Louisiana License Law

Under Louisiana License Law, a real estate broker who has knowledge that an affiliated salesperson has committed fraud must:

AKeep it confidential to protect the brokerage
BTake immediate corrective action, potentially including reporting the conduct to the LREC and cooperating with any investigation✓ Correct
CWait for the affected client to file a complaint first
DSimply terminate the salesperson without further action

Explanation

A broker who learns of fraudulent conduct by an affiliated salesperson must take immediate corrective action — including potential reporting to the LREC. Covering up or ignoring known fraud exposes the broker to disciplinary action and civil liability.

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