Kentucky Statutes 324.236 – Engaging in commercial real estate brokerage by out-of-state principal broker and out-of-state licensee
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An out-of-state principal broker and his or her out-of-state licensee, for or in the expectation of a fee, commission, compensation, or other valuable consideration, may engage in real estate brokerage with respect to commercial real estate if the requirements of this section are satisfied:
(1) The out-of-state licensee shall be licensed with and work under the direct supervision of the out-of-state principal broker;
(2) The out-of-state principal broker shall enter into a written cooperation agreement with the Kentucky cooperating broker that shall include but not be limited to the following:
(a) The terms of cooperation and compensation between the out-of-state principal broker and the Kentucky cooperating broker;
(b) A description of the parties, the commercial real estate, or other information sufficient to identify the specific transactions governed by the cooperation agreement; and
(c) The effective date and a definite termination date of the cooperation agreement; and
(3) Regarding transactions that fall within the scope of the cooperation agreement specified in subsection (2) of this section, the out-of-state principal broker and the out-of-state licensee shall:
(a) Work in cooperation with a Kentucky cooperating broker;
(b) Furnish the Kentucky cooperating broker with a copy of the out-of-state principal broker’s and out-of-state licensee’s current real estate license from the jurisdiction of his or her primary place of business;
(c) Limit acts of real estate brokerage to commercial real estate transactions referenced in the cooperation agreement;
(d) Only list commercial real estate located in this state for sale, lease, or exchange if the real estate is co-listed with the Kentucky cooperating broker;
(e) Be prohibited from holding escrow funds, security deposits, or other moneys in escrow or other accounts located outside this state;
(f) Promptly provide the Kentucky cooperating broker with relevant documentation relating to the specific transaction or transactions governed by the cooperation agreement;
(g) Keep the Kentucky cooperating broker fully informed of all activities through prompt communications;
(h) Perform all actions under the direct supervision and control of the Kentucky cooperating broker;
(i) List his or her individual name, firm name, or both in advertising for commercial real estate transactions only if the advertising:
1. Includes with equal prominence the same identifying information for the
Kentucky cooperating broker and his or her relevant licensees, except that, with respect to multistate portfolio listings, only the name or firm of the Kentucky cooperating broker printed in legible type shall be mandatory, with no requirement concerning prominence; and
2. Otherwise complies with the requirements of this chapter;
(j) Comply with and be bound by and subject to Kentucky law and the regulations of the commission, including but not limited to KRS § 324.235 to
324.238;
(k) Not engage in improper conduct as set out in KRS § 324.160(4); and
(l) File with the Kentucky cooperating broker a true and complete notice of affiliation in compliance with KRS § 324.327.
Effective: July 15, 2008
History: Created 2008 Ky. Acts ch. 156, sec. 2, effective July 15, 2008.
(1) The out-of-state licensee shall be licensed with and work under the direct supervision of the out-of-state principal broker;
Terms Used In Kentucky Statutes 324.236
- 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. See Kentucky Statutes 324.010
- Broker: means any person who is licensed under KRS §. See Kentucky Statutes 324.010
- Commission: means the Kentucky Real Estate Commission. See Kentucky Statutes 324.010
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Principal broker: means a person licensed as a broker under KRS §. See Kentucky Statutes 324.010
- 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
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
(2) The out-of-state principal broker shall enter into a written cooperation agreement with the Kentucky cooperating broker that shall include but not be limited to the following:
(a) The terms of cooperation and compensation between the out-of-state principal broker and the Kentucky cooperating broker;
(b) A description of the parties, the commercial real estate, or other information sufficient to identify the specific transactions governed by the cooperation agreement; and
(c) The effective date and a definite termination date of the cooperation agreement; and
(3) Regarding transactions that fall within the scope of the cooperation agreement specified in subsection (2) of this section, the out-of-state principal broker and the out-of-state licensee shall:
(a) Work in cooperation with a Kentucky cooperating broker;
(b) Furnish the Kentucky cooperating broker with a copy of the out-of-state principal broker’s and out-of-state licensee’s current real estate license from the jurisdiction of his or her primary place of business;
(c) Limit acts of real estate brokerage to commercial real estate transactions referenced in the cooperation agreement;
(d) Only list commercial real estate located in this state for sale, lease, or exchange if the real estate is co-listed with the Kentucky cooperating broker;
(e) Be prohibited from holding escrow funds, security deposits, or other moneys in escrow or other accounts located outside this state;
(f) Promptly provide the Kentucky cooperating broker with relevant documentation relating to the specific transaction or transactions governed by the cooperation agreement;
(g) Keep the Kentucky cooperating broker fully informed of all activities through prompt communications;
(h) Perform all actions under the direct supervision and control of the Kentucky cooperating broker;
(i) List his or her individual name, firm name, or both in advertising for commercial real estate transactions only if the advertising:
1. Includes with equal prominence the same identifying information for the
Kentucky cooperating broker and his or her relevant licensees, except that, with respect to multistate portfolio listings, only the name or firm of the Kentucky cooperating broker printed in legible type shall be mandatory, with no requirement concerning prominence; and
2. Otherwise complies with the requirements of this chapter;
(j) Comply with and be bound by and subject to Kentucky law and the regulations of the commission, including but not limited to KRS § 324.235 to
324.238;
(k) Not engage in improper conduct as set out in KRS § 324.160(4); and
(l) File with the Kentucky cooperating broker a true and complete notice of affiliation in compliance with KRS § 324.327.
Effective: July 15, 2008
History: Created 2008 Ky. Acts ch. 156, sec. 2, effective July 15, 2008.