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Practice Of Real EstateBrokerage_activitiesMEDIUM

A Kentucky principal broker reviews a licensee acts as both licensee and principal without disclosure. Which answer follows Kentucky law?

Correct Answer

C) Acting in the dual capacity of licensee and undisclosed principal is improper

KRS 324.160 sanctions acting as licensee and undisclosed principal. Source basis: KRS 324.117, KRS 324.160, and 201 KAR 11:121, Kentucky Legislative Research Commission official statutes/regulations: advertising, supervision, brokerage records, document delivery, affiliation, compensation, agency, and improper conduct; checked 2026-04-30.

Answer Options
A
The principal broker has no responsibility once a sales associate handles the file.
B
The rule applies only to commercial transactions.
C
Acting in the dual capacity of licensee and undisclosed principal is improper
D
The conduct is allowed if the transaction later closes successfully.

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Related Topics & Key Terms

Related Topics:

ky.IIIbrokerage_activities

Key Terms:

kentuckyky.IIIbrokerage_activitiesundisclosed-principal
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