Kentucky Real Estate Commission Flashcards

Kentucky Real Estate Commission Flashcards Denial of license or any other disciplinary action - Appeal - Stay of judgment pending appeal Any party aggrieved by the action of the commission in refusing to grant a license or in ordering any disciplinary action may appeal to the Circuit Court where the licensee has his principal place of business or where the applicant resides in accordance with KRS Chapter 13B. Prior judgements are stayed.Protecting the publicis the statutory duty of the Kentucky Real Estate Commission.Fraud or fraudulent dealingFraud or fraudulent dealing means that a material misrepresentation was made that is "(1) known to be false or made recklessly, (2) is made to induce an act, (3) induces an act in reliance on the misrepresentation, and (4) causes injury.Catalog the sanctions that may be imposed against licensees.Suspension of the licenseRevocation of the license for a minimum period of five (5) years;Fine not to exceed $1,000Licensee probation for a period of up to twelve (12) months;Completion of additional continuing education class hours;Issuing a formal or informal reprimand.Hearing to precede any disciplinary action (1) Before denying an application for license orbefore ordering any disciplinary action against a licensee, order a hearing.(2) All hearings shall be conducted by a quorum of the commission or by a hearing officer appointed by the commission.(3) If any licensee is alleged to have committed an escrow account violation that warrants emergency action, the commission may conduct an emergency hearing as authorized by subsection KRS 324.150(1)(b).Prima facie caseA prima facie case is one that makes allegations that indicate the license law was violated.Outline step-by-step procedures for KREC investigations.If the Commission receives information of a license violation, an investigation may be ordered by the Commissioners. If the information, is sufficient to raise concern, an investigation is opened.Second, The investigation that must be initiated if a Verified Complaint that sets forth a prima facie case of a violation is filed with the KREC. A verified complaint is written, signed, and notarized.After the investigation is complete, the investigator submits a written report to the KREC. The Commissioners decide if facts discovered in the investigation warrant further action.

ComplainantThe person filing the complaint, is the Complainant, a/k/a the aggrieved party.AppealEither party has a right to file an appeal in the circuit court in the county where the Respondent has his/he principal place of business.RespondentA complaint is filed against the licensee who is known as the Respondent.verified complaintA verified complaint is a complaint that is in writing, signed, and notarized.KRECis an administrative agency, a regulatory agency, and a licensing agency.Discuss what actions will result in a Commissioner being removed from the Kentucky Real Estate Commission.If a licensee member ceases to hold a license. If the consumer member acquires a license or interest in the practice of real estate, or if a member ceases resident of Kentucky.Additionally, if a Commissioner is convicted of, pleads guilty or enters an Alford plea to a felony in which fraud is an essential element, or a crime in which moral turpitude is an element.Explain the general powers of the Kentucky Real Estate Commission.The commission may investigate the actions of any licensee or any person who acts in that capacity.The commission may conduct an emergency hearings for alleged escrow account violations.Issue subpoenas to compel attendance of witnesses and theproduction of books, papers, documents or other evidence;(b) Administer oaths;(c) Review evidence;(d) Enter the office or branch office of any principal broker forthe purpose of inspecting all documents required by the commission to be maintained in the principal brokers office(e) Examine witnesses; and(f) Pay appropriate witness fees MediationA voluntary mediation may be offered in a case before it goes to a hearing.List the requirements to become a Kentucky Real Estate Commissioner.The Commission is made up of five (5) Commissioners and no more than three from any one political party.Commissioners serve for 4 year terms and not more than 2 consecutive terms. These 4 year terms are staggered. Four

• Commissioners are licensees. and residents of Kentucky

for at least 10 years and who have been active licensees for at least 10 years prior. One Commissioner is a citizen not associated a real estate brokerage. Four (4) of the five (5) members are appointed by the Governor from a list provided by the Kentucky Association of REALTORS®.Explain the enforcement powers of the KREC. Once the Verified Complaint is received, the KREC legal staff reviews the Complaint to determine if it makes a prima facie case. If the staff does not believe the Complaint makes a prima facie case, the Complaint is returned to the

Complainant explaining that it does not make a prima facie case and giving the Complainant ten (10) days to revise.If upon review the legal staff decides the Complaint makes a prima facie case, the Complaint and all exhibits are sent to the Respondent for a Verified Response. A verified response is like a verified complaint - it has to be signed and notarized.Once the Verified Response is filed, the Commissioners decide whether investigate.If the Complaint is dismissed, the Complainant receives notice with a brief statement of why.If the Complaint is sent for investigation, an independent contract investigator is appointed.When the investigator finishes his/her investigation, a written report is filed with the KREC.Principal brokers and affiliated licensees must cooperate with the KREC investigators.Summarize the purpose of the Education, Research, and Recovery Fund.This Fund is designed to pay a consumer who has been damaged by fraudulent activity of a licensee.Money in excess of the $400,000 may be used for educational

purposes.