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.