201 KAR 11:045. Written offers to be submitted to

owner-client, agreements to provide brokerage services, licensee duties.

 

      RELATES TO: KRS 324.160(4)(w)

      STATUTORY AUTHORITY: KRS 324.281(5),

324.282

      NECESSITY, FUNCTION, AND CONFORMITY: KRS

324.282 authorizes the Real Estate Commission to promulgate administrative

regulations to effectively carry out and enforce the provisions of KRS Chapter

324. This administrative regulation establishes standards for licensees who

enter into written agreements to provide real estate brokerage services.

 

      Section 1. If a licensee has entered into

a written listing agreement or any other written agreement under the terms of

which the licensee agrees to provide one (1) or more real estate brokerage

services for the owner of the property to be brokered by the licensee, the

licensee shall, at a minimum:

      (1) Accept delivery and submit to his

principal, owner-client, or customer, without delay, all written offers to

lease or purchase the real estate that is the subject of the written agreement

between the licensee and his principal, owner-client, or customer;

      (2) Accept all earnest money deposits

that are presented to him or her by other licensees involved in the lease or

purchase of the real estate that is the subject of the written agreement

between the licensee and his principal, owner-client, or customer;

      (3) Assist his or her principal,

owner-client, or customer in developing, communicating, negotiating, and

presenting offers, counteroffers, and notices that relate to offers and

counteroffers that are involved in the lease or purchase of the real estate

that is the subject of the written agreement between the licensee and his

principal, owner-client, or customer, until a lease or purchase agreement is

signed and all contingencies are satisfied or waived; and

      (4) Answer his or her principal’s,

owner-client’s, or customer’s questions relating to offers, counteroffers,

notices, and contingencies that are involved in the lease or purchase of the

real estate that is the subject of the written agreement between the licensee

and his principal, owner-client, or customer.

 

      Section 2. Each licensee, who represents

a prospective purchaser, shall, without delay, submit all written offers to

lease or purchase real estate from the licensee’s prospective purchaser-client

or customer to the owner of the property or to the licensee who has entered

into any written agreement with the property owner-client or customer to

provide one (1) or more real estate brokerage services for the property owner-client

or customer for a fee, compensation or other valuable consideration.

 

      Section 3. Failure to comply with Section

1 or 2 of this administrative regulation shall constitute gross negligence and

shall be subject to sanctions under KRS 324.160(4)(w). (KSREC-15 (Rule 31);

1 Ky.R. 596; eff. 4-9-75; Am. 8 Ky.R. 780; eff. 4-7-82; 27 Ky.R. 1505; 2708;

eff. 4-9-2001; 31 Ky.R. 1326; 1646; eff. 4-22-05.)