36 Ways to Lose Your License

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Uncover the 36 distinct causes that can lead to censure, suspension, or license revocation under Louisiana Real Estate License Law Section 1455. From violating specific laws to breaching regulations and acts like the Timesharing Act, this comprehensive course ensures real estate professionals stay compliant. Remember, when in doubt, seek guidance from your broker or the Commission.

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Presentation Transcript

36 ways to lose your license 2022 mandatory course

P art 1 Causes 1 -12

36 distinct causes to censure, suspend, or revoke License Law Section 1455 Advice: If you are not sure, ask your broker. If you are a broker, ask the Commission.

Committing any act in violation of the Louisiana Real Estate License Law not specified in this Section. Cause #1

Anything violated in License Law beyond the 36 covered here. Cause #1 simplified

Section 1446, Compensation No payments to person who hasn t secured license If agent transfers, payment must be received from current broker through previous broker Example of Cause #1 violation

Violating any rule or regulation promulgated by the Commission in the interest of the public and consistent with the provisions of this Chapter. Cause #2

If you violate anything in Rules and Regulations chapters 1 57, it is covered here. Cause #2 simplified

Violation of chapter 25 in Rules and Regulations Lack or omission of any information required in advertisements Example of Cause #2 violation

C om m itting any act in violation of the L ouisiana Tim esharing A ct. Cause #3

Do not violate the Timesharing Act. If in doubt, check out (https://lrec.gov/become- Cause #3 simplified licensed/timeshare/louisiana-timesharing-act/.)

Section 1131.12: Timeshare advertising regulation (similar to cause 35 of section 1455) Example of Cause #3 violation

Failure to account for any m oney com ing into his possession belonging to others. Cause #4

When receiving funds, place it in the appropriate account and have it accounted for in the transaction records Cause #4 simplified

Deposit check received from prospective buyer for residential purchase. Check held as opposed to depositing into escrow account. Example of Cause #4 violation

Failure to properly disburse m oney w hich belongs to others upon its com ing into agent s possession. Cause #5

When the time or situation warrants funds disbursement from our escrow accounts, do it correctly Cause #5 simplified refer to Rules and Regulations chapter 27, section 2715, Withdrawal

The buyers and sellers in a transaction have agreed in writing that $10,000 held by the buyer s broker be dispersed to the seller for repairs to the subject property. No reason is offered by the broker, but after a reasonable amount of time has passed, the broker has not released the funds. Example of Cause #5 violation (ref. Rules & R egs Ch.. 27, Sec.. 2715c(1))

C om m ingling the m oney or other property of his principals w ith their ow n. Cause #6

Keep the clients money away from the agents personal bank accounts Cause #6 simplified

I receive a deposit check from a client I do not give it to my broker I put the client s check in my checking account Example of Cause #6 violation Guess who s visiting the Commission in B.R.?

Accepting, giving, or charging any undisclosed commission, rebate, or direct profit on expenditures made for a principal. Cause #7

There are certain actions we should not entertain as revenue sources. Cause #7 simplified

Our clients ask us to secure a contractor to do work on their property. When work is completed and the contractor is paid, we receive 5% of what was charged as a thank you. Example of Cause #7 violation

Representing or attempting to represent a real estate broker or real estate agency other than the licensed broker or agency listed on the real estate license issued by the Commission. Cause #8

A persons license shows ABC Realty as their agency. The person says they represent some other agency. Cause #8 simplified

John says he represent QBJ Realty, but his license lists ABC Realty as his agency. Example of Cause #8 violation

Acting in the dual capacity of agent and undisclosed principal in any transaction. However, such a relationship shall not constitute dual agency if the licensee is the seller or lessor of property that he owns, or if the property is owned by a real estate business of which the licensee is the sole proprietor and agent, and the same is disclosed to the buyer or tenant. Cause #9

If you are acting as an agent in a transaction and you are the owner of the property being sold, disclose that fact to the buyer. Cause #9 simplified

Quinn is selling property through his agency. A prospective buyer asks Quinn to show the property. Upon meeting, Quinn omits informing the buyer that he is the owner. Example of Cause #9 violation

Guaranteeing or authorizing any person to guarantee future profits which may result from the resale of real property. Cause #10

You do not have or know how to use a crystal ball; so don t predict the future of the real estate market. Cause #10 simplified

Mary is considering making an offer on a property. Peter, the agent, says You must purchase this property. In five years, I guarantee you ll get twice the value when you sell it! Example of Cause #10 violation

Offering real estate for sale or lease without the written consent of theALL ownersor their authorized agents. Undivided real estate may be offered for sale or lease with the written consent of the owner of the property to be sold or leased as to his undivided portion of the property. Cause #11

Before you advertise property for sale or lease, be sure to have all owners agree in writing that it is ok. Whether one or three, ALL must agree! Cause #11 simplified

Joe, John, and Jerry are selling their property. Joe and Jerry agree in writing that you are to advertise the property for sale. John does not. You advertise anyway Example of Cause #11 violation

Offering real estate for sale or lease on terms other than those authorized by the owner or his authorized agent. Cause #12

What you write in the listing agreement is what you do for your client. Do not deviate. Cause #12 simplified

In the listing agreement, your client seeks a sales price of $350,000, with no owner assistance to buyer. You tell another agent or a prospective buyer that $300,000 is acceptable and the owner/seller will assist with financing. Example of Cause #12 violation

P art 2 Causes 13 24

Offering any inducem ent to or in any w ay encouraging a party to a w ritten contract involving the sale, lease, or m anagem ent of real estate to break such contract for the purpose of substituting, in lieu thereof, a new contract w ith another principal or licensee. Cause #13

A signed, written contract is a legal document. If you are not a party to the contract, do not interfere or disrupt it. Cause #13 simplified

You transfer your license to another broker. Upon doing so, you contact your former client and attempt to convince them to break their contract with your former broker. Reason/excuse: The former broker can t accommodate them as well as you can. Example of Cause #13 violation

N egotiating the sale, exchange, lease, or m anagem ent of real estate directly w ith an ow ner or lessor of the real estate if he know s that such ow ner or lessor has a w ritten outstanding contract in connection w ith such real estate granting an exclusive agency or an exclusive right to sell, exchange, lease, or m anage the real estate to another broker. Cause #14

A seller is in a listing agreement. You know this. Do NOT negotiate directly with that seller. Contact the agent representing them. Cause #14 simplified

You know Seller Jane has a listing agreement with QMD Realty. You are representing a buyer. You know Seller Jane is contractually obligated. Your stance is so what. You directly contact Seller Jane to negotiate the sale of the listed property. Example of Cause #14 violation

K now ingly m aking any false representations to any party in a real estate transaction. Cause #15

If information is not confidential, disclose it. Cause #15 simplified When you disclose, be truthful. Do not be creative or lie.

Your client knows, and tells you, that their property has flooded. They do not disclose on the property disclosure form AND they ask you to not disclose either. You agree to this. Example of Cause #15 violation