KRS § 324.236 — KY Code / Title XXVI / Chapter 324 / Section 324.236
324.236 Engaging in commercial real estate brokerage by out-of-state principal broker and out-of-state licensee
Status: in_force

324.236 Engaging in commercial real estate brokerage by out-of-state principal

broker and out-of-state licensee.

An out-of-state principal broker and his or her out-of-state licensee, for or in the

expectation of a fee, commission, compensation, or other valuable consideration, may

engage in real estate brokerage with respect to commercial real estate if the requirements

of this section are satisfied:

(1) The out-of-state licensee shall be licensed with and work under the direct

supervision of the out-of-state principal broker;

(2) The out-of-state principal broker shall enter into a written cooperation agreement

with the Kentucky cooperating broker that shall include but not be limited to the

following:

(a) The terms of cooperation and compensation between the out-of-state principal

broker and the Kentucky cooperating broker;

(b) A description of the parties, the commercial real estate, or other information

sufficient to identify the specific transactions governed by the cooperation

agreement; and

(c) The effective date and a definite termination date of the cooperation

agreement; and

(3) Regarding transactions that fall within the scope of the cooperation agreement

specified in subsection (2) of this section, the out-of-state principal broker and the

out-of-state licensee shall:

(a) Work in cooperation with a Kentucky cooperating broker;

(b) Furnish the Kentucky cooperating broker with a copy of the out-of-state

principal broker's and out-of-state licensee's current real estate license from

the jurisdiction of his or her primary place of business;

(c) Limit acts of real estate brokerage to commercial real estate transactions

referenced in the cooperation agreement;

(d) Only list commercial real estate located in this state for sale, lease, or

exchange if the real estate is co-listed with the Kentucky cooperating broker;

(e) Be prohibited from holding escrow funds, security deposits, or other moneys

in escrow or other accounts located outside this state;

(f) Promptly provide the Kentucky cooperating broker with relevant

documentation relating to the specific transaction or transactions governed by

the cooperation agreement;

(g) Keep the Kentucky cooperating broker fully informed of all activities through

prompt communications;

(h) Perform all actions under the direct supervision and control of the Kentucky

cooperating broker;

(i) List his or her individual name, firm name, or both in advertising for

commercial real estate transactions only if the advertising:

1. Includes with equal prominence the same identifying information for the

Kentucky cooperating broker and his or her relevant licensees, except

that, with respect to multistate portfolio listings, only the name or firm

of the Kentucky cooperating broker printed in legible type shall be

mandatory, with no requirement concerning prominence; and

2. Otherwise complies with the requirements of this chapter;

(j) Comply with and be bound by and subject to Kentucky law and the

regulations of the commission, including but not limited to KRS 324.235 to

324.238;

(k) Not engage in improper conduct as set out in KRS 324.160(4); and

(l) File with the Kentucky cooperating broker a true and complete notice of

affiliation in compliance with KRS 324.327.