KAR 11:121 Listing and Purchase Contracts

Section 3.
(1) A listing contract completed by or at the direction of a licensee shall include the:
(a) Listing price of the property, unless the sale is to be by auction;
(b) Date and time of the signing of the listing contract for all parties who sign;
(c) First and last name of the principal broker and the full name of the real estate brokerage company;
(d) Effective date and time of listing and advertising, if different;
(e) Date of expiration of the listing contract;
(f) Fee, compensation, or other valuable consideration agreed upon between the principal broker and the client;
(g) Address or a general description of the real estate sufficient to identify the parcel or parcels;
(h) Signatures and printed names of all parties necessary to affect a sale of the property, including any dower or courtesy considerations or the official representative of a legal entity, that is the subject of the listing agreement;
(i) Special directions of the client concerning limitations or restrictions on showings; and
(j) Date, time, and initials for all changes on the contract prior to acceptance.

(2) An offer to purchase completed by, or at the direction of, a licensee shall include the:
(a) Purchase price or a valid escalation clause with the maximum purchase price;
(b) Amount of contract deposit, if given, who is to hold the deposit, and the time period to deliver the deposit;
(c) Date and time of signing of the offer for all parties who sign;
(d) Date and time when the offer expires;
(e) Address or a general description of the real estate sufficient to identify the parcel or parcels;
(f) Signatures of all parties making the offer and the printed first and last name of the licensee who completed or directed the completion of the offer;
(g) Date, time, and initials for all changes on the contract prior to acceptance;
(h) Provision setting forth the date by which, or the date range within, the closing shall occur and when possession shall be given to the buyer; and
(i) Proposed payment terms.


(3) A counteroffer completed by, or at the direction of, a licensee shall include any amendments to any term required by subsection (1) and (2) of this section and:
(a) Date and time of signing of the counteroffer for all parties who sign;
(b) Date and time when the counteroffer expires;
(c) Signatures of all parties making the counteroffer;
(d) The first and last name of the licensee who completed or directed the completion of the offer, if not found on the original offer or a previous counteroffer; and
(e) Date, time, and initials for all changes on the contract prior to acceptance.

(4)(a) If a licensee presents an offer to purchase real estate for which an executory contract to sell the property is already in existence, the offer shall include language that indicates in writing that the offer is contingent upon the nonperformance of the existing executory contract.
(b) The contingency language required by paragraph (a) of this subsection shall indicate the disposition of any contract deposit and be:
1)Inserted by the licensee who completes or prepares the offer to purchase, if licensee is aware of the existing contract; or
2)Made by the listing licensee as a counteroffer.

(5) If financing is involved, a contract providing for the purchase of property shall specifically state:
(a) The manner in which the purchase shall be financed; and
(b) The amount of any encumbrance and whether it is to be underwritten by the seller or a commercial institution or otherwise.

(6) Any agreement for compensation, including rebates and inducements, from a licensee to his or her client shall be in writing.

(7)(a) Prior to the expiration of a current listing agreement, another licensee shall not contact the seller to obtain a subsequent listing agreement.
(b) Notwithstanding paragraph (a) of this subsection, a licensee may discuss newly listing the seller’s property that is currently listed if
1)The seller initiates contact with the new licensee to obtain a new listing contract;
2)The proposed listing contract states that it shall not take effect until the expiration of the seller’s current listing contract with the original licensee; and
3) The licensee and seller properly complete and sign the Seller Initiated Listing Form.

Nothing in this subsection shall prohibit a licensee from approaching a seller to list the seller’s property following the seller’s cancellation of their current listing contract or expiration of the current listing contract.

(8) If a licensee fails to comply with the requirements in this section, the licensee’s conduct and dealings shall be considered improper in violation of KRS 324.160(4)(u).

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