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Practice Of Real EstateLicense_lawMEDIUM

Greg is a Kentucky-licensed salesperson who has placed his license on inactive status for personal reasons. While on inactive status, his neighbor asks him to help sell her home and offers to pay him a commission. Under Kentucky law, which of the following is correct?

Correct Answer

C) Greg may not perform any real estate brokerage activities or accept compensation while his license is on inactive status

Under KRS Chapter 324, a licensee with an inactive license may not engage in any real estate brokerage activities, regardless of whether compensation is offered or the nature of the parties involved. Inactive status means the license is not operative, and performing brokerage activities — including listing, showing, or negotiating the sale of property — while inactive constitutes unlicensed practice and is a violation of Kentucky law.

Answer Options
A
Greg may assist his neighbor and accept compensation because the transaction is between private individuals and not a commercial sale
B
Greg may assist his neighbor without compensation, as unlicensed activity is only prohibited when money is exchanged
C
Greg may not perform any real estate brokerage activities or accept compensation while his license is on inactive status
D
Greg may assist his neighbor only if he first notifies KREC and receives written approval for a single-transaction exemption

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Related Topics & Key Terms

Key Terms:

inactive_licenseunlicensed_activitybrokerage_prohibitionlicense_status

Related Concepts

In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.

Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.

License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.

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