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Practice Of Real EstateBrokerage_activitiesMEDIUM

Which Kentucky rule applies when a principal broker supervises licensed affiliates and employees?

Correct Answer

B) The principal broker and designated manager must exercise adequate supervision to prevent violations

KRS 324.160 requires adequate supervision by the principal broker and designated manager. 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 rule applies only to commercial transactions.
B
The principal broker and designated manager must exercise adequate supervision to prevent violations
C
The conduct is allowed if the transaction later closes successfully.
D
The principal broker has no responsibility once a sales associate handles the file.

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Related Topics & Key Terms

Related Topics:

ky.IIIbrokerage_activities

Key Terms:

kentuckyky.IIIbrokerage_activitiesadequate-supervision

Related Concepts

Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.

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