Kentucky Real Estate License Law
Kentucky real estate practice is governed by KRS Chapter 324 and administered by the Kentucky Real Estate Commission. This chapter covers licensing authority, the sales-associate and principal-broker relationship, and the Recovery Fund.
The Kentucky Real Estate Commission
The Kentucky Real Estate Commission (KREC) licenses and regulates principal brokers, brokers, and sales associates under KRS Chapter 324. A license is required for anyone who, for compensation, sells, buys, leases, or negotiates real estate for others unless an exemption applies. The Commission investigates complaints and may deny, suspend, or revoke licenses and impose penalties.
Sales Associate and Principal Broker
A Kentucky sales associate must be affiliated with and supervised by a principal broker and performs licensed activity on that broker's behalf. Compensation is paid through the principal broker; a sales associate may not accept payment directly from a buyer or seller. The principal broker is responsible for supervising affiliated licensees and for maintaining escrow accounts and records.
The Recovery Fund and Discipline
The Kentucky Real Estate Education, Research, and Recovery Fund reimburses consumers who obtain a final judgment against a licensee for fraud, misrepresentation, or deceit and cannot otherwise collect, subject to statutory caps. A licensee whose acts trigger a payment has the license suspended until the fund is repaid. Common grounds for discipline include dishonest dealing, commingling escrow funds, and failing to make required disclosures.
State-specific details
State exam facts
- State regulator
- Kentucky Real Estate Commission (KREC)
- Exam vendor
- PSI
- Prelicensing education
- 96 hours (or 6 college credit hours) of approved pre-license education
How many prelicensing hours does Kentucky require to become a real estate agent?
Kentucky requires 96 hours of Commission-approved pre-license instruction, or 6 academic credit hours in real estate courses at an accredited college or university.
Who licenses real estate agents in Kentucky?
The Kentucky Real Estate Commission (KREC) licenses sales associates and brokers. KREC contracts with PSI to administer the state licensing exam.
How is the Kentucky sales associate exam structured?
The Kentucky sales associate exam is delivered by PSI with a national portion and a Kentucky state portion, scored separately; you must pass both. Confirm the current scored-question counts in the PSI Candidate Information Bulletin.
Sources: https://krec.ky.gov/newstatic_info.aspx?static_id=190, https://www.psiexams.com/
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