Free Louisiana Real Estate Practice Exam 2026

Louisiana real estate exam sample questions and answers

6 of the 135 practice questions, one from each topic, with the answer explained.

1. 1. A purchase agreement calls the buyer's payment earnest money. If the seller backs out, the seller must:

   • A.Keep it as damages
   • B.Return it plus an equal amount
   • C.Return it plus interest
   • D.Return only the payment

   Answer: B. Under Civil Code article 2624, earnest money lets either party withdraw: a buyer who backs out forfeits it, and a seller who backs out returns it plus an equal amount. Money not stipulated as earnest money is a deposit on the price.

2. 2. A buyer receives the property disclosure document after making an offer. The buyer may terminate within:

   • A.10 days, counting weekends
   • B.5 business days of receipt
   • C.24 hours, counting weekends
   • D.72 hours, not counting weekends

   Answer: D. La. R.S. 9:3198 lets the buyer terminate within 72 hours of receiving a late disclosure, not counting weekends and federal or state holidays, and get the deposit back. The right ends at transfer of title or occupancy.

3. 3. A lender rejects a loan applicant because much of her income comes from public assistance, though it is reliable and ongoing. Under ECOA, this is:

   • A.Illegal discrimination in lending
   • B.Permitted because assistance is not earned income
   • C.Permitted if all applicants are treated alike
   • D.Permitted for loans over the conforming limit

   Answer: A. The Equal Credit Opportunity Act bars discrimination based on race, color, religion, national origin, sex, marital status, age or receipt of public assistance income. A lender may judge whether income is reliable, but may not reject it because its source is public assistance.

4. 4. Two brokers agree that one will take listings only east of Main Street and the other only west. This antitrust violation is:

   • A.A tie-in agreement
   • B.Price fixing
   • C.Market allocation
   • D.A group boycott

   Answer: C. Dividing territories or customers among competitors is market allocation, which the Sherman Act prohibits. Price fixing is agreeing on commission rates, which must instead be set by negotiation between each broker and client.

5. 5. A buyer wants protection against covered title defects for as long as she or her heirs own the home. She should purchase:

   • A.A one-year home warranty
   • B.A lender's (mortgagee's) title policy
   • C.An owner's title policy
   • D.An updated abstract of title

   Answer: C. An owner's policy protects the buyer and her heirs for as long as they hold title, up to the policy amount. A lender's policy protects only the mortgagee and declines as the loan is paid down, while an abstract is merely a summary of the recorded documents.

6. 6. An office suite measures 40 feet by 55 feet and rents for $4,400 per month. What is the annual rent per square foot?

   • A.$24.00
   • B.$0.04
   • C.$2.00
   • D.$277.89

   Answer: A. Area is 40 x 55 = 2,200 square feet; annual rent is $4,400 x 12 = $52,800; $52,800 / 2,200 = $24.00 per square foot per year. Dividing the monthly rent gives $2.00, which is a monthly figure, and dividing by the 190-foot perimeter gives $277.89.