(1) If any sales associate is discharged or terminates his or her association with the principal broker, it shall be the duty of the broker to immediately deliver or mail to the commission the sales associate’s license in a manner that complies with KRS 324.312, along with the release statement signed by the principal broker.
The broker shall, at the time of mailing the sales associate’s license to the commission, address a communication to the last known residence address of the sales associate, which shall advise the sales associate that his or her license has been delivered or mailed to the commission. A copy of the communication to the sales associate shall accompany the license when mailed or delivered to the commission.
It shall be unlawful for any sales associate to perform any of the acts contemplated by this chapter either directly or indirectly under authority of the sales associate’s license from and after the date of receipt of the license from the broker by the commission.
(2) A licensee may place his or her license in inactive status with the commission provided that:
(a) The licensee does not engage in any real estate activity for others during the term of inactive status of the license;
(b) The licensee pays the biennial license renewal fees for each biennial renewal period the license is in inactive status; and
(c) The licensee obtains extended reporting period coverage insurance for one (1) year at the current minimum requirements then in effect prior to entering inactive status.
(3) At the request of the licensee, after complying with subsection (4) of this section and upon the meeting of requirements applicable to active licensees, the commission shall reactivate a license placed in inactive status, in the absence of any reason or condition which might warrant the refusal of the granting of a license.
(4) To reactivate a license, a licensee shall:
(a) Submit an acceptable criminal record check consistent with KRS 324.045(4);
(b) Complete all continuing education requirements required by the commission; and
(c) Pay the applicable reactivation fees.