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.
What qualifies as affordable housing in Louisiana? Learn about AMI, HUD income tiers, and housing support programs for clients.
Learn how Louisiana real estate agents can support affordable housing through LHC programs, buyer education, and housing advocacy efforts.
Week 10 brought meaningful movement on several Louisiana REALTORS® priorities affecting real estate, property rights and insurance. And Week 11 is shaping up to be one of the most important stretches of the session. The biggest developments last week were the final Senate passage of HB 468 by Rep. Troy Hebert with amendments, movement of HB 1027 by Rep. Hebert to the Governor for executive approval, continued Senate progress on HB 1187 and HB 1166 , and final legislative action on SB 180 . REALTOR® Day at the Capitol also came at an important time, giving members the opportunity to reinforce industry priorities with legislators as several key bills neared final passage or awaited committee, concurrence or floor action. Just as importantly, the Louisiana REALTORS® legislative package has now cleared most of its major hurdles, and barring any late-session surprises, the remaining package’s bills should be headed to the Governor’s desk shortly. On the core real estate package, HB 468 , the wholesale regulation bill, remains the most immediate priority. The Senate passed the bill 34-0 on May 12 with amendments, and it now returns to the House for concurrence. That places it in a fast-moving posture, and members should be prepared for quick House action once concurrence is called. HB 1027 , the appraiser liability bill, has now moved into final executive posture after passing the Senate 35-0 without amendments and being sent to the Governor. Together, those two bills represent major wins for consumer protection, market integrity and greater certainty in the real estate transaction process. Insurance remains one of the busiest and most important policy areas as we head into Week 11. HB 1187 , dealing with Louisiana Citizens for emergency assessments, was reported favorably by the Senate Insurance Committee and is now pending Legislative Bureau for review in the Senate. HB 759 , addressing fortified roof endorsement offers, remains one of the more important insurance and mitigation bills still in play and is positioned for Senate floor action. HB 408 , which would prohibit insurers from non-renewing residential policies when homeowners timely mitigate risks, remains pending in House Insurance, as does HB 1210 , which would create a mandatory pre-suit claim review process for residential property insurance. Additional insurance measures, including HB 850 on Standard Fire Policy cancellation notices, HB 1162 on contractor verification in insurance claims, and SB 241 on adjuster and appraiser license-number disclosure, also remain active. These bills continue to matter because insurance affordability, mitigation, claims handling and policy stability remain central to property ownership and transaction viability across Louisiana. On disclosure and regulatory matters, HB 1166 by Rep. Kim Carver , requiring disclosures for vacant residential property and carrying out the adopted LREC reform amendment, was reported favorably by the Senate Commerce Committee and is now pending with the Legislative Bureau for review in the Senate. That keeps the bill in a strong position for Senate floor movement and makes it one of the key bills to watch in Week 11. SB 180 , allowing a surviving spouse of a deceased disabled veteran to transfer an expanded property tax exemption under certain circumstances, has completed legislative action and is now in final processing. Week 10 and the run into Week 11 also reflected an important defensive win for Louisiana REALTORS®. Our team successfully worked to block and tackle HB 617 and HB 750 to ensure real estate and nonprofit activity were not swept into overly broad consumer protection frameworks. On HB 617 , Louisiana REALTORS® opposed the bill as drafted and worked to posture it so that real estate professionals would not be caught up in a fee-disclosure framework that does not fit the realities of real estate transactions. On HB 750 , we worked to ensure the bill would not be interpreted to reach real estate or nonprofit operations in a way that could create unintended compliance burdens for leases, property management arrangements, association activity, or recurring charges authorized under those structures. That effort helped keep broad subscription-style language from bleeding into housing and nonprofit operations where it plainly does not belong. Civil justice and broader property rights measures also remain active entering Week 11. HB 437 , dealing with expert witness fees, and HB 1089 , creating CARE Accounts for certain damages arising from delictual actions, remain pending in Senate Judiciary A and remain high-priority tort reform measures to watch. HB 472, the rent stabilization bill, remains involuntarily deferred and stays on the watch list for any attempted revival through another vehicle or amendment. Additional redevelopment and tax-related measures, such as HB 214 and HB 217, also remain relevant to the broader conversation on blight, reinvestment and neighborhood stabilization. A few additional housing and valuation bills are also worth noting HB 292 on security deposits, HB 297 on early lease termination in stalking and cyberstalking situations, and HB 300 on appraisal thresholds for bank-owned property have all advanced and remain part of the broader housing policy landscape. The practical takeaway is straightforward: Week 11 will likely move fast, and late-session maneuvering can matter as much as headline floor votes. Louisiana REALTORS® should be prepared for House concurrence on HB 468 , further Senate movement on HB 1166 and HB 1187 , continued action on insurance and tort reform, and the possibility of late amendments or procedural pivots on bills affecting real estate transactions, private property rights, housing affordability, nonprofits, property managers and the broader real estate industry. The package is in strong shape, but this is the point in the session when the finish line comes into view and traffic gets thick. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.
