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Louisiana Real Estate Practice Exam
(Free Questions & Answers)

The Louisiana real estate exam is administered by the Louisiana Real Estate Commission (LREC) and is unlike any other state exam because Louisiana is the only state in the country that operates under civil law (based on the Napoleonic Code) rather than common law. This means the terminology and legal concepts differ: 'sale' instead of 'closing,' 'vendor' and 'vendee' instead of 'seller' and 'buyer,' and 'predial servitude' instead of 'easement.' Candidates from other states or those who studied national material must relearn many foundational concepts for Louisiana.

Administered by: Louisiana Real Estate Commission (LREC) · 135 questions · Passing score: 70%

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Free Louisiana Real Estate Practice Exam Questions

Test your knowledge with these Louisiana real estate practice questions. Each question is based on topics from the Louisiana Real Estate Commission (LREC) exam and includes detailed explanations.

Q1. Which state agency regulates real estate licenses in Louisiana?

A.Louisiana Department of Commerce
B.Louisiana Real Estate Commission (LREC)
C.Louisiana Bureau of Professional Standards
D.Louisiana Office of Financial Institutions

Explanation

The Louisiana Real Estate Commission (LREC) is the state agency responsible for licensing and regulating real estate salespersons and brokers in Louisiana.

Q2. 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.

Q3. In Louisiana, a contract for the sale of immovable property (real estate) must be made by:

A.Verbal agreement
B.Authentic act or act under private signature
C.A handshake with two witnesses
D.An oral agreement witnessed by a notary

Explanation

Under Louisiana Civil Law, a contract for the sale of immovable property must be made by authentic act (notarized) or by act under private signature (written and signed by the parties).

Q4. Under Louisiana law, a mortgage is called a:

A.Deed of trust
B.Conventional mortgage or collateral mortgage
C.Promissory note only
D.Lis pendens

Explanation

In Louisiana, the security instrument for real estate loans is generally called a conventional mortgage or a collateral mortgage, not a deed of trust as in many other states.

Q5. In Louisiana, the legal system that governs how property acquired during marriage is owned is called:

A.Common law property system
B.Community property system
C.Equitable distribution
D.Tenancy by the entirety

Explanation

Louisiana operates under a community property system. Property acquired during marriage is generally owned equally by both spouses as a marital community.

Q6. A property's gross rent multiplier (GRM) is calculated by dividing:

A.Net operating income by cap rate
B.Sales price by gross monthly rent
C.Annual income by vacancy rate
D.Assessed value by market value

Explanation

GRM = Sales price ÷ Gross monthly rent. It is a quick valuation tool for income properties, though it does not account for expenses.

Q7. Under the Fair Housing Act, which of the following advertising statements would be considered a violation?

A."3-bedroom home for sale, near schools"
B."Perfect for Christian families — church nearby"
C."Spacious home with accessible features"
D."Large backyard, great for children"

Explanation

Advertising that targets or expresses preference for buyers of a particular religion ('Perfect for Christian families') violates the Fair Housing Act's prohibition on discrimination based on religion.

Q8. In Louisiana, the public official who traditionally closes real estate transactions and authenticates deeds is the:

A.Title company representative
B.Notary public
C.Parish recorder
D.Circuit court clerk

Explanation

In Louisiana, a notary public (often an attorney) traditionally presides over real estate closings and authenticates (notarizes) the act of sale, reflecting the state's Civil Law tradition.

Q9. A home sells for $425,000. The seller pays a 5.5% commission. How much is the total commission?

A.$20,625
B.$23,375
C.$25,500
D.$28,500

Explanation

Commission = $425,000 × 0.055 = $23,375.

Q10. Under the Louisiana Residential Property Disclosure Act, sellers are required to disclose knowledge of:

A.The seller's original purchase price
B.Known material defects and environmental hazards affecting the property
C.Neighborhood crime statistics
D.Future planned road construction nearby

Explanation

The Louisiana Residential Property Disclosure Act requires sellers to disclose known material defects and environmental hazards that could affect the property's value or desirability.

Q11. In Louisiana, zoning authority is exercised primarily by:

A.The LREC
B.Parish and municipal governments
C.The Louisiana Department of Transportation
D.The federal government

Explanation

Zoning authority in Louisiana is exercised by local government entities — parishes (counties) and municipalities — which adopt and enforce zoning ordinances to regulate land use.

Q12. In Louisiana, a property manager who manages properties on behalf of others for compensation must hold a:

A.Property management certificate from a trade school
B.Louisiana real estate broker's or salesperson's license
C.Parish business license only
D.Federal property management certification

Explanation

In Louisiana, managing real estate for others for compensation constitutes real estate brokerage activity and requires a Louisiana real estate license (broker or salesperson working under a broker).

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Louisiana Real Estate Exam — What to Expect

Licensing Authority
Louisiana Real Estate Commission (LREC)
Total Questions
135 multiple choice
Passing Score
70%
Time Limit
4 hours
Exam Fee
$85
Pre-License Hours
90 hours required
First-Time Pass Rate
55%
Official Website
Louisiana Real Estate Commission (LREC)

What Is On The Louisiana Real Estate Exam?

The Louisiana real estate salesperson exam is administered by the Louisiana Real Estate Commission (LREC) and tests both national real estate principles and Louisiana-specific laws and regulations. The exam contains 135 multiple-choice questions, and you must score at least 70% to pass.

The national portion covers topics that apply in every state: property ownership, land use controls, valuation and market analysis, financing, agency law, contracts, leasing and property management, transfer of title, fair housing laws, and real estate calculations. The state portion tests knowledge specific to Louisiana — including regulations set by the Louisiana Real Estate Commission (LREC), Louisiana agency disclosure requirements, and state-specific contract and closing practices.

Topics covered on the Louisiana exam include: Property Ownership, Agency Law, Contracts, Finance, Louisiana License Law. Candidates who struggle on the LA exam typically underestimate the state-specific portion — the national content is well-covered by most study materials, but Louisiana law questions require targeted preparation.

How Many Questions Are On The Louisiana Exam?

The Louisiana real estate salesperson exam has 135 multiple-choice questions. The exam is divided into a national section covering general real estate principles and a state section covering Louisiana-specific laws administered by the Louisiana Real Estate Commission (LREC). You have 4 hours to complete the exam.

Louisiana Real Estate Exam Passing Score

You need a 70% to pass the Louisiana real estate exam. The first-time pass rate in Louisiana is approximately 55%, which means preparation is essential — most candidates who fail do so because they focused on national content and underestimated the LA-specific portion. Our Louisiana practice exam is built specifically around the Louisiana Real Estate Commission (LREC) exam outline.

Most Difficult Topics On The Louisiana Exam

These are the areas where Louisiana candidates most commonly lose points.

Civil Law vs. Common Law

Louisiana is the ONLY U.S. state that operates under civil law (Napoleonic Code) rather than common law. Foundational concepts like 'sale' vs. 'closing,' 'vendor' vs. 'seller,' and 'predial servitude' vs. 'easement' all differ — and are tested.

LREC License Law

Louisiana Real Estate Commission's specific licensing requirements, broker supervision rules, and the Louisiana Real Estate License Law have state-specific provisions tested on the state portion.

Louisiana Terminology

Louisiana uses unique legal terminology that doesn't appear in other states. 'Authentic act,' 'act of sale,' 'usufruct,' and 'leasehold' have specific meanings under Louisiana civil law that are tested on the state exam.

Agency Disclosure Requirements

Louisiana's mandated agency disclosure forms and timing requirements differ from common law states. The specific duties owed under Louisiana law — which draws from civil law concepts — are tested on the state portion.

Louisiana Real Estate Math

The Louisiana real estate exam includes math questions covering commission calculations, loan-to-value (LTV) ratios, property tax prorations, area and volume, and appreciation/depreciation. A common example: if a property sells for $350,000 and the total commission is 6%, split equally between listing and buyer's broker, each side earns $10,500. Proration questions — such as calculating how many days of property taxes a seller owes at closing — are also common. On the LA exam, you will not need a calculator for most math questions, but you do need to understand the formulas. Practice the "T-bar" method for commission splits and the 360-day banker's year for prorations.

How To Get Your Louisiana Real Estate License

  1. 1Complete 90 hours of state-approved pre-license education covering topics required by the Louisiana Real Estate Commission (LREC).
  2. 2Submit your application to the Louisiana Real Estate Commission (LREC) and pay the required fees (exam fee: $85).
  3. 3Pass the Louisiana real estate salesperson exam (135 questions, 70% to pass).
  4. 4Complete a background check and fingerprinting as required by Louisiana law.
  5. 5Find a licensed sponsoring/employing broker to activate your license.
  6. 6Complete any required post-licensing education within the timeframe set by the Louisiana Real Estate Commission (LREC).

Best Study Strategy For The Louisiana Exam

Start with Louisiana license law first. State-specific regulations administered by the Louisiana Real Estate Commission (LREC) make up a significant portion of the LA exam and are not covered in most national study materials.

Master the math early. The Louisiana real estate exam includes questions on commission calculations, prorations, loan-to-value ratios, and area calculations. Set aside dedicated math practice sessions — don't leave it until the last week.

Take timed practice exams. The Louisiana exam has 135 questions within a 4 hours time limit. Simulate exam conditions to build stamina and identify weak topics before exam day.

Focus heavily on agency law. Agency relationships, disclosure requirements, and fiduciary duties are consistently among the most-tested topics on the LA exam. Understand the difference between seller's agent, buyer's agent, dual agent, and transaction broker in the context of Louisiana law.

Review Fair Housing thoroughly. Federal Fair Housing Act protections apply in all states, but Louisiana may have additional protected classes. Know both federal and Louisiana-specific protections cold — this topic appears on virtually every exam.

Use active recall, not passive reading. Instead of re-reading notes, quiz yourself. Use flashcards or practice questions to test retention. Research shows active recall improves long-term retention significantly compared to passive review.

Louisiana Real Estate Exam — Frequently Asked Questions

How many questions are on the Louisiana real estate exam?
The Louisiana real estate exam has 135 questions. The passing score is 70%.
What topics are on the Louisiana real estate practice exam?
The Louisiana exam covers: Property Ownership, Agency Law, Contracts, Finance, Louisiana License Law.
What is the passing score for the Louisiana real estate exam?
You need a 70% to pass the Louisiana real estate exam, administered by the Louisiana Real Estate Commission (LREC).
How much does the Louisiana real estate exam cost?
The Louisiana real estate exam fee is $85.

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