Kentucky Real Estate Salesperson Exam — All Questions
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Real estate licensees in Kentucky are regulated by:
- a.The Kentucky Association of Realtors
- b.The Kentucky Real Estate Commission✓
- c.The Kentucky Department of Revenue
- d.The county property valuation administrator
The Kentucky Real Estate Commission (KREC) licenses and disciplines brokers and sales associates under KRS Chapter 324. A trade association is a private membership organization and has no licensing authority, and taxing or assessment offices do not regulate licensees.
In Kentucky, a sales associate may perform licensed real estate activity only:
- a.Independently once the license is issued
- b.After registering each transaction with the Commission
- c.Under the supervision of, and on behalf of, a principal broker✓
- d.As a member of a real estate trade association
A Kentucky sales associate must be affiliated with and supervised by a principal broker and acts on that broker's behalf. Compensation flows through the principal broker; a sales associate may not accept payment directly from a buyer or seller. The principal broker is responsible for supervision and for handling client escrow funds.
The Kentucky Real Estate Education, Research, and Recovery Fund is used primarily to:
- a.Reimburse consumers who suffer an actual loss from certain licensee misconduct and cannot collect a judgment✓
- b.Provide grants to real estate schools only
- c.Insure buyers against declines in property value
- d.Fund the Commission's payroll
The Recovery Fund compensates members of the public who obtain a final judgment against a licensee for fraud, misrepresentation, or deceit in a licensed transaction and cannot otherwise collect, subject to statutory limits. When the fund pays a claim, the licensee's license is suspended until the fund is repaid. The fund also supports education and research but is not a general operating fund.