Louisiana License Law
A Louisiana licensee discovers that their client is planning to commit mortgage fraud. The licensee's appropriate response is to:
AAssist the client because loyalty requires it
BRefuse to participate and, if necessary, report the fraudulent activity to appropriate authorities✓ Correct
CSimply not mention it to anyone outside the transaction
DNotify only the LREC and proceed with the transaction
Explanation
A licensee must refuse to participate in mortgage fraud. The duty of loyalty does not require participation in illegal activity. The licensee should withdraw from the transaction and may be obligated to report the fraud to appropriate authorities.
Related Louisiana Louisiana License Law Questions
- Louisiana real estate licensees must complete their initial 45-hour post-licensing education within:
- Under Louisiana License Law, a real estate broker may operate their brokerage as which type of business entity?
- Under Louisiana License Law, a licensee who solicits a seller with a property listed with another broker (active listing) by suggesting they should cancel and relist with the soliciting licensee is engaging in:
- In Louisiana, a licensee's obligation to give a seller a copy of the signed listing agreement is required:
- A Louisiana property manager may charge a tenant an 'application fee' for processing a rental application provided:
- A Louisiana licensee who receives compensation for referring a client to a home inspector must:
- The Louisiana Real Estate Commission's website publishes a list of licensed real estate brokers and salespersons. This provides the public with:
- When a Louisiana real estate brokerage closes or the broker's license is revoked, the LREC should be notified so that:
Practice More Louisiana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Louisiana Quiz →