Application of chapter to owner or builder-developer -- Prohibition against fee
splitting -- Exceptions -- Supervision of sales associate -- Authority to seek
injunctive relief.
(1) It shall be unlawful for any person who is not licensed as a real estate broker or
sales associate to:
(a) Hold himself or herself out to the public as a real estate broker or sales
associate or use any terms, titles, or abbreviations which express, infer, or
imply that the person is licensed as a real estate broker or sales associate; or
(b) Advertise for sale an equitable interest in a contract for the purchase of real
property between a property owner and a prospective purchaser.
(2) No person shall practice real estate brokerage with respect to real estate located in
this state unless:
(a) The person holds a license to practice real estate brokerage under this chapter;
or
(b) The person has complied with KRS 324.235 to 324.238.
(3) A licensee who is an owner or a builder-developer shall comply with the provisions
of this chapter and the administrative regulations applying to real estate brokers and
sales associates.
(4) No broker shall split fees with or compensate any person who is not licensed to
perform any of the acts regulated by this chapter, except that a broker may:
(a) Pay a referral fee to a broker licensed outside of Kentucky for referring a
client to the Kentucky broker;
(b) Pay a commission or other compensation to a broker licensed outside of
Kentucky in compliance with KRS 324.235 to 324.238; or
(c) Pay a licensed auctioneer for services rendered in cases where an auctioneer
and real estate broker collaborate in the conduct of a sale of real estate at
auction.
(5) Except as authorized in KRS 324.112(1) and 324.425, no sales associate shall
supervise another licensed sales associate or manage a real estate brokerage office.
(6) The Kentucky Real Estate Commission may seek and obtain injunctive relief
against any individual acting in violation of this chapter by filing a civil action in
the Circuit Court where the commission is located or where the unlawful activity
took place.
Effective: June 29, 2023
History: Amended 2023 Ky. Acts ch. 84, sec. 2, effective June 29, 2023. -- Amended
2015 Ky. Acts ch. 14, sec. 2, effective June 24, 2015. -- Amended 2008 Ky. Acts ch.
156, sec. 5, effective July 15, 2008. -- Amended 2004 Ky. Acts ch. 45, sec. 1,
effective July 13, 2004. -- Amended 2000 Ky. Acts ch. 488, sec. 4, effective July 14,
2000. -- Amended 1998 Ky. Acts ch. 313, sec. 3, effective July 15, 1998. --
Amended 1992 Ky. Acts ch. 448, sec. 3, effective July 14, 1992. -- Amended 1984
Ky. Acts ch. 352, sec. 2, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 196,
sec. 10, effective July 15, 1982. -- Amended 1976 Ky. Acts ch. 100, sec. 8. --
Amended 1956 Ky. Acts ch. 18, sec. 1, effective July 1, 1956. -- Amended 1942 Ky.
Acts ch. 184, secs. 1 and 8. -- Recodified 1942 Ky. Acts ch. 208, secs. 1 and 8,
effective October 1, 1942, from Ky. Stat. sec. 3990e-1.
Notes of Decisions
Marcus & Millichap Real Est. Inv. Brokerage Co. v. Skeeters, 395 F. Supp. 2d 541 (W.D. Ky. 2005).
· cites it 12× “Is the Retention Agreement Enforceable? The Defendants claim that KRS 324.020 and Kentucky law prohibit the enforcement of the Retention Agreement signed between the parties on June 10, 2002.”
Kirkpatrick v. Lawrence, 908 S.W.2d 125 (Ky. Ct. App. 1995).
· cites it 2× “At the time of the execution of the commission contract, KRS 324.020 provided that: (1) It shall be unlawful for any person to act as a broker or real estate sales associate or to advertise or assume to act as such broker or sales associate within the Commonwealth of Kentucky,…”
Lockridge v. Hale, 764 S.W.2d 84 (Ky. Ct. App. 1989).
· cites it 2× “The trial court based its decision on KRS 324.020, which requires the licensing of real estate brokers.”
AK Steel Corp. v. Pollitt, 259 S.W.3d 505 (Ky. Ct. App. 2008).
· cites it 2× “Therefore, while [Pollitt] is not entitled to income benefits, he shall be entitled to reasonable and necessary medical check-ups for the asbestos related exposure noted above under KRS 324.020. The ALJ dismissed Pollitt's claim for income benefits, but determined that he was…”
Bennett v. Bourne, 5 S.W.3d 124 (Ky. 1999).
“In that case, the Court of Appeals panel determined that a business broker commission could not be recovered in the absence of a real estate license under KRS 324.020. Kirkpatrick is distinguishable and should not be overruled by implication.”
Kentucky Bar Ass'n v. Burbank, 539 S.W.2d 312 (Ky. 1976).
“” Count II — “Within the same facts and circumstances described in Count I above, Respondent was attempting to obtain a commission from the sale of real estate without being licensed as a real estate agent as required by KRS 324.020 and without representing a client in the scope…”
Kentucky Real Est. Comm'n v. Milgrom, 197 S.W.3d 552 (Ky. Ct. App. 2005).
· cites it 10× “Subsequent to this Court’s decision in Leishman , the Kentucky General Assembly amended KRS 324.020 in 1982 to extend the provisions of KRS Chapter 324 as follows: A licensee who is an owner or a builder-developer shall comply with the provisions of this chapter and the…”
Heartland Materials, Inc. v. Warren Paving, Inc. (6th Cir. 2020).
· cites it 3× “Appellants point out that “Kentucky law makes clear that a party may attack the formation of a contract in a separate action after a court interprets the contract.”
Adkins v. Cornett, 684 S.W.2d 853 (Ky. Ct. App. 1985).
“010(6) and (8), and KRS 324.020(1), prohibiting unlicensed persons from acting as real estate brokers.”
Kentucky Real Est. Comm'n v. Hilliard Fin., LLC, 246 S.W.3d 910 (Ky. Ct. App. 2008).
· cites it 4× “Case and Controversy After a lengthy period of consideration, the Real Estate Commission sent a cease and desist letter to Commission Express asserting that its cash-advance business violates KRS 324.020(4) and KRS 324.160(4). The Real Estate Commission, however, did not…”
Allard v. Kentucky Real Est. Comm'n, 824 S.W.2d 884 (Ky. Ct. App. 1992).
“KRS 324.020(2) was adopted in 1982 to specifically apply the provisions of KRS Chapter 324 to a licensee acting in the capacity of an owner or builder/developer.”
Mike Lairsen v. Jim Figuerado, 466 F. App'x 480 (6th Cir. 2012).
· cites it 2× “With regard to the broker/agent and quantum meruit claims, the district court relied on Ky.Rev.Stat. Ann. § 324.020(2), which provides that “[n]o person shall practice real-estate brokerage with respect to real estate .”
— Ky. Rev. Stat. § 324.020(1) — 2 cases
Adkins v. Cornett, 684 S.W.2d 853 (Ky. Ct. App. 1985).
“010(6) and (8), and KRS 324.020(1), prohibiting unlicensed persons from acting as real estate brokers.”
— Ky. Rev. Stat. § 324.020(2) — 5 cases
Allard v. Kentucky Real Est. Comm'n, 824 S.W.2d 884 (Ky. Ct. App. 1992).
“KRS 324.020(2) was adopted in 1982 to specifically apply the provisions of KRS Chapter 324 to a licensee acting in the capacity of an owner or builder/developer.”
Mike Lairsen v. Jim Figuerado, 466 F. App'x 480 (6th Cir. 2012).
“With regard to the broker/agent and quantum meruit claims, the district court relied on Ky.Rev.Stat. Ann. § 324.020(2), which provides that “[n]o person shall practice real-estate brokerage with respect to real estate .”
Kentucky Real Est. Comm'n v. Milgrom, 197 S.W.3d 552 (Ky. Ct. App. 2005).
“Subsequent to this Court’s decision in Leishman , the Kentucky General Assembly amended KRS 324.020 in 1982 to extend the provisions of KRS Chapter 324 as follows: A licensee who is an owner or a builder-developer shall comply with the provisions of this chapter and the…”
— Ky. Rev. Stat. § 324.020(3) — 2 cases
Kirkpatrick v. Lawrence, 908 S.W.2d 125 (Ky. Ct. App. 1995).
“At the time of the execution of the commission contract, KRS 324.020 provided that: (1) It shall be unlawful for any person to act as a broker or real estate sales associate or to advertise or assume to act as such broker or sales associate within the Commonwealth of Kentucky,…”
Kentucky Real Est. Comm'n v. Milgrom, 197 S.W.3d 552 (Ky. Ct. App. 2005).
“Subsequent to this Court’s decision in Leishman , the Kentucky General Assembly amended KRS 324.020 in 1982 to extend the provisions of KRS Chapter 324 as follows: A licensee who is an owner or a builder-developer shall comply with the provisions of this chapter and the…”
— Ky. Rev. Stat. § 324.020(4) — 2 cases
Kentucky Real Est. Comm'n v. Hilliard Fin., LLC, 246 S.W.3d 910 (Ky. Ct. App. 2008).
“Case and Controversy After a lengthy period of consideration, the Real Estate Commission sent a cease and desist letter to Commission Express asserting that its cash-advance business violates KRS 324.020(4) and KRS 324.160(4). The Real Estate Commission, however, did not…”
— Ky. Rev. Stat. § 324.020(6) — 1 case
Kentucky Real Est. Comm'n v. Hilliard Fin., LLC, 246 S.W.3d 910 (Ky. Ct. App. 2008).
“Case and Controversy After a lengthy period of consideration, the Real Estate Commission sent a cease and desist letter to Commission Express asserting that its cash-advance business violates KRS 324.020(4) and KRS 324.160(4). The Real Estate Commission, however, did not…”
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