324.010 Definitions for chapter.
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/ky/chapter-324/324-010A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
As used in this chapter, unless the context requires otherwise:
(1)"Real estate brokerage":
(a)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; and
(b)Includes advertising for sale an equitable interest in a contract for the
purchase of real property between a property owner and a prospective
purchaser;
(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 or post-license
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;
(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; and
(19)"Post-license education" means the forty-eight
(48)hours of commission-approved
education required within two
(2)years of receiving or activating an initial sales
associate license.