Sales associate Kevin has been affiliated with Broker Lynn for three years. Lynn decides to close her brokerage and surrender her principal broker license to KREC, effective immediately. Kevin has an active listing with a seller and an active buyer representation agreement. Under Kentucky law, what is the most accurate description of Kevin's license status and his ability to continue working the active transactions?
Correct Answer
A) Kevin's license automatically becomes inactive, and he may not perform any brokerage activities until he affiliates with a new principal broker
Under KRS Chapter 324, a sales associate's license is tied to their principal broker. When a principal broker surrenders or loses their license, affiliated licensees' licenses become inactive because they no longer have a supervising principal broker under whom they can legally operate. Kevin cannot perform brokerage activities — including working his active listing or buyer representation — until he affiliates with a new licensed principal broker and his license is returned to active status through KREC.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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