Key Takeaways
- The Kentucky Real Estate Commission (KREC) regulates real estate licensees under KRS Chapter 324
- KREC consists of nine members: seven licensed brokers and two consumer members appointed by the Governor
- KREC has authority to investigate complaints, conduct audits, and take disciplinary action including license suspension or revocation
- Kentucky requires 96 hours of pre-license education for salesperson applicants
- The Kentucky licensing exam has 130 questions (80 national + 50 state) with a 75% passing score required
Kentucky Real Estate Commission (KREC)
The Kentucky Real Estate Commission (KREC) is the state agency responsible for licensing, regulating, and overseeing real estate professionals in Kentucky under KRS Chapter 324 (the Kentucky Real Estate License Law).
Real Estate SalespersonFree exam prep with practice questions & AI tutor
KREC Structure and Authority
Commission Members
KREC consists of nine members appointed by the Governor:
| Member Type | Number | Requirements |
|---|---|---|
| Licensed brokers | 7 | Active Kentucky broker license |
| Consumer members | 2 | Not licensed in real estate |
Members serve four-year staggered terms to ensure continuity and institutional knowledge.
Key KREC Functions
| Function | Description |
|---|---|
| Licensing | Process applications, approve education providers, issue licenses |
| Education | Set education requirements, approve courses and schools |
| Enforcement | Investigate complaints, conduct audits of trust accounts |
| Discipline | Suspend, revoke, or deny licenses; impose fines |
| Recovery Fund | Administer the Real Estate Recovery Fund |
KRS Chapter 324 - Kentucky Real Estate License Law
KRS Chapter 324 is the primary statute governing real estate licensing in Kentucky. Key provisions include:
- Who must be licensed - Definitions of broker and salesperson activities
- Exemptions - Attorneys, property owners, certain employees
- Prohibited conduct - Actions that violate the law
- Disciplinary actions - Grounds for suspension or revocation
- Trust fund handling - Requirements for client funds
KREC Administrative Regulations (201 KAR Chapter 11)
KREC adopts administrative regulations that implement KRS Chapter 324. These regulations cover:
- License application procedures
- Education requirements and course approval
- Advertising standards
- Trust account requirements
- Agency disclosure procedures
Exam Tip: Know both the statutes (KRS 324) and the administrative regulations (201 KAR 11) - both are tested on the Kentucky exam.
Kentucky Real Estate Recovery Fund
The Kentucky Real Estate Recovery Fund provides compensation to consumers who suffer financial losses due to the misconduct of a licensed real estate professional.
Fund Details
| Requirement | Details |
|---|---|
| Maximum per transaction | $20,000 |
| Maximum per licensee | $100,000 total |
| Filing requirements | Must obtain court judgment first |
| License consequence | License revoked if claim paid |
How the Fund Works
- Consumer is harmed by licensee misconduct
- Consumer obtains court judgment against licensee
- Consumer cannot collect judgment from licensee
- Consumer applies to KREC for payment from Recovery Fund
- KREC pays from fund (if eligible)
- Licensee's license is automatically revoked
Key Point: The Recovery Fund covers actual damages only - not punitive damages, attorney fees, or court costs. The licensee must reimburse the fund with interest before license reinstatement.
KREC Contact Information
| Resource | Information |
|---|---|
| Website | krec.ky.gov |
| Main Office | Louisville, Kentucky |
| Phone | (502) 429-7250 |
| Online System | eGov license portal |
How many members serve on the Kentucky Real Estate Commission?
What is the primary statute governing real estate licensing in Kentucky?
What is the maximum amount the Kentucky Real Estate Recovery Fund can pay per transaction?