Requirements Governing Activities of Licensees

Question 1

Place of Business

Answer 1

• Brokers must maintain a principal of business
• A supervising broker must be designated to supervise the primary office and the salespersons/ associate brokers assigned to that office
• Licenses of all brokers, associate brokers, and salespeople must be displayed in the office
• Written notice must be provided to KREC if there is a change to the office

Question 2

Trade Name

Answer 2

Aka business name

• KREC allows licensees to conduct business under a different name
• Name must be registered and approved by KREC
• Branch offices must use the same trade name as the primary office

Question 3

Trust Account

Answer 3

• Each broker must maintain a trust account
• Monies must be deposited there unless otherwise agreed to in writing
• Account must be held by an insured bank, savings and loan association, or credit union
• Broker cannot retain interest without the written consent of all parties

Question 4

Record Retention

Answer 4

• All records must be maintained for at least 3 years
• Records shall include: contracts, closing statements, and correspondence
• Records shall include the following trust accounts: deposit slips, monthly trust account statements, all voided trust account checks, a check register, a ledger for each transaction, a ledger for the broker’s funds

Question 5

Legal Advise

Answer 5

Brokers must recommend their clients and customers to an attorney who can provide answers to any legal questions

Question 6

Advertising Regulations

Answer 6

• Inclusion of the broker’s name
• Information about personal interest in the property for sale
• Nothing confusing or misleading that may hinder the public
• Supervised by the supervising broker