(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.
Effective: April 4, 2024
History: Amended 2024 Ky. Acts ch. 76, sec. 4, effective April 4, 2024. -- Amended
2009 Ky. Acts ch. 58, sec. 7, effective June 25, 2009. -- Amended 2004 Ky. Acts ch.
45, sec. 7, effective July 13, 2004. -- Amended 2000 Ky. Acts ch. 488, sec. 17,
effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 313, sec. 10, effective July
15, 1998. -- Amended 1992 Ky. Acts ch. 448, sec. 17, effective July 14, 1992. --
Amended 1988 Ky. Acts ch. 304, sec. 4, effective July 15, 1988. -- Amended 1984
Ky. Acts ch. 111, sec. 142, effective July 13, 1984; and ch. 352, sec. 7, effective July
13, 1984. -- Amended 1982 Ky. Acts ch. 196, sec. 20, effective July 15, 1982. --
Amended 1978 Ky. Acts ch. 172, sec. 5, effective June 17, 1978. -- Amended 1976
Ky. Acts ch. 100, sec. 17. -- Repealed in part 1942 Ky. Acts ch. 184, sec. 12. --
Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat.
secs. 3990e-6, 3990e-7.
Legislative Research Commission Note (9/22/92). In codifying 1992 Ky. Acts ch. 448,
sec. 17, a technical error in unaffected text in subsection (1), paragraphs (a) and (b)
of this statute has been corrected to make the language of these two paragraphs
accurately reflect the way in which they were created by 1988 Ky. Acts ch. 304, sec.
4. See KRS 446.270 and 446.280.
Notes of Decisions
Waldridge v. Homeservices of Kentucky, Inc., 384 S.W.3d 165 (Ky. Ct. App. 2011).
· cites it 3× “In addition to sanctions, the KREC is granted the authority to award damages not to exceed $20,000, to a party aggrieved by a violation of KRS 324.160 from the real estate education, research, and recovery fund.”
Louisville Peterbilt, Inc. v. Cox, 132 S.W.3d 850 (Ky. 2004).
“The Kentucky Real Estate Commission still retains jurisdiction to determine violations of KRS 324.160. Any proceeding pursuant to KRS 324.”
Dutschke v. Jim Russell Realtors, Inc., 281 S.W.3d 817 (Ky. Ct. App. 2008).
· cites it 2× “The Kentucky Real Estate Commission still retains jurisdiction to determine violations of KRS 324.160. Any proceeding pursuant to KRS 324.”
Helm v. Warner, 597 S.W.2d 159 (Ky. Ct. App. 1980).
· cites it 4× “This appeal is from a judgment entered June 20, 1979, sustaining an order of the Kentucky Real Estate Commission, which *160 found that although a licensed real estate salesperson was guilty of negligence and incompetence which resulted in damages to the appellants, the…”
Marks v. Bean, 57 S.W.3d 303 (Ky. Ct. App. 2001).
“The Kentucky Real Estate Commission still retains jurisdiction to determine violations of KRS 324.160. Any proceeding pursuant to KRS 324.”
Miller v. Kentucky State Real Est. Comm'n, 251 S.W.2d 845 (Ky. Ct. App. 1952).
· cites it 12× “Thereafter, and on March 29, 1952, the Commission issued a notice to appellant which stated they had received knowledge of facts that indicated she had obtained a license through fraudulent representations in violation of subsection (a) of KRS 324.160; that neither of the…”
Leishman v. Goodlett, 608 S.W.2d 377 (Ky. Ct. App. 1980).
· cites it 3× “In substance the Commission determined that Le-ishman was not acting in his capacity as a licensed broker or salesman, but as a builder-developer, that his conduct did not violate KRS 324.160, and that the Commission was not bound by the determination of the Fayette Circuit…”
Kentucky Real Est. Comm'n v. Kachler, 819 S.W.2d 41 (Ky. Ct. App. 1991).
“The Findings concluded that Tincher’s purchase offer of June 22d created a binding contract which Kachler induced CMAC to breach by subsequently auctioning the property, in violation of 201 KAR 11:110, and that Kachler’s conduct was “improper” under KRS 324.160(l)(r) but not…”
Swinebroad-Denton, Inc. v. Hornback, 744 S.W.2d 429 (Ky. Ct. App. 1987).
· cites it 15× “This appeal is from the Woodford Circuit Court and involves a complaint against a licensed real estate broker for violating provisions of KRS 324.160. James Wilhite and his wife, Joanne, owned a farm in Woodford County, Kentucky, which became the subject of foreclosure…”
Kentucky Real Est. Comm'n v. Milgrom, 197 S.W.3d 552 (Ky. Ct. App. 2005).
· cites it 6× “On the verified written complaint of any person, the commission shall investigate the actions of any person who assumes to act in that capacity, if the complaint, together with any evidence presented in connection with it, alleges a prima facie case that a violation set out in…”
Allard v. Kentucky Real Est. Comm'n, 824 S.W.2d 884 (Ky. Ct. App. 1992).
· cites it 2× “In his detailed findings of fact and statement of law, adopted by the commission, the hearing officer specifically found that appellant violated KRS 324.160 in that he made a substantial misrepresentation, his conduct constituted improper, fraudulent or dishonest dealing, and he…”
— Ky. Rev. Stat. § 324.160(1) — 3 cases
Helm v. Warner, 597 S.W.2d 159 (Ky. Ct. App. 1980).
“This appeal is from a judgment entered June 20, 1979, sustaining an order of the Kentucky Real Estate Commission, which *160 found that although a licensed real estate salesperson was guilty of negligence and incompetence which resulted in damages to the appellants, the…”
Kentucky Real Est. Comm'n v. Milgrom, 197 S.W.3d 552 (Ky. Ct. App. 2005).
“On the verified written complaint of any person, the commission shall investigate the actions of any person who assumes to act in that capacity, if the complaint, together with any evidence presented in connection with it, alleges a prima facie case that a violation set out in…”
Swinebroad-Denton, Inc. v. Hornback, 744 S.W.2d 429 (Ky. Ct. App. 1987).
“This appeal is from the Woodford Circuit Court and involves a complaint against a licensed real estate broker for violating provisions of KRS 324.160. James Wilhite and his wife, Joanne, owned a farm in Woodford County, Kentucky, which became the subject of foreclosure…”
— Ky. Rev. Stat. § 324.160(1)(Z) — 1 case
Swinebroad-Denton, Inc. v. Hornback, 744 S.W.2d 429 (Ky. Ct. App. 1987).
“This appeal is from the Woodford Circuit Court and involves a complaint against a licensed real estate broker for violating provisions of KRS 324.160. James Wilhite and his wife, Joanne, owned a farm in Woodford County, Kentucky, which became the subject of foreclosure…”
— Ky. Rev. Stat. § 324.160(4) — 3 cases
Waldridge v. Homeservices of Kentucky, Inc., 384 S.W.3d 165 (Ky. Ct. App. 2011).
“In addition to sanctions, the KREC is granted the authority to award damages not to exceed $20,000, to a party aggrieved by a violation of KRS 324.160 from the real estate education, research, and recovery fund.”
Kentucky Real Est. Comm'n v. Milgrom, 197 S.W.3d 552 (Ky. Ct. App. 2005).
“On the verified written complaint of any person, the commission shall investigate the actions of any person who assumes to act in that capacity, if the complaint, together with any evidence presented in connection with it, alleges a prima facie case that a violation set out in…”
— Ky. Rev. Stat. § 324.160(4)(b) — 1 case
Waldridge v. Homeservices of Kentucky, Inc., 384 S.W.3d 165 (Ky. Ct. App. 2011).
“In addition to sanctions, the KREC is granted the authority to award damages not to exceed $20,000, to a party aggrieved by a violation of KRS 324.160 from the real estate education, research, and recovery fund.”
— Ky. Rev. Stat. § 324.160(l)(e) — 1 case
Swinebroad-Denton, Inc. v. Hornback, 744 S.W.2d 429 (Ky. Ct. App. 1987).
“This appeal is from the Woodford Circuit Court and involves a complaint against a licensed real estate broker for violating provisions of KRS 324.160. James Wilhite and his wife, Joanne, owned a farm in Woodford County, Kentucky, which became the subject of foreclosure…”
— Ky. Rev. Stat. § 324.160(l)(h) — 1 case
Kentucky Real Est. Comm'n v. Milgrom, 197 S.W.3d 552 (Ky. Ct. App. 2005).
“On the verified written complaint of any person, the commission shall investigate the actions of any person who assumes to act in that capacity, if the complaint, together with any evidence presented in connection with it, alleges a prima facie case that a violation set out in…”
— Ky. Rev. Stat. § 324.160(l)(r) — 3 cases
Kentucky Real Est. Comm'n v. Kachler, 819 S.W.2d 41 (Ky. Ct. App. 1991).
“The Findings concluded that Tincher’s purchase offer of June 22d created a binding contract which Kachler induced CMAC to breach by subsequently auctioning the property, in violation of 201 KAR 11:110, and that Kachler’s conduct was “improper” under KRS 324.160(l)(r) but not…”
Swinebroad-Denton, Inc. v. Hornback, 744 S.W.2d 429 (Ky. Ct. App. 1987).
“This appeal is from the Woodford Circuit Court and involves a complaint against a licensed real estate broker for violating provisions of KRS 324.160. James Wilhite and his wife, Joanne, owned a farm in Woodford County, Kentucky, which became the subject of foreclosure…”
Kentucky Real Est. Comm'n v. Milgrom, 197 S.W.3d 552 (Ky. Ct. App. 2005).
“On the verified written complaint of any person, the commission shall investigate the actions of any person who assumes to act in that capacity, if the complaint, together with any evidence presented in connection with it, alleges a prima facie case that a violation set out in…”
— Ky. Rev. Stat. § 324.160(l)(s) — 1 case
Allard v. Kentucky Real Est. Comm'n, 824 S.W.2d 884 (Ky. Ct. App. 1992).
“In his detailed findings of fact and statement of law, adopted by the commission, the hearing officer specifically found that appellant violated KRS 324.160 in that he made a substantial misrepresentation, his conduct constituted improper, fraudulent or dishonest dealing, and he…”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.