Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 30

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 30
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, this member or manager is responsible for supervising the licensees and the entity’s real estate
brokerage activities within the state.

Real estate licensees, whether
they are salespersons, individuals, agents or entities, must follow the state’s real estate licensing laws and regulations. These
laws and regulations generally specify minimum duties and obligations of these licensees to their clients and the public, as well as standards
for the conduct of business, including contract and disclosure requirements, record keeping requirements, requirements for local offices,
escrow trust fund management, agency representation, advertising regulations and fair housing requirements. Our Company’s management
and our franchisors provide oversight with respect to the observance of the statutes and regulations set forth in each state where we
or our franchisors, respectively, operate.

Many jurisdictions have local
county or city regulations that govern the conduct of the real estate brokerage business. Local regulations generally require additional
disclosures by the parties to a real estate transaction or their agents, or the receipt of reports or certifications, often from the local
governmental authority, prior to the closing or settlement of a real estate transaction as well as prescribed review and approval periods
for documentation and broker conditions for review and approval.

Climate regulation

On March 6, 2024, the SEC
issued final climate disclosure rules to require public companies to include enhanced disclosure regarding corporate climate-related information
in their periodic reports and registration statements. Such information would include climate-related risks that are reasonably likely
to have a material impact on a registrant’s business or results of operations, as well as certain climate-related financial statement
metrics. On March 15, 2024, the Fifth Circuit Court of Appeals, in the case Liberty Energy Inc. and Nomad Proppant Services LLC temporarily
enjoined the enforcement of those rules. Soon other states and private parties also challenged the rules. The litigation was then consolidated
in the Eighth Circuit, and the SEC previously stayed effectiveness of
the rules pending completion of that litigation. Briefing in the cases was completed before the change in Administrations, but on March
27, 2025, the SEC voted to end its defense of the rules requiring
disclosure of climate-related risks and greenhouse gas emissions.

16

Other regulation

We are also subject to rules
established by private real estate groups and/or trade organizations, including, among others, the NAR, state and local associations of
realtors, local Multiple Listing Services and homeowners’ associations that