Kentucky Statutes 324.020 – Activities unlawful without license — Requirement of licensing — Application of chapter to owner or builder-developer — Prohibition against fee splitting — Exceptions — Supervision of sales associate — Authority to s…
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(1) It shall be unlawful for any person who is not licensed as a real estate broker or sales associate to:
(a) Hold himself or herself out to the public as a real estate broker or sales associate or use any terms, titles, or abbreviations which express, infer, or imply that the person is licensed as a real estate broker or sales associate; or
(b) Advertise for sale an equitable interest in a contract for the purchase of real property between a property owner and a prospective purchaser.
(2) No person shall practice real estate brokerage with respect to real estate located in this state unless:
(a) The person holds a license to practice real estate brokerage under this chapter;
or
(b) The person has complied with KRS § 324.235 to KRS § 324.238.
(3) A licensee who is an owner or a builder-developer shall comply with the provisions of this chapter and the administrative regulations applying to real estate brokers and sales associates.
(4) No broker shall split fees with or compensate any person who is not licensed to perform any of the acts regulated by this chapter, except that a broker may:
(a) Pay a referral fee to a broker licensed outside of Kentucky for referring a client to the Kentucky broker;
(b) Pay a commission or other compensation to a broker licensed outside of
Kentucky in compliance with KRS § 324.235 to KRS § 324.238; or
(c) Pay a licensed auctioneer for services rendered in cases where an auctioneer and real estate broker collaborate in the conduct of a sale of real estate at auction.
(5) Except as authorized in KRS § 324.112(1) and 324.425, no sales associate shall supervise another licensed sales associate or manage a real estate brokerage office.
(6) The Kentucky Real Estate Commission may seek and obtain injunctive relief against any individual acting in violation of this chapter by filing a civil action in the Circuit Court where the commission is located or where the unlawful activity took place.
Effective: June 29, 2023
History: Amended 2023 Ky. Acts ch. 84, sec. 2, effective June 29, 2023. — Amended
2015 Ky. Acts ch. 14, sec. 2, effective June 24, 2015. — Amended 2008 Ky. Acts ch.
156, sec. 5, effective July 15, 2008. — Amended 2004 Ky. Acts ch. 45, sec. 1, effective July 13, 2004. — Amended 2000 Ky. Acts ch. 488, sec. 4, effective July 14,
2000. — Amended 1998 Ky. Acts ch. 313, sec. 3, effective July 15, 1998. — Amended 1992 Ky. Acts ch. 448, sec. 3, effective July 14, 1992. — Amended 1984
Ky. Acts ch. 352, sec. 2, effective July 13, 1984. — Amended 1982 Ky. Acts ch. 196, sec. 10, effective July 15, 1982. — Amended 1976 Ky. Acts ch. 100, sec. 8. — Amended 1956 Ky. Acts ch. 18, sec. 1, effective July 1, 1956. — Amended 1942 Ky.
Acts ch. 184, secs. 1 and 8. — Recodified 1942 Ky. Acts ch. 208, secs. 1 and 8, effective October 1, 1942, from Ky. Stat. sec. 3990e-1.
(a) Hold himself or herself out to the public as a real estate broker or sales associate or use any terms, titles, or abbreviations which express, infer, or imply that the person is licensed as a real estate broker or sales associate; or
Terms Used In Kentucky Statutes 324.020
- Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
- 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
- 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
- Owner: when applied to any animal, means any person having a property interest in such animal. See Kentucky Statutes 446.010
- 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.
- 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. See Kentucky Statutes 324.010
- 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) Advertise for sale an equitable interest in a contract for the purchase of real property between a property owner and a prospective purchaser.
(2) No person shall practice real estate brokerage with respect to real estate located in this state unless:
(a) The person holds a license to practice real estate brokerage under this chapter;
or
(b) The person has complied with KRS § 324.235 to KRS § 324.238.
(3) A licensee who is an owner or a builder-developer shall comply with the provisions of this chapter and the administrative regulations applying to real estate brokers and sales associates.
(4) No broker shall split fees with or compensate any person who is not licensed to perform any of the acts regulated by this chapter, except that a broker may:
(a) Pay a referral fee to a broker licensed outside of Kentucky for referring a client to the Kentucky broker;
(b) Pay a commission or other compensation to a broker licensed outside of
Kentucky in compliance with KRS § 324.235 to KRS § 324.238; or
(c) Pay a licensed auctioneer for services rendered in cases where an auctioneer and real estate broker collaborate in the conduct of a sale of real estate at auction.
(5) Except as authorized in KRS § 324.112(1) and 324.425, no sales associate shall supervise another licensed sales associate or manage a real estate brokerage office.
(6) The Kentucky Real Estate Commission may seek and obtain injunctive relief against any individual acting in violation of this chapter by filing a civil action in the Circuit Court where the commission is located or where the unlawful activity took place.
Effective: June 29, 2023
History: Amended 2023 Ky. Acts ch. 84, sec. 2, effective June 29, 2023. — Amended
2015 Ky. Acts ch. 14, sec. 2, effective June 24, 2015. — Amended 2008 Ky. Acts ch.
156, sec. 5, effective July 15, 2008. — Amended 2004 Ky. Acts ch. 45, sec. 1, effective July 13, 2004. — Amended 2000 Ky. Acts ch. 488, sec. 4, effective July 14,
2000. — Amended 1998 Ky. Acts ch. 313, sec. 3, effective July 15, 1998. — Amended 1992 Ky. Acts ch. 448, sec. 3, effective July 14, 1992. — Amended 1984
Ky. Acts ch. 352, sec. 2, effective July 13, 1984. — Amended 1982 Ky. Acts ch. 196, sec. 10, effective July 15, 1982. — Amended 1976 Ky. Acts ch. 100, sec. 8. — Amended 1956 Ky. Acts ch. 18, sec. 1, effective July 1, 1956. — Amended 1942 Ky.
Acts ch. 184, secs. 1 and 8. — Recodified 1942 Ky. Acts ch. 208, secs. 1 and 8, effective October 1, 1942, from Ky. Stat. sec. 3990e-1.