KREC Regulations

KREC Regulation Changes

Kentucky REALTORS® (KYR) represents more than 11,600 REALTORS who are involved in all aspects of real estate, including residential and commercial real estate brokers, sales agents, developers, builders, property managers, office managers, appraisers, and auctioneers. KYR appreciates the open process by which these regulations were developed and for allowing our organization and others in our industry to provide input and feedback. We appreciate the hard work and time each of the Commissioners and staff at the KREC have put into the process as well as all attempts to make improvements in the real estate profession in Kentucky.

Members and staff of the Kentucky REALTORS thoroughly reviewed and discussed the newly passed regulations. Our members recommended numerous changes throughout the process.  

During the Joint Licensing and Occupations Committee on December 16, 2019, four amendments were made to the regulations before final passage. Please see the details below on these amendments.

  1. Seller’s Disclosure Form – The committee wanted to add the following language to the Seller’s Disclosure Form: “to the best of their knowledge”. When a Seller is filling out a disclosure form, there will now be a line at the bottom of the form that says “the seller has completed this form to the best of their knowledge.” 
  2. Broker’s Licensing – After April 1, 2020, the 96 hours of prelicensing education that many licensees take to get their license will no longer be accepted towards Broker education hours when is someone is trying to obtain their Broker’s license.
  3. In the Standards of Professional Standards Regulation, Section 2, Subsection 2(a) currently reads: “A licensee representing a seller shall submit a notice in writing to the licensee representing a buyer of the date and time when the offer was presented to the seller.” The amendment that was passed yesterday will add the language “or through electronic, text, or other media” after “in writing”. This will allow the seller’s agent to notify the buyer’s agent through text or email.
  4. In the Licensing Regulation – The KREC’s original language would have required licensee’s coming out of inactive status to complete a max of 30 CE hours in order to reactivate. The committee passed an amendment yesterday that reduced the max of 30 hours to a max of 12 CE hours. 

With the regulations passing out of the L&O Committee, ALL of the new regulations have now passed the legislature and have now gone into effect.  The reciprocity agreement with Ohio has been sent to the Ohio Real Estate Commission for their signatures/final approval. Also, to help licensees adjust to the change, the KREC put a 6 month delayed effective date on the Advertising Regulation. So, the actual effective date for the Advertising Regulation is Tuesday, June 16, 2020. 

We would also like to thank the members of the legislature for their hard work during this process.

If you have any questions, please do not hesitate to contact KYR Government Affairs Director Richard Wilson at 859-263-7377 or by email atrwilson@kyrealtors.com.

For a more detailed outline of what changes were made, click here to download an explainer.

 

Chapter 11 Real Estate Commission Regulation Links