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, 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 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 $100 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 the next few weeks. We have reviewed the law changes, asked them for clarification on certain issues and even sent this article to them for comments, but they obviously have the final say in whether you get licensed or not and exactly what it takes for you to become licensed.

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