Ch 64 Licensing

In order to be granted a license, what must an applicant fulfill to qualify?

Real estate license will only be granted to persons who are trustworthy and competent to transact the business of real estate in a manner that safeguards the interest of the public.

Commission to File Civil Action

The Kentucky Real Estate Commission will file a civil action and obtain a court order against any unlicensed individual acting in violation of the statutes and the administrative regulations governing real estate.

Can a licensee obtain errors and omissions insurance independently?

Yes, provided that the coverage complies with the Commission's requirements.

Effective January 1, 2020: Continuing Education

You must complete 12 hours every renewal period. 6 hours must be in law. You must complete a minimum of 6 hours by December 31st of the first year of the renewal period. However, if you take more than 6 during that first year, you can "rollover" hours to the second year in the renewal period. All licensees must attend a Commission-approved 6-hour core course once every 4 years. The 6-hour core course will satisfy the licensee's mandatory continuing education requirement for the year in which the course is taken

Qualifications for License

A real estate license will only be granted to persons who are trustworthy and competent to transact the business of real estate in a manner that safeguards the interest of the public. Satisfactory proof of an applicant's honesty, truthfulness, and good reputation may be required by the Commission.

License Renewal

A renewed license is valid from April 1st to March 31st annually. A license that is not renewed by March 31st of each year will be cancelled by the Commission. Effective January 1, 2020: Biennial (two-year) license renewal cycle All licensees will renew by March 31, 2020 and not renew again until 2022. To renew a license a licensee must: Apply in writing for license renewal. Pay the required license renewal fee.

For how long is a renewed license valid?

A renewed license is valid from April 1st to March 31st annually. Effective January 1, 2020: Biennial (two-year) license renewal cycle All licensees will renew by March 31, 2020 and not renew again until 2022.

If an identification record shows a felony conviction, how soon must the applicant submit the record to the Commission?

5 days.

What is the minimum E&O insurance limit of liability for one claim?

$100,000.

How many hours of academic credit must an applicant for a sales associate's license have completed?

6 hours.

How old must an applicant for a real estate license be?

18 years of age.

All actively licensees must successfully complete how many classroom hours of mandatory continuing education each year?

6 hours. Effective January 1, 2020: Continuing Education You must complete 12 hours every renewal period. 6 hours must be in law. You must complete a minimum of 6 hours by December 31st of the first year of the renewal period. However, if you take more than 6 during that first year, you can "rollover" hours to the second year in the renewal period.

Once a license is suspended following a hearing, how long does the licensee have to reinstate his or her license before it will be cancelled?

90 days.

An applicant for a broker's license must first attend what?

A 3-hour academic credit brokerage management skills course.

In place of proof of high school graduation or a GED diploma, an applicant may submit an official transcript from a U.S. institution, or an institution outside of the U.S., which indicates successful post-secondary completion of

A degree program; or, Twenty-eight (28) academic semester hours or equivalent.

What is the fine for failing to renew a license on time?

A fine of up to $200.

On a separate sheet, list the changes a licensee must notify the Commission of.

A license must notify the Commission to changes of: -The licensee's principal business location. -The licensee's firm name. -A sales associate's transfer from one principal broker to another. -A licensee's surname.

On a separate sheet, list the steps a licensee can take to prevent his or her license being cancelled for not fulfilling the continuing education requirements.

A license will not be cancelled for non-fulfillment of the continuing education requirements if the licensee: -Places his or her license in inactive. -Agrees in writing to a delinquency plan, which includes completion of the delinquent continuing education requirements for the previous calendar year on or before June 15th. -Submits a $500 fine that will be assessed against each licensee who fails to complete the continuing education requirements by the end of the calendar year.

Placing License in Inactive With the Commission

A licensee may place his or her license in inactive with the Commission provided that: The licensee does not engage in any real estate activity for others during the term of inactivity of the license. The licensee pays the license renewal fees for each year the license is ininactive. The licensee must provide proof of an ERP (extended reporting period) insurance policy consistent with minimum coverage as required by the Commission. To return a license placed in inactive to active status a licensee must: Meet the requirements applicable to active licensees. Complete all continuing education requirements. Pay the established change fee. Submit a new background check, proof of the required education and other licensing forms and fees.

Notice of Change

A licensee must notify the Commission in writing of any changes to: A licensee's principal business location. A change of the licensee's firm name. A sales associate's transfer from one principal broker to another. A licensee's change of surname. A licensee's license will be automatically cancelled if the licensee fails to promptly notify the commission, in writing, of any of the above changes. Once a licensee has notified the Commission of any changes the Commission will issue a new license for the unexpired period of the licensing period. The Commission charges a fee for making changes to a license and these charges apply to both broker's and sales associate's licenses. A fee is also assessed for certification of a licensee's status with the Commission. All licensees are required to file their telephone numbers and, if applicable, their email addresses at the time of annual license renewal with the Commission. Effective January 1, 2020: Biennial (two-year) license renewal cycle All licensees will renew by March 31, 2020 and not renew again until 2022.

Licensee Residence Changes, Email Addresses, and Telephone Numbers

A licensee must notify the Commission of a change of his or her residence address by completing, signing, and filing with the Commission the "Change of Residential/Email Address" form within 10 days from the date of the change. During the Commission's online renewal process, a licensee must provide his or her direct telephone number and email address. A licensee must promptly report any changes to this information by completing, signing, and filing with the Commission the "Change of Residential/Email Address" form. The "Change of residential/Email Address" form shall be accompanied by a completed and signed "Consent to Service of Jurisdiction" if applicable.

Licensee Name Changes

A licensee must notify the Commission of his or her legal name change by promptly completing, signing, and filing with the Commission the "Licensee Name Change" form. This form shall be accompanied by the required change request fee that may not be more than $10.

Out-Of-State Continuing Education Requirements

A licensee who attends continuing education in another state may receive approval for completed out-of-state continuing education courses provided: The real estate regulatory agency of the state where the course is held approved the course for real estate continuing education credit. The focus of the course is not on the specific real estate laws of another state. The course must be taken and completed during the calendar year for which continuing education credit is sought in Kentucky. The course enables the licensee to better understand the real estate brokerage business and meets the content criteria prescribed by the Commission. The licensee submits proof of completion of the out-of-state course to the Commission through electronic or paper verification issued by the provider, and an Out-of-State Continuing Education Compliance Form - Form E111. The provider' course verification, the Out-of-State Continuing Education Compliance Form and other requested forms must be provided to the Commission for review by December 31 of the calendar year for which the licensee is seeking credit. If after reviewing of the materials submitted the Commission determines the course does not merit continuing education credit, the Commission may deny continuing education credit for the course. The Commission will notify a licensee of a denial and a brief explanation of the reasons for denial.

Post-license education

A licensee who is issued an initial sales associate license after January 1, 2016 must complete forty-eight (48) classroom or online hours of commission-approved post-license education provided by one or a combination of the following: An accredited institution; or A commission-approved real estate school or broker-affiliated training program. A broker-affiliated training program means one or more post-license education courses offered for post-license educational credit provided or sponsored by a licensed real estate principal broker. All primary or secondary providers wishing to offer online or other distance education courses must be approved in accordance with the current administrative regulations. The commission will review the content of each course to ensure that it meets the requirements. The commission will not approve any course that is solely motivational or considered to be a personal development course. All course approvals will expire on December 31 of each calendar year. Any licensee who is an approved instructor who teaches an approved post-license education course will be entitled to continuing education credit on an hour-for-hour basis. To obtain that continuing education credit, the instructor must be included on the roster listing all attendees who have completed the course that the provider sends to the commission. The instructor cannot receive credit more than once in a calendar year for each specific course taught.

What must an applicant for a broker's license provide as proof of experience in real estate?

A sworn notarized statement signed by the principal broker or other documentation satisfactory to the Commission.

Mandatory Continuing Education

All active licensees must meet attend and successfully complete 6 hours of Commission-approved continuing education courses by December 31st of each year. To receive continuing education credit for a completed approved course, a licensee must file a certificate of completion for each course with the Commission by December 31st of each year. Continuing education courses may be taken in 1 to 6 hour increments.

Continuing Education Requirements

All actively licensed agents must successfully complete 6 classroom hours of continuing education each year. 3 of these 6 hours must be in real estate law.

Reciprocal Licensing or License Recognition Between States

Although the heading of statute 324.141 is "Reciprocal Licensing Between States" the Commission no longer has any reciprocal agreements and they have been replaced with Kentucky Administrative Regulation 201 KAR 11:215 "License Recognition; Application Requirements."

Broker Management Course

An applicant for a broker's license must first attend a 3-hour academic credit brokerage management skills course. This 3-hour course is part of the required 12 hours of broker prelicense education real estate courses. The brokerage management skills course will: Satisfy 3 hours of the applicant's 12 hours of real estate courses required to become a broker. Be a three 3 academic hour comprehensive review of all the skills necessary to run a brokerage office in accordance with: KRS Chapter 324. 201 KAR Chapter 11. Common law and federal law relating to real estate. The standards of practice for a real estate broker regarding adequate supervision of all sales associates affiliated with the broker. Require each student successfully completing the course to develop: A sample business plan. A sample financial plan. An office policy and procedure manual. Require submission of the above 3 projects within 1 year of completion of the coursework. Require each successful student to take a comprehensive examination consisting of at least 75 multiple-choice questions and to pass the test with a minimum score of 75%. 1 retake of the examination will be permitted. The examination shall be submitted to the Commission for approval prior to use in the course.

License Examination

An applicant for a license must pass a Commission-approved written examination. The examination will establish that the applicant is competent to act as a broker or sales associate in a manner that protects the interests of the public. An examination is not required for the renewal of a current or future license, unless the license has been revoked, suspended, or expired without renewal for over 1 year. Examinations are held at times and places determined by the Commission.

License Recognition

An individual who is actively engaged in real estate activities as a sales associate or broker outside Kentucky may apply for a Kentucky license that is the same as the individual's out-of-state license by license recognition. To qualify for a license by license recognition the individual's out-of-state license must be active and unrestricted.

Coverage may exclude claims brought against the insured licensee, regardless of whether the professional service involves an activity for which a license is required if the claim is:

Due to a dishonest, fraudulent, criminal or malicious act, error, or omission, committed by, at the direction of, or with the knowledge of the licensee. As a result of the insolvency of the licensee. Brought about or contributed to by any inability or failure to pay or collect premium, escrow, or tax money. Brought about by an employee, or former employee of the licensee alleging breach of contract of employment. Arising out of any injury or damage that the licensee either expected or intended. Brought about by bodily injury, sickness, disease or death of any person or physical injury to or destruction of or loss of use of tangible property. Arising out of libel, slander, defamation of character, false arrest or imprisonment, wrongful entry or eviction, or other invasion of the right of private occupancy, publications or utterances in violation of an individual's right of privacy, or malicious prosecution. Arising out of services performed by the licensee which are subject to the Employee Retirement Income Security Act of 1974, 29 U.S.C. 1001. Arising out of any violation of the Securities Act of 1933, 15 U.S.C. 77a, or the Securities Exchange Act of 1934, 15 U.S.C. 78a, or any state blue sky or securities law or similar state or federal statutes. Arising out of the conversion, misappropriation, commingling, or defalcation of funds or other property. Brought against a real estate property manager for failure to effect or maintain adequate levels or types of insurance. Arising out of unlawful discrimination. Arising out of liability assumed by the licensee under any indemnity, hold harmless or similar provisions or agreements. This exclusion does not apply to liability the licensee would have in the absence of these agreements. Arising out of the licensee's business, and by or on behalf of an investor, shareholder, or partner in any corporation, partnership, real estate trust, or venture in which the licensee has, or had, a participating interest. Arising out of the licensee's business in connection with the licensee's activities as an underwriter, sponsor, partner, joint or coventurer, or member in any real estate partnership, venture or syndicate. Arising out of, relating to, or based upon the dispersal, escape, or release of smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, liquids, gases, irritants, or pollutants, including: Any solid, liquid, gaseous, thermal, biological or radioactive substance, material, matter, toxin, irritant or contaminant, including radon, asbestos, chemicals and waste. Waste includes materials to be recycled, reconditioned, or reclaimed. Excluded by the Nuclear Energy Liability Exclusion Endorsement (broad form) filed by the Insurance Services Office, Inc. with the Kentucky Department of Insurance and identified as form #IL 00 21 11 85. Arising from the sale or property management of property developed, constructed, or owned by: the licensee; a firm or corporation in which the licensee has a financial interest; a firm coming under the same financial control as the licensee. This exclusion does not apply and coverage shall be extended to claims arising from the sale of real property, if all 3 of the following conditions are met: The property was acquired by the insured under a guaranteed sale listing contract. The title to the property was only temporarily held by the insured during the transit period, not to exceed 1 year, from acquisition to resale. The property is listed for sale during the entire transit period; or Arising out of the interests, operations, or activities of the licensee as a mortgage banker or correspondent, escrow agent, construction manager, or property developer.

Expired Status

Any license not renewed at the end of the renewal period will automatically expire. An expired license may be reactivated within 1 year if the delinquent fees are paid by the licensee.

Filing a Sworn Statement

Any person found to have misrepresented facts in any sworn statement will be subject to disciplinary proceedings by the Commission and the Commission may seek a criminal indictment for perjury.

If an applicant submits documentation qualifying education in a language other than English, the diploma or transcript must

Be accurately translated; and Include a certification stating that the translation is true, accurate, and complete.

Background Check: Disciplinary Action Against Licensee for Acts Committed Before or During License Application Procedure

Before taking a license examination, an applicant must request a copy of the applicant's identification record. Before applying for licensure with the Commission, an out-of-state applicant seeking licensure through a reciprocal agreement must request the Federal Bureau of Investigation identification record, or the identification record of a Commission-approved alternate provider. Applicants may request a copy of his or her identification record from the Federal Bureau of Investigation, or from any other Commission-approved criminal background-checking provider. Upon receipt of the identification record of the Federal Bureau of Investigation, or a Commission-approved alternate provider, the applicant must: Submit the original identification record to the Commission within 5 days of receiving it if the identification record reveals: Any felony conviction regardless of when the conviction occurred. A misdemeanor conviction within the previous 5 years. Submit the identification record to the Commission at the time of application if it does not indicate: A felony conviction at any time. A misdemeanor conviction within the previous 5 years.

If the Commission suspends the license as a result of a default order or after a hearing, the licensee will not be allowed to activate his license unless the licensee:

Completes the current year's continuing education requirements within 90 days of the expiration of the suspension. Submits the required documents to reinstate the license within 90 days of the expiration of the suspension. Pays all the necessary renewal and transfer fees within 90 days of the expiration of the suspension. If a licensee does not reinstate his or her license within 90 days following the completion of the suspension period, the license shall be cancelled and the licensee will have to meet the requirements for initial licensure, including retaking the exam.

On a separate sheet, list some of the claims that may be excluded by E&O insurance coverage.

Coverage may exclude claims if the claim is: -Due to a dishonest, fraudulent, criminal or malicious act, error, or omission, committed by the licensee. -As a result of the insolvency of the licensee. -Brought about by failure to pay or collect premium, escrow, or tax money. -Brought about by an employee of the licensee alleging breach of contract of employment. -Arising out of any injury or damage that the licensee either expected or intended. -Arising out of unlawful discrimination.

The minimum requirements for the coverage contained in the insurance policy for which the certification has been filed are:

Coverage must be real estate agents errors and omissions insurance or real estate agents professional liability insurance. The limit of liability must not be less than $100,000 for any one claim, excluding the cost of investigation and defense. The limit of liability must not be less than $1,000,000 annual aggregate limit of liability, excluding the cost of investigation and defense. A principal broker who purchases independent errors and omissions "firm coverage" insurance shall have the following aggregate amounts: One to forty licensees shall carry a $1,000,000 annual aggregate. Forty-one or more licensees shall carry a $2,000,000 annual aggregate. The maximum deductibles, which may be separate deductibles, must not exceed $2,500 for judgment or settlement and $1,000 for the cost of investigation and defense. Coverage shall apply for any covered claim resulting from a licensed activity unless the claim had been made against the licensee before the present insurance policy's inception or is insured by a previous insurance policy. Coverage may not exclude claims brought against the insured licensee due to an act or failure to act by the licensee when performing a professional service for which a license is required.

A non-licensed personal assistant, office worker, or clerical worker may perform the following tasks:

Distribute literature, serve refreshments, greet guests, and procure guest signatures on a sign-in book at an open-house, without a supervising licensee present at the open house if: The seller or lessor provides written consent for the assistant to serve in this capacity. The supervising licensee directs the assistant to serve in this capacity. Provide the following general public information to others: Whether real estate is listed with the real estate company. Whether real estate is under contract with the company. Whether a real estate transaction has closed. The listing price of the real estate. Other information about the real estate if: The information is provided in writing. Disclosure is approved by the supervising licensee. Disclosure does not violate the licensee's fiduciary duties to his client. Appear in advertisements and have his or her name appear in advertisements if the advertisement does not indicate or imply the assistant has a real estate license. Contact others to set appointments on behalf of the supervising licensee. Receive confidential information from a consumer relative to a real estate transaction if the information is communicated only to the supervising licensee. Copy a key related to a real estate transaction at the direction of the supervising licensee. Unlock real estate for any purpose relative to the real estate transaction if: The supervising licensee receives the consent of the owner or lessor. The assistant answers no questions about the real estate other than as specifically allowed by administrative regulations or statutes. The assistant does not show the real estate to a consumer.

Records Maintenance

Each continuing education provider shall maintain the following records in a file for three (3) years following the end of each calendar year: A copy of the roster submitted to the Commission of licensees attending the course. A copy of the Course Evaluation Transmittal form. The sign in sheet or registration list used by the provider to track attendance. Any other documentation regarding student attendance. Records containing licensee information shall be destroyed by the provider after three (3) years.

Form of License Certificate

Each successful applicant will be issued with a license by the Commission. The license will show the name and address of the licensee and, in case of a sales associate's license, shall show the name and business address of the principal broker. Sales associates' licenses will be delivered to the principal broker with whom the sales associate is affiliated.

What must all active licensees carry?

Errors and omissions insurance.

Consent to Service of Process by Nonresident Applicant

Every nonresident applicant for a license must file an irrevocable consent stating that: Every nonresident applicant for a license must file an irrevocable consent stating that: Legal actions may be commenced against the applicant in the court of any county of Kentucky in which a cause for action may arise, or in which the plaintiff may reside. Such action may be commenced by the service of any process or pleading on the Commission. Agreement that service of process of pleadings on the Commission is held by a court to be as valid and binding as if the service had been made upon the applicant in person. If a process or pleading is served upon the Commission: 1 copy will be filed in the office of the Commission. 1 copy will be immediately forwarded by certified mail, return receipt requested, to the main office of the applicant against whom the process or pleadings are directed.

Who are the criminal record checks for license applicants conducted through?

FBI

If a licensee decides not to participate in the group E&O insurance program administered by the Commission, what must he or she do?

File a certificate of coverage with the Commission.

If a licensee decides not to participate in the group E&O insurance program administered by the Commission, he or she must file a certificate of coverage with the Commission. The certificate of coverage must:

Filed by the license renewal date. Show compliance with the required terms and conditions of E&O coverage. If the Commission is unable to obtain a group E&O insurance policy capable of insuring all the licensees who choose to participate in the group program, the mandatory E&O insurance requirement will be void during that applicable contract year.

Hearing

If a hearing is ordered, the applicant must appear before the Commission or the Commission's authorized representative. The hearing will determine whether the applicant meets the standards of Kentucky license law and will consider: The nature of the crime. Whether the crime indicates the applicant's untrustworthiness or incompetence in a manner that threatens the public interest. Any evidence of honesty, truthfulness, and good reputation of the applicant. Evidence of rehabilitation by the applicant since the crime. Whether the applicant has received written confirmation from a principal broker willing to accept the applicant as an associate upon licensure. Whether the applicant is currently under probation, parole, or other state supervision or reporting requirements as a condition of any criminal sentence. Other information relevant to the applicant's fitness to broker real estate. If an authorized representative conducts the hearing, the authorized representative shall recommend to the Commission whether the applicant meets the standards of Kentucky license law. The Commission may accept the recommendation, reject the recommendation and enter a separate order, or remand to the representative for further proceedings.

Disciplinary Action

Following the hearing the Commission shall either approve or deny the application and notify the applicant of its decision along with a brief, written explanation of the reasons for the decision. If the Commission's order approves the application: The applicant may proceed with the licensure application. The applicant must take the licensure examination before the expiration date stated in the order. The applicant shall submit a copy of the order to the Commission with the licensure application. Failure to produce the order shall constitute grounds to deny the licensure application. If the Commission's order denies the application: The applicant may not proceed with the licensure application. The order will state if and when the applicant will be eligible to submit a subsequent license application. The application of an applicant who is, at the time of filing, under probation, parole, or other state supervision ordered by a court may be denied by the Commission, at its discretion. If the Commission denies an application based upon a probation or parole court order, the applicant may reapply for a license after the period of probation, parole, or other state supervision has ended. An issued license shall be revoked if the licensee, while still an applicant: Received an identification report indicating a felony conviction, or a misdemeanor conviction in the previous 5 years and the applicant did not submit the report to the Commission for investigation as required. Failed to request the report as required. Failed to submit the identification report with the application for licensure, as required. If an applicant has engaged in any unlicensed brokerage activity, the applicant must give up any fees or commissions earned or received as a result of the unlicensed brokerage activity, prior to the issuance of a license by the Commission.

On a separate sheet, list some of the forbidden practices for an unlicensed person.

Forbidden practices include: Negotiating terms of a real estate transaction. Completing contracts relative to a real estate transaction. Disclosing information that is available to a real estate licensee but is not available to the general public. Attending a real estate closing except to assist a licensee present at the closing. Placing advertisements without review by a licensee. Interpreting real estate contractual terminology for others. Performing any activity that requires a real estate license.

Fine for Failure to Renew On Time

If a licensee fails to renew his or her license on time, the Commission will assess a fine of up to $200. Failure to renew a license because the applicant did not receive a renewal form does not constitute an adequate excuse for failing to renew. Failure to renew a license because the mailing service did not return the renewal form to the Commission in time does not constitute an adequate excuse for failing to renew.

If an order from the Commission denies a license application, what will the order state?

If and when the applicant will be eligible to submit a subsequent license application.

Investigation By Commission

If the Commission receives an identification record that reveals a felony conviction, or a misdemeanor conviction within the previous 5 years, the Commission will investigate the conviction and may, at its discretion, investigate any charges that are revealed by the identification record or any other evidence of dishonesty, untruthfulness, or bad reputation of the applicant. Following the completion of the investigation, the Commission will review the investigation report and will: Order the applicant to appear before the Commission for a hearing. Allow the applicant to proceed with the licensure application without a hearing if the Commission determines the conviction does not necessitate a hearing.

Errors and Omissions Insurance Mandatory For All Licensees

In order to make the mandated errors and omissions insurance available to all licensees, the Commission contracts with an insurance provider to establish a group policy that is offered to all licensee. The Commission selects the insurance provider through a competitive, sealed bidding process, held in accordance with Kentucky statutes. The group policy obtained by the Commission is available to all licensees with no right on the part of the insurance provider to cancel any licensee. The group policy obtained by the Commission is at a reasonable annual premium that may not exceed $200.

What will the Commission do if it receives a record check revealing a felony conviction?

Investigate the charges and order a hearing.

Is it lawful for an unlicensed person to engage in real estate?

It is unlawful for any person who is not licensed as a real estate broker or sales associate to advertise or represent themselves to the public as a real estate broker or sales associate.

Who Needs to be Licensed

It is unlawful for any person who is not licensed as a real estate broker or sales associate to engage in or practice real estate. It is unlawful for any person who is not licensed as a real estate broker or sales associate to advertise or represent themselves to the public as a real estate broker or sales associate. An unlicensed person may not use any terms or titles that imply that he or she is licensed as a real estate broker or sales associate. Licensees who are owners or builder-developers must comply with the statutes and the administrative regulations governing real estate brokers and sales associates.

What happens to a license that is not renewed at the end of the renewal period?

It will automatically expire.

A non-licensed personal assistant, office worker, or clerical worker must not:

Negotiate terms of a real estate transaction or real estate brokerage agreement. Complete offers or contracts relative to a real estate transaction. Disclose information that is available to a real estate licensee but is not available to the general public. Attend a real estate closing except to assist a licensee present at the closing. Access information which requires membership in an industry trade group if the supervising licensee is not a member of the industry trade group. Write or place advertisements without review by a licensee. Express material opinions on any aspect of a real estate transaction to anyone other than the supervising licensee. Interpret real estate contractual terminology for others. Represent to others that he has a real estate license. Perform any activity that requires a real estate license.

If a licensee places his or her license in inactive, what must the licensee do?

Not engage in any real estate activity and pay the renewal fees.

On a separate sheet, list some of the people exempt form needing a real estate license.

Persons exempt from holding a real estate license include: The owner of a property performing acts in the regular course of the management of the property. A person acting as power of attorney from the owner. An attorney-at-law performing the duties of attorney-at-law. A receiver, administrator, or executor selling real estate under a court order. A trustee acting under a trust agreement, deed of trust, or will. A non-licensed person who undertakes general administrative or clerical tasks within a real estate company.

Course Criteria and Requirements

Post-license education will consist of thirty-two (32) hours from the following courses: The three (3) hour Commission Licensee Compliance course The requirements in each of the following course topics: Six (6) hours in Agency; Six (6) hours in Contracts; Three (3) hours in Finance; Three (3) hours in Advertising; Three (3) hours in Disclosure; Three (3) hours in Fair Housing; Three (3) hours in Technology and Data Security; and Two (2) hours in Risk Management In addition, the licensee must choose sixteen (16) hours in elective topics from the electives listed in the Post-license Topics - Form E113.

Applicants for a broker's or sales associate's license must fulfill the following requirements:

State whether the applicant has ever had a broker's or sales associate's license revoked or suspended. Provide a sworn statement containing the applicant's business and residential addresses. Apply in writing upon forms prepared or furnished by the Commission. Applications must include: The name of the broker or company with which the applicant will be associated in the business of real estate. The location of the place of business for which the license is desired. The period of time, if any, during which the applicant has previously been engaged in the real estate business. Be at least 18 years of age. Hold a high school diploma or equivalent. Pay the required licensing fee. Pass the required real estate license examination. Once an applicant has fulfilled these criteria, the Commission will issue him or her a license.

All applicants for an initial real estate broker's license must have:

Successfully completed at least 21 academic credit hours or the equivalent from an accredited institution or approved real estate school. 12 of these hours must be in real estate courses, 3 hours of which must be a course in broker management skills. Proof of academic credit hours must be an official transcript from the attended university or other documentation satisfactory to the Commission. Been engaged in the real estate business as a sales associate, averaging at least 20 hours per week, for a period of 2 years prior to the application. Proof of experience as a sales associate must be a sworn notarized statement signed by the principal broker or other documentation satisfactory to the Commission. An applicant may file a complaint with the Commission if his or her principal broker unjustly refuses to sign the statement. The Commission may reduce the 2-year experience requirement to 1 year if the applicant has an associate degree in real estate or a baccalaureate degree with a major or minor in real estate.

All applicants for an initial real estate sales associate's license must have:

Successfully completed at least 6 academic credit hours or the equivalent from an accredited institution or approved real estate school. Proof of academic credit hours must be an official transcript from the attended university or other documentation satisfactory to the Commission.

What is required of licensees once every 4 years?

That they attend a Commission-approved 6-hour core education course.

Criminal Record Check (Identification Record)

The Commission may require applicants for a license to submit to an identification record. Identification records are conducted through the FBI. Applicants are responsible for paying any fees for the report and fingerprinting. Applicants must authorize the release of the results of the identification record to the Commission. Applicants must complete the identification record within the 90 days prior to the date the license application is made to the Commission. Applicants must complete and return to the Commission a signed affidavit verifying that there is nothing on record to prohibit the applicant from licensure within 120 days.

If a licensee fails to complete the requirements of the delinquency plan:

The Commission shall notify the licensee of the deficiency on or after July 1st. The deficiency notice shall advise that the licensee may request a hearing for the Commission to consider whether the license should be suspended for noncompliance with the delinquency plan. Failure to request a hearing shall result in a default order of suspension. Any suspension ordered by the Commission for noncompliance with the continuing education delinquency plan shall be for a period of 6 months.

The following are exempt from the mandatory continuing education requirements:

The continuing education requirements not apply to any person licensed by the Commission prior to June 19th, 1976. A license recognition broker is not required to attend a continuing education course during the first calendar year in which he or she is first licensed. A licensee is not required to attend continuing education courses during the first two (2) calendar years from the date of issuance of an initial sales associate license. An inactivelicensee shall not be required to attend continuing education courses while the license remains inactive. Before a license is changed from inactive to active status, a licensee must provide the Commission with documentation of the completion of the current calendar year's continuing education requirements. To come out of inactive status, a licensee must submit a new background check, proof of the required education and other licensing forms and fees. If the licensee has not completed the core course in the previous 4 years as required, the core course shall become the current calendar year's continuing education requirement for a license changing from inactive to active.

A licensee may obtain errors and omissions insurance independently provided that:

The coverage contained in the E&O policy complies with the minimum requirements established by the Commission. The financial condition of the insurance company providing the E&O policy complies with the minimum requirements established by the Commission.

Exceptions to Licensing Requirements

The individuals who are not required to hold a real estate license are: A person who is the owner or lessor of a property performing acts in the regular course of the management of the property or investment in it. This includes regular employees of the owner or lessor. A person acting as power of attorney from the owner.An attorney-at-law performing the duties of attorney-at-law.A receiver, trustee in bankruptcy, administrator, or executor selling real estate under a court order, or a trustee acting under a trust agreement, deed of trust, or will. This includes regular employees of these persons. A person engaged in property management, if the person: Is a regular employee of the owner or principal broker of the company engaged in property management? Receives use of a rental unit as primary compensation. A non-licensed person under the supervision of a licensed broker who undertakes general administrative or clerical tasks within a real estate company.

Compliance and Delinquency

The licensee must complete the post education training within two (2) years of receiving or activating his or her initial sales associate license unless extended by the commission for good cause shown, such as extensive medical issues for the licensee or the licensee's immediate relative or if the licensee convenes active military duty. A licensee must submit a request for an extension within the two year timeframe. If a licensee fails to provide proof of completion of the post-license education requirements within the two-year timeframe, then the licensee's license will be automatically canceled. A canceled license will not be reactivated until the licensee has completed all of his or her post-license education requirements, complied with all commission orders, and all other applicable licensing requirements.

The terms and conditions of the mandated E&O coverage is determined by the Commission, including, but not limited to:

The minimum limits of coverage. The permissible deductible. The permissible exemptions. Licensees are notified of the required terms and conditions of coverage for the annual policy at least 30 days before the license renewal date.

The core course will be a comprehensive review of:

The requirements of Kentucky real estate law and the administrative regulations. Common and federal law relating to real estate. The standards of practice for real estate licensees.

Compliance and Delinquency for Continuing Education Requirements

The time requirements established in the administrative regulations governing the continuing education requirements may be extended by the Commission provided: A true hardship or other good cause, such as extensive medical issues for the licensee or the licensee's immediate relative or if the licensee convenes active military duty, clearly warrants relief. The request for extension is received in writing by February 10th of the calendar year immediately following the year in which continuing education requirements were not fulfilled. If a licensee fails to comply with the provisions of the administrative regulations governing continuing education, the executive director will notify the licensee as soon as practical on or after January 10th of the next calendar year of the failure to comply. If the licensee fulfilled the continuing education requirements in the previous year, proof of completion must be forwarded to the Commission on or before February 10th. A license will not be cancelled for non-fulfillment of the continuing education requirements if, by February 10, the licensee enters into a written delinquency plan, pays a $500 fine, and either: Places his or her license in inactive: or Agrees in the delinquency plan to complete the delinquent continuing education requirements for the previous calendar year on or before June 15th. Note: To place a license in inactive status, the licensee must provide proof of an ERP (extended reporting period) insurance policy consistent with minimum coverage as required by the Commission. A licensee who places his license in inactive may not reactivate his or her license unless he or she has: Completed the core course or the current year's mandatory continuing education requirements. Paid the required fees. Submitted a new background check, proof of the required education and other licensing forms and fees. All licensees who fail to complete the continuing education must sign a delinquency plan and pay a fine. One delinquency plan allows you to go into inactive. The other delinquency plan allows licensees to complete the delinquent education by June 15th.

Through what method may an out-of-state licensee apply for a Kentucky license?

Through license recognition.

Application Requirements

To obtain a license by recognition, an individual must: File with the Commission a criminal background check in accordance with Kentucky statutes and regulations. File with the Commission a certification of good standing, issued by the regulatory authority of each state in which the individual has held a real estate license. The certification must include the individual's license history and any disciplinary information available from that state. Pass the state law portion of the Kentucky licensing exam for a sales associate's or a broker's license, whichever is the equivalent of the individual's out-of-state license. Apply for a Kentucky license within 60 days of completing the licensing exam. Applicants who fail to apply for a Kentucky license within 60 days will have to retake the exam. A licensee who has obtained a Kentucky license by recognition must comply with all the provisions of the Kentucky statutes and administrative regulations.

Each post-license education course shall consist of:

Topics that are real estate specific, provide practical knowledge of the brokerage business, and protect the public interest. Course objectives and assessments that are practicum based to allow application of knowledge from pre-license education to practical real estate brokerage scenarios. A licensee cannot receive post-license education credit for a duplicate course. Also a licensee cannot take more than nine (9) hours of post-license education in a twenty-four (24) hour period.

Errors and Omissions Insurance Requirements

certification to the insured licensee confirming that the obligations of the insurance company meet the minimum requirements of the administrative regulations. A licensee who chooses to be insured by other than the group insurance policy offered by the Commission must file the private carrier certification of coverage with his or her license renewal application. This certification is be available on the Commission's website, www.krec.ky.gov, and is included in the yearly renewal package mailed to all principal brokers. Effective January 1, 2020: Biennial (two-year) license renewal cycle All licensees will renew by March 31, 2020 and not renew again until 2022. The insurance for which the certification has been filed must not be terminated, cancelled, lapsed, or non-renewed unless the insurance company has provided the Commission with prior written notice.

Unrestricted license

means a license that is not under any order of limitation or discipline by another jurisdiction's regulatory body.

License recognition

means a licensing process that: (a) Replaces reciprocal agreements; and (b) May be used to obtain a Kentucky license by an individual who holds an active and unrestricted out-of-state sales associate's or broker's license, or the equivalent of either.