KRS § 324.010 — KY Code / Title XXVI / Chapter 324 / Section 324.010
324.010 Definitions for chapter
Status: in_force

324.010 Definitions for chapter.

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.