{"data":{"id":"us-ky/krs-324.160","jurisdiction":"us-ky","citation":"KRS 324.160","heading":"Sanctions -- Grounds for sanctions.","body":"(1) The commission may order any or all of the following sanctions for violation of\nsubsections (4) to (7) of this section:\n(a) Suspension of any license;\n(b) Revocation of any license;\n(c) Levy of fines not to exceed one thousand dollars ($1,000);\n(d) Placing of any licensee on probation for a period of up to twelve (12) months;\n(e) Requiring successful completion of academic credit hours or additional credit\nhours in real estate courses from an accredited institution or approved real\nestate school; or\n(f) Issuing a formal or informal reprimand.\n(2) A canceled license may be renewed if the licensee pays all necessary fees and meets\nall other active licensure requirements within one (1) year of the cancellation date.\nNo licensee whose license is canceled shall e ngage in real estate brokerage during\nthe period of cancellation or receive any compensation for real estate brokerage\nunless the compensation was earned prior to the effective date of the cancellation.\n(3) No licensee whose license is suspended shall enga ge in real estate brokerage or\nreceive any compensation for real estate brokerage unless the compensation was\nearned prior to the suspension period.\n(4) The commission shall impose sanctions set out in subsection (1) of this section\nagainst a licensee for:\n(a) Obtaining a license through false or fraudulent representation;\n(b) Making any substantial misrepresentation or failing to disclose known defects\nwhich substantially affect the value of the property;\n(c) Making any false promises of a character likely to influence, persuade, or\ninduce;\n(d) Pursuing a continued and flagrant course of misrepresentation or making false\npromises through agents or advertising or otherwise;\n(e) Acting for more than one (1) party in a transaction without the knowledge of\nall parties for whom the licensee acts;\n1. A real estate licensee shall not d irectly or indirectly buy property listed\nwith him or her or with the broker with whom the licensee is affiliated,\nnor acquire an interest therein, without first indicating in writing on the\noffer to purchase his or her status as a licensee;\n2. Before a li censee becomes a party to a contract to purchase real\nproperty, the licensee shall disclose his or her status as a licensee to all\nparties to the transaction, in writing, on the sales contract or on the offer\nto purchase;\n3. Before a licensee sells, or rec eives compensation for property in which\nthe licensee owns an interest, the licensee shall disclose, in writing, any\ninterest in the property to all parties to the transaction;\n(f) Accepting valuable consideration for the performance of any of the acts\nspecified in this chapter, from any person, except from his or her principal\nbroker in accordance with a compensation agreement between them. When\nacting as an agent in the management of property, a real estate licensee shall\nnot accept any commission, rebate, or profit on expenditures made for a client\nwithout the full knowledge and consent of the client;\n(g) Representing or attempting to represent a broker other than a principal broker,\nwithout the express knowledge and consent of the principal broker with whom\nthe licensee is affiliated;\n(h) Failing to account for or remit, within a reasonable time, any money\nbelonging to others that comes into the licensee's possession. When acting as\na property manager, the licensee shall render an accounting and remit all\nmoneys to his or her client strictly in accordance with the contract of\nemployment;\n(i) Paying valuable consideration to any person for services performed in\nviolation of this chapter;\n(j) Entering a plea of guilty or an Alford plea to, or having been fou nd guilty of,\nor having been convicted of, a felony or of a misdemeanor involving sexual\nmisconduct the time for appeal has lapsed or the judgment or conviction has\nbeen affirmed on appeal, irrespective of an order granting probation following\nthe conviction suspending the imposition of sentence;\n(k) Failing to report a conviction, plea of guilty, or an Alford plea to a felony or a\nmisdemeanor involving sexual misconduct to the commission;\n(l) Soliciting, selling, or offering for sale real property under a scheme or\nprogram that constitutes a lottery, contest, or deceptive practice;\n(m) Acting in the dual capacity of licensee and undisclosed principal in any real\nestate transaction;\n(n) Guaranteeing, authorizing, or permitting a person to guarantee that futu re\nprofits shall result from a resale of real property;\n(o) Negotiating or attempting to negotiate the sale, exchange, lease, or rental of\nreal property, or attempting to obtain a brokerage agreement with a consumer\nknowing that the consumer had a written outstanding contract granting\nexclusive agency with another real estate broker;\n(p) Publishing or circulating an unjustified or unwarranted threat of legal\nproceedings or other action;\n(q) Failing or refusing on demand to furnish copies of a document perta ining to a\ntransaction dealing with real estate to a person whose signature is affixed to\nthe document;\n(r) Failing, within a reasonable time, to provide information requested by the\ncommission as a result of a formal or informal complaint to the commissio n\nwhich may indicate a violation of this chapter;\n(s) Paying valuable consideration to any person for the name of potential sellers\nor buyers, except as otherwise provided in KRS 324.020(4);\n(t) Violating any of the provisions in this chapter or any lawful  order, rule, or\nadministrative regulation made or issued under the provisions of this chapter;\n(u) Any other conduct that constitutes improper, fraudulent, or dishonest dealing;\nor\n(v) Gross negligence.\n(5) Any of the following shall be considered imprope r conduct as referred to in\nsubsection (4)(u) of this section:\n(a) Conduct constituting a violation of the Federal Fair Housing Act, including\nuse of scare tactics or blockbusting; or\n(b) Conduct constituting a violation of KRS 367.354.\n(6) No unlawful act or violation of any provision of this chapter by any affiliated\nlicensee of the principal broker shall be cause for holding the principal broker\nprimarily liable, unless the broker has kn owledge of the unlawful violation and did\nnot prevent it. The principal broker and his or her designated manager, if any, shall\nexercise adequate supervision over the activities of licensed affiliates and all\ncompany employees to ensure that violations of this chapter do not occur. The\nfailure of a broker or his or her designated manager to exercise adequate\nsupervision of the licensed affiliates shall constitute a violation of this chapter.\n(7) The practice of obtaining, negotiating, or attempting to negot iate \"net listings\" shall\nbe considered improper dealing.","path":["KRS Chapter 324"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=54495","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:19Z","sha256":"c457475d6d63031f1547c8978aad69e5668462e74e4b6fa40768e8d135ce83e9","source_id":"us-ky","stale":false,"prev":"us-ky/krs-324.151","next":"us-ky/krs-324.162"},"notice":"GroundRules: Original legal text. Not legal advice."}