Kentucky Law--Module 1 Flashcards

Kentucky Law--Module 1 Flashcards appealLegal proceeding that may be filed after a hearing by a party who believes the decision reached at the hearing is incorrect.If the real estate education, research, and recovery fund pays the aggrieved party, the licensee's license will be suspended or revoked until the money is paid back, plus 10% interest. A license issued to a licensee is delivered or mailed to their principal broker. The KREC's primary purpose is to protect the consumer. All of the Commissioners are appointed by the governor. Six of the seven must have a license, but not necessarily a broker's license. The Kentucky Real Estate Commission office is located in Frankfort. The KREC Commissioners are appointed by the Governor. The licensee members are chosen by the Governor from a list provided by the Kentucky REALTORS®. One is chosen by the Governor at his/her discretion. License renewal fees cannot exceed $30 per year. The terms are for three (3) years, and a Commissioner may not serve more than two consecutive three(3) year terms for a total of six (6) years. If a Commissioner is convicted of, pleads guilty to, or enters an Alford Plea to a felony crime, he/she may be removed from the Commission. The maximum amount that the KREC can pay any one aggrieved party for damages incurred because of a licensee's fraudulent behavior is $20,000, with an aggregate to all aggrieved parties damaged by that one licensee of $50,000. KREC Commissioners are paid at least $300.00 per each day of official business, subject to a maximum annual compensation of $6,000.00 per year, plus actual and reasonable expenses in performing their duties.Money to operate the KREC comes from the general fund of the state treasury. Records of the KREC are subject to the Kentucky open records act. The license examination fee cannot exceed $100. Individual principal brokers set the fees they will charge for their services and set the fees they pay their associates. To do otherwise violates federal and state anti-trust laws. Fees and fines paid to the KREC are deposited into the general fund of the state treasury. Under a recent change in license law, the KREC DOES NOT have jurisdiction over Homeowners' associations. A licensee is required to cooperate with the KREC in all requests,

regardless of the time period. Licensees who were licensed prior to June 19, 1976, are exempt from the continuing education requirement.

Module 1 Exam: Part 1

fineA discipline that may be imposed by the KREC requiring the licensee to pay a sum up to $1,000.Acronym for the Kentucky REALTORS®' trade association.Commissioners The principal broker, not managing broker, must adequately supervise the affiliated licensees.If one of the parties disagrees with the Hearing Officer's Findings of Facts, Conclusions of Law or Recommended Discipline, that party may file exceptions.suspendedDiscipline that requires licensee not to broker real estate for a temporary period of time.The Kentucky Real Estate Commission is charged with protecting the public interest through regulation, examination and licensing of Kentucky real estate sales associates and brokers pursuant to Kentucky Revised Statutes, Chapter 324. The Kentucky Real Estate Commission is located in Frankfort, Kentucky. You may never have to visit the KREC office (Links to an external site.) in Frankfort, but you may want to attend the monthly meetings. The meetings are open to the public and you can find the meeting dates on the KREC Webiste (Links to an external site.). These meetings are very interesting and the KREC Commissioners are very open to your attendance.This website will become a helpful resource in your practice of real estate. When you review the KREC website, you will find the staff directory page. That page includes the current mailing address and the phone number to the commission.There's a page named Commission Members.Commissioners are the people who are responsible for the activities of the KREC. The Commissioners have an executive officer that manages the day to day business of the Commission. The KREC holds commission meetings every month.Kentucky Real Estate Commission (KREC) Website due processConstitutional right to equal treatment by the legal system.The aggrieved party is the complainant, not the respondent.Mediation is a voluntary process that may be used to resolve KREC disputes.The KREC may seek injunctive relief against a person practicing real estate without a license.The right to present evidence, to confront the person that accuses you, and to be treated fairly are all part of the due process rights provided under the federal constitution.

mediationProcess to settle disputes that allows parties to meet with a disinterested third party.There are seven (7) real estate commissioners. An emergency hearing can be held if the KREC receives information that a principal broker is inappropriately handling his/her escrow account.There is an entire regulation devoted to definitions.The KREC is located in Frankfort, Kentucky.If the license is suspended, the licensee cannot broker real estate during the period of suspension. If the Commissioners believe that the investigator's report shows that fraud may have been committed, the complainant is given party status. If the Commissioners believe that a license law violation may have occurred, but fraud was not committed, the case proceeds without the complainant having party status. Licenses are revoked for five (5) years, but the licensee cannot automatically apply for a new license. The Commissioners must give the licensee permission to apply for a new license. At the hearing, the Complainant is not represented by the KREC attorney.However, the KREC attorney will assist the complainant in presenting his/her evidence, will discuss the case with the Complainant, will accept written questions to be asked by the attorney, and will examine all witnesses called by the Complainant. Mediation is attempted before the hearing is held. Mediation is an option, but is not required. Mediation is a voluntary process. If the principal broker's license is suspended or revoked the licenses of all affiliated licensees will be inactive until he/she places his/her license with a new principal broker. The licensees must move their licenses to a new principal broker. They can do so without charge as long as it is in the same year in which the original license was granted. The Executive Director of the Kentucky Real Estate Authority, and not the Hearing Officer, makes the final decision in the case. Although the hearing officer hears the case, writes findings of facts and conclusions of law, and makes a recommendation on discipline, the Executive Director makes the final decision.A complainant may withdraw his/her complaint if the withdrawal is made within twenty (20) days after the complaint was filed and the respondent has not filed the verified response. If the time has passed and if the complaint has been answered, the complaint can only be withdrawn with the permission of the of the KREC. If a party is unhappy with the outcome of the case after a hearing, the case may be appealed to the circuit court in the county where the respondent has his/her principal

place of business.Quiz (1.21 - 1.28)

Remember: When taking your examination, you should

carefully read and consider questions that contain the

words: all, always, and never. Although possible, it is rare

in the real estate business that something will be "all," "always," or "never." Questions using these words need special scrutiny before you answer them.Tip #1.10 All decisions by the Executive Director after a hearing are subject to appeal. The decision can be appealed within thirty (30) days to the circuit court in the county where the licensee has his/her principal place of business.

Under the license law, fraud has four elements: making a

material fact that is known to be false or made recklessly, made to induce an act, it induces the act, and someone is injured.There can be no more than four Commissioners that are members of the same political party at one time. If an aggrieved party wants to make a claim against the real estate education, research, and recovery fund, he/she must make that claim within 1 year from the date of the event or from when it was reasonably discovered. The governor must select the licensee members of the KREC from a list provided by the Kentucky REALTORS®. The real estate education, research and recovery fund must maintain a balance of $400,000. Licensee Commission members must have been licensed for at least ten (10) years prior to their appointment. The Kentucky real estate commission has seven commissioners appointed by the governor. If a licensee is found guilty of committing fraud in a real estate transaction and the consumer is awarded damages that the licensee refuses to pay, the claim must be filed with the commission within one (1) year of the event or when it was reasonably discovered to collect from the fund and licensee will have his/her license suspended or revoked. The KREC

website is: www.krec.ky.gov. Commissioners serve for

three year terms and can serve only two consecutive terms. To carry out its licensing function, the KREC may retain the services of a testing service. The sales

associates license must contain all of the following: name

of associate's principal broker, address of the associate, name of associate. Funds to run the KREC are provided by general fund of the state treasury. In addition to investigating and disciplining licensees, the KREC supports