Marcus has held a Kentucky sales associate license for three years and has now completed the additional education and experience requirements to upgrade his license. He wants to open his own real estate office and operate independently. Which license classification must Marcus obtain to legally operate his own brokerage in Kentucky?
Correct Answer
C) Principal broker license
Under KRS Chapter 324, only a principal broker may open and operate an independent real estate office or brokerage in Kentucky. The principal broker license is the highest license classification and confers the authority to operate a firm, supervise affiliated licensees, and maintain trust accounts. Marcus must obtain a principal broker license to legally run his own brokerage.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
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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