Louisiana Agency
Practice Questions & Answers (2026)
Agency law is one of the most tested subjects on the Louisiana real estate exam, and it's also one of the most misunderstood. The Louisiana Real Estate Commission (LREC) expects licensees to understand the legal duties owed to clients vs. customers, and the specific timing of required disclosures under Louisiana law. As a community property state, Louisiana also tests how agency relationships are affected when spouses are both parties to a transaction. Study these questions carefully — candidates who rely on national agency frameworks and don't account for LA-specific rules are among the most common failures on the state portion.
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Louisiana Agency — Practice Questions & Answers
136 questions on Agency from the Louisiana real estate question bank. First 10 are free — sign up to unlock all 136.
Q1. In Louisiana, a 'mandatary' in the context of real estate agency is best described as:
Explanation
Under Louisiana Civil Law, a mandatary is an agent authorized by the principal (mandant) to act on their behalf — equivalent to an agent in common law states.
Q2. In Louisiana, a designated agency arrangement means:
Explanation
Designated agency in Louisiana allows a broker to appoint separate licensees within the same firm to act as exclusive agents for the buyer and seller, reducing conflicts of interest.
Q3. Under Louisiana agency law, which duty requires the agent to keep the client's personal and financial information private?
Explanation
The fiduciary duty of confidentiality requires the agent to protect the client's personal and financial information from disclosure to other parties.
Q4. A Louisiana licensee acting as a dual agent must:
Explanation
A dual agent in Louisiana must obtain the informed written consent of both the buyer and seller before proceeding with dual representation.
Q5. The duty of 'reasonable care and diligence' in a Louisiana agency relationship means the agent must:
Explanation
The duty of reasonable care and diligence requires agents to exercise the skill, care, and diligence that a competent real estate professional would apply in similar circumstances.
Q6. In Louisiana, when must a licensee provide an agency disclosure to a potential client?
Explanation
Louisiana requires licensees to provide an agency disclosure at or before the first substantive contact with a potential client, informing them of the licensee's role.
Q7. In Louisiana, a 'mandant' in a real estate agency relationship refers to:
Explanation
Under Louisiana Civil Law, the mandant is the principal — the party who authorizes the mandatary (agent) to act on their behalf in a real estate transaction.
Q8. The fiduciary duty of 'loyalty' in a Louisiana agency relationship requires the agent to:
Explanation
The duty of loyalty requires the agent to place the client's interests above their own and above the interests of third parties, avoiding conflicts of interest.
Q9. When a seller's agent learns that the buyer is willing to pay significantly more than the offering price, the agent should:
Explanation
A seller's agent owes fiduciary duties to the seller, including the duty to disclose information that could affect the seller's negotiating position, such as the buyer's willingness to pay more.
Q10. An agent who discloses the seller's minimum acceptable price to the buyer without authorization has violated which fiduciary duty?
Explanation
Disclosing the seller's minimum acceptable price to the buyer without authorization violates the fiduciary duty of confidentiality that the agent owes to the seller.
Q11. A transaction broker in Louisiana:
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