Louisiana Real Estate License Overview
Louisiana is unique among U.S. states in following Napoleonic Code civil law principles, which significantly affects property terminology, transactions, and legal procedures. The Louisiana Real Estate Commission (LREC) oversees all licensing, and the exam is administered by PSI at testing centers throughout the state.
Understanding Louisiana's civil law foundation is essential for passing the exam and practicing real estate successfully in this distinctive legal environment.
Louisiana Real Estate Exam Quick Facts
| Feature | Details |
|---|---|
| Exam Administrator | PSI for LREC |
| Total Questions | 135 multiple-choice |
| National Portion | 80 questions (105 minutes) |
| State Portion | 55 questions (75 minutes) |
| Passing Score | 70% on each portion (56/80 national, 40/55 state) |
| Exam Fee | $85 (paid to PSI) |
| Results | Immediate (pass/fail on screen) |
| Eligibility Period | 90 days from approval |
| Retake Window | 1 year from initial exam |
Requirements Before Taking the Exam
Basic Eligibility Requirements
| Requirement | Details |
|---|---|
| Age | 18 years or older |
| Education | High school diploma or GED equivalent |
| Pre-License Education | 90 hours of LREC-approved coursework |
| Background Check | Fingerprint-based state and federal check |
| Fingerprint Fee | $60.75 (through IdentoGO) |
Pre-License Course Content (90 Hours)
The required 90-hour course must cover:
- Real estate principles and practices
- Louisiana Real Estate License Law (mandatory 30 hours)
- Commission Rules and Regulations
- Louisiana Law of Agency
- Louisiana Civil Law pertaining to real estate
Important: No substitution is allowed for the mandatory 30-hour portion covering Louisiana-specific content.
Application Process
- Complete 90-hour pre-license course from LREC-certified school
- Submit application through the MyLREC Portal
- Complete fingerprint-based background check via IdentoGO (service code: 27N4TH)
- Pay application fee ($90)
- Receive approval and PSI scheduling instructions
- Schedule exam within 90-day eligibility window
- Pass both exam portions within 1 year
Louisiana Exam Format
Louisiana uses a two-section exam format with separate national and state portions. You must pass both sections to receive your license.
Content Breakdown
| Section | Questions | Time | Passing Score |
|---|---|---|---|
| National Portion | 80 | 105 minutes | 56 (70%) |
| State Portion | 55 | 75 minutes | 40 (70%) |
| Total | 135 | 180 minutes | Both sections required |
National Portion Topics (80 Questions)
| Topic | Key Points |
|---|---|
| Property Ownership | Types of ownership, bundle of rights, estates |
| Land Use Controls | Zoning, building codes, environmental regulations |
| Valuation & Market Analysis | Approaches to value, CMAs, appraisal |
| Financing | Mortgages, loan types, TILA, RESPA |
| Laws of Agency | Fiduciary duties, agency relationships |
| Mandated Disclosures | Federal disclosure requirements |
| Contracts | Elements, types, performance, breach |
| Transfer of Title | Deeds, title insurance, recording |
| Practice of Real Estate | Brokerage operations, ethics |
| Real Estate Calculations | Commission, prorations, area, investment |
State Portion Topics (55 Questions)
| Topic | Key Points |
|---|---|
| Duties & Powers of LREC | Commission authority, disciplinary actions |
| Licensing Requirements | Education, exams, renewal, reciprocity |
| Statutory Requirements | Louisiana license law provisions |
| Louisiana Civil Law System | Napoleonic Code principles, terminology |
| Louisiana Law of Agency | State-specific agency requirements |
Louisiana's Unique Civil Law System
Why Louisiana is Different
Louisiana is the only U.S. state with a legal system derived from the Napoleonic Code (French Civil Code of 1804). While the other 49 states follow English common law, Louisiana's civil law tradition creates unique terminology, procedures, and legal concepts that every real estate professional must understand.
Napoleonic Code Terminology Comparison
| Common Law (49 States) | Louisiana Civil Law |
|---|---|
| Real property | Immovable property |
| Personal property | Movable property |
| Deed | Act of Sale |
| Life estate | Usufruct |
| Joint tenancy | Ownership in indivision |
| Warranty deed | Warranty of title |
| Quitclaim deed | Sale without warranty |
| Lease | Lease (bail) |
| Mortgage | Mortgage (hypothec) |
| Easement | Servitude |
Key Louisiana Civil Law Concepts
Immovable vs. Movable Property
Louisiana classifies property differently than common law states:
| Immovable Property | Movable Property |
|---|---|
| Land and buildings | Personal belongings |
| Standing timber (until cut) | Harvested crops |
| Fixtures attached to land | Furniture |
| Mineral rights (while in ground) | Extracted minerals |
| Servitudes | Vehicles |
The Authentic Act
In Louisiana, the Authentic Act is the highest form of legal document. Real estate transfers must be made by authentic act or act under private signature.
| Authentic Act Requirements |
|---|
| Executed before a Louisiana notary public |
| Two competent witnesses present |
| Signed by all parties, witnesses, and notary |
| Names typed or printed beneath signatures |
| Notary identification number included |
Key Difference: In Louisiana, notaries have significantly more authority than in other states and can prepare legal documents, not just witness signatures.
Usufruct
Usufruct is a civil law concept that allows a person (usufructuary) to use and enjoy property owned by another:
| Usufruct Feature | Details |
|---|---|
| Right to use | Full use of the property |
| Right to fruits | Receive income/profits |
| Cannot destroy | Must maintain property |
| Duration | Life of usufructuary or specified term |
| Common use | Surviving spouse, estate planning |
Forced Heirship
Louisiana's forced heirship laws require certain portions of an estate to pass to children:
| Forced Heirship Rule | Application |
|---|---|
| Protected heirs | Children under 24, disabled children |
| Forced portion | 25% (one forced heir) or 50% (two or more) |
| Disposable portion | Remainder freely distributable |
| Cannot disinherit | Protected heirs must receive forced portion |
Community Property in Louisiana
Louisiana is one of nine community property states, with rules based on civil law tradition.
Community vs. Separate Property
| Community Property | Separate Property |
|---|---|
| Property acquired during marriage | Property owned before marriage |
| Income earned during marriage | Gifts and inheritances |
| Property purchased with community funds | Property acquired with separate funds |
Key Community Property Rules
| Rule | Application |
|---|---|
| Equal ownership | Spouses own community property equally |
| Management | Either spouse can manage most community property |
| Alienation | Both spouses must consent to sell immovable property |
| Termination | Ends at divorce, death, or declaration of separation |
Louisiana Agency Relationships
Types of Agency
| Agency Type | Description |
|---|---|
| Designated Agency | Broker designates agent to represent one party |
| Dual Agency | One agent represents both parties (requires disclosure) |
| Sub-agency | Cooperating agent represents seller through listing broker |
| Buyer Agency | Agent represents buyer's interests |
Agency Disclosure Requirements
Louisiana requires written disclosure of agency relationships before providing services that require a license.
Louisiana Exam Pass Rate
The Louisiana real estate exam has an estimated pass rate of 55-64% on the first attempt.
| Factor | Impact on Difficulty |
|---|---|
| Two separate sections | Must pass both independently |
| Civil law content | Unique terminology and concepts |
| 135 total questions | More questions than most states |
| State-specific focus | 55 questions on Louisiana law |
Study Strategy
Recommended Study Time
| Approach | Hours | Timeline |
|---|---|---|
| Intensive | 60-80 | 3-4 weeks |
| Standard | 80-100 | 4-6 weeks |
| Part-time | 100-120 | 6-8 weeks |
After completing the 90-hour pre-license course.
Study Priority by Section
National Portion (80 Questions)
- Property Ownership & Transfer - Foundation concepts
- Financing - Mortgages, loan calculations
- Contracts - Elements, contingencies, breach
- Agency - Fiduciary duties, relationships
- Valuation - Approaches to value, CMAs
State Portion (55 Questions)
- Louisiana Civil Law - Terminology, concepts (highest priority)
- License Law - LREC rules, requirements
- Louisiana Agency - State-specific duties
- Property Transfer - Authentic acts, recording
- Community Property - Marital property rules
Key Math Formulas
Commission:
Prorations (Louisiana uses 365-day year):
Property Tax:
Millage: 1 mill = $1 per $1,000 of assessed value
Capitalization Rate:
Common Mistakes to Avoid
1. Using Common Law Terminology
The state portion tests Louisiana-specific terminology. Know the correct civil law terms:
- Say "immovable property," not "real property"
- Say "Act of Sale," not "deed"
- Say "usufruct," not "life estate"
- Say "servitude," not "easement"
2. Underestimating Civil Law Content
Louisiana's unique legal system accounts for a significant portion of the state exam. Focus on:
- Authentic act requirements
- Forced heirship rules
- Community property distinctions
- Usufruct provisions
3. Ignoring Notary Requirements
Louisiana notaries have expanded powers. Know:
- Authentic act execution requirements
- Two witness requirement
- Recording deadlines (15 days outside Orleans Parish, 48 hours in Orleans)
4. Weak Math Skills
Math questions appear on both sections. Practice:
- Commission calculations
- Prorations
- Area calculations
- Investment analysis
Exam Day Tips
Before the Exam
- Get good rest the night before
- Eat a balanced meal
- Arrive 30 minutes early at PSI testing center
- Bring two forms of ID (one government-issued with photo)
Testing Centers
PSI operates testing centers in:
- Baton Rouge
- Lafayette
- Lake Charles
- Metairie
- New Orleans
- Shreveport
During the Exam
- Read every question completely
- Watch for Louisiana terminology vs. common law terms
- Flag difficult questions and return later
- Manage time: 1.3 minutes per national question, 1.4 minutes per state question
- Use all available time to review
After Passing
Immediate Steps
- Receive results on screen at testing center
- Complete post-license education (45 hours within 180 days)
- Activate license through MyLREC Portal
- Associate with a broker (required to practice)
- Obtain Errors & Omissions insurance (approximately $35 prorated)
Post-License Education
| Requirement | Timeline |
|---|---|
| 45-hour post-license course | Within 180 days of initial license |
| Mandatory topic course | Required in addition to 45 hours |
| First renewal | September 30 following license year |
Continuing Education Requirements
| Period | CE Required |
|---|---|
| Annual requirement | 12 hours (4 mandatory + 8 elective) |
| Mandatory course | 4-hour LREC mandatory topic |
| Renewal deadline | September 30 annually |
| CE completion deadline | December 31 annually |
License Renewal Timeline
| Period | Dates | Fee |
|---|---|---|
| Timely renewal | August 1 - September 30 | Standard fee |
| First delinquent | October 1 - November 15 | +$50 delinquent fee |
| Second delinquent | November 16 - December 31 | +$200 delinquent fee (active) |
| Expiration | After December 31 | License expires |
Louisiana Real Estate Career Outlook
Salary Expectations
| Experience | Annual Income |
|---|---|
| Entry level (1-3 years) | $35,000-$50,000 |
| Mid-career (3-5 years) | $50,000-$75,000 |
| Experienced (5+ years) | $75,000-$100,000+ |
| Top producers | $150,000+ |
Commission Rates
The average real estate commission in Louisiana is approximately 5.2%, slightly below the national average of 5.57%.
Hot Louisiana Markets (2026)
| Market | Characteristics |
|---|---|
| New Orleans | Tourism, historic properties, diverse neighborhoods |
| Baton Rouge | State capital, LSU, growing suburban areas |
| Lafayette | Cajun culture, oil & gas industry hub |
| Shreveport/Bossier City | Affordable, gaming industry |
| Lake Charles | Industrial growth, casino development |
| Northshore | Suburban growth, commuter communities |
Louisiana's Unique Market Factors
- Energy sector influence - Oil and gas industry affects commercial and residential markets
- Cultural tourism - French Quarter, plantation homes, festival destinations
- Waterfront properties - Gulf Coast, bayous, Lake Pontchartrain
- Historic preservation - Tax credits and restrictions on historic properties
- Flood zones - Significant consideration for property insurance
Reciprocity Agreements
Louisiana has reciprocal licensing agreements with:
| State |
|---|
| Alabama |
| Arkansas |
| Colorado |
| Georgia |
| Iowa |
| Mississippi |
| New Mexico |
| Oklahoma |
| Pennsylvania |
Non-resident licensees from reciprocal states who obtained Louisiana license through reciprocity are not required to complete annual CE if they maintain residency in the reciprocal state.
Resources
- LREC - lrec.gov - Official licensing information
- PSI - Exam scheduling and candidate handbook
- MyLREC Portal - portal.lrec.gov - Application and renewal
- IdentoGO - Fingerprint scheduling (code: 27N4TH)
- OpenExamPrep - Free study materials and practice questions