General Powers, Real Estate Commission
Authority to issue licenses, examination and audit of records, administration of the Education Research and Recovery Fund
Enforcement Powers of the Commission
Investigations
Hearings
Appeals
Sanctions include fines, license suspension, revocation, and criminal action
How is Commission selected?
The KAR provides the governor names, governor appoints and the commissioner's select chairperson
All funds collected and expenses paid by the KREC go through
The general fund
Education research and recovery fund has a maximum
$20,000 claim
$50,000 agent
Maximum fine imposed on a licensee by the commission
$1,000
Decisions made the KREC may be appealed to
The circuit court (only circuit court could impose jail time)
License is cancelled if
Failed to renew on time or wrote a cold check for renewal
License is suspended for
Disciplinary action
License revoked lasts for
5 years
Broker license is suspended
Sales associates licenses become inactive or suspended
Trustees
Executors
Attorneys
Don't need real estate licenses
License eligibility
18+, hs diploma/GED, 96 hours of class, pass test, background check
Test results are good for
60 days (find broker or place license in escrow)
Broker license required work
24 months or having a college degree in real estate
Continuing education not required for
People born prior to June 19, 1976
Licensee continuing education
6 hours annually with 3 being law
All licenses expire
March 31st
Up to 45 days late renewing license
$100
45 days to one year renewing
$200
Experience needed to manage a branch office within 100 miles of the principal broker's office
24 months
Maximum Fees
$100 Test
$10 Transfer
$30 Background, License Renewal, Recovery Fund
E & O insurance needed for all licensees except
Those in escrow
Max Cost for State E & O plan
$200 (covered $100,000-1M)
Maximum Deductible for any approved E&O plan
$2,500
Continuing education to be completed by
December 31 ($500 delinquency plan)
6 Hour Core Law Course Required
Every 4 years
Any felony must be reported to KREC
immediately
Net Listing
Illegal
Affiliation Fee
Illegal
Agent/owner must disclose their ownership interest in a property to
All parties
Agent can't do the following without a WRITTEN listing agreement
Placing an ad
Showing
Etc
Referrals/Commisions can only be paid to
Licensed individuals
No bird dog fees
All commissions must be paid through
The principal broker of the real estate company
Broker must maintain their escrow account in KY
...
Times when earnest money deposits can be released
Performance (closing), court order, mutual agreement
In disputes, broker may release earnest money using the
Release process / 60 Day Notice
May be in the company name
Deceased brokers
Associates w/ 2+ years of experience
All advertising must include
Company name or Broker name
Agents must disclose all information about to buyers about
Material facts / Problems
After the fact referrals are
Illegal
A broker must submit license of sales associate to KREC upon
Termination by either party
Upon termination, the licensee has how long to find a new broker or place the license in escrow?
30 days
Earnest/Escrow deposits must be "without unreasonable delay
3 business days
Contracts should contain specifics of the buyer's
Financing
Brokers are required to provide customers and client copies of
All signed documents
If the bank/attorney does not furnish it, it is the responsibility of the
Broker
Brokers must have what to advertise/place signage on a property
Owners' written authorization
Company internet home page should contain
Broker or Co name
Address
Phone #
Unlicensed Assistants _____ have their name in an ad
CAN
Personal Assistants can
Hand out literature and set appointments
WITH PERMISSION unlicensed Assistants can
Make keys
Write ads
Hold open houses
Personal Assistants CANT
Attend a closing alone
Show property
Interpret contracts
Time restraints for a broker to place a lien for commission
6 months to file
12 months to collect
WRITTEN offers must be submitted to owners
Without delay" ASAP
No listing can contain
An automatic continuation clause
Listing contracts should include
Owners' signatures
Price
Date of Expiration
Fee
Offers should include
Time to expiration
Price
Closing and Possession dates
Deposit info
Seller disclosure form (SDF) only required for
Single family Residential property
SDF not required for
Home w/ warranty
Court Foreclosure
Auction Property
Agents are required to submit a SDF form within
72 hours of offer or 120 hours for FSBO
Inducements to buyers are
Unlimited but MUST be disclosed in writing
Agents using a "guaranteed sales plan" must
Provide specifics of the plan in writing
Agency Disclosure Form required on property up to
A 4 Plex
Transactional Brokerage does not establish
An agency relationship (both are customers)
Agency" should be disclosed before
The end of the 2nd meeting, before documents are signed
Property management agreements must
Be in writing
At time of expiration, broker has how long to deliver the owner a final accounting statement
60 days
Security deposits of managers must be kept
In a separate escrow fund
Property manager must conduct
An initial walk through and a final walk through insoection
If a tenant owes rent, property manager must wait
30 days before using the escrow deposit
If a tenant does not owe rent, manager must send a letter and wait how many days to keep money
60 days