As an agency of the Commonwealth of Kentucky, the Kentucky Real Estate Commission is empowered under Chapter 324 of the Kentucky Revised Statutes to regulate state licensing and education of real estate brokers and sales associates and to safeguard and protect the public interest. The Commission strives to elevate the real estate industry to the highest standards possible through communication, education and the latest technology. The Commission achieves this goal by operating with accountability, efficiency, and responsibility.
History of KREC
- The first Real Estate License Law was passed by State Legislature in 1924.
- The original Valid Act, which was passed in 1938, required real estate brokers and sales associates to register with the Kentucky Real Estate Commission and to post a $1,000.00 bond for the protection of the public.
- The 1952 Legislature amended this law so that casual sales could not be made by unlicensed operators. Each applicant for licensure was required to pass a written examination conducted by the Commission to establish competency and trustworthiness. Brokers were required to maintain a definite place of business in Kentucky and the real estate bond was increased from $1,000.00 to $3,000.00 with the requirement of a commercial surety. (This was increased to $5,000 in 1960). This law extended to all licensees operating in first, second and third-class cities and within a radius of five miles therefrom.
- In 1956, the Act was amended to cover the entire state. Brokers and sales associates with satisfactory proof they were engaged in the business on January 1, 1956 were exempt from having to pass the written examination provided they made application for a license on or before July 1, 1956.
- Since July 1, 1956, no license has been issued, except through reciprocity with other states who have requirements comparable to Kentucky's, without the applicant first taking the written examination.
- In 1972 the $5,000 real estate bond was abolished by the Legislature and the Real Estate Education, Research and Recovery Fund was established under KRS 324.400. The purpose of this fund is (1) Provide educational and research programs for the benefit of all licensees and (2) To pay an aggrieved person or persons an aggregate amount against any one licensee.
- Currently, the Real Estate Education, Research and Recovery Fund aggregate amount may not exceed $20,000.00.
- In 1987, Kentucky became the first state in the nation to mandate errors and omissions insurance for all licensees except those in escrow. Currently, thirteen other states have followed this example.
- Beginning January 1, 1992, six hours of continuing education was mandated for all active licensees exempting those licensed prior to June 19, 1976. Currently licensees must have been continuously licensed since June 19, 1976 in order to be exempt.
- On August 1, 1993, the Commission mandated the Seller's Disclosure of Property Condition form to be used by licensees in real estate transactions.
- Effective January 1, 1996, the Commission implemented an agency regulation requirement, disclosing to all parties who is being represented in a real estate transaction.
- Effective January 1, 1999, all active licensees subject to continuing education, must complete the Kentucky Core Course once every four years. All escrow licensees must complete this course prior to reactivating their license.