324.160 Sanctions -- Grounds for sanctions.
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/ky/chapter-324/324-160A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)The commission may order any or all of the following sanctions for violation of
subsections
(4)to
(7)of this section:
(a)Suspension of any license;
(b)Revocation of any license;
(c)Levy of fines not to exceed one thousand dollars ($1,000);
(d)Placing of any licensee on probation for a period of up to twelve
(12)months;
(e)Requiring successful completion of academic credit hours or additional credit
hours in real estate courses from an accredited institution or approved real
estate school; or
(f)Issuing a formal or informal reprimand.
(2)A canceled license may be renewed if the licensee pays all necessary fees and meets
all other active licensure requirements within one
(1)year of the cancellation date.
No licensee whose license is canceled shall engage in real estate brokerage during
the period of cancellation or receive any compensation for real estate brokerage
unless the compensation was earned prior to the effective date of the cancellation.
(3)No licensee whose license is suspended shall engage in real estate brokerage or
receive any compensation for real estate brokerage unless the compensation was
earned prior to the suspension period.
(4)The commission shall impose sanctions set out in subsection
(1)of this section
against a licensee for:
(a)Obtaining a license through false or fraudulent representation;
(b)Making any substantial misrepresentation or failing to disclose known defects
which substantially affect the value of the property;
(c)Making any false promises of a character likely to influence, persuade, or
induce;
(d)Pursuing a continued and flagrant course of misrepresentation or making false
promises through agents or advertising or otherwise;
(e)Acting for more than one
(1)party in a transaction without the knowledge of
all parties for whom the licensee acts;
1. A real estate licensee shall not directly or indirectly buy property listed
with him or her or with the broker with whom the licensee is affiliated,
nor acquire an interest therein, without first indicating in writing on the
offer to purchase his or her status as a licensee;
2. Before a licensee becomes a party to a contract to purchase real
property, the licensee shall disclose his or her status as a licensee to all
parties to the transaction, in writing, on the sales contract or on the offer
to purchase;
3. Before a licensee sells, or receives compensation for property in which
the licensee owns an interest, the licensee shall disclose, in writing, any
interest in the property to all parties to the transaction;
(f)Accepting valuable consideration for the performance of any of the acts
specified in this chapter, from any person, except from his or her principal
broker in accordance with a compensation agreement between them. When
acting as an agent in the management of property, a real estate licensee shall
not accept any commission, rebate, or profit on expenditures made for a client
without the full knowledge and consent of the client;
(g)Representing or attempting to represent a broker other than a principal broker,
without the express knowledge and consent of the principal broker with whom
the licensee is affiliated;
(h)Failing to account for or remit, within a reasonable time, any money
belonging to others that comes into the licensee's possession. When acting as
a property manager, the licensee shall render an accounting and remit all
moneys to his or her client strictly in accordance with the contract of
employment;
(i)Paying valuable consideration to any person for services performed in
violation of this chapter;
(j)Entering a plea of guilty or an Alford plea to, or having been found guilty of,
or having been convicted of, a felony or of a misdemeanor involving sexual
misconduct the time for appeal has lapsed or the judgment or conviction has
been affirmed on appeal, irrespective of an order granting probation following
the conviction suspending the imposition of sentence;
(k)Failing to report a conviction, plea of guilty, or an Alford plea to a felony or a
misdemeanor involving sexual misconduct to the commission;
(l)Soliciting, selling, or offering for sale real property under a scheme or
program that constitutes a lottery, contest, or deceptive practice;
(m)Acting in the dual capacity of licensee and undisclosed principal in any real
estate transaction;
(n)Guaranteeing, authorizing, or permitting a person to guarantee that future
profits shall result from a resale of real property;
(o)Negotiating or attempting to negotiate the sale, exchange, lease, or rental of
real property, or attempting to obtain a brokerage agreement with a consumer
knowing that the consumer had a written outstanding contract granting
exclusive agency with another real estate broker;
(p)Publishing or circulating an unjustified or unwarranted threat of legal
proceedings or other action;
(q)Failing or refusing on demand to furnish copies of a document pertaining to a
transaction dealing with real estate to a person whose signature is affixed to
the document;
(r)Failing, within a reasonable time, to provide information requested by the
commission as a result of a formal or informal complaint to the commission
which may indicate a violation of this chapter;
(s)Paying valuable consideration to any person for the name of potential sellers
or buyers, except as otherwise provided in KRS 324.020(4);
(t)Violating any of the provisions in this chapter or any lawful order, rule, or
administrative regulation made or issued under the provisions of this chapter;
(u)Any other conduct that constitutes improper, fraudulent, or dishonest dealing;
or
(v)Gross negligence.
(5)Any of the following shall be considered improper conduct as referred to in
subsection (4)(u) of this section:
(a)Conduct constituting a violation of the Federal Fair Housing Act, including
use of scare tactics or blockbusting; or
(b)Conduct constituting a violation of KRS 367.354.
(6)No unlawful act or violation of any provision of this chapter by any affiliated
licensee of the principal broker shall be cause for holding the principal broker
primarily liable, unless the broker has knowledge of the unlawful violation and did
not prevent it. The principal broker and his or her designated manager, if any, shall
exercise adequate supervision over the activities of licensed affiliates and all
company employees to ensure that violations of this chapter do not occur. The
failure of a broker or his or her designated manager to exercise adequate
supervision of the licensed affiliates shall constitute a violation of this chapter.
(7)The practice of obtaining, negotiating, or attempting to negotiate "net listings" shall
be considered improper dealing.