Understanding License Fees & Association Dues
LOUISIANA REALTORS • October 4, 2018
It’s that time of year again - license renewals and membership dues billing! A majority of real estate practitioners do not know the difference between the two and easily confuse payment of one for the other. This resource will explain the difference between the two and eliminate some of the confusion and address some of the frequently asked questions about the process.
LOUISIANA REAL ESTATE LICENSE FEES
We will first start with your real estate license which is issued by the Louisiana Real Estate Commission (LREC). There are two (2) common types of licenses: broker license and salesperson license. In order to keep your real estate license ACTIVE, you must renew by December 31 of each year. Prior to renewal, you must complete 12 hours of continuing education (CE) and 4 hours are required in a mandatory topic. For 2018, the mandatory topic is “Real Estate Best Practices” and the course is delivered both online and in the classroom by various education providers.
It is important to note that the education requirements must be completed PRIOR TO renewing or you could face a penalty. Licensees are also required to carry Errors & Omissions (E&O) Insurance.
The LREC provides a group policy provided by Rice Insurance Services. There are also other providers in the market should you have an interest in a different policy. The following graphic gives a quick glance on the fees associated with renewing your Louisiana real estate license. Keep up with LREC related communications using your LREC assigned email. Don’t want to remember another account? No worries, you can forward the email to your main account using the instructions about MyLREC Portal outlined here.
REALTOR® ASSOCIATION MEMBERSHIP DUES
The other statement you receive comes from your local association of REALTORS. The local Association serve as the point of entry for REALTOR® organization membership, therefore, your local association is responsible for the billing and collecting of membership dues.
The term “Three-way Agreement” refers to the structure of the REALTOR® organization. This agreement was established among the National Association, the state associations, and local boards and associations. The purpose of the structure is to strengthen the REALTOR® organization by providing a framework for effective communication, delivery of goods and services, and enforcement of the REALTORS® Code of Ethics.
The current size of the REALTOR® organization (over one million members at this writing) contributes substantially to the political influence of the National Association, thereby enhancing its effectiveness in lobbying for causes that contribute to the protection of private property rights.
Membership dues are collected annually and each level of the organization has its own dues level. As a REALTOR® member, you are required to complete 2.5 hours of Code of Ethics training every two (2) year or face penalities imposed by your local association. COE courses may or may not have CE credit associated with them. The Code of Ethics
can be taken at your local association and online through the National Association of REALTORS®.
The following graphic gives a quick glance on the fees associated with your annual REALTOR® membership dues at the national, state, and local levels.
WHERE DO MY DUES DOLLARS GO?
Many REALTOR® members have questions about dues and will often ask “where do dues dollars go?” The answer to that is different at each level of the organization and the programs and services provided are many, but will be deemed valuable and beneficial to your business if you know how and where to access and utilize them.
Earlier this Spring, NAR Board of Directors passed the 2019 budget that included the S.M.A.R.T. Budget Initiative. S.M.A.R.T. stands for Strategic Measures Advancing REALTORS® to Tomorrow. Broker/Owner of Coldwell Banker One in Baton Rouge, David McKey and Louisiana REALTORS CEO, Norman Morris talk a little more about the components of the SMART initiatives in this 4-minute informational video.
At the state level, dues remains the same. You will notice the $25 building assessment is no longer being collected. Something added this year is a $20 voluntary contribution to the Louisiana REALTORS Disaster Relief Fund.
More than 1,000 families were assisted in the August 2016 floods with funds and the purpose of the contribution is to be prepared for the next disaster. Those funds also get used to send to areas around the country as disasters occur. This summer, LR’s Executive Committee voted to request that local associations include that as a voluntary contribution on 2019 dues billing statements. All donations are eligible for a special drawing of a one-of-a-kind George Rodrigue print.
The LR Board of Directors
at the Fall Governance Meeting approved the 2019 Program of Work
which is executed with dues dollars and provides for different programs and services that include advocacy efforts at the state level, professional development programs, and other member benefits and services such as the Tech Helpline
and Office Depot
member discounts. As LR moves into it’s 100th year of service, we are excited to continue to be the voice of real estate in Louisiana and a resource for services for REALTOR members.
LOCAL ASSOCIATIONS & MLS
As noted in the Association Membership dues graphic, each local association has dues and they vary from assocation to association. In Louisiana, there are 10 local associations represented in each of the markets around the state. Dues are often separate from charges for Multiple Listing Service (MLS) fees. Each Association and MLS can differ in the tools, services, and programs they provide. It is best to contact your local board Association Executive or staff members that handled membership for specifics on what is offered and which tools and education are available to you.
CONTACT US
We hope this information has been helpful in understanding the difference in the various fees associated with being in the real estate profession. It is also helpful to note the differences between the Louisiana Real Estate Commission (LREC) and REALTOR Associations in this handy infographic!
For additional questions or information please contact us at 1-800-266-8538.
NAR’s latest consumer guide, “10 Tips for Unpacking Smartly After a Move,” was developed to help ease the burden buyers may feel when surrounded by boxes. For your clients on the cusp of a move, the guide suggests establishing a priority unpacking order, wiping down each room before unpacking, discarding boxes quickly, having garbage and donation bags at the ready, and more. Share the new guide along with the companion guide “10 Tips for Packing Smartly for a Move.” As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow up to two weeks for the Spanish version of the latest resource to be translated and uploaded. For ease of reference, below is a list of the most recent guides: NEW: 10 Tips For Unpacking Smartly After A Move UPDATED : Multiple Listing Services Overcoming Roadblocks to a Sale or Purchase How Solar Impacts a Real Estate Transaction Navigating Interest Rate Shifts Thank you for your continued engagement with the “Consumer Guide” series and for sharing the resources with prospective clients to ensure they have the information they need to find success in their home buying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. Check out the next consumer guide on identifying homebuying wants vs. needs.
Thinking about buying a home? Discover how homeownership can help build wealth, increase financial stability, and create lasting value.
From the Louisiana Department of Insurance: During a press conference today with Governor Jeff Landry, Insurance Commissioner Tim Temple announced that registration for the next round of the Louisiana Fortify Homes Program (LFHP) will open at 8 a.m. on Monday, June 1, and will include 3,000 grants. The registration period for this lottery will be open for three weeks, closing at 5 p.m. on Friday, June 19. During the press conference, Gov. Landry signed HB 1187 by Rep. Paul Sawyer, which will allow Louisiana Citizens Property Insurance Corporation to transfer $50 million in additional Katrina bond assessment funds to the LFHP. Combined with the $30 million in funding the program will receive through taxes and fees on insurance entities, the LFHP will receive a total of $80 million this year. “By lowering overall losses, we can reduce insurance and reinsurance costs, draw more insurers into the market, motivate existing companies to write additional policies and lower insurance premiums,” said Commissioner Temple. “That is exactly what the Louisiana Fortify Homes Program is designed to do.” The list of coastal parishes that are eligible to participate is expanding to include Acadia, Jefferson Davis and Lafayette parishes. Additionally, homeowners who live in the portions of Ascension, Calcasieu, Iberia, Livingston, St. Martin, St. Tammany, Tangipahoa and Vermilion parishes that were previously not included in the program will now be eligible to participate. A map showing the full list of eligible parishes is available on FortifyHomes.La.Gov . “Louisiana is the fastest growing state in the country for Fortified roofs, and that growth is not by accident—it is the result of strong support from Governor Landry and legislators like Chairman Talbot, Chairman Firment and Representative Sawyer, targeted program design, and a clear recognition that strengthening homes is one of the most effective ways to reduce insurance losses,” said Commissioner Temple. “At the end of the day, this program is about more than just roofs. It is about protecting families, it is about strengthening communities, and it is about putting Louisiana in a stronger position—both physically and economically—to face the challenges ahead.” To participate in the lottery, homeowners must register during the June registration period. Homeowners who registered for a previous round but were not selected must register again to participate. People who register on the last day of the registration period have the same chance of being selected as those who register on the first day, so there is no need to rush to register as soon as the period opens. When registering, homeowners will need to upload their homestead exemption, insurance policy declarations page that includes wind coverage, and flood insurance declarations page if the residence is in a flood zone. Homeowners who need assistance obtaining a copy of their homestead exemption should contact their parish tax assessor. Homeowners can contact their homeowners and flood insurance companies or agents for a copy of their policy declarations page. Homeowners are required to create a profile in the LFHP system before registering for the lottery and may do so by visiting the LFHP website and clicking the Login button. Homeowners who previously created a profile may use the same one for this and future rounds. Once the lottery registration period closes, the LFHP will randomly select 3,000 participants and send email notifications to registrants about whether they were selected to participate. These selection notices will be sent via email beginning on Monday, June 22. There are several program requirements that homeowners should be aware of before registering. Those interested in the program are encouraged to review eligibility information and frequently asked questions at FortifyHomes.La.Gov to determine whether their home meets the requirements for the program. If selected to participate in the grant program, homeowners will be financially responsible for having the home evaluated by a FORTIFIED-certified Evaluator as well as costs for the roof upgrade including permits, inspections and construction costs beyond the amount of the grant The LFHP provides grants of up to $10,000 for homeowners to upgrade their roofs to standards set by the Insurance Institute for Business & Home Safety. The program helps Louisiana homeowners strengthen their roofs to better withstand hurricane-force winds.
