(**) Disclosure: This post may contain affiliate links, meaning RealEstateCareerHQ.com will get a commission if you decide to make a purchase through the links, but at no additional cost to you.
To engage in the real estate practice in Louisiana, all individuals must obtain a sales associate or broker license from the Louisiana Real Estate Commission (LREC). This is the regulatory body that grants licenses to real estate agents and brokers, handles the real estate license renewal and regulate the industry.
To become a real estate agent in Louisiana, you must be at least 18 years old, complete 90 hours of pre-licensing courses, pass the Louisiana Real Estate Salesperson Exam, and work with a broker who would sponsor your sales agent license. You also need to submit an application and a $90 fee to the Louisiana Real Estate Commission.
As a real estate agent in Louisiana, your role is to work with clients to buy or sell the right property according to their needs. You would be responsible for showing the property, bringing potential buyers to house tours, and handling the purchase and sale agreement.
Some agents may also help clients in searching for a rental property or lease out their units.
Since you are reading this guide, then you should have some interest in knowing about being a real estate agent in Louisiana.
You’ll learn about the step-by-step process to become a real estate agent in Louisiana, income updates, career outlook and FAQ about 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.
When choosing a real estate school, I prefer one where you could take the courses online. This way, you could study at your own pace whenever and wherever. The CE Shop is a trustworthy real estate education provider. You may click here to see whether they offer pre-licensing course in your state. (**)
8 Steps to Become a Real Estate Agent in Louisiana
Step 1: Meet the eligibility requirement
- Citizen of the United States or permanent resident alien
- At least 18 years of age
- Have a valid Social Security Number
- Hold a high school diploma or higher
Step 2: Complete the pre-licensing education
You are required to take 90 hours of course which covers different real estate concept. It has to be completed with an approved education provider.
The curriculum must cover:
- Real estate principles/practices,
- Louisiana Real Estate License Law,
- Commission Rules/Regulations,
- Law of Agency, and Civil Law pertaining to real estate.
Step 3: Pass the LA Real Estate Salesperson Exam
Once you have completed the pre-licensing course, you’ll need to submit the Part A of the Salesperson License Application. There will be a $90 fee. Once the LREC approves your application, they will send you an Exam Authorization Form to register the exam.
The exam is to test your knowledge on the real estate topics that are covered in the pre-licensing education. The test is administered by the PSI. To register, you need to complete their online exam registration and provide them with the required documents.
Cramming for the exam is ineffective. Instead, you should study for 45 to 60 minutes, then take a break. Concentration tends to wander if you study for too long. If possible, focus on studying only one to two topics per day. But be really good at it.
You’ll find more info about the LA real estate exam later in this post.
Step 4: Get sponsorship by a licensed real estate broker
After you pass the exam, you must work with a real estate broker who would sponsor your license.
When choosing a real estate brokerage, many people only focus on the commission split. But they neglect other essential factors in building a solid fundamental to their real estate business.
Finding a good mentor is crucial at the initial stage of your real estate career. A thoughtful and experienced trainer could teach you a repeatable and systematic process in running your business profitably.
You will find a list of the top producing Louisiana real estate brokerages later in this guide.
Step 5: Submit an application to the Louisiana Real Estate Commission
Now, it’s time to submit Part B of the Real Estate License Application to LREC. In there, you’ll need to obtain the license number and signature from your sponsoring broker.
If you plan to purchase the E&O through the LREC group coverage, you may remit the premium together with the application.
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: Obtain an Errors and Omissions Insurance
This coverage helps protect you from claims against the mistake in your professional services. It is mandatory for all real estate licensees. You may purchase the LREC group policy or get another equivalent E&O insurance coverage.
But if you get the LREC group policy, it will follow your license through any transfer or upgrade process. Here’s a sample policy for your reference.
Step 8: 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.
Within 180 days of obtaining the license, you must complete 45-hour of post-licensing education. This is a one-time requirement.
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”.
Furthermore, the post-license education hours may be used to fulfill 8 of the 12 CE requirement.
Here’s a Snippet of What a Real Estate Agent Think about The Profession
“You can make your own hours, but you have to plan out your week in advance, so you have a work life balance”
– Lori James, Real Estate Agent at Real Living Real Estate
If you want to know what Lori and other real estate agents think about this career, here’s an article you must not miss: “Is Real Estate a Good Career?”
A Quick Table Summary of Becoming a Real Estate Agent in Louisiana
| Eligibility | Education | Exam | Fees |
|---|---|---|---|
| Citizen of the United States or lawfully admitted alien At least 18 years of age Have a valid Social Security Number Hold a high school diploma | 90 hours of pre-licensing course 45 hours of post-licensing course within 180 days of obtaining license 12 credit hours of continuing education every year | 3 hours 135 questions Required passing score is 96 out of 135 | Pre-licensing courses around $338.80 Exam fee $36.75 Background check $49 Application fee $90 E&O $136 |
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Let’s Take a Closer Look at the Louisiana Real Estate Exams
The real estate salesperson exam is to test your knowledge and understanding of real estate law, principle and practices, and mathematics.
How many questions are on the Louisiana real estate exam? and what is the required passing score?
There are 135 questions in the Louisiana real estate salesperson exam.
| # of Questions (Points) | Time Allotted | Required Passing Score | |
|---|---|---|---|
| Salesperson Exam (National Portion) | 80 (80 points) | 105 minutes | 56 |
| Salesperson Exam (State Portion) | 55 (55 points) | 75 minutes | 40 |
What topics will be tested in the LA 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:
| Exam topics | Salesperson |
|---|---|
| Property ownership | 8% |
| Land use controls and regulations | 5% |
| Valuation and market analysis | 7% |
| Financing | 10% |
| General principles of agency | 13% |
| Property disclosures | 6% |
| Contracts | 17% |
| Leasing and Property Management | 3% |
| Transfer of Title | 8% |
| Practice of real estate | 13% |
| Real estate calculations | 10% |
Here is the State Portion Content Outline:
| Exam topic | Salesperson (# of items) |
|---|---|
| Duties and Powers of the Real Estate Commission | 5 |
| Licensing Requirements | 6 |
| Statutory Requirements Governing the Activities of Licensees | 17 |
| Louisiana Civil Law System | 16 |
| Louisiana Law of Agency | 11 |
Looking for more ideas in passing the LA real estate exam? Here you go!
The Colibri is the online school that I like. Their Exam Prep have helped thousands of students pass their exam on the first try. They even have a “Pass or Don’t Pay” Guarantee. That’s why confident they are with their program. You may click here to view their exam prep. (**)
Here are some practice questions of the exam
SAMPLE SALESPERSON QUESTIONS
A. Which of the following interests in property is held by a person who is granted a lifetime use of a property that will be transferred to a third party upon the death of the lifetime user?
1. A life estate.
2. A remainder estate.
3. An estate for years.
4. A reversionary estate.
B. Which of the following statements BEST identifies the meaning of the term, “rescission of a contract”?
1. A ratification of a contract by all parties.
2. A return of all parties to their condition before the contract was executed.
3. A transfer or assignment of a particular responsibility from one of the parties to another.
4. A review of the contract by the legal counsel of either party that may result in a cancellation without penalty or further obligation.
Quote from Louisiana Real Estate Examination Licensing Information Bulletin
How much does it cost to become a real estate agent in Louisiana?
It costs approximately $650.55 to get a real estate license in Florida. Here’s the breakdown:
- Pre-licensing courses with exam prep – $338.80
- Exam fee – $36.75
- Background check – $49
- Application fee – $90
- LREC E&O – $136 (pro-rated)
Although the exam prep not mandatory, you may want to invest in it. It can increase your chance of passing the exam on the first try so that you don’t need to waste time and money in retaking it.
Once you obtain the real estate license, there would be other business expenses to account for—for instance, MLS subscription, laptop, travel expenses, advertising, and marketing.
How long does it take to become a real estate agent in Louisiana?
It takes approximately 4 months to get a real estate license in Louisiana. But it also depends on the time it takes you to complete the required pre-licensing education, exam, background check, application, and get sponsorship by an actively licensed real estate broker in Louisiana.
If you are taking online courses, you’ll have the flexibility to study at your own pace and speed up the studying in a matter of weeks.
Which states have real estate license reciprocity with Louisiana?
Alabama, Arkansas, Colorado, Georgia, Iowa, Mississippi, New Mexico, Oklahoma, or Pennsylvania have reciprocal agreement with the LREC. To make an application for a reciprocal license, you must be a current legal resident and hold a license in one of these states.
If you hold an active salesperson license in another state, the LREC might partially waive some of the pre-licensing education requirement.
However, you must complete the 30-hours portion which covers the Louisiana Real Estate License Law, Commission Rules/Regulations, Law of Agency and Civil Law pertaining to real estate. Also, you are required to write the State Portion of the exam.
Can you get a real estate license with a felony in Louisiana?
An applicant with a felony may not obtain a real estate salesperson 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.
The actual approval is subjected to how LREC evaluates the case. I reviewed the felony applicant section of their website, anyone with a felony conviction must complete the Felony Applicant Form.
Furthermore, below is the list of documents that they require.
A. Complete a background check.
B. A letter from you stating your current status in the community detailing employment and civic involvement. Include a statement of any other criminal or felony convictions and the current status of same.
C. If you have a prospective sponsoring broker, you will need to submit a letter from that broker, acknowledging their awareness of your prior conviction.
D. Letters of recommendation from two reputable people in the community.
E. 1. If it is a state conviction, a copy of the court minutes reflecting the offense, and the penalty imposed must be provided.
2. If your felony conviction is a federal conviction, include a certified copy of your judgment/commitment order.
F. You must include a letter from your probation officer that either verifies that your probation is terminated or, if you are currently on probation, include the date your probation ends.
The above paperwork should be emailed to compliance@lrec.gov or mailed to 9071 Interline Avenue, Baton Rouge, LA 70809.
Quote from the Louisiana Real Estate Commission website
The Real Estate Commission may also hold a hearing where the felony applicant is required to be presence. In there, they will make an approval decision.
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 tips which could help your application.
How much do real estate agent make in Louisiana?
According to the Bureau of Labor Statistic, real estate agents in Louisiana earn an average yearly income of $52,440. It typically ranges from $24,940 and $53,120. Some high earning real estate agents are making $80,040. (*)
At the beginning phase in your real estate career, you could have a lower income. It indeed take time to build up the client base and established trust with the prospects. But as you continue to gain experience and sharpen your business skills, you should be able to notice a significant improvement to your earning.
Your earning potential as a real estate agent would depend on the price range of the properties that you work with, the number of transactions you could complete, the commission splitting schedule with the real estate brokerage and other factors.
Here’s another post that covers the important variables that could significantly affect your income.
(*) Bureau of Labor Statistic – May 2019
Want to know how to become a six-figures income earner? Check out this “Real Estate Agent Salary Guide“. In there, you’ll find what are the important factors which could significantly influence your income.
Is there a demand for real estate agents in Louisiana?
Louisiana has a population of nearly 4.65 million and has steadily grown over the years. Currently, there are 1620 real estate agents in Louisiana, which works out to be 0.843 real estate agents per 1000 of workers. (*)
Whenever there are transactions in buying, selling or renting property, there will be a demand for real estate agents in Louisiana.
(*) Source: Bureau of Labor Statistics May 2019
Practical ideas to build a real estate career in Louisiana
Tip#1: Select an area with demand for sales agents
When you are deciding the regions to conduct your real estate business, you should target areas that have a high population. After all, transactions can only occur when there are people.
Also, consider working on properties that have good value, as this is one of the major factors when calculating your commission. According to Zillow Home Value Index, the median home value in Louisiana is $147,900 with median rent of $1,200.
Here are the home values and rent info in the most populated cities
| Name | 2019 Population | Zillow Home Value Index | Median Rent |
|---|---|---|---|
| New Orleans | 396,766 | $179,700 | $1,700 |
| Baton Rouge | 225,900 | $162,500 | $1,200 |
| Shreveport | 188,206 | N/A | $775 |
| Lafayette | 128,874 | $160,200 | $1,150 |
| Lake Charles | 79,299 | $149,800 | $1,200 |
| Bossier City | 68,734 | N/A | $1,100 |
| Kenner | 67,416 | $167,500 | $1,250 |
| Monroe | 48,889 | $95,500 | $895 |
| Alexandria | 47,406 | $104,100 | $850 |
| Houma | 33,190 | $164,900 | $1,150 |
Tip#2: Choose a real estate broker that is suitable for you
When choosing a real estate brokerage, many people only focus on the commission split, but there are many other factors you also need to consider.
For example, what type of training will they provide? Will they equip you with the skills in finding qualify prospects and closing a sale? Is there a shared office space you could use? Can the brokerage provide you with adequate administrative and marketing support? Will they provide you with leads to work on? Do they utilize up-to-date technology (i.e.: CRM, software subscription) to streamline the daily workflow.
All these would be extremely important especially at the beginning phase of your career.
Below are the top real estate brokerage in Louisiana based on their sales volume in 2018.
| Top Real Estate Brokerages in Louisiana | Cities | 2018 Sales Volume |
|---|---|---|
| Latter & Blum ERA Powered | New Orleans | $3,743,075,870 |
| Gardner, Realtors | Metairie | $1,085,000,000 |
| Keller Williams Premier Partners | Denham Springs | $716,770,134 |
| Keller Williams Realty 455-0100 | Metairie | $571,735,112 |
Tip#3: Become a licensed real estate broker
Once you have established a solid client base and develop the necessary skills, then you could consider expanding your business to become a real estate broker.
This allows you to build a team of real estate agents, where your brokerage could be providing training, marketing, administrative support, office space, and a subscription to industry software.
In return, you would get a share of the commission from the transactions that your real estate sales associates handle. Thus, lead to a scalable business model.
Here’s a post on how to become a real estate broker in Louisiana.
Tip#4: Consider being a commercial real estate agent
To become a commercial real estate agent in Louisiana, you need to complete the 90 hours of pre-licensing real estate courses and pass the real estate salesperson exam. The LREC does not issue separate licenses for residential and commercial agents. So, the requirement is basically the same one we just went through.
Furthermore, if you are going to pursue a career as a CRE agent, you should look for a brokerage that could give you the right support and resources.
Here’s the “Complete Guide to a Commercial Real Estate Agent Career“, where I cover the career outlook, earning potential, and valuable feedback from CRE agents. Be sure to check it out.
Here’s a Snippet of what Amie Lenhart thinks about being a Commercial Real Estate Agent!
“… I work as my clients biggest advocate and work on behalf of their best interest. My job is an agent is to research, match needs, know the market, tour, draft LOI’s and Lease Proposals and successfully negotiate for my client meeting their goals and objectives...
… I think being a real estate agent is a great career. I love the hustle and relationship building aspect of this job and working for myself...”
– Amie Lenhart ,Commercial Real Estate Agent with Donald R. Kenney and Company Realty (DRK)
Here’s the article where you can read more on Amie’s thoughts about the real estate sales profession. In there, you can also find valuable feedback from multiple professional real estate agents. Don’t miss out!
I have more questions about the LA 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
A Video Summary to Obtain a Real Estate License in Louisiana
So that’s all I have to share for now. Do you like this guide? If so, please share it.
If you are reading up to this point, I bet you must be interested in getting a real estate license. Your first step is to complete the pre-licensing courses. You should select one that has an excellent reputation and long-term track record of satisfying students. The Colibri is exactly that! You may click here to check it out yourself. (**)
(**) 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.
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.
Reference:
- Louisiana Real Estate Commission (source)
- Louisiana Real Estate Examination Licensing Information Bulletin (source)
- Bureau of Labor Statistics
- Real Trends: 2018 Real Trends 500 by Volume (source)
- Zillow.com – Louisiana Home Prices & Values (source)
- World Population Review- Population of Cities in Louisiana (source)
