Kentucky Statutes 324.165 – Prohibited business practices — Penalties
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(1) No person shall:
(a) Solicit or request a referral fee from a real estate licensee unless that person introduced the business to the real estate licensee from whom the referral fee is sought and a contractual referral fee relationship exists between the person and the real estate licensee; or
(b) Threaten to reduce or withhold employee relocation benefits or to take other action adverse to the interests of a client of a real estate licensee because of an agency relationship.
(2) No real estate licensee, relocation firm, or firm with a corporate relocation policy or benefits, or anyone on behalf of any licensee or firm, shall counsel a client of another real estate licensee regarding the manner in which the client may terminate or amend an existing listing contract, buyer agency agreement, or other agency relationship. Communicating corporate relocation policy or benefits to a transferring employee shall not be considered a violation of this section, as long as the communication does not involve advice or encouragement regarding the manner in which the client may terminate or amend an existing agency relationship.
(3) Violation of this section by a broker or sales associate shall be considered improper conduct as referred to in KRS § 324.160(4)(u). Violation of this section by unlicensed persons shall be subject to the penalties in KRS § 324.990.
Effective: June 25, 2009
History: Amended 2009 Ky. Acts ch. 58, sec. 8, effective June 25, 2009. — Created
2000 Ky. Acts ch. 488, sec. 2, effective July 14, 2000.
(a) Solicit or request a referral fee from a real estate licensee unless that person introduced the business to the real estate licensee from whom the referral fee is sought and a contractual referral fee relationship exists between the person and the real estate licensee; or
Terms Used In Kentucky Statutes 324.165
- Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
- Broker: means any person who is licensed under KRS §. See Kentucky Statutes 324.010
- Contract: A legal written agreement that becomes binding when signed.
- Real estate: means real estate in its ordinary meaning and includes timeshares, options, leaseholds, and other interests less than leaseholds. See Kentucky Statutes 324.010
- 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. See Kentucky Statutes 324.010
- Sales associate: means any person licensed in accordance with KRS §. See Kentucky Statutes 324.010
(b) Threaten to reduce or withhold employee relocation benefits or to take other action adverse to the interests of a client of a real estate licensee because of an agency relationship.
(2) No real estate licensee, relocation firm, or firm with a corporate relocation policy or benefits, or anyone on behalf of any licensee or firm, shall counsel a client of another real estate licensee regarding the manner in which the client may terminate or amend an existing listing contract, buyer agency agreement, or other agency relationship. Communicating corporate relocation policy or benefits to a transferring employee shall not be considered a violation of this section, as long as the communication does not involve advice or encouragement regarding the manner in which the client may terminate or amend an existing agency relationship.
(3) Violation of this section by a broker or sales associate shall be considered improper conduct as referred to in KRS § 324.160(4)(u). Violation of this section by unlicensed persons shall be subject to the penalties in KRS § 324.990.
Effective: June 25, 2009
History: Amended 2009 Ky. Acts ch. 58, sec. 8, effective June 25, 2009. — Created
2000 Ky. Acts ch. 488, sec. 2, effective July 14, 2000.