Setpember 6th, 2007- U.S. District Judge Charles R. Simpson has just overturned a state real estate law banning brokers not licensed in Kentucky from doing real estate deals in Ky. Kentucky was one of a handful of states that had “turf” laws (If your on our turf you need a license)that restricted state-licensed brokers from sharing information or splitting fees (beyond normal referral fees) with out of state brokers. The licensing conflict happened most often in commercial real estate when a company outside of Kentucky but with a nationwide contract with other companies, needed to find suitable locations in Kentucky. They believed they had the right to enter Kentucky to help their clients without the need to obtain a Kentucky Real Estate License for a specific transaction since they are already licensed in their home state which was the basis for the original lawsuit.
At this point it’s unclear, whether the Kentucky Real Estate Commission will vote to appeal the ruling, but one of the current commissioners (Ron Smith) has already commented. “Our problem is to have unlicensed people doing business here. We need to make sure that people doing business in Kentucky follow the Kentucky license law. The ruling sounds like something we can live with.”
We’ll keep you posted and provide the latest updated information.
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