Kentucky Real Estate License Law for Brokers
Kentucky real estate practice is governed by KRS Chapter 324 and the KREC administrative regulations, administered by the Kentucky Real Estate Commission. This chapter covers the licensing authority, the sales-associate and broker tiers, and the principal broker.
The Kentucky Real Estate Commission
KREC licenses and regulates brokers and sales associates under KRS Chapter 324, investigates complaints, and enforces the statute and regulations. Anyone performing licensed real estate activity for compensation must be licensed unless specifically exempt. A trade association has no licensing authority.
Sales Associate and Broker Tiers
Kentucky's entry license is the sales associate, and the broker license is the higher tier. A broker may operate a brokerage and supervise affiliated sales associates. Reaching the broker tier requires additional experience and education beyond the sales-associate level, reflecting the broker's greater responsibilities.
The Principal Broker and Discipline
Each brokerage must have a principal broker with primary responsibility for the firm's operation, including supervision of affiliated licensees and the escrow account. KREC may discipline a broker for violations such as commingling or converting escrow funds, misrepresentation, or failing to supervise affiliated licensees.