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324.010 Definitions for chapter.
As used in this chapter, unless the context requires otherwise:
(1) "Real estate brokerage" means a single, multiple, or continuing act of dealing
in time shares or options, selling or offering for sale, buying or offering to buy,
negotiating the purchase, sale, or exchange of real estate, engaging in
property management, leasing or offering to lease, renting or offering for rent,
or referring or offering to refer for the purpose of securing prospects, any real
estate or the improvements thereon for others for a fee, compensation, or other
valuable consideration;
(2) "Commission" means the Kentucky Real Estate Commission;
(3) "Net listing" means a listing agreement that provides for a stipulated net price
to the owner and the excess over the stipulated net price to be received by the
licensee as the fee compensation or other valuable consideration;
(4) "Principal broker" means a person licensed as a broker under KRS 324.046
who, in addition to performing acts of real estate brokerage or transactions
comprehended by that definition, is the single broker responsible for the
operation of the company with which he or she is associated;
(5) "Real estate" means real estate in its ordinary meaning and includes
timeshares, options, leaseholds, and other interests less than leaseholds;
(6) "Sales associate" means any person licensed in accordance with KRS
324.046(2) that is affiliated with a Kentucky-licensed principal broker and who,
when engaging in real estate brokerage, does so under the supervision of the
principal broker;
(7) "Approved real estate school" means:
(a) A school that has been given a certificate of approval by the Kentucky
Commission on Proprietary Education or other regulatory bodies that
exercise jurisdiction over accreditation and approval and the Kentucky
Real Estate Commission. The school shall also be currently in good
standing with both the Kentucky Commission on Proprietary Education or
other regulatory bodies that exercise jurisdiction over accreditation and
approval and the commission; or
(b) A National Association of Realtors recognized program which has been
reviewed by the Kentucky Real Estate Commission and deemed an
approved real estate school;
(8) "Accredited institution" means a college or university accredited by
appropriately recognized educational associations or chartered and licensed in
Kentucky that grants credits toward a program for either an associate,
baccalaureate, graduate, or professional degree;
(9) "Property management" means the overall management of real property for
others for a fee, compensation, or other valuable consideration, and may
include the marketing of property, the leasing of property, collecting rental
payments on the property, payment of notes, mortgages, and other debts on
the property, coordinating maintenance for the property, remitting funds and
accounting statements to the owner, and other activities that the commission
may determine by administrative regulation;
(10) "Broker" means any person who is licensed under KRS 324.046(1) and
performs acts of real estate brokerage;
(11) "Designated manager" means a licensed sales associate or broker who
manages a main or branch office for the principal broker, at the principal
broker's direction, and has managing authority over the activities of the sales
associates at that office;
(12) "Regular employee" means an employee who works for an employer, whose
total compensation is subject to withholding of federal and state taxes and
FICA payments, and who receives from the employer a fixed salary governed
by federal wage guidelines that is not affected by specific real estate
transactions;
(13) "Referral fee" means consideration of any kind paid or demanded for the
referral of a potential or actual buyer, seller, lessor, or lessee of real estate;
(14) "Designated agency" means a form of agency relationship that exists when a
principal broker, in accordance with KRS 324.121, identifies different licensees
in the same real estate brokerage firm to separately represent more than one
(1) party in the same real estate transaction;
(15) "Affiliation" means the relationship agreed upon between a licensee and a
principal broker and reported to the commission, where the licensee places his
or her license with the principal broker for supervision of the licensee's real
estate brokerage activity;
(16) "Canceled" means the status of a license when a licensee fails to renew a
license, writes the commission a check for fees that is not honored, fails to
re-affiliate with a principal broker, or fails to complete requirements for
continuing education;
(17) "Suspended" means the status of a license when disciplinary action has been
ordered against a licensee that prohibits the brokerage of real estate for a
specific period of time; and
(18) "Revoked" means the status of a license when disciplinary action has been
ordered that removes the licensee's legal authority to broker real estate for a
minimum of five (5) years.
Effective:July 12, 2012
History: Amended 2012 Ky. Acts ch. 76, sec. 25, effective July 12, 2012. -Amended 2009 Ky. Acts ch. 58, sec. 13, effective June 25, 2009. -- Amended
2000 Ky. Acts ch. 488, sec. 3, effective July 14, 2000. -- Amended 1998 Ky.
Acts ch. 313, sec. 2, effective July 15, 1998. -- Amended 1992 Ky. Acts ch. 448,
sec. 2, effective July 14, 1992. -- Amended 1986 Ky. Acts ch. 345, sec. 1,
effective July 15, 1986. -- Amended 1984 Ky. Acts ch. 352, sec. 1, effective July
13, 1984. -- Amended 1982 Ky. Acts ch. 196, sec. 9, effective July 15, 1982. -Amended 1978 Ky. Acts ch. 172, sec. 1, effective June 17, 1978. -- Amended
1976 Ky. Acts ch. 100, sec. 7. -- Amended 1972 Ky. Acts ch. 264, sec. 1. -Repealed in part 1952 Ky. Acts ch. 4, sec. 1. -- Amended 1942 Ky. Acts ch. 184,
secs. 9 and 12A. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October
1, 1942, from Ky. Stat. sec. 3990e-2.
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