201 KAR 11:011. Definitions for 201 KAR Chapter 11.

 

RELATES TO: KRS 324.010(1), 324.046(1), 324.111(1), (2), (3), (4), (6), 324.117(1), (5), 324.160(4)(j), (m), (r), 324.410(1), 324.420(1), (2), (3), (4), (5)

STATUTORY AUTHORITY: KRS 324.117(5), 324.281(5), 324.282

NECESSITY, FUNCTION, AND CONFORMITY: KRS 324.282 authorizes the commission to promulgate administrative regulations necessary to implement KRS Chapter 324. This administrative regulation defines terms used in the implementation of KRS Chapter 324.

 

Section 1. Definitions. (1) "Academic credit hour" means:

(a) One (1) college semester hour; or

(b) Sixteen (16) fifty (50) minute hours of actual classroom attendance.

(2) "Contract deposit" means money delivered to a licensed agent as part of an offer to enter a contract for the sale of real property after:

(a) The offer or counteroffer is accepted; and

(b) An executory contract exists.

(3) "False, misleading, or deceptive advertising" means an advertisement that is prohibited pursuant to KRS 324.117(1) because the advertisement:

(a) Is contrary to fact;

(b) Leads a person to a mistaken belief or conclusion; or

(c) Knowingly made a representation that is contrary to fact.

(4) "Fraud" or "fraudulent dealing" means a material misrepresentation that:

(a) Is:

1. Known to be false; or

2. Made recklessly;

(b) Is made to induce an act;

(c) Induces an act in reliance on the misrepresentation; and

(d) Causes injury.

(5) "Guaranteed sales plan" means an offer or solicitation:

(a) To guarantee the sale of an owner's real estate; or

(b) To guarantee the purchase of the owner's real estate if the owner's real estate is not sold by the broker.

(6) "Prize" means an item of value that is:

(a) Offered to a prospective purchaser on a condition set forth in the offer to the prospective purchaser; and

(b) Not a complimentary:

1. Refreshment, including a soft drink or snack, that is offered to the general public; or

2. Gift that:

a. Has a value less than $100;

b. Is given to the purchaser at or after the closing at which the purchaser's purchase of the real estate was consummated; and

c. Was not offered prior to closing.

(7) "Required disclosure" means:

(a) In print advertising, that the disclosure shall be in letters at least twenty-five (25) percent the size of the largest letters in the advertisement;

(b) In radio advertising, that the disclosure shall be verbal and clearly understandable; and

(c) In television advertising, that the disclosure shall:

1. Be verbal and clearly understandable; or

2. Be written and appearing on the screen at least three (3) seconds for the first line of lettering and one (1) second for each additional line of lettering, and in letters:

a. Which are eighteen (18) video scan lines in size for letters which are all upper case; or

b. Which are twenty-four (24) video scan lines in size for upper case capitals if upper case capitals and lower case letters are used.

(8) "Without unreasonable delay" means within three (3) business days of the creation of an executory contract for the sale or lease of real property. (17 Ky.R. 2294; Am. 2690; eff. 3-8-91; 24 Ky.R. 1539; 2108; eff. 4-13-98; 2410; 25 Ky.R. 293; eff. 8-17-98; 27 Ky.R. 1503; eff. 4-9-2001; 31 Ky.R. 1325; 1645; eff. 4-22-05.)