How To Become A Real Estate Agent In Louisiana

When most people think about the state of Louisiana the first thing that comes to their mind is exotic dishes, vast wetlands, and the vibrant colors of the City of New Orleans. They may not see the flourishing real estate market within the state. Louisiana home sales were up 33.8% year-over-year in October 2021, and the median home sale price had increased by 6.4%. Not only that, 17.4% of homes sold above listing price within that same period.

But why choose a career in real estate? The reasons may vary but a lot of people prefer flexible work hours, unlimited pay cap, and great upward mobility associated with the profession. However, just like any profession, there are criteria to be fulfilled and steps to be taken before you can be a fully licensed real estate agent within the Pelican State.

Let’s take a look at the steps required to become a real estate agent within the State of Louisiana, some of the costs involved and how long the entire process will take. Keep on reading!

How To Get Your Real Estate License in the State of Louisiana

As we mentioned before, there are several key criteria you have to pass before you can become a real estate agent in the state of Louisiana. These criteria were put in place by the Louisiana Real Estate Commission (LREC), the government agency in charge of licensing and regulating real estate agents within the state. In a nutshell, they include:

You must be at least 18 years old
You must have a high school degree or GED
Complete and pass the national criminal background check
Complete all 90 hours of your real estate pre-licensing classes
Pass the final exams in real estate courses with a score of 70% or higher
Fill out Salesperson License Application Part A
Schedule your exam
Pass the Louisiana Real Estate Exam
Acquire Errors and Omissions (E&O) insurance
Complete the application.
Find A Louisiana Brokerage To Sponsor You
Complete 45 post-license education hours.

While all these may seem pretty simple, there are some important aspects that I would like to highlight to make the process as smooth as possible.

Sign up for real estate classes here: Louisiana Real Estate School

Meet the Minimum Age, Education, and Citizenship Requirements

The first part is quite straightforward and applies to most states in the country. Any individual interested in applying for a real estate license within the State of Louisiana must provide proof that they are at least 18 years of age and have a GED or high school diploma. The individual must also be a U.S. citizen with a valid Social Security Number or a lawfully documented resident within the country.

Complete the National Criminal Background Check

This involves providing the LREC with a completed Criminal Background History during or after applying for their real estate license. The Criminal Background History is only valid for 180 days from the date of the official completed the report. That means you have to write and pass your licensing exams within a year of completing the background check.

The database and background check is handled by Clearbox, LLC, which is also responsible for collecting your fingerprints during the process. The cost of the service was $75.00 when paid in cash or $49.00 when paid online as at the time of writing this guide. You can order a background check and request more information from the LREC website by clicking here.

Complete 90 Hours of Real Estate Pre-Licensing Course

The next step is to complete 90 hours of LREC-approved real estate pre-licensing courses, also known as Real Estate 101. The course covers the basic theories and practical concepts that you will need to know as a practicing real estate agent in Louisiana.

The topics covered in the course include:

Property Ownership
Land Use Controls and Regulations
Valuation and Market Analysis
Financing
Laws of Agency
Mandated Disclosures
Contracts
Transfer of Property
Practice of Real Estate
Louisiana Laws
Rules and Regulations
Louisiana Civil Law System, and Louisiana Law of Agency.

These classes can be a combination of physical classes and online resources and coursework or solely online classes depending on your preferences. These classes will be held by experienced real estate professionals at LREC-approved centres. The course must be completed within 6 months of the start date.

LREC may give partial credit for any courses completed more than five years before the application date depending on its completion date and relevance to the current requirements. They may also give credit for real estate courses completed at a college. Applicants with college credits must submit an original transcript to the LREC with a written request to review, which may take as long as 30 days.

These courses may seem a bit confusing initially since you are learning an entirely new set of languages and concepts. However, with time and dedication, you’ll easily adapt and find yourself gaining a deeper understanding of the real estate industry.

Pass the Final Exams in Real Estate Courses With a Score of 75% Or Higher

Once you have completed the courses you have to pass the final examination with at least a score of 75%. Once you have passed this you will be presented with a Certificate of Completion for that course. When applying for your license you must submit a copy of this certificate to be eligible.

Most people rush to finish the material and take the final exams. However, this is not the best way to approach the course. Take your time to ensure that you understand the course material fully and avoid overwhelming yourself with information.

It takes some time for LREC to process your application, so overloading yourself with information will only make the process harder than it has to be. However, remember that you must take the exam within 180 days of processing your national criminal background check.

Check out This Real Estate Exam Study Tool: Prep Agent

Fill Out a Salesperson License Application Part A

This application should be filed with the LREC, who will review your documents to ascertain your eligibility. The form is available in PDF form and can be downloaded from the website and printed out. The form is to be filled in black or blue ink only.

You will also be required to pay an application fee of $90 as well, take note that this is not the examination fee. If you are found eligible your details will be forwarded to PSI, the testing service contracted by the LREC to handle the licensing exam.

Schedule Your Exam

Once your details have been forwarded to PSI, you will receive an email with further instructions concerning scheduling the exam and how to pay the $85 exam fee. They will also send you an Examination Authorization Form which entitles you to take the exam only one time.

PSI runs testing centers in Baton Rouge, Lafayette, Lake Charles, Metairie, New Orleans, and Shreveport. You can see the testing locations in the Candidate Handbook or by scheduling on PSI’s website. You can also call (855) 579-4644 for registration assistance.

Pass the Louisiana Real Estate Exam

The Louisiana state salesperson exam is divided into two sections, a national section which has 80 questions and a state section with 55 questions. This gives a total of 135 questions worth 135 points.

The exam includes multiple-choice questions. The time allowed in the national section is 105 minutes, while 75 minutes are allowed in the state section. A passing score of 56 and 40 respectively is required.

Your score will be displayed immediately after completion of the exams and an official score report with your score and any other diagnostic information will be provided to you. The exam report will also be reported to the Louisiana Real Estate Commission.

You must pass both portions of the exam before moving on to the next steps with your license. If you passed one section of the exam and failed the other you can retake only the section you failed. You have one year from your initial exam to pass both sections before the LREC closes your application.

There is no limit on the number of times you may retest during this one year. However, you must obtain new examination eligibility from the LREC. To do this you must apply for new examination eligibility from the Louisiana Real Estate Commission and pay a $15.00 re-eligibility fee before you can reschedule your examination.

Acquire Errors and Omissions (E&O) Insurance

Errors and omissions insurance is a type of professional liability insurance that protects real estate agents against claims of inadequate work or negligent actions. All real estate agents planning to operate within Louisiana must have a current E&O policy before receiving an active license. You must submit proof of insurance with your salesperson license application part B.

You have the option of choosing an LREC group policy serviced by RISC or picking an independent plan. The group policy has a $136 premium plus a $7 LREC transaction fee. If you choose an independent E&O policy, turn in the Independent Errors & Omissions Coverage form and your declaration page. For more information concerning getting active E&O coverage, you can visit the LREC website.

Wondering how much real estate agents make in Louisiana? Check out this article.

Find A Louisiana Brokerage To Sponsor You

After passing the exam the next step is to apply for sponsorship with a licensed broker. This involves completing a sponsorship request which may take anywhere between 1-2 months. There are several important things to keep in mind when choosing a broker. They include factors such as:

Broker reputation
Mentorship culture
Commission splits
Commission caps
On-going monthly fees, and so on.

Complete the Application

This involves submitting your Salesperson License Application Part B which includes proof of an active E&O policy and broker sponsorship.

Complete 45 Hours of Post-License Education

All active licensees are required to complete 45 hours of post-license courses for salespersons within the first 180 days of licensure to be issued a permanent license.

In Conclusion

Getting your real estate license in Louisiana is quite easy if you follow all the required steps. The entire process can take anywhere between 4-5 months and may cost you between $700-$1000. However, with hard work and dedication, you’ll be a licensed Louisiana real estate agent in no time.