Kentucky Statutes 324.010 – Definitions for chapter
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As used in this chapter, unless the context requires otherwise: (1) “Real estate brokerage”:
(a) Means 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; and
(b) Includes advertising for sale an equitable interest in a contract for the purchase of real property between a property owner and a prospective purchaser;
(2) “Commission” means the Kentucky Real Estate Commission;
(3) “Net listing” means 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;
(4) “Principal broker” means 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;
(5) “Real estate” means real estate in its ordinary meaning and includes timeshares, options, leaseholds, and other interests less than leaseholds;
(6) “Sales associate” means 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;
(7) “Approved real estate school” means:
(a) A school that has been given a certificate of approval by the Kentucky Commission on Proprietary Education or other regulatory bodies that exercise jurisdiction over accreditation and approval and the Kentucky Real Estate Commission. The school shall also be currently in good standing with both the Kentucky Commission on Proprietary Education or other regulatory bodies that exercise jurisdiction over accreditation and approval and the commission; or
(b) A National Association of Realtors recognized program which has been reviewed by the Kentucky Real Estate Commission and deemed an approved real estate school;
(8) “Accredited institution” means a college or university accredited by appropriately recognized educational associations or chartered and licensed in Kentucky that grants credits toward a program for either an associate, baccalaureate, graduate, or professional degree;
(9) “Property management” means 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;
(10) “Broker” means any person who is licensed under KRS § 324.046(1) and performs acts of real estate brokerage;
(11) “Designated manager” means 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;
(12) “Regular employee” means 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;
(13) “Referral fee” means consideration of any kind paid or demanded for the referral of a potential or actual buyer, seller, lessor, or lessee of real estate;
(14) “Designated agency” means 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;
(15) “Affiliation” means the relationship agreed upon between a licensee and a principal broker and reported to the commission, where the licensee places his or her license with the principal broker for supervision of the licensee’s real estate brokerage activity;
(16) “Canceled” means 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 or post-license education;
(17) “Suspended” means 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;
(18) “Revoked” means 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; and
(19) “Post-license education” means the forty-eight (48) hours of commission-approved education required within two (2) years of receiving or activating an initial sales associate license.
Effective: June 29, 2023
History: Amended 2023 Ky. Acts ch. 84, sec. 1, effective June 29, 2023. — Amended
2015 Ky. Acts ch. 97, sec. 1, effective January 1, 2016. — Amended 2012 Ky. Acts ch. 76, sec. 25, effective July 12, 2012. — Amended 2009 Ky. Acts ch. 58, sec. 13, effective June 25, 2009. — Amended 2000 Ky. Acts ch. 488, sec. 3, effective July 14,
2000. — Amended 1998 Ky. Acts ch. 313, sec. 2, effective July 15, 1998. — Amended 1992 Ky. Acts ch. 448, sec. 2, effective July 14, 1992. — Amended 1986
Ky. Acts ch. 345, sec. 1, effective July 15, 1986. — Amended 1984 Ky. Acts ch. 352,
sec. 1, effective July 13, 1984. — Amended 1982 Ky. Acts ch. 196, sec. 9, effective July 15, 1982. — Amended 1978 Ky. Acts ch. 172, sec. 1, effective June 17, 1978. — Amended 1976 Ky. Acts ch. 100, sec. 7. — Amended 1972 Ky. Acts ch. 264, sec. 1. –
– Repealed in part 1952 Ky. Acts ch. 4, sec. 1. — Amended 1942 Ky. Acts ch. 184, secs. 9 and 12A. — Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1,
1942, from Ky. Stat. sec. 3990e-2.
(a) Means 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; and
Terms Used In Kentucky Statutes 324.010
- Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
- Approved real estate school: means :
(a) A school that has been given a certificate of approval by the Kentucky Commission on Proprietary Education or other regulatory bodies that exercise jurisdiction over accreditation and approval and the Kentucky Real Estate Commission. See Kentucky Statutes 324.010 - Broker: means any person who is licensed under KRS §. See Kentucky Statutes 324.010
- Commission: means the Kentucky Real Estate Commission. See Kentucky Statutes 324.010
- Company: may extend and be applied to any corporation, company, person, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Contract: A legal written agreement that becomes binding when signed.
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Federal: refers to the United States. See Kentucky Statutes 446.010
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Owner: when applied to any animal, means any person having a property interest in such animal. See Kentucky Statutes 446.010
- Post-license education: means the forty-eight (48) hours of commission-approved education required within two (2) years of receiving or activating an initial sales associate license. See Kentucky Statutes 324.010
- Principal broker: means a person licensed as a broker under KRS §. See Kentucky Statutes 324.010
- Property management: means 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. See Kentucky Statutes 324.010 - Real estate: means real estate in its ordinary meaning and includes timeshares, options, leaseholds, and other interests less than leaseholds. See Kentucky Statutes 324.010
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Sales associate: means any person licensed in accordance with KRS §. See Kentucky Statutes 324.010
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
(b) Includes advertising for sale an equitable interest in a contract for the purchase of real property between a property owner and a prospective purchaser;
(2) “Commission” means the Kentucky Real Estate Commission;
(3) “Net listing” means 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;
(4) “Principal broker” means 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;
(5) “Real estate” means real estate in its ordinary meaning and includes timeshares, options, leaseholds, and other interests less than leaseholds;
(6) “Sales associate” means 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;
(7) “Approved real estate school” means:
(a) A school that has been given a certificate of approval by the Kentucky Commission on Proprietary Education or other regulatory bodies that exercise jurisdiction over accreditation and approval and the Kentucky Real Estate Commission. The school shall also be currently in good standing with both the Kentucky Commission on Proprietary Education or other regulatory bodies that exercise jurisdiction over accreditation and approval and the commission; or
(b) A National Association of Realtors recognized program which has been reviewed by the Kentucky Real Estate Commission and deemed an approved real estate school;
(8) “Accredited institution” means a college or university accredited by appropriately recognized educational associations or chartered and licensed in Kentucky that grants credits toward a program for either an associate, baccalaureate, graduate, or professional degree;
(9) “Property management” means 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;
(10) “Broker” means any person who is licensed under KRS § 324.046(1) and performs acts of real estate brokerage;
(11) “Designated manager” means 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;
(12) “Regular employee” means 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;
(13) “Referral fee” means consideration of any kind paid or demanded for the referral of a potential or actual buyer, seller, lessor, or lessee of real estate;
(14) “Designated agency” means 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;
(15) “Affiliation” means the relationship agreed upon between a licensee and a principal broker and reported to the commission, where the licensee places his or her license with the principal broker for supervision of the licensee’s real estate brokerage activity;
(16) “Canceled” means 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 or post-license education;
(17) “Suspended” means 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;
(18) “Revoked” means 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; and
(19) “Post-license education” means the forty-eight (48) hours of commission-approved education required within two (2) years of receiving or activating an initial sales associate license.
Effective: June 29, 2023
History: Amended 2023 Ky. Acts ch. 84, sec. 1, effective June 29, 2023. — Amended
2015 Ky. Acts ch. 97, sec. 1, effective January 1, 2016. — Amended 2012 Ky. Acts ch. 76, sec. 25, effective July 12, 2012. — Amended 2009 Ky. Acts ch. 58, sec. 13, effective June 25, 2009. — Amended 2000 Ky. Acts ch. 488, sec. 3, effective July 14,
2000. — Amended 1998 Ky. Acts ch. 313, sec. 2, effective July 15, 1998. — Amended 1992 Ky. Acts ch. 448, sec. 2, effective July 14, 1992. — Amended 1986
Ky. Acts ch. 345, sec. 1, effective July 15, 1986. — Amended 1984 Ky. Acts ch. 352,
sec. 1, effective July 13, 1984. — Amended 1982 Ky. Acts ch. 196, sec. 9, effective July 15, 1982. — Amended 1978 Ky. Acts ch. 172, sec. 1, effective June 17, 1978. — Amended 1976 Ky. Acts ch. 100, sec. 7. — Amended 1972 Ky. Acts ch. 264, sec. 1. –
– Repealed in part 1952 Ky. Acts ch. 4, sec. 1. — Amended 1942 Ky. Acts ch. 184, secs. 9 and 12A. — Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1,
1942, from Ky. Stat. sec. 3990e-2.