Chapter 53

Chapter 53. Real Estate Schools

§5301. Approval of schools

A. This Chapter shall apply to real estate schools seeking approval to conduct a course of education in real estate pre-license subjects.

AUTHORITY NOTE: Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate Commission, LR 26:52 (January 2000), amended by the Office of the Governor, Real Estate Commission, LR 32:1455 (August 2006), LR 37:3014 (October 2011).

§5303. Certifications; Applications and Procedures

A. Any individual or entity desiring to conduct business in this state as a real estate school shall file an application for certification with the commission.

B. The application shall be in such form and detail as prescribed by the commission and shall be accompanied by all documentation requested therein and the certification fee(s) prescribed in R.S. 37:1443.

C. The commission shall approve or deny an application within 45 calendar days after it is received. Incomplete applications or a request from the commission for additional information may be cause for delay beyond 45 calendar days.

D. The commission may deny an application for certification as a real estate school for any of the following reasons.

1. The applicant has been convicted of forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or theft, or has been convicted of a felony or crime involving moral turpitude in any court of competent jurisdiction.

2. An application contains a false statement of material fact.

3. A professional license or certification held by an applicant has been revoked.

§5305. Surety Bonds

A. Applicants for certification as a real estate school shall submit proof of a 10 thousand dollar ($10,000) surety bond issued by an insurance company that is authorized to conduct business in Louisiana.

B. Bonds shall be in favor of the state of Louisiana and conditioned for the protection of the contractual rights of students who attend real estate courses offered by the real estate school.

C. Bonds shall remain effective and in force throughout the certification period of the real estate school.

D. Proof of bond renewal shall be provided to the commission annually.

E. Failure to maintain a bond shall be cause for revocation or suspension of a certification.

§5307. Certificates of Authority; initial and renewal certifications

A. The certification to operate as a real estate school shall be issued in the form of a certificate of authority and shall include an assigned certification number that shall be included in all advertisements of approved courses and on all forms, documents, and reports filed with the commission.

B. A certificate of authority shall not be issued or renewed for any real estate school applicant that holds a real estate broker license and whose school is designed, intended, and/or primarily used for instruction of the broker’s future salesperson or broker affiliates.

C. A certificate of authority for an initial application that is submitted and approved after October 31 may be issued effective January 1 of the following year.

D. A certificate of authority shall be issued for a maximum period of one calendar year and shall expire annually on December 31 unless an application for renewal is submitted.

E. Failure to renew a certificate of authority by December 31 shall result in the automatic suspension of all course approvals issued under the certificate of authority. The commission shall not accept any pre-license education courses for credit, if the courses were offered after the expiration of the certificate of authority.

F. Applications for delinquent renewal of a certificate of authority shall not be accepted by the commission after December 31. Failure to renew an expired Certificate of Authority during the prescribed delinquent period of October 1 through December 31 shall result in the forfeiture of renewal rights. Any real estate school that becomes ineligible to renew a Certificate of Authority shall apply as an initial applicant.

§5309. Colleges and Universities, Vocational-Technical Schools, and School Boards

A. All Louisiana state and private colleges and universities that offer a real estate course as part of a regular curriculum are exempt from obtaining a certificate of authority; however, if courses are offered through a continuing education division, the college or university shall be required to comply with the provisions of this Chapter. State vocational-technical schools and parish schools boards that provide courses in real estate shall be required to apply for a certificate of authority and shall meet the requirements of a real estate school.

B. The designation of “college” or ‘university” shall not be used in any manner by a real estate school, unless the school has met the standards and qualifications of such, and is approved by the state agency having such jurisdiction.

AUTHORITY NOTE: Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate Commission, LR 26:53 (January 2000), amended by the Office of the Governor, Real Estate Commission, LR 32:1456 (August 2006), LR 37:3014 (October 2011).

§5311. Designated School Director; Duties

A. All real estate schools shall designate a director, whose duty it shall be to ensure that the operations of the school, and all training locations, adhere to the requirements of the Louisiana Real Estate License Law and the rules and regulations of the commission, and who shall be held responsible to the commission for any violations thereof. The commission shall be notified in writing within 10 days if the designated director for a real estate school is changed.

B. Directors shall coordinate and disseminate information pertaining to amendments in the license law, rules and regulations, or policies and procedures of the commission to all staff, instructors, and employees.

§5313. Facilities and Inspections

A. Real estate schools shall provide adequate space, seating, equipment, and instructional material to accommodate the number of enrolled students.

B. The commission may inspect any facility used by a real estate school at any time during regular business hours.

C. Real estate schools shall be subject to periodic audits and review, as determined by the commission, to ensure that courses are conducted in accordance with the provisions set forth in this Chapter and R.S. 37:1460. This may include the observation and evaluation of classroom activities, course content, instructor proficiency, and/or the audit of reporting/attendance records.

D. If the real estate school is found deficient in any part of this Section, the commission shall prepare a report specifying the areas of deficiency.

E. Any real estate school that receives a report of deficiencies shall correct the deficiencies by the date designated by the commission and shall submit a report to the commission that outlines the corrective action.

F. Failure to respond to a report of deficiencies, in accordance with the deadline designated by the commission, may result in payment of a fine or the suspension or revocation of the certificate of authority for any school found to be in violation of this requirement.

AUTHORITY NOTE: Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate Commission, LR 26:54 (January 2000), amended by the Office of the Governor, Real Estate Commission, LR 32:1456 (August 2006), LR 37:3015 (October 2011).

§5315. Record Keeping

A. Real estate schools shall maintain accurate and properly indexed records on all students for at least five years after course completion and shall produce those records for inspection upon request of the commission. Electronic records shall be maintained in a readily available format that does not prohibit, delay, or otherwise impede inspection.

B. Real estate schools shall maintain the following records on each student:

1. complete name and address;

2. total classroom hours taken and course title;

3. dates of attendance;

4. test scores or pass/fail indications;

5. method of completion;

6. copy of student contract.

C. Real estate schools shall provide any student who requests it with a duplicate copy of his/her course completion records. The real estate school shall determine any fee associated with providing the records.

§5317. Tuition, Fees, and Contracts

A. Each real estate school shall enter into a written contract with each student that shall clearly set forth the tuition and fees charged by the school for a specific course of instruction and the school refund policy.

B. A copy of the contract, signed by an authorized representative of the school, shall be provided to the student immediately after both parties sign the contract.

C. Any additional fees charged for supplies, materials, or required books shall be clearly itemized in the school contract, and such supplies, materials, or books shall become the property of the student upon payment.

§5319. Pre-license Instructors; Initial and Renewal Applications; Guest Lecturers

A. No person shall act as pre-license instructor at any real estate school, and no real estate school shall hire or otherwise permit any person to act as a pre-license instructor for the school, unless that person has been certified as such by the commission.

B. The application to become certified as a pre-license instructor shall be in such form and detail as prescribed by the commission and shall be accompanied by all documentation requested therein and the certification fee(s) prescribed in R.S. 37:1443.

C. Applicants for a pre-license instructor certification shall provide proof of instructor experience and shall have satisfied at least one of the following qualifications:

1. bachelor’s degree with a major in real estate from an accredited college or university;

2. bachelor’s degree from an accredited college or university and at least two years experience in real estate brokerage;

3. real estate broker license and a minimum of five years experience in the area of proposed instruction;

4. juris Doctorate degree or the equivalent from an accredited law school and a minimum of three years experience in the area of proposed instruction;

5. two years experience as a qualified instructor or professor in the business, finance or economics department of an accredited college or university;

6. any qualifications determined by the commission to be the equivalent of at least one of the qualifications prescribed in Paragraphs 1-5 of this Section, or any combination thereof.

D. Upon a determination by the commission that a pre-license real estate instructor applicant has met the minimum requirements, as prescribed in §5319.C.1-6, the applicant shall be required to pass the real estate pre-license instructor assessment examination specified by the commission. The application shall not be considered complete, and a certification number shall not be issued, until such time that the applicant submits the examination results to the commission.

E. The commission shall approve or deny a pre-license instructor application within 45 calendar days after it is received. Incomplete applications, or a request for additional information, may be a cause for delay beyond 45 calendar days.

F. The commission may deny an application for certification as a pre-license instructor if:

1. the applicant has been convicted of forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or theft, or has been convicted of a felony or crime involving moral turpitude in any court of competent jurisdiction;

2. an application contains a false statement of material fact;

3. a professional license or certification held by an applicant has been revoked;

4. the applicant fails to meet the minimum requirements prescribed in Section 5319.C.1-6;

5. the applicant fails to meet the qualifying score on the pre-license instructor assessment examination.

G. A pre-license instructor certificate shall be issued for a maximum period of one calendar year and shall expire annually on December 31, unless an application for renewal is submitted.

1. Renewal of a pre-license instructor certificate shall require annual completion of 12 hours of approved continuing education during the current certification period. The 12 hours shall include four hours in the mandatory topic prescribed by the commission.

2. Completed continuing education hours shall not include actual instruction hours.

H. Failure to renew a pre-license instructor certificate by December 31 shall result in the following action:

1. Approval to provide real estate instruction shall be automatically suspended;

2. The commission shall not accept any education courses for credit if the courses were instructed after the expiration of the pre-license instructor certificate;

3. Delinquent applications for renewal of a pre-license instructor certificate shall not be accepted by the commission after January 31. Failure to renew during the prescribed delinquent period of January 1 through January 31 shall result in the forfeiture of renewal rights. Any pre-license instructor that becomes ineligible to renew shall be required to apply as an initial applicant.

I. A guest lecturer shall meet at least one of the following qualifications:

1. a college or university professor in real estate, finance, economics, or a related field;

2. a specialist with a degree or professional designation with expertise in the specific topic of instruction;

3. a real estate licensee with at least five years experience in the area of proposed instruction.

J. Guest lecturers shall not instruct any pre-license course pertaining to the Louisiana Real Estate License Law or the commission rules and regulations.

K. Guest lecturers shall not provide more than two presentations of pre-license education for a certified real estate school in a calendar year.

§5321. Prohibitions

A. It shall be prohibited for any real estate brokerage firm to operate a real estate school under the same legal entity as the real estate brokerage firm.

B. Any activity that is designed to influence or solicit a pre-license education student to work under the sponsorship of any real estate broker shall be considered recruiting and is prohibited while on the premises of a real estate school.

C. A real estate school shall not provide the name(s) of any licensee or student, whether potential or enrolled, to anyone other than the Louisiana Real Estate Commission.

§5323. Change of Address

A. The commission shall be notified within 10 calendar days after any change in the business address or telephone number of any real estate school and the residence or business address or telephone number of any owner, director or instructor thereof.

AUTHORITY NOTE: Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Department of Economic Development, Real Estate Commission, LR 26:54 (January 2000); amended by the Office of the Governor, Real Estate Commission, LR 28:487 (2002), LR 32:1457 (August 2006), LR 37:3016 (October 2011).

§5325. School Advertising

A. Advertising by real estate schools shall not be false or misleading.

B. Advertisements shall state that the school is certified by the Louisiana Real Estate Commission and shall include the school certificate of authority number.

C. The commission may require a real estate school to furnish proof of any advertising claims. The commission may order the retraction of advertising that violates the provisions of this Section. Such retractions shall be published in the same manner as the original claim and shall be paid for by the real estate school.

D. Certified real estate schools shall not guarantee the passing of the state real estate licensing examination.

AUTHORITY NOTE: Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR 37:3016 (October 2011).

§5327. Investigations and Hearings

A. The commission shall have the authority on its own motion, or following receipt of a complaint, to investigate any real estate school to determine compliance with the Louisiana Real Estate License Law and the rules and regulations of the commission.

B. If an investigation by the commission determines that a violation has occurred, the commission shall follow the provisions of R.S. 37:1456 et seq.

AUTHORITY NOTE: Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR 37:3017 (October 2011).

§5329. Suspension or Revocation of a School Certificate of Authority or Pre-license Instructor Certification

A. The commission shall have the authority to impose fines, suspend, or revoke a school certificate of authority or pre-license instructor certification for the following acts committed by a school owner, director, or pre-license instructor:

1. violating any rule or regulation promulgated by the commission;

2. obtaining or attempting to obtain by deceptive or fraudulent means any copyrighted test questions and/or confidential test material used by or belonging to any national testing service currently or previously contracted with the commission;

3. having been convicted of a felony or entered a plea of guilty or nolo contendere to a felony charge;

4. refusal to appear or testify under oath at any hearing held by the commission;

5. falsely certifying hours of attendance for any student;

6. having a salesperson, broker, or timeshare interest salesperson license suspended or revoked by the commission;

7. recruiting students or knowingly allowing others to use classroom facilities to discuss sponsorship or potential licensees for any real estate brokerage firm;

8. failure of a real estate school to enter into a written/electronic contract with any student;

9. failure of a real estate school director to inform pre-license instructors on changes to the Louisiana Real Estate License Law or commission rules and regulations.

AUTHORITY NOTE: Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by Office of the Governor, Real Estate Commission, LR 37:3017 (October 2011).

§5331. Pre-license Education Courses Offered by Real Estate Schools

A. Salesperson pre-license education courses offered by real estate schools shall be structured in the following manner:

1. Real Estate 101-salesperson 90-hour course that shall include:

a. real estate principles and practices;

b. Louisiana real estate license law;

c. commission rules and regulations;

d. law of agency, as contained in Title 9 of the Louisiana Revised Statutes;

e. civil law, as it pertains to real estate transactions.

B. Broker pre-license education courses offered by real estate schools shall be structured in the following manner:

1. Real Estate 201-90-hour course on basic real estate fundamentals;

2. Real Estate 202-30-hour course that shall include, and be limited to, the following topics:

a. Louisiana real estate license law;

b. commission rules and regulations;

c. law of agency, as contained in Title 9 of the Louisiana Revised Statutes;

d. civil law, as it pertains to real estate transactions;

e. ethics and professionalism;

3. Real Estate 203-mandatory 30-hour course on broker responsibilities.

C. It shall be the responsibility of the real estate school to amend each course as necessary to provide for any applicable law or rule change that is enacted during the course approval period. A fee shall not be required when a real estate course is amended to accommodate law or rule changes.

D. In addition to pre-licensing courses, any state certified real estate school may offer post-license and continuing education courses provided that the school applies for and receives approved continuing education vendor status. No additional initial or renewal fees will be required of the school; however, filing fees for each additional course approval request will be required as provided in R.S. 37:1443. A separate Louisiana Real Estate Commission vendor number will be assigned to the school upon compliance with post-license and/or continuing education vendor requirements.

E. Real estate schools shall not issue pre-license education credit for attendance at post license education courses or continuing education courses.

F. Real estate schools shall not incorporate post-license education with pre-license education instruction.

G. Real estate schools shall not incorporate continuing education with pre-license education instruction.

AUTHORITY NOTE: Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR 37:3017 (October 2011).

§5333. Methods of Instruction; Classroom Training, Distance Education

A. Classroom training that is led by an instructor and held in a physical location, or delivered via a network, may be used to present pre-license courses and shall be in such format and detail as prescribed by the commission.

B. Distance education, for the purpose of this Chapter, shall mean any of the following methods of instruction:

1. interactive Internet-based instruction;

2. combination courses.

C. Combination courses, for the purpose of this Chapter, shall mean any distance education course that includes supplemental classroom instruction or assistance. Combination courses shall be registered with the commission as distance education and shall follow all guidelines established in this Chapter for the approval of distance education. Combination courses shall be clearly advertised as distance education. Classroom time for all instruction or assistance portions of a combination course shall be reported to the commission in accordance with §5337 of this Chapter.

D. Real estate schools that offer distance education courses shall apply for course approval as follows.

1. Distance education courses shall be submitted to the commission for content approval prior to any course offering.

2. Distance education courses that have been approved by the commission for course content shall be submitted to the Association of Real Estate License Law Officials (ARELLO) for certification of the delivery method prior to any course offering. Loss of ARELLO certification for courses approved under this Section shall automatically suspend commission approval of the course content.

3. Colleges and university academic credit courses for distance learning shall not be required to be Association of Real Estate License Law Officials (ARELLO) approved if part of a college or university curriculum. Any other distance learning courses offered to the general public outside of a curriculum program shall be ARELLO approved.

E. Final examinations for distance education courses shall consist of multiple choice questions with four possible answers (a, b, c and d) as follows:

1. a minimum of 20 questions for each two hours of continuing education credit; or

2. a minimum of 150 questions for each post licensing final exam;

3. the examination that a student submits for grading shall include a signed and dated statement that the student has personally completed the course and examination.

F. Real estate schools shall certify students as successfully completing a course only if the student completes any written assignments and passes the required examination on course content.

AUTHORITY NOTE: Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR 37:3017 (October 2011).

§5335. Certificates of Completion

A. Real estate schools shall issue certificates to students immediately upon completion of the course. Certificates shall contain the following information:

1. complete name of the real estate school and the certificate of authority number;

2. name of the student;

3. course title and level completed;

4. number of credit hours completed;

5. date of course completion;

6. signature of authorized school representative;

7. acknowledgment of student’s successful completion of examination;

8. indication of delivery method.

B. Certificates of completion will not be accepted from any real estate school that is not in good standing with the commission on the date that the certificate is issued.

C. In lieu of the required certificate of completion, the commission may accept college or university transcripts that reflect the completion of real estate related courses approved by the commission. Such transcripts shall be issued by the college or university registrar and shall include the course title and number, the date of completion, and the final grade.

D. Colleges or universities that do not issue transcripts for courses completed through a division of continuing education shall provide a certificate of completion to students who successfully complete a course of study.

AUTHORITY NOTE: Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR 37:3018 (October 2011).

§5337. Course Reporting Schedules and Attendance

A. Classroom course reporting schedule reports shall be submitted in such form and detail as prescribed by the commission no less than 10 days prior to the course.

B. Attendance verification reports shall be submitted in such form and detail as prescribed by the commission within 30 days after completion of the course.

AUTHORITY NOTE: Promulgated in accordance with R.S. 37:1431 et seq.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Real Estate Commission, LR 37:3018 (October 2011).