Key Takeaways
- The Louisiana Real Estate Commission (LREC) regulates real estate licensees under the Louisiana Real Estate License Law
- LREC consists of nine members appointed by the Governor with Senate confirmation
- LREC has authority to investigate complaints, conduct audits, and take disciplinary action including license suspension or revocation
- Louisiana is unique as a CIVIL LAW state based on the Napoleonic Code, unlike all other U.S. states which follow common law
- Louisiana requires 90 hours of pre-license education for salesperson applicants
Louisiana Real Estate Commission (LREC)
The Louisiana Real Estate Commission (LREC) is the state agency responsible for licensing, regulating, and overseeing real estate professionals in Louisiana under the Louisiana Real Estate License Law (R.S. 37:1430 et seq.).
Real Estate SalespersonFree exam prep with practice questions & AI tutor
Louisiana's Unique Legal System
Louisiana is the ONLY U.S. state that operates under civil law (Napoleonic Code) rather than common law:
| System | Louisiana | Other 49 States |
|---|---|---|
| Legal basis | Civil Law (Napoleonic Code) | Common Law (English tradition) |
| Property law | Based on French/Spanish civil codes | Based on English common law |
| Terminology | Different terms (servitudes vs. easements) | Standard common law terms |
Exam Tip: This civil law foundation affects property ownership, contracts, and inheritance laws in Louisiana differently than other states.
LREC Structure and Authority
Commission Members
LREC consists of nine members appointed by the Governor with Senate confirmation:
| Member Type | Number | Requirements |
|---|---|---|
| Licensed brokers | 7 | Active Louisiana broker license |
| Public members | 2 | Not licensed in real estate |
Members serve five-year staggered terms and must represent different geographic areas of the state.
Key LREC Functions
| Function | Description |
|---|---|
| Licensing | Process applications, approve education providers, issue licenses |
| Education | Set education requirements, approve courses and schools |
| Enforcement | Investigate complaints, conduct audits of trust accounts |
| Discipline | Suspend, revoke, or deny licenses; impose fines |
| Recovery Fund | Administer the Louisiana Real Estate Recovery Fund |
Louisiana Real Estate Recovery Fund
The Louisiana Real Estate Recovery Fund provides compensation to consumers who suffer financial losses due to the misconduct of a licensed real estate professional.
Fund Details
| Requirement | Details |
|---|---|
| Maximum per transaction | $50,000 |
| Maximum per licensee | $150,000 total |
| Filing requirements | Must obtain court judgment first |
| License consequence | License suspended until fund repaid |
How the Fund Works
- Consumer is harmed by licensee misconduct
- Consumer obtains court judgment against licensee
- Consumer cannot collect judgment from licensee
- Consumer applies to LREC for payment from Recovery Fund
- LREC pays from fund (if eligible)
- Licensee's license is suspended until repayment
Key Point: The Recovery Fund covers actual damages only—not punitive damages, attorney fees, or court costs.
LREC Contact Information
| Resource | Information |
|---|---|
| Website | lrec.gov |
| Main Office | Baton Rouge, Louisiana |
| Phone | (225) 925-1923 |
| Online System | LREC online licensing portal |
What makes Louisiana unique among all U.S. states regarding its legal system?
How many members serve on the Louisiana Real Estate Commission?
What is the maximum amount the Louisiana Real Estate Recovery Fund can pay per transaction?