Title 201 | Chapter 011 | Regulation 210
201 KAR 11:210.Licensing, education, and testing requirements.
Section 1.
Initial Sales Associate License.(1)
Prior to applying for an initial sales associate license, a prospective applicant shall complete six (6) academic credit hours, or its equivalent, of prelicensing education with either:(a)
An approved pre-license education provider; or(b)
An accredited institution as defined by KRS 324.010(8).(2)
An applicant for initial sales associate licensure shall submit:(a)
A national criminal history check in accordance with KRS 324.045(5) and this administrative regulation;(b)
A completed application submitted on Score Report/License Application obtained from the commission's testing provider after passing the required examination, which shall contain a recent photo of the applicant;(c)
Proof of high school graduation, or its equivalent;(d)
Proof of completion of six (6) academic credit hours, or its equivalent in qualifying prelicense education;(e)
Proof of Errors and Omissions insurance coverage compliant with KRS 324.395 and 201 KAR 11:220, if the license will be immediately active;(f)
The nonrefundable sixty (60) dollar original license fee and sixty (60) dollar recovery fund fee required by KRS 324.287(2) and (8); and(g)
A completed and signed Consent to Jurisdiction and Service of Process, KREC Form 205, if the applicant resides outside of the Commonwealth of Kentucky.(3)
An applicant may submit a paper or electronic application.(4)
Within ten (10) days of being issued a license number and Occupations and Professions Identification Number, OP ID, the licensee shall:(a)
Create an Online Services Portal account;(b)
Verify the licensee's current residential address and telephone number; and(c)
Provide one (1) valid electronic mail address.Section 2.
Broker's License.(1)
Prior to applying for a broker's license, a prospective applicant shall:(a)
Complete not less than twenty-one (21) academic credit hours, consistent with KRS 324.046(1)(a), of education to acquire a broker's license, including a minimum of:1.
Nine (9) academic credit hours of real estate courses, which shall not include an applicant's sales associate prelicense education;2.
Three (3) academic credit hours of Broker Management; and3.
Nine (9) academic credit hours of broker elective courses, approved by the commission.(b)
A licensee shall not get duplicate course credit toward a broker's license;®(c)
A licensee shall get course credit toward his or her broker's license by completing National Association of Realtors®, NAR designation courses. Credit for the designation course shall be awarded consistent with accreditation at the time the course is completed.(d)
An applicant for a broker's license may submit a request for an education review by submitting a completed Broker Education Review Form, KREC Form 207.(2)
An applicant for a broker's license shall submit:(a)
Proof of the requisite sales associate experience as provided in KRS 324.046(1)(b) or its equivalent as provided in KRS 324.046(3) or (4);(b)
A completed application submitted on Score Report/License Application obtained from the commission's testing provider after passing the required examination;(c)
Proof of completion of the broker curriculum education real estate courses required by KRS 324.046(1)(a), KRS 324.046(3), and 201 KAR 11:170, Section 7;(d)
Proof of Errors and Omissions insurance coverage compliant with KRS 324.395 and 201 KAR 11:220, if the license will be immediately active, or proof of extended reporting period coverage as required by KRS 324.395 if the license will be placed into inactive status;(e)
An original copy of the applicant's national criminal history check obtained consistent with KRS 324.045(5) and this administrative regulation;(f)
A completed and signed Consent to Jurisdiction and Service of Process, KREC Form 205, if the applicant resides outside of the Commonwealth of Kentucky; and(g)
The nonrefundable sixty (60) dollar original license fee required by KRS 324.287(2).(3)
An applicant may submit a paper or electronic application.(4)
The provisions of the section shall not be implemented until April 1, 2020.Section 3.
Reciprocal Licensing.(1)
An individual actively licensed as a real estate professional outside of Kentucky may apply for an equivalent Kentucky license.(2)
To obtain a sales associate license by reciprocal licensing, an individual shall:(a)
File with the commission a national criminal history check in accordance with KRS 324.045(5) and this administrative regulation;(b)
File with the commission a certification of licensure issued within the preceding ninety (90) days by the regulatory authority of the state for which the individual seeks reciprocity;(c)
Submit proof of completion of six (6) academic credit hours or their equivalent in real estate courses from an accredited institution or approved real estate school pursuant to KRS 324.046 and KRS 324.141(1)(a)3.;(d)
Pass the Kentucky law portion of the licensing examination for a sales associate's license;(e)
Submit a completed and signed Consent to Jurisdiction and Service of Process, KREC Form 205, if the applicant resides outside of Kentucky; and(f)
The nonrefundable sixty (60) dollar original license fee and sixty (60) dollar recovery fund fee required by KRS 324.287(2) and (8).(3)
To obtain a broker license by reciprocal licensing an individual shall:(a)
File with the commission a national criminal history check in accordance with KRS 324.045(5) and this administrative regulation;(b)
File with the commission a certification of licensure issued within the preceding ninety (90) days by the regulatory authority of the state for which the individual seeks reciprocity;(c)
Submit proof of completion of twenty one (21) academic credit hours or their equivalent in real estate courses from an accredited institution or approved real estate school pursuant to KRS 324.046 and KRS 324.141(1)(a)3.;(d)
Pass the Kentucky law portion of the licensing examination for a broker's license;(e)
Submit a completed and signed Consent to Jurisdiction and Service of Process, KREC Form 205, if the applicant resides outside of Kentucky; and(f)
The nonrefundable sixty (60) dollar original license fee and sixty (60) dollar recovery fund fee required by KRS 324.287(2) and (8).(4)
For purposes of subsections (2)(c) and (3)(c) of this Section, "or their equivalent" shall mean any education requirements approved by the commission pursuant to a reciprocity agreement entered into between the jurisdiction from which the applicant is seeking reciprocity and the commission.(5)
An applicant may submit a paper or electronic application.(6)
Within ten (10) days of being issued a license number and OP ID, the licensee shall:(a)
Create an Online Services Portal account;(b)
Verify the licensee's current residential address and telephone number; and(c)
1.
Provide one (1) electronic mail address;2.
The licensee may provide additional, unique electronic mail addresses.Section 4.
Real Estate Examination.(1)
A successful passing score on required portions of the real estate examination mandated by KRS 324.045(2) shall be valid for sixty (60) days.(2)
An applicant who fails to pass any required portion of the examination mandated by KRS 324.045(2) three (3) times shall wait at least thirty (30) calendar days from the date of the applicant's third failed examination prior to retaking the examination, or the score shall be void.Section 5.
Foreign Language Diplomas or Transcripts.(1)
If an applicant submits documentation of qualifying education in a language other than English, the diploma or transcript shall:(a)
Be accurately translated by a foreign language document translation service; and(b)
Include a certification stating that the translation is true, accurate, and complete.(2)
The applicant shall provide a letter to the commission indicating that the curriculum of the proffered education is equivalent to a high school diploma or GED. The comparison shall be made by an education credential service provider with membership in the National Association of Credential Evaluation Services.(3)
If the applicant is unable to comply with the requirements of this section, the applicant shall submit proof of the receipt of a GED granted by an agency or institution within the United States.Section 6.
National Criminal History Check.(1)
Prior to taking a licensure examination, an applicant shall request a copy of the applicant's national criminal history check, which shall only be valid for ninety (90) days from the date of the record report.(2)
(a)
The applicant may request a copy of his or her national criminal history check from the Federal Bureau of Investigation pursuant to the provisions of 28 C.F.R. 16.30 to 16.33 or through the Kentucky State Police for submission to the Federal Bureau of Investigation consistent with KRS 324.045(5).(b)
An applicant may submit the Criminal History Affidavit, KREC Form 209, with his or her application for licensure if:1.
The applicant is unable to obtain his or her national criminal history check from the Federal Bureau of Investigation because the applicant's fingerprints are rejected;2.
The applicant submits proof that he or she was fingerprinted at a recognized state or local law enforcement agency;3.
The applicant submits a Kentucky Administrative Office of the Courts (AOC) Fast Check Criminal Records Report, or a similar informal background report from the jurisdiction where the applicant resides; and4.
The applicant submits proof of an alternate request for a Federal Bureau of Investigation records check by name or social security number.(c)
An issued license shall be subject to discipline if, while an applicant, the licensee:1.
Having submitted a Criminal History Affidavit, KREC Form 209, with his or her application for licensure, fails to submit the national criminal history check within ten (10) days of receiving the report; or2.
Failed to report any new criminal charges or convictions that occurred after the national criminal history check report date.(3)
(a)
The commission shall investigate a national criminal history check which reveals a felony conviction within the previous ten (10) years, or a misdemeanor conviction within the previous five (5) years, and may investigate any charges or convictions revealed by the national criminal history check or any other evidence of dishonesty, untruthfulness, or bad reputation of the applicant.(b)
In the determination of the chair of the commission, the commission may delegate the investigative process to the Applicant Review Committee, a subcommittee of the commission, to be comprised of no more than two (2) commissioners;(c)
The Applicant Review Committee shall operate consistent with KRS Chapter 335B.(4)
Following the completion of the investigation, the commission shall review the investigation report and shall:(a)
Order the applicant to appear before the commission for a hearing before the real estate commission or the real estate commission's authorized representative to determine whether the applicant meets the standards of KRS 324.045; or(b)
Allow the applicant to proceed with his or her licensure application without a hearing.(5)
If an authorized representative conducts the hearing, the authorized representative shall recommend to the real estate commission whether the applicant meets the standards of KRS 324.045. The real estate commission may accept the recommendation, reject the recommendation and enter a separate order, or remand to the representative for further proceedings in accordance with KRS Chapter 13B.(6)
Following the hearing, if all other licensing pre-requisites are satisfied, the real estate commission shall either approve or deny the application and notify the applicant of its decision along with a written explanation of the reasons for its decision.(7)
If the real estate commission denies the application, the real estate commission shall indicate in its order, if and when, the applicant will be eligible to submit a subsequent licensure application.(8)
If an applicant, or a licensee without an active license, has engaged in any unlicensed brokerage activity within this Commonwealth, that person shall, prior to the issuance or reactivation of any license by the commission, submit proof that he or she has returned all fees earned or received as a result of the unlicensed brokerage activity, consistent with KRS 324.990(2).Section 7.
Release by Principal Broker.(1)
Upon notification from the principal broker or the affiliate licensee that an affiliate licensee has been released pursuant to KRS 324.310(1), the commission shall notify the affiliate licensee at his or her last electronic mail address or addresses on file at the commission that, within thirty (30) days of the date of the release notification, the licensee shall:(a)
Reaffiliate with another broker by submitting a completed Acceptance and Release Form, KREC Form 200, or by using the licensee's online services portal; or(b)
Request that his or her license be placed into inactive status by using the licensee's online services portal or by submitting a completed License Status and Personal Information Update Form, KREC Form 201;(c)
If the affiliate holds a broker license and was formerly a principal broker, he or she shall:1.
Affiliate with another principal broker;2.
Open a new office as principal broker; or3.
Place his or her license into inactive status.(2)
Failure to comply with the notification issued by the commission shall result in the cancellation of the licensee's license.(3)
A licensee with a cancelled license shall not engage in real estate brokerage activity during the period of cancellation.Section 8.
License Renewal.(1)
(a)
Licenses shall be renewed on or before March 31 through the licensee's Online Services Portal account.(b)
A licensee who is unable to renew his or her license using his or her Online Services Portal may utilize the License Renewal Form, KREC Form 208.(2)
A cancelled license shall not be renewed until the license is reactivated and in good standing.(3)
(a)
A license shall be cancelled if not renewed.(b)
A licensee with a cancelled license shall not engage in real estate brokerage pursuant to KRS 324.160(2).(4)
A licensee shall file or verify with the commission at renewal a telephone number, residential address, and an electronic mail address or addresses.Section 9.
Licensing Records.(1)
(a)
A licensee shall notify the commission by submitting a completed License Status and Personal Information Update Form, KREC Form 201, or through the online services portal, of a change in the following information:1.
The licensee's legal name;2.
The licensee's nickname;3.
Any alternate or assumed name being used by the licensee;4.
The licensee's residential address;5.
The licensee's electronic mail address or addresses; or6.
The licensee's preferred direct or personal phone number.(b)
If the licensee is changing his or her legal name, he or she shall provide legal documentation supporting the changed name.(c)
Processing of the changes contemplated in paragraph (a) of this subsection shall require payment of a nonrefundable ten (10) dollar change request fee required by KRS 324.287.(d)
The licensee shall submit a completed and signed Consent to Jurisdiction and Service of Process, KREC Form 205, if the licensee is moving to a residence outside the Commonwealth of Kentucky.(2)
(a)
A licensee shall notify the commission by completing, signing, and filing with the commission the Certification of Insurance Coverage, KREC Form 203, or through the online services portal, of any change in private professional liability insurance coverage or extended reporting period coverage as required by KRS 324.395.(b)
This notice shall be accompanied by a nonrefundable ten (10) dollar change request fee required by KRS 324.287(8).(3)
(a)
A principal broker shall notify the commission of any change of his or her primary company location, firm name, alternate or assumed name, doing business as, branch office name, branch office address, designated manager or managers, escrow account or accounts, or email address or addresses by completing, signing, and filing with the commission the Company Information Update Form, KREC Form 202, or through the online services portal.(b)
This notice shall be accompanied by a nonrefundable ten (10) dollar change request fee required by KRS 324.287.(4)
(a)
A principal broker shall notify the commission of a change in principal broker at an existing real estate brokerage company by submitting a completed Company Change of Principal Broker Form, KREC Form 204, or through the online services portal.(b)
This notice shall be accompanied by the fee required by KRS 324.287.(5)
(a)
An affiliated licensee shall submit a completed Acceptance and Release Form, KREC Form 200, to change his or her affiliation to another principal broker.(b)
This form shall be accompanied by the fee required by KRS 324.287.(6)
A licensee requesting a license history certification shall complete and submit the License Status and Personal Information Update Form, KREC Form 201, accompanied by a nonrefundable ten (10) dollar fee for each certification requested.(7)
A licensee shall be subject to discipline consistent with the commission's authority in KRS 324.160(1) for a violation of KRS 324.160(4)(t) if the licensee fails to submit notification to the commission of any changes required by this section within ten (10) days of the change.Section 10.
Inactive Status.(1)
An active licensee who wishes to place his or her license into inactive status shall submit Form 201, License Status and Personal Information Update Form, or through the online services portal.(2)
All licensees placing a license into inactive status shall:(a)
Obtain extended reporting period (ERP) coverage insurance for a period of one (1) year as established by KRS 324.395(1); and(b)
Submit a completed Certificate of Insurance Coverage, KREC Form 203, with proof of the required coverage.(3)
The coverage obtained pursuant to subsection (2) of this section shall be consistent with the minimum requirements prescribed by 201 KAR 11:220.(4)
To reactivate a license from inactive status, a licensee shall complete and submit Form 201, License Status and Personal Information Update Form, or through the online services portal, and comply with KRS 324.310 and complete the following education:(a)
If the licensee has not taken the Core course in four (4) years, the licensee shall complete Core; and(b)
If the licensee has been inactive during more than one (1) education cycle, the licensee shall complete core plus six hours of continuing education elective to be selected from a list of courses to be compiled by the commission. This paragraph shall not take effect until January 1, 2021.(5)
If the licensee is exempt from continuing education requirements pursuant to KRS 324.046(5), the licensee shall not be required to complete any continuing education to reactivate a license from inactive status.Section 11.
Mandatory Continuing Education.(1)
An active licensee, licensed by the commission on or after June 19, 1976, shall comply with the requirements of KRS 324.085(1) by attending and successfully completing six (6) hours of continuing education courses sponsored or approved by the commission each year. Three (3) of the hours of continuing education shall be in law, and three (3) of the hours of continuing education may be electives.(a)
An active licensee shall complete the continuing education requirements consistent with KRS 324.085(1) no later than December 31 of the first year in the renewal cycle. An active licensee shall receive continuing education credit for any approved course completed on or before December 31, if the education provider has reported the licensee's course completion to the commission before 11:59 p.m. on December 31 consistent with 201 KAR 11:170, Section 6(3).(b)
An active licensee who fails to complete his or her continuing education requirement shall have his or her license cancelled and be ineligible to renew if the licensee has not completed the continuing education required by KRS 324.085(1) and this administrative regulation.(2)
An active licensee's annual mandatory continuing education requirement shall not be satisfied by the completion of a pre-license course.(3)
A candidate shall not submit completion of the same continuing education course more than once for licensure credit in the same calendar year.(4)
A licensee shall not receive credit for more than nine (9) hours of continuing education in a calendar day.(5)
A licensee shall not receive credit for a course if the licensee arrives more than ten (10) minutes after the scheduled start of the course or after the conclusion of any break during the course.(6)
An active licensee shall attend a commission-approved core course once every four (4) years, with the first four (4) year cycle beginning from the year of initial licensure. The core course shall:(a)
Satisfy the licensee's mandatory continuing education requirement for the year in which the course is taken; and(b)
Be a six (6) hour comprehensive review of the requirements of:1.
KRS Chapter 324;2.
201 KAR Chapter 11;3.
Common and federal law relating to real estate; and4.
The standards of practice for a real estate licensee.(7)
An active licensee who fails to complete Core in a year in which the licensee is required to complete Core, even if the licensee completed other continuing education, shall be subject to the delinquency procedures set forth in Section 13 of this administrative regulation.Section 12.
Exemptions from the Continuing Education Requirement.(1)
A person licensed prior to June 19, 1976 shall not be required to complete continuing education.(2)
A reciprocal licensing broker, who has been licensed for less than three (3) months when education is due, shall not be required to attend a continuing education course during the first education cycle in which he or she is licensed in Kentucky.(3)
A reciprocal licensing sales associate shall not be required to complete continuing education during the first two (2) full education cycles of licensure in Kentucky. A reciprocal licensing sales associate shall complete the education required by KRS 324.085(2).(4)
A licensee shall not be required to comply with KRS 324.085(1) during the first two (2) full education cycles from the date of issuance of a sales associate license.(5)
A licensee whose license is inactive shall not be required to attend continuing education courses while the license remains inactive, except as provided in this administrative regulation.Section 13.
Continuing Education Compliance and Delinquency.(1)
The commission shall, for good cause shown, extend the time requirements established by KRS 324.085(1) and this administrative regulation. Good cause may include a true hardship, extensive medical issues for the licensee or the licensee's immediate relative, active military duty or service, or other good cause that clearly warrants relief.(2)
(a)
The request for extension and any supporting documentation shall be received in writing on or before the last day of the month or year in which the education requirement is due, unless the hardship prevents compliance with subsection (1) of this section.(b)
A license shall not be cancelled while a hardship request is pending.(c)
The commission shall review the hardship request and notify the licensee in writing of the commission's decision.(3)
(a)
If a licensee fails to comply with the mandatory education requirements of this administrative regulation, the executive director or the executive director's representative shall issue a delinquency notice to the licensee.(b)
If the licensee fulfilled the education requirement in the year it was required, proof shall be forwarded to the commission upon request, and the license shall be reactivated.(4)
(a)
If the licensee fails to request an extension and fails to forward proof of completion prior to the deadline, the license shall be cancelled automatically.(b)
A license cancelled for nonfulfillment of the continuing education requirements may be reactivated if the licensee enters into a written delinquency plan, pays a $1,000 administrative fine, and either:1.
Places the license into inactive status; or2.
Agrees in the delinquency plan to complete the delinquent continuing education requirements for the previous calendar year on or before April 30.(5)
A licensee who places his or her license into inactive status under the provisions of this section shall not reactivate the license until he or she has:(a)
Completed all delinquent mandatory continuing education requirements; and(b)
Satisfied the requirements of KRS 324.310.(6)
A licensee who fails to place his or her license into inactive status or file the delinquency plan immediately following the year in which continuing education requirements were not fulfilled, shall automatically have the license cancelled and shall not be eligible to renew without completing the delinquent education.(7)
If a licensee fails to complete the requirements of the delinquency plan within twenty (20) days of the agreed completion date, the commission shall issue a notice of violation to the licensee.(8)
Failure to respond to the notice of violation shall result in a default order of suspension for a period of six (6) months.(9)
If the commission suspends the license as a result of a default order or after hearing, if one is requested, the licensee shall not be allowed to activate the license unless, within ninety (90) days following expiration of the suspension, the licensee:(a)
Completes all delinquent mandatory continuing education requirements;(b)
Submits the required documents to reinstate the license; and(c)
Pays all necessary reactivation, renewal, and transfer fees.(10)
If the licensee does not reinstate the license within ninety (90) days following the completion of the suspension period, the license shall be cancelled and the licensee shall be obligated to meet the requirements for initial licensure, including retaking the examination.(11)
A license cancelled under this section shall not be reactivated until the licensee has completed all of his or her mandatory education requirements, complied with all commission orders, and submitted all other applicable licensing requirements.(12)
Failure of the executive director or his or her representative to issue a deficiency notice to the licensee shall not relieve the licensee of his or her mandatory education requirements or the penalties associated with the deficiency.(13)
A license cancelled for continuing education deficiency shall be subject to the provisions of KRS 324.160(2).Section 14.
Post-License Education Compliance and Delinquency.(1)
The time requirements established by KRS 324.085(2) and this administrative regulation shall be extended by the commission for good cause shown, such as a true hardship, extensive medical issues for the licensee or the licensee's immediate relative, active military duty or service, or other good cause that clearly warrants relief.(2)
The license of a licensee who fails to complete his or her post-licensing education on or before the licensee's deadline shall be automatically cancelled the following day.(3)
A license of a licensee cancelled for post-license education deficiency may not be reactivated until all delinquent post-licensing education is complete.(4)
A license cancelled for post-license education deficiency shall be subject to the provisions of KRS 324.160(2).Section 15.
Death or Incapacity of a Principal Broker.(1)
Pursuant to KRS 324.425, an affiliated licensee may complete and close the existing business of a deceased or incapacitated broker for a temporary period, not to exceed six (6) months.(2)
Any affiliate requesting principal broker status pursuant to KRS 324.425 shall submit a completed Notification of Death or Incapacity of a Licensee, KREC Form 206.Section 16.
Incorporation by Reference.(1)
The following material is incorporated by reference:(a)
"Acceptance and Release Form", KREC Form 200, 7/2019;(b)
"License Status and Personal Information Update Form", KREC Form 201, 11/2019;(c)
"Company Information Update Form", KREC Form 202, 11/2019;(d)
"Certification of Insurance Coverage", KREC Form 203, 11/2019;(e)
"Company Change of Principal Broker Form", KREC Form 204, 7/2019;(f)
"Consent to Jurisdiction and Service of Process", KREC Form 205, 7/2019;(g)
"Notification of Death or Incapacity of a Licensee", KREC Form 206, 11/2019;(h)
"Broker Education Review Form", KREC Form 207, 7/2019;(i)
"License Renewal Form", KREC Form 208, 11/2019; and(j)
"Criminal History Affidavit", KREC Form 209, 7/2019.(2)
This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Real Estate Commission, 656 Chamberlin Avenue, Suite B, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m. This material is also available from the commission's Web site: www.krec.ky.gov.HISTORY: (13 Ky.R. 1517; eff. 3-6-1987; Am. 17 Ky.R. 2217; 2692; eff. 3-8-1991; 27 Ky.R. 1515; 2711; eff. 4-9-2001; 34 Ky.R. 836; 1939; eff. 3-7-2008; 42 Ky.R. 468; 1469; eff. 12-4-2015; 46 Ky.R. 599; 1457; 1824; 2031; eff. 12-16-2019.)
201 KAR 11:210.Licensing, education, and testing requirements.
Section 1.
Initial Sales Associate License.(1)
Prior to applying for an initial sales associate license, a prospective applicant shall complete six (6) academic credit hours, or its equivalent, of prelicensing education with either:(a)
An approved pre-license education provider; or(b)
An accredited institution as defined by KRS 324.010(8).(2)
An applicant for initial sales associate licensure shall submit:(a)
A national criminal history check in accordance with KRS 324.045(5) and this administrative regulation;(b)
A completed application submitted on Score Report/License Application obtained from the commission's testing provider after passing the required examination, which shall contain a recent photo of the applicant;(c)
Proof of high school graduation, or its equivalent;(d)
Proof of completion of six (6) academic credit hours, or its equivalent in qualifying prelicense education;(e)
Proof of Errors and Omissions insurance coverage compliant with KRS 324.395 and 201 KAR 11:220, if the license will be immediately active;(f)
The nonrefundable sixty (60) dollar original license fee and sixty (60) dollar recovery fund fee required by KRS 324.287(2) and (8); and(g)
A completed and signed Consent to Jurisdiction and Service of Process, KREC Form 205, if the applicant resides outside of the Commonwealth of Kentucky.(3)
An applicant may submit a paper or electronic application.(4)
Within ten (10) days of being issued a license number and Occupations and Professions Identification Number, OP ID, the licensee shall:(a)
Create an Online Services Portal account;(b)
Verify the licensee's current residential address and telephone number; and(c)
Provide one (1) valid electronic mail address.Section 2.
Broker's License.(1)
Prior to applying for a broker's license, a prospective applicant shall:(a)
Complete not less than twenty-one (21) academic credit hours, consistent with KRS 324.046(1)(a), of education to acquire a broker's license, including a minimum of:1.
Nine (9) academic credit hours of real estate courses, which shall not include an applicant's sales associate prelicense education;2.
Three (3) academic credit hours of Broker Management; and3.
Nine (9) academic credit hours of broker elective courses, approved by the commission.(b)
A licensee shall not get duplicate course credit toward a broker's license;®(c)
A licensee shall get course credit toward his or her broker's license by completing National Association of Realtors®, NAR designation courses. Credit for the designation course shall be awarded consistent with accreditation at the time the course is completed.(d)
An applicant for a broker's license may submit a request for an education review by submitting a completed Broker Education Review Form, KREC Form 207.(2)
An applicant for a broker's license shall submit:(a)
Proof of the requisite sales associate experience as provided in KRS 324.046(1)(b) or its equivalent as provided in KRS 324.046(3) or (4);(b)
A completed application submitted on Score Report/License Application obtained from the commission's testing provider after passing the required examination;(c)
Proof of completion of the broker curriculum education real estate courses required by KRS 324.046(1)(a), KRS 324.046(3), and 201 KAR 11:170, Section 7;(d)
Proof of Errors and Omissions insurance coverage compliant with KRS 324.395 and 201 KAR 11:220, if the license will be immediately active, or proof of extended reporting period coverage as required by KRS 324.395 if the license will be placed into inactive status;(e)
An original copy of the applicant's national criminal history check obtained consistent with KRS 324.045(5) and this administrative regulation;(f)
A completed and signed Consent to Jurisdiction and Service of Process, KREC Form 205, if the applicant resides outside of the Commonwealth of Kentucky; and(g)
The nonrefundable sixty (60) dollar original license fee required by KRS 324.287(2).(3)
An applicant may submit a paper or electronic application.(4)
The provisions of the section shall not be implemented until April 1, 2020.Section 3.
Reciprocal Licensing.(1)
An individual actively licensed as a real estate professional outside of Kentucky may apply for an equivalent Kentucky license.(2)
To obtain a sales associate license by reciprocal licensing, an individual shall:(a)
File with the commission a national criminal history check in accordance with KRS 324.045(5) and this administrative regulation;(b)
File with the commission a certification of licensure issued within the preceding ninety (90) days by the regulatory authority of the state for which the individual seeks reciprocity;(c)
Submit proof of completion of six (6) academic credit hours or their equivalent in real estate courses from an accredited institution or approved real estate school pursuant to KRS 324.046 and KRS 324.141(1)(a)3.;(d)
Pass the Kentucky law portion of the licensing examination for a sales associate's license;(e)
Submit a completed and signed Consent to Jurisdiction and Service of Process, KREC Form 205, if the applicant resides outside of Kentucky; and(f)
The nonrefundable sixty (60) dollar original license fee and sixty (60) dollar recovery fund fee required by KRS 324.287(2) and (8).(3)
To obtain a broker license by reciprocal licensing an individual shall:(a)
File with the commission a national criminal history check in accordance with KRS 324.045(5) and this administrative regulation;(b)
File with the commission a certification of licensure issued within the preceding ninety (90) days by the regulatory authority of the state for which the individual seeks reciprocity;(c)
Submit proof of completion of twenty one (21) academic credit hours or their equivalent in real estate courses from an accredited institution or approved real estate school pursuant to KRS 324.046 and KRS 324.141(1)(a)3.;(d)
Pass the Kentucky law portion of the licensing examination for a broker's license;(e)
Submit a completed and signed Consent to Jurisdiction and Service of Process, KREC Form 205, if the applicant resides outside of Kentucky; and(f)
The nonrefundable sixty (60) dollar original license fee and sixty (60) dollar recovery fund fee required by KRS 324.287(2) and (8).(4)
For purposes of subsections (2)(c) and (3)(c) of this Section, "or their equivalent" shall mean any education requirements approved by the commission pursuant to a reciprocity agreement entered into between the jurisdiction from which the applicant is seeking reciprocity and the commission.(5)
An applicant may submit a paper or electronic application.(6)
Within ten (10) days of being issued a license number and OP ID, the licensee shall:(a)
Create an Online Services Portal account;(b)
Verify the licensee's current residential address and telephone number; and(c)
1.
Provide one (1) electronic mail address;2.
The licensee may provide additional, unique electronic mail addresses.Section 4.
Real Estate Examination.(1)
A successful passing score on required portions of the real estate examination mandated by KRS 324.045(2) shall be valid for sixty (60) days.(2)
An applicant who fails to pass any required portion of the examination mandated by KRS 324.045(2) three (3) times shall wait at least thirty (30) calendar days from the date of the applicant's third failed examination prior to retaking the examination, or the score shall be void.Section 5.
Foreign Language Diplomas or Transcripts.(1)
If an applicant submits documentation of qualifying education in a language other than English, the diploma or transcript shall:(a)
Be accurately translated by a foreign language document translation service; and(b)
Include a certification stating that the translation is true, accurate, and complete.(2)
The applicant shall provide a letter to the commission indicating that the curriculum of the proffered education is equivalent to a high school diploma or GED. The comparison shall be made by an education credential service provider with membership in the National Association of Credential Evaluation Services.(3)
If the applicant is unable to comply with the requirements of this section, the applicant shall submit proof of the receipt of a GED granted by an agency or institution within the United States.Section 6.
National Criminal History Check.(1)
Prior to taking a licensure examination, an applicant shall request a copy of the applicant's national criminal history check, which shall only be valid for ninety (90) days from the date of the record report.(2)
(a)
The applicant may request a copy of his or her national criminal history check from the Federal Bureau of Investigation pursuant to the provisions of 28 C.F.R. 16.30 to 16.33 or through the Kentucky State Police for submission to the Federal Bureau of Investigation consistent with KRS 324.045(5).(b)
An applicant may submit the Criminal History Affidavit, KREC Form 209, with his or her application for licensure if:1.
The applicant is unable to obtain his or her national criminal history check from the Federal Bureau of Investigation because the applicant's fingerprints are rejected;2.
The applicant submits proof that he or she was fingerprinted at a recognized state or local law enforcement agency;3.
The applicant submits a Kentucky Administrative Office of the Courts (AOC) Fast Check Criminal Records Report, or a similar informal background report from the jurisdiction where the applicant resides; and4.
The applicant submits proof of an alternate request for a Federal Bureau of Investigation records check by name or social security number.(c)
An issued license shall be subject to discipline if, while an applicant, the licensee:1.
Having submitted a Criminal History Affidavit, KREC Form 209, with his or her application for licensure, fails to submit the national criminal history check within ten (10) days of receiving the report; or2.
Failed to report any new criminal charges or convictions that occurred after the national criminal history check report date.(3)
(a)
The commission shall investigate a national criminal history check which reveals a felony conviction within the previous ten (10) years, or a misdemeanor conviction within the previous five (5) years, and may investigate any charges or convictions revealed by the national criminal history check or any other evidence of dishonesty, untruthfulness, or bad reputation of the applicant.(b)
In the determination of the chair of the commission, the commission may delegate the investigative process to the Applicant Review Committee, a subcommittee of the commission, to be comprised of no more than two (2) commissioners;(c)
The Applicant Review Committee shall operate consistent with KRS Chapter 335B.(4)
Following the completion of the investigation, the commission shall review the investigation report and shall:(a)
Order the applicant to appear before the commission for a hearing before the real estate commission or the real estate commission's authorized representative to determine whether the applicant meets the standards of KRS 324.045; or(b)
Allow the applicant to proceed with his or her licensure application without a hearing.(5)
If an authorized representative conducts the hearing, the authorized representative shall recommend to the real estate commission whether the applicant meets the standards of KRS 324.045. The real estate commission may accept the recommendation, reject the recommendation and enter a separate order, or remand to the representative for further proceedings in accordance with KRS Chapter 13B.(6)
Following the hearing, if all other licensing pre-requisites are satisfied, the real estate commission shall either approve or deny the application and notify the applicant of its decision along with a written explanation of the reasons for its decision.(7)
If the real estate commission denies the application, the real estate commission shall indicate in its order, if and when, the applicant will be eligible to submit a subsequent licensure application.(8)
If an applicant, or a licensee without an active license, has engaged in any unlicensed brokerage activity within this Commonwealth, that person shall, prior to the issuance or reactivation of any license by the commission, submit proof that he or she has returned all fees earned or received as a result of the unlicensed brokerage activity, consistent with KRS 324.990(2).Section 7.
Release by Principal Broker.(1)
Upon notification from the principal broker or the affiliate licensee that an affiliate licensee has been released pursuant to KRS 324.310(1), the commission shall notify the affiliate licensee at his or her last electronic mail address or addresses on file at the commission that, within thirty (30) days of the date of the release notification, the licensee shall:(a)
Reaffiliate with another broker by submitting a completed Acceptance and Release Form, KREC Form 200, or by using the licensee's online services portal; or(b)
Request that his or her license be placed into inactive status by using the licensee's online services portal or by submitting a completed License Status and Personal Information Update Form, KREC Form 201;(c)
If the affiliate holds a broker license and was formerly a principal broker, he or she shall:1.
Affiliate with another principal broker;2.
Open a new office as principal broker; or3.
Place his or her license into inactive status.(2)
Failure to comply with the notification issued by the commission shall result in the cancellation of the licensee's license.(3)
A licensee with a cancelled license shall not engage in real estate brokerage activity during the period of cancellation.Section 8.
License Renewal.(1)
(a)
Licenses shall be renewed on or before March 31 through the licensee's Online Services Portal account.(b)
A licensee who is unable to renew his or her license using his or her Online Services Portal may utilize the License Renewal Form, KREC Form 208.(2)
A cancelled license shall not be renewed until the license is reactivated and in good standing.(3)
(a)
A license shall be cancelled if not renewed.(b)
A licensee with a cancelled license shall not engage in real estate brokerage pursuant to KRS 324.160(2).(4)
A licensee shall file or verify with the commission at renewal a telephone number, residential address, and an electronic mail address or addresses.Section 9.
Licensing Records.(1)
(a)
A licensee shall notify the commission by submitting a completed License Status and Personal Information Update Form, KREC Form 201, or through the online services portal, of a change in the following information:1.
The licensee's legal name;2.
The licensee's nickname;3.
Any alternate or assumed name being used by the licensee;4.
The licensee's residential address;5.
The licensee's electronic mail address or addresses; or6.
The licensee's preferred direct or personal phone number.(b)
If the licensee is changing his or her legal name, he or she shall provide legal documentation supporting the changed name.(c)
Processing of the changes contemplated in paragraph (a) of this subsection shall require payment of a nonrefundable ten (10) dollar change request fee required by KRS 324.287.(d)
The licensee shall submit a completed and signed Consent to Jurisdiction and Service of Process, KREC Form 205, if the licensee is moving to a residence outside the Commonwealth of Kentucky.(2)
(a)
A licensee shall notify the commission by completing, signing, and filing with the commission the Certification of Insurance Coverage, KREC Form 203, or through the online services portal, of any change in private professional liability insurance coverage or extended reporting period coverage as required by KRS 324.395.(b)
This notice shall be accompanied by a nonrefundable ten (10) dollar change request fee required by KRS 324.287(8).(3)
(a)
A principal broker shall notify the commission of any change of his or her primary company location, firm name, alternate or assumed name, doing business as, branch office name, branch office address, designated manager or managers, escrow account or accounts, or email address or addresses by completing, signing, and filing with the commission the Company Information Update Form, KREC Form 202, or through the online services portal.(b)
This notice shall be accompanied by a nonrefundable ten (10) dollar change request fee required by KRS 324.287.(4)
(a)
A principal broker shall notify the commission of a change in principal broker at an existing real estate brokerage company by submitting a completed Company Change of Principal Broker Form, KREC Form 204, or through the online services portal.(b)
This notice shall be accompanied by the fee required by KRS 324.287.(5)
(a)
An affiliated licensee shall submit a completed Acceptance and Release Form, KREC Form 200, to change his or her affiliation to another principal broker.(b)
This form shall be accompanied by the fee required by KRS 324.287.(6)
A licensee requesting a license history certification shall complete and submit the License Status and Personal Information Update Form, KREC Form 201, accompanied by a nonrefundable ten (10) dollar fee for each certification requested.(7)
A licensee shall be subject to discipline consistent with the commission's authority in KRS 324.160(1) for a violation of KRS 324.160(4)(t) if the licensee fails to submit notification to the commission of any changes required by this section within ten (10) days of the change.Section 10.
Inactive Status.(1)
An active licensee who wishes to place his or her license into inactive status shall submit Form 201, License Status and Personal Information Update Form, or through the online services portal.(2)
All licensees placing a license into inactive status shall:(a)
Obtain extended reporting period (ERP) coverage insurance for a period of one (1) year as established by KRS 324.395(1); and(b)
Submit a completed Certificate of Insurance Coverage, KREC Form 203, with proof of the required coverage.(3)
The coverage obtained pursuant to subsection (2) of this section shall be consistent with the minimum requirements prescribed by 201 KAR 11:220.(4)
To reactivate a license from inactive status, a licensee shall complete and submit Form 201, License Status and Personal Information Update Form, or through the online services portal, and comply with KRS 324.310 and complete the following education:(a)
If the licensee has not taken the Core course in four (4) years, the licensee shall complete Core; and(b)
If the licensee has been inactive during more than one (1) education cycle, the licensee shall complete core plus six hours of continuing education elective to be selected from a list of courses to be compiled by the commission. This paragraph shall not take effect until January 1, 2021.(5)
If the licensee is exempt from continuing education requirements pursuant to KRS 324.046(5), the licensee shall not be required to complete any continuing education to reactivate a license from inactive status.Section 11.
Mandatory Continuing Education.(1)
An active licensee, licensed by the commission on or after June 19, 1976, shall comply with the requirements of KRS 324.085(1) by attending and successfully completing six (6) hours of continuing education courses sponsored or approved by the commission each year. Three (3) of the hours of continuing education shall be in law, and three (3) of the hours of continuing education may be electives.(a)
An active licensee shall complete the continuing education requirements consistent with KRS 324.085(1) no later than December 31 of the first year in the renewal cycle. An active licensee shall receive continuing education credit for any approved course completed on or before December 31, if the education provider has reported the licensee's course completion to the commission before 11:59 p.m. on December 31 consistent with 201 KAR 11:170, Section 6(3).(b)
An active licensee who fails to complete his or her continuing education requirement shall have his or her license cancelled and be ineligible to renew if the licensee has not completed the continuing education required by KRS 324.085(1) and this administrative regulation.(2)
An active licensee's annual mandatory continuing education requirement shall not be satisfied by the completion of a pre-license course.(3)
A candidate shall not submit completion of the same continuing education course more than once for licensure credit in the same calendar year.(4)
A licensee shall not receive credit for more than nine (9) hours of continuing education in a calendar day.(5)
A licensee shall not receive credit for a course if the licensee arrives more than ten (10) minutes after the scheduled start of the course or after the conclusion of any break during the course.(6)
An active licensee shall attend a commission-approved core course once every four (4) years, with the first four (4) year cycle beginning from the year of initial licensure. The core course shall:(a)
Satisfy the licensee's mandatory continuing education requirement for the year in which the course is taken; and(b)
Be a six (6) hour comprehensive review of the requirements of:1.
KRS Chapter 324;2.
201 KAR Chapter 11;3.
Common and federal law relating to real estate; and4.
The standards of practice for a real estate licensee.(7)
An active licensee who fails to complete Core in a year in which the licensee is required to complete Core, even if the licensee completed other continuing education, shall be subject to the delinquency procedures set forth in Section 13 of this administrative regulation.Section 12.
Exemptions from the Continuing Education Requirement.(1)
A person licensed prior to June 19, 1976 shall not be required to complete continuing education.(2)
A reciprocal licensing broker, who has been licensed for less than three (3) months when education is due, shall not be required to attend a continuing education course during the first education cycle in which he or she is licensed in Kentucky.(3)
A reciprocal licensing sales associate shall not be required to complete continuing education during the first two (2) full education cycles of licensure in Kentucky. A reciprocal licensing sales associate shall complete the education required by KRS 324.085(2).(4)
A licensee shall not be required to comply with KRS 324.085(1) during the first two (2) full education cycles from the date of issuance of a sales associate license.(5)
A licensee whose license is inactive shall not be required to attend continuing education courses while the license remains inactive, except as provided in this administrative regulation.Section 13.
Continuing Education Compliance and Delinquency.(1)
The commission shall, for good cause shown, extend the time requirements established by KRS 324.085(1) and this administrative regulation. Good cause may include a true hardship, extensive medical issues for the licensee or the licensee's immediate relative, active military duty or service, or other good cause that clearly warrants relief.(2)
(a)
The request for extension and any supporting documentation shall be received in writing on or before the last day of the month or year in which the education requirement is due, unless the hardship prevents compliance with subsection (1) of this section.(b)
A license shall not be cancelled while a hardship request is pending.(c)
The commission shall review the hardship request and notify the licensee in writing of the commission's decision.(3)
(a)
If a licensee fails to comply with the mandatory education requirements of this administrative regulation, the executive director or the executive director's representative shall issue a delinquency notice to the licensee.(b)
If the licensee fulfilled the education requirement in the year it was required, proof shall be forwarded to the commission upon request, and the license shall be reactivated.(4)
(a)
If the licensee fails to request an extension and fails to forward proof of completion prior to the deadline, the license shall be cancelled automatically.(b)
A license cancelled for nonfulfillment of the continuing education requirements may be reactivated if the licensee enters into a written delinquency plan, pays a $1,000 administrative fine, and either:1.
Places the license into inactive status; or2.
Agrees in the delinquency plan to complete the delinquent continuing education requirements for the previous calendar year on or before April 30.(5)
A licensee who places his or her license into inactive status under the provisions of this section shall not reactivate the license until he or she has:(a)
Completed all delinquent mandatory continuing education requirements; and(b)
Satisfied the requirements of KRS 324.310.(6)
A licensee who fails to place his or her license into inactive status or file the delinquency plan immediately following the year in which continuing education requirements were not fulfilled, shall automatically have the license cancelled and shall not be eligible to renew without completing the delinquent education.(7)
If a licensee fails to complete the requirements of the delinquency plan within twenty (20) days of the agreed completion date, the commission shall issue a notice of violation to the licensee.(8)
Failure to respond to the notice of violation shall result in a default order of suspension for a period of six (6) months.(9)
If the commission suspends the license as a result of a default order or after hearing, if one is requested, the licensee shall not be allowed to activate the license unless, within ninety (90) days following expiration of the suspension, the licensee:(a)
Completes all delinquent mandatory continuing education requirements;(b)
Submits the required documents to reinstate the license; and(c)
Pays all necessary reactivation, renewal, and transfer fees.(10)
If the licensee does not reinstate the license within ninety (90) days following the completion of the suspension period, the license shall be cancelled and the licensee shall be obligated to meet the requirements for initial licensure, including retaking the examination.(11)
A license cancelled under this section shall not be reactivated until the licensee has completed all of his or her mandatory education requirements, complied with all commission orders, and submitted all other applicable licensing requirements.(12)
Failure of the executive director or his or her representative to issue a deficiency notice to the licensee shall not relieve the licensee of his or her mandatory education requirements or the penalties associated with the deficiency.(13)
A license cancelled for continuing education deficiency shall be subject to the provisions of KRS 324.160(2).Section 14.
Post-License Education Compliance and Delinquency.(1)
The time requirements established by KRS 324.085(2) and this administrative regulation shall be extended by the commission for good cause shown, such as a true hardship, extensive medical issues for the licensee or the licensee's immediate relative, active military duty or service, or other good cause that clearly warrants relief.(2)
The license of a licensee who fails to complete his or her post-licensing education on or before the licensee's deadline shall be automatically cancelled the following day.(3)
A license of a licensee cancelled for post-license education deficiency may not be reactivated until all delinquent post-licensing education is complete.(4)
A license cancelled for post-license education deficiency shall be subject to the provisions of KRS 324.160(2).Section 15.
Death or Incapacity of a Principal Broker.(1)
Pursuant to KRS 324.425, an affiliated licensee may complete and close the existing business of a deceased or incapacitated broker for a temporary period, not to exceed six (6) months.(2)
Any affiliate requesting principal broker status pursuant to KRS 324.425 shall submit a completed Notification of Death or Incapacity of a Licensee, KREC Form 206.Section 16.
Incorporation by Reference.(1)
The following material is incorporated by reference:(a)
"Acceptance and Release Form", KREC Form 200, 7/2019;(b)
"License Status and Personal Information Update Form", KREC Form 201, 11/2019;(c)
"Company Information Update Form", KREC Form 202, 11/2019;(d)
"Certification of Insurance Coverage", KREC Form 203, 11/2019;(e)
"Company Change of Principal Broker Form", KREC Form 204, 7/2019;(f)
"Consent to Jurisdiction and Service of Process", KREC Form 205, 7/2019;(g)
"Notification of Death or Incapacity of a Licensee", KREC Form 206, 11/2019;(h)
"Broker Education Review Form", KREC Form 207, 7/2019;(i)
"License Renewal Form", KREC Form 208, 11/2019; and(j)
"Criminal History Affidavit", KREC Form 209, 7/2019.(2)
This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Real Estate Commission, 656 Chamberlin Avenue, Suite B, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m. This material is also available from the commission's Web site: www.krec.ky.gov.HISTORY: (13 Ky.R. 1517; eff. 3-6-1987; Am. 17 Ky.R. 2217; 2692; eff. 3-8-1991; 27 Ky.R. 1515; 2711; eff. 4-9-2001; 34 Ky.R. 836; 1939; eff. 3-7-2008; 42 Ky.R. 468; 1469; eff. 12-4-2015; 46 Ky.R. 599; 1457; 1824; 2031; eff. 12-16-2019.)