KYR Makes Recommendations to KREC’s Proposed Administrative Regulations

KYR Makes Recommendations to KREC’s Proposed Administrative Regulations

regsRecently, the Kentucky Real Estate Commission unveiled proposed changes to certain administrative regulations relating to advertising and signage that have been unchanged for many years. Among the changes were “clarifications” and new definitions for a variety of terms.

On July 10, Kentucky REALTORS® Government Affairs Committee discussed the definitions and advertising requirements found in 201 KAR 11:011, 201 KAR 11:105, and 201 KAR 11:461. The committee made four recommendations for changes to the newly proposed regulations.

Kentucky REALTORS®’ President Rip Phillips delivered these comments at the public hearing held on July 23 in Frankfort. The comment period for these proposed regulations ended July 31. The recommendations provided by KYR are:

  1. Definition of “Single Agency” – KYR recommends that the Commission leave the definition of “Agency” as is and remove the definition of “Single Agency”. The KYR Government Affairs Committee feels the term “Single Agency” would be confusing and would, therefore, cause members to noncompliant with this part of the regulation.

 

  1. Definition of “Family Relationship” - KYR recommends to the Commission the removal of the phrase “regardless of distance of relationship” in the definition of “Family Relationship” due to this potentially becoming an issue in small communities and areas of Kentucky. The Kentucky REALTORS would like to propose the new definition of “Family Relationship” read as follows: “any known familial relationship between a licensee and party”.

 

  1. Regulation Related to Advertising - KYR recommends that the addition of the phrase “or written” to Section 3(4).  The new Section 3(4) would now read as follows: Advertisements that include an audiovisual presentation shall include an audible or written announcement of the content required by Section 2(2) of this administrative regulation at the beginning of the advertisement. KYR’s Government Affairs Committee feels this is needed due to the fact that audiovisual presentations are often short in nature. If the person making the audiovisual presentation were required to say everything in Section2(2) instead of displaying it on the screen, the video would last much longer. For this reason, the KYR Government Affairs Committee would like to see the words “or written” added to Section 3(4).

 

  1. Regulation Related to Advertising - In Section 8 of the newly proposed advertising regulation, the language states that “the Commission shall begin enforcement of Section 3 sixty (60) days after the effective date of this administrative regulation.” KYR recommends a six (6) month effective date. Our proposal would read as follows: “Section 8. Effective Dates. The Commission shall begin enforcement of Section 3 six (6) months after the effective date of this administrative regulation”. Our members felt sixty (60) days was not an adequate amount of time to become compliant the newly proposed Advertising regulation.

 

Newly filed administrative regulations changes under 201 KAR 11.220, 11.210, 11.190, 11.170, and 11.002 that address mandatory E & O insurance, licensing & renewal for brokers and agents, procedures for filing complaints and requirements for education providers will be reviewed by the KYR Government Affairs Committee to determine if any comments and/or recommendations for changes to them are needed. If so, KYR will recommend those changes at a hearing now scheduled for August 21st at 10am in Frankfort. Anyone interested in attending and being involved is encouraged to attend. Of course, KYR will update its membership on any progress made during this important process.

KYR believes that the continued growth of the relationship between the Kentucky Real Estate Commission and Kentucky REALTORS® serves to strengthen an industry vital to the Kentucky economy. We appreciate the Commission members’ willingness to serve their profession and the citizens of Kentucky.

NOTE: Anyone interested in reviewing the proposed regulations or learning more about the hearings and public comment period may visit the KREC website at krec.ky.gov.