{"data":{"id":"us-ky/krs-324.111","jurisdiction":"us-ky","citation":"KRS 324.111","heading":"Escrow account of broker -- Interest -- Audit -- Contract deposit release --","body":"Separate property management accounts.\n(1) A principal broker shall maintain an escrow account or accounts, separate from the\nindividual or office account, in which all contr act deposits and money belonging to\nothers shall be deposited without unreasonable delay. The escrow accounts shall be\nmaintained within the State of Kentucky and shall be identified to the commission\nin writing. Each principal broker shall advise the comm ission, in writing, if any\noverdraft occurs in the escrow account for any reason other than service charges\ninstituted by the bank, and which is not corrected within seventy -two (72) hours of\nthe broker receiving notice.\n(2) The broker may place the deposi t in an interest -bearing account or instrument. The\ninterest earned shall accrue to the person agreed to in writing by all parties.\n(3) No checks shall be drawn against uncollected deposits in the escrow account.\n(4) None of the contract deposits shall be withdrawn until the contract has been\nterminated by performance, by agreement in writing between all parties, or by order\nof a court of competent jurisdiction, except as permitted in subsection (6) of this\nsection.\n(5) Upon licensure and each renewal, the principal broker shall sign a permit giving the\ncommission the permission to audit all his or her escrow accounts.\n(6) Upon being notified that one (1) or more parties to a contract intends not to\nperform, the broker may initiate the release process. The r elease process shall\nrequire the broker to notify all parties at their last known address by certified mail\nthat the contract deposit shall be distributed to the parties specified in the letter\nunless all parties enter into a written mutual release, or unless one (1) or more of the\nparties initiate litigation within sixty (60) days of the mailing date of the certified\nletter. If neither buyer nor seller initiates litigation or enters into a written release\nwithin sixty (60) days of the mailing date of the c ertified letter, the broker may\nrelease the deposit to the party identified in the certified letter without penalty under\nthis section and without civil liability in the courts of the Commonwealth of\nKentucky.\n(7) All principal brokers whose companies enga ge in property management shall\nmaintain property management accounts separate from all other accounts or\nspecifically indicate in all escrow records if funds are property management funds.\n(8) A broker or sales associate who owns rental property shall not be required to use the\nprincipal broker's management account for the rental property, unless required by\nthe principal broker.\n(9) If any licensee is alleged to have committed an escrow account violation that\nwarrants emergency action, the commission may conduct an emergency hearing as\nauthorized by KRS 324.150(1)(b).","path":["KRS Chapter 324"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=31565","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:19Z","sha256":"8d7fc963142c357c356d76915038d55a2e83f2a841908dd56fbd9f1e2ba0512a","source_id":"us-ky","stale":false,"prev":"us-ky/krs-324.110","next":"us-ky/krs-324.112"},"notice":"GroundRules: Original legal text. Not legal advice."}