New Law Makes Practicing without a License a Crime

A new real estate law in Louisiana strengthens the penalties for unlawful real estate activities.


This new real estate law makes it a misdemeanor for anyone practicing without a real estate license. Furthermore, it strengthens certain requirements for out of state licensees or brokers who wish to work or practice in Louisiana. An out-of-state licensee will need to either become licensed in Louisiana or work with a licensed broker in Louisiana.

The new real estate law takes effect on August 1, 2017.

Who Needs a Real Estate License?

In the state of Louisiana, the current real estate law regarding licensing states:

Real estate activity” means any activity relating to any portion of a real estate transaction performed for another by any person, partnership, limited liability company, association, or corporation, foreign or domestic, whether pursuant to a power of attorney or otherwise, who for a fee, commission, or other valuable consideration or with the intention, in the expectation, or upon the promise of receiving or collecting a fee, commission, or other valuable consideration”

Therefore, any parties either in-state or from out of state wishing to practice in the state of Louisiana should be duly licensed or work in conjunction with a licensed broker.


Practicing Real Estate Without a License is a Crime

In order to get a real estate license, applicants need to attend the required real estate classes and apply for a license through the Louisiana Real Estate Commission. Online real estate courses from an accredited real estate school can be accepted, as well as traditional classroom training. After passing the real estate license exam, the new applicant needs to find a sponsoring broker to work for and acquire the necessary errors & omissions insurance. These educational and licensing requirements are largely designed to protect the public and distinguish practicing real estate professionals from other members of the public.


Under this new real estate law, the law provides that anyone found guilty can be fined not more than $500 per day of violation. In addition, the law also authorizes up to three months in prison for those found in violation. The district attorney in whose jurisdiction the violation occurs shall have the sole authority to prosecute criminal actions pursuant to law.

For more information or to download the details of the new real estate law, visit this link.