What happens to Sam's ability to conduct business after his sponsoring broker dies?

When a sponsored Louisiana broker's sponsoring broker dies, the law requires that the sponsored broker must cease all business operations immediately, but they are allowed to close pending transactions. This is because, in Louisiana, the relationship between a broker and their sponsoring broker is essential for the legal operation of a real estate business. Upon the death of the sponsoring broker, the authority to conduct business is effectively terminated.

However, the sponsored broker may complete ongoing transactions that were in process before the sponsoring broker's death, as they are entering the closing phase. This allows for the fulfillment of any legal obligations tied to those transactions while ensuring that no new business activities are initiated without a licensed sponsoring broker.

Thus, the answer highlighted reflects the legal framework governing broker operations in Louisiana, emphasizing the need for continued adherence to regulations following such significant changes in brokerage relationships.