Kentucky Real Estate Law Questions With Verified Answers

When must license applicants apply for their license? - Answer 60 days after examination date. Errors and Omissions Insurance - Answer An agent is covered up to $100,000 for single claims and $1,000,000 for annual aggregate(multiple) claims. Does not cover fraud, criminal acts, libel, slander, sickness, or violations of the "Securities and Exchange Act". Continuing Education - Answer Anyone licensed after June 19, 1976 shall obtain 6hrs of continuing education each year and must complete it by December 31st of that year. Once every 4 years an active licensee must complete a core course. Licensees in escrow do not have to take continuing education, however must complete continuing education before removing their license from escrow. License applicants do not need to get continuing education the year they are first licensed. Failure to complete continuing education will require a licensed agent to place his or her license in escrow, or file a delinquency plan. Hours taken for pre-licensing requirements may be used as continuing education for the year in which the course was taken. License Expiration - Answer A license will expire on February 15 of the following calendar year if an agent does not complete his or her required continuing education. If a licensee's license expires, they are no longer a licensee and must retake the state exam to re-obtain his or her license. Delinquency Plan - Answer A delinquency plan is $500 to submit. Must be filed by February 15 and completed by June 15. If a licensee submits a delinquency plan and fails to complete the plan, the agent's license will be suspended for 2 years. Reinstating a Suspended License - Answer To reinstate a suspended license, a licensee must wait until the end of the 2 year suspension. At the expiration of the suspension, a licensee has 90 days to complete the continuing education, submit required documentation to reinstate the license, and pay all necessary fees. If application is not made within the allotted 90 day timeframe, the license of the agent will expire. License in Escrow - Answer Agents who go into escrow because they did not complete the required continuing education will have to pay the delinquency fee of $500 and obtain continuing education before they can reactivate their licenses. Property Management by a Licensed Agent - Answer Licensed agents must have a written contract to manage property, which must go through a principal broker. Property Management Agreement Requirements for Licensed Agents - Answer Must contain: 1) Names and addresses of agent and owner 2) Date when contract begins and ends 3) Provision stating if there will or will not be an automatic continuation clause 4) Provision for early termination 5) Amount and method of computing the agent's compensation 6) Amount of security deposit to be collected for each unit 7) Name and address of the bank where the escrow for security deposits will be held 8) Bank account number the escrow got security deposits will be held 9) Provisions setting forth the return of security deposits 10) Provisions setting forth conditions under which the agent must pay the owner's expenses 11) Date for sending the owner a statement of accounting of transactions 12) Copy of the lease form that tenants will be asked to sign 13) Signature of the owner and agent Requirements a Licensed Agent Must Uphold When Managing Property - Answer An Agent Must: Maintain a ledger for each owners of managed property and a tenant ledger for each tenant. Adjustments to security deposits shall be entered in the owner's and tenant's ledgers. Monies must be deposited into the escrow or management account without undue delay. Send a monthly accounting to the owner, by unit, and enter the accounting in the owner's and tenant's ledgers. Within 60 days of the termination of the management agreement, shall send the owner a final accounting. Maintain records for 4 years. Deposit and maintain security deposits in a separate escrow account. Requirements for a Listing Contracts - Answer 1) List price 2) Date and time of expiration 3) Fee or commission 4) Property address 5) Signatures of all owners 6) Special directions for showing and sub agency limitations