Real Estate Practice in Kentucky
Kentucky practice includes escrow handling through the principal broker and a seller property-conditions disclosure. This chapter covers escrow money and seller disclosure duties.
Escrow and Trust Money
Client escrow funds must be handled through the principal broker's escrow (trust) account. A sales associate who receives money must deliver it promptly to the principal broker, and escrow money must be kept separate from personal and business funds. Commingling or converting escrow money is one of the most serious violations of Kentucky license law.
Seller's Disclosure of Property Conditions
The Kentucky Real Estate Commission provides a Seller's Disclosure of Property Conditions form, which sellers generally complete for residential transactions involving a licensee. The seller discloses the known condition of the property, and the licensee must not help conceal known defects. Accurate disclosure protects consumers and reduces the licensee's exposure to misrepresentation claims.
Advertising and Honest Dealing
Advertising must be truthful and conducted under the principal broker's supervision; a sales associate may not advertise independently of the brokerage. Licensees must disclose known material adverse facts and avoid misrepresentation. Honest, compliant practice protects the public and the licensee's standing with the Commission.
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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