Well it’s like this. Kentucky has completely changed the law when it comes to granting “reciprocal licenses.” The Kentucky Real Estate Commission (KREC) has transitioned to a new system called “license recognition.”
What’s the difference? Under the old system an agent licensed in anther state could get licensed in Kentucky, but it was based on which state they were licensed in and whether Kentucky had a reciprocal license agreement with that other state. If you were licensed in Ohio, you had to take a 48 hour Kentucky law class, but if you were licensed in Tennessee you didn’t even have to take the licensing exam. This new system changes that because now everyone currently licensed in another state will be treated exactly the same. It’s actually much easier to apply for a license in Kentucky now because the applicant no longer needs a broker licensed in Kentucky, no longer needs any additional education beyond what they already have, and residency is no longer an issue. (Reciprocal licenses were for out of state agents only)
This almost sounds too good to be true, but the Kentucky Real Estate Commission is going to give an existing agent/broker in another state equivalent credit for what they’ve already completed and merely ask them to fulfill two standard license requirements.
1) Everyone that’s licensed in Kentucky must complete an FBI background check
2) Everyone that’s licensed in Kentucky must pass the law only licensing exam with a 75% or higher score
If you’re background check is clean, that’s pretty much it. In addition, out of state brokers are really going to benefit when getting licensed here in Kentucky because there’s no longer a “Kentucky Broker Management Course” required or any additional educational hours. Keep in mind, this only applies if you are a broker in another state getting licensed in Kentucky. You’ll be applying directly to become a broker in Kentucky upon passing the broker exam. If you are an existing agent in Kentucky attempting to get your broker license, you still have to meet the broker education requirements which include additional hours and the required broker management course. It’s just the existing brokers are being given credit for the education they’ve already taken in their state.
A couple of points to keep in mind for the new license recognition laws in the state of Kentucky. The agent licensed in another state can’t be in escrow, have an inactive license, or a license that has been canceled. They will also need to provide documentation from every state they’ve ever been licensed in (current and past) that their license is/was in good standing and no action is pending against them.
What's the bottom line? The KREC has made it much easier for most agents in other states to also get licensed in Kentucky. This is particularly true for agents in Ohio who no longer have to take a 48 hour law course. In some states like Tennessee there is a downside. Tennessee licensees used to be able to get a license without testing but now everyone has to take the licensing exam. If you are in good standing with your current real estate commission(s) now and you can pass the Kentucky law license exam, you’ll soon be licensed in Kentucky, but you might want to start studying now as the license exam costs $75 every time you have to take it. (One would be the preferred number)
If you have any questions about the changes in law or the new license recognition policy, we recommend you contact the Kentucky Real Estate Commission directly as they may be refining their regulations/views over time and of course they always have the final say.
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Kentucky License Recognition PDF
Broker license (Your are a sales associate in Kentucky)
In order to obtain a broker license in Kentucky and you are not already a broker in another state, a kentucky real estate agent would typically need two years in the business (May be reduced to one year with a degree in real estate) and 336 clock hours of approved coursework. These courses can either be from an accredited college or university and/or an approved proprietary school like ours.
Here's where it gets tricky because colleges don't use "clock hours" they use semester credits. If you took a 3 credit hour course, you'd actually be spending 48 hours in the classroom so 1 credit = 16 clock hours. You may not realize it, but you can get credit for "non real estate" courses you've taken in college regardless of whether you have a degree. Keep in mind, you are limited to 9 credits of "non real estate" related courses. Each transcript is looked at on a case by case basis, but here's an example of how it might work.
Let's say you have a college degree in finance and you've also taken our 96 online pre-license course. Here's likely your current status of hours earned when it comes to getting a real estate broker license.
Course Hours
KY Approved Pre-license Course- 96 Hours
College (9 credits x 16 hours per credit = 144 clock hours) 144
Total Current Hours= 240 Hours (96+144)
Still Needed (336-240=96) 96 Hours
You'd need an additional 96 hours to fulfill the requirement of 336, but one of the requirements to become a broker is to take a 48 clock hour course from an approved proprietary school or a 3 semester credit college course called "Broker Management Skills Course." That means a person with college would likely need an additional 48 clock hours or a 3 semester credit college real estate course to finish up the total education requirement.
How do you know exactly how many hours you have? You need to contact the (KREC) and submit a request for education documentation. You'll need to send in with your request any transcripts or certificates from classes you've taken and the KREC will notify you of what they will accept and how many hours you still need. (Look for document 603 on the KREC website)