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.

Practice Questions

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:

A.A government regulator
B.An agent authorized to act on behalf of a principal
C.An appraiser of property
D.A title company representative

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:

A.One broker represents all clients in a transaction
B.Separate licensees within the same firm are designated to represent buyer and seller individually
C.The commission is split equally between two brokers
D.The broker appoints the LREC to handle disputes

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?

A.Loyalty
B.Obedience
C.Confidentiality
D.Disclosure

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:

A.Only represent the seller's interests
B.Obtain informed written consent from both buyer and seller
C.Split the commission equally
D.Withdraw from the transaction

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:

A.Guarantee the sale of the property
B.Use the level of skill and care expected of a competent real estate professional
C.Follow all client instructions regardless of legality
D.Disclose all known defects in writing

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?

A.At or before the first substantive contact
B.Only at the time of contract signing
C.After showing the first property
D.At the time of closing

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:

A.The agent acting on behalf of the client
B.The principal who authorizes the agent to act
C.The notary who closes the transaction
D.The broker supervising the transaction

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:

A.Disclose all material facts about the property to the public
B.Place the client's interests above the agent's own interests
C.Maintain records for at least 5 years
D.Verify the accuracy of MLS data

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:

A.Disclose this information to the seller immediately
B.Keep this information confidential per the buyer's interests
C.Immediately withdraw from the transaction
D.Report the information to the LREC

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?

A.Obedience
B.Confidentiality
C.Accounting
D.Disclosure

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:

A.Owes full fiduciary duties to both buyer and seller
B.Provides limited representation to both parties, facilitating the transaction
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