the skills and vision to delegate tasks to others rather than DIY is another major determining factor.

Here’s another post you could be interested. “Do Brokers Make More than Real Estate Agents? (Facts Revealed)”

(*) Source: Bureau of Labor Statistics (May 2019)

Is there a demand for real estate brokers in Louisiana?

Currently, there are only 100 real estate brokers in Louisiana, but 1,620 real estate agents. This works to an average of 16 agents per office.

So whenever there are sales associates who need support and training to grow their business, there is always a demand for real estate brokers in Louisiana.

I have more questions about the Louisiana real estate license, whom should I contact?

You could contact the Louisiana Real Estate Commission:

• Address: 9071 Interline Avenue, Baton Rouge, LA 70809
• Phone: (225) 925-1923
• Toll Free: (In Louisiana Only) 1-800-821-4529
• Fax: 225-925-4501

If you are reading up to this point, I bet you must be interested in becoming a real estate broker. Go through practice questions indeed can help you better prepare for the exam. PrepAgent is the exam prep that I highly recommend. You may click here to check out their package options. (**)

Disclaimer: The information in this post is for general information only, and not intend to provide any advice. They are subjected to change without any notice, and not guaranteed to be error-free. Some of the posts on this site may contain views and opinions from individual not related to JCHQ Publishing. They do not necessarily reflect our view or position.

(**) Affiliate Disclosure: Please note that some of the links above are affiliate links, and at no additional cost to you. Our company, JCHQ Publishing will earn a commission if you decide to make a purchase after clicking on the link. Please understand that we include them based on our experience or the research on these companies or products, and we recommend them because they are helpful and useful, not because of the small commissions we make if you decide to buy something through the links. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals.

Reference:

• Louisiana Real Estate Commission (source)
  • Broker/Associate Broker Pre-licensing Checklist (source)
  • Background Check (source)
  • Continuing Education Requirement (source)
  • Post-Licensing Requirement (source)
  • Errors and Omission (source)
• Louisiana Real Estate Examination Licensing Information Bulletin (source)
• Bureau of Labor Statistics
  • Occupational Employment and Wages- Real Estate Brokers (source)
  • Occupational Employment and Wage Estimates Louisiana (source)