Kentucky Real Estate Law #1

Real estate brokerage
a single, multiple, or continuing act of dealing in time shares or options, selling or offering for sale, buying or offering to buy, negotiating the purchase, sale, or exchange of real estate, engaging in property management, leasing or offering to lease, renting or offering for rent, or referring or offering to refer for the purpose of securing prospects, any real estate or the improvements thereon for others for a fee, compensation, or other valuable consideration
Commission
the Kentucky Real Estate Commission
Net listing
a listing agreement that provides for a stipulated net price to the owner and the excess over the stipulated net price to be received by the licensee as the fee compensation or other valuable consideration
Principal broker
a person licensed as a broker under KRS 324.046 who, in addition to performing acts of real estate brokerage or transactions comprehended by that definition, is the single broker responsible for the operation of the company with which he or she is associated
Real estate
real estate in its ordinary meaning and includes timeshares, options, leaseholds, and other interests less than leaseholds
Sales associate
any person licensed in accordance with KRS 324.046(2) that is affiliated with a Kentucky-licensed principal broker and who, when engaging in real estate brokerage, does so under the supervision of the principal broker
Property management
the overall management of real property for others for a fee, compensation, or other valuable consideration, and may include the marketing of property, the leasing of property, collecting rental payments on the property, payment of notes, mortgages, and other debts on the property, coordinating maintenance for the property, remitting funds and accounting statements to the owner, and other activities that the commission may determine by administrative regulation
Broker
any person who is licensed under KRS 324.046(1) and performs acts of real estate brokerage
Designated manager
a licensed sales associate or broker who manages a main or branch office for the principal broker, at the principal broker’s direction, and has managing authority over the activities of the sales associates at that office
Regular employee
an employee who works for an employer, whose total compensation is subject to withholding of federal and state taxes and FICA payments, and who receives from the employer a fixed salary governed by federal wage guidelines that is not affected by specific real estate transactions
Referral fee
consideration of any kind paid or demanded for the referral of a potential or actual buyer, seller, lessor, or lessee of real estate
Designated agency
a form of agency relationship that exists when a principal broker, in accordance with KRS 324.121, identifies different licensees in the same real estate brokerage firm to separately represent more than one (1) party in the same real estate transaction
Affiliation
the relationship agreed upon between a licensee and a principal broker and reported to the commission, where the licensee places his license with the principal broker for supervision of the licensee’s real estate brokerage activity
Canceled
the status of a license when a licensee fails to renew a license, writes the commission a check for fees that is not honored, fails to re-affiliate with a principal broker, or fails to complete requirements for continuing education
Suspended
the status of a license when disciplinary action has been ordered against a licensee that prohibits the brokerage of real estate for a specific period of time
Revoked
the status of a license when disciplinary action has been ordered that removes the licensee’s legal authority to broker real estate for a minimum of five (5) years
… which express, infer, or imply that the person who is not licensed, is licensed as a real estate broker or sales associate
It shall be unlawful to hold himself out to the public as a real estate broker or sales associate or use any terms, titles, or abbreviations …
1. The person holds a license to practice real estate brokerage in Kentucky, or
2. The person has complied with the Commericial Real Estate Brokerage laws.
No person shall practice real estate brokerage with respect to real estate located in this state unless:
… comply with the provisions of the Kentucky Real Estate Law and the administrative regulations applying to real estate brokers and sales associates.
A licensee who is an owner or a builder-developer shall …
1. Pay a referral fee to a broker licensed outside of Kentucky for referring a client to the Kentucky broker; or
2. Pay a commission or other compensation to a broker licensed outside of Kentucky in compliance with the Commercial Real Estate Brokerage laws.
No broker shall split fees with or compensate any person who is not licensed to perform any of the acts regulated by Kentucky Real Estate Law, except that a broker may:
1. A qualified sales associate may manage a branch office inside a one hundred (100) mile radius of the main office, and
2. In case of death or other incapacity of a principal broker, the commission may appoint a sales associate to complete and close the then existing business of the broker.
No sales associate shall supervise another licensed sales associate or manage a real estate brokerage office except …
… against any unlicensed individual acting in violation of Kentucky Real Esate Law.
The Kentucky Real Estate Commission may seek and obtain injunctive relief by filing a civil action in the Circuit Court …