Kentucky License Law, Commission Rules, and Statutory Requirements
Licensing structure
Kentucky regulates brokerage through the Real Estate Commission (KREC). A sales associate must be affiliated with and supervised by a principal broker; a broker may operate as a principal broker or work under one, depending on license status. The principal broker is responsible for the office, supervision, advertising, and trust accounts. Only a licensee affiliated with a principal broker may be compensated for brokerage services; a licensee generally may not accept compensation directly from a client or another party without authorization.
Trust funds and records
Earnest money and other trust funds must be deposited in a designated escrow/trust account and fully accounted for; commingling with operating funds is a violation. Keep transaction records as the Commission requires. Common traps: using escrow money for business expenses, failing to disburse at closing, and failing to reconcile the account.
Advertising and disclosures
Advertising must identify the brokerage firm and comply with Commission rules on team names, assumed names, and false or misleading claims. Licensees must make required agency disclosures at first substantive contact and provide the Commission's consumer guide.
Discipline
KREC may investigate a complaint, hold a hearing, and impose reprimands, probation, suspension, revocation, fines, or additional education. Renewal and continuing education are conditions of active licensure.
Worked rule: an unlicensed assistant may schedule appointments, place ads, and deliver documents, but may not discuss price, terms, or property condition, or negotiate. If the task requires judgment about the transaction, it requires a license.