Kentucky Real Estate Broker Exam — All Questions
4 questions
Which body licenses and regulates real estate brokers in Kentucky?
- a.The Kentucky Association of Realtors
- b.The Kentucky Department of Revenue
- c.The Kentucky Real Estate Commission (KREC)✓
- d.The county clerk's office
The Kentucky Real Estate Commission (KREC) licenses and regulates brokers and sales associates under KRS Chapter 324 and the KREC administrative regulations. A trade association is a private membership group with no licensing power, and the county clerk and Department of Revenue have no jurisdiction over real estate licensing.
In Kentucky, the entry-level real estate license is called a 'sales associate,' and the higher tier is the:
- a.Broker license, which allows the licensee to operate a brokerage and supervise sales associates✓
- b.Property manager certificate only
- c.Notary commission
- d.Appraiser certification
Kentucky's entry license is the sales associate, and the broker license is the higher tier. A broker may operate a brokerage and is responsible for supervising affiliated sales associates and handling the firm's escrow account. Reaching the broker tier requires additional experience and education beyond the sales-associate level.
Under Kentucky law, a 'principal broker' is the licensee who:
- a.Holds only a sales-associate license
- b.Works part time with no supervisory duties
- c.Is appointed by the Kentucky Association of Realtors
- d.Has primary responsibility for the operation of a real estate brokerage and its escrow account✓
Kentucky requires each brokerage to have a principal broker with primary responsibility for the firm's operation, including supervision of affiliated licensees and the escrow (trust) account. KREC holds the principal broker accountable for the firm's compliance with license law. A sales associate cannot serve in this role.
The Kentucky Real Estate Commission may discipline a broker through its disciplinary process for:
- a.Belonging to a local board of Realtors
- b.Negotiating a commission with a client
- c.Completing more than the minimum continuing education
- d.Commingling escrow funds or failing to supervise affiliated licensees✓
KREC may investigate complaints and discipline a broker for violations such as commingling or converting escrow funds, misrepresentation, and failing to supervise affiliated licensees, under KRS Chapter 324. Lawful acts—belonging to a trade association, negotiating a commission, or exceeding CE minimums—are not grounds for discipline.