Under Kentucky license law, KREC has broad authority to regulate the real estate profession. Which of the following is NOT a power expressly granted to KREC under KRS Chapter 324?
Correct Answer
C) Setting the maximum commission rates that brokers may charge clients in Kentucky
KREC does NOT have the authority to set or regulate commission rates charged by brokers. Commission rates in Kentucky are negotiable between the parties and are not controlled by KREC. Setting commission rates would violate federal antitrust laws (Sherman Act). This is a power expressly outside KREC's statutory authority under KRS Chapter 324.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
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