Commission Newsletter - February 2021

Kansas Real Estate Commission sent this bulletin at 02/17/2021 09:42 AM CST

Kansas Real Estate Commission Email Updates

Commission Newsletter | February 2021

Miscommunication or Misrepresentation?

In fiscal year 2020, KREC logged over 250 complaints. The number one allegation in complaints submitted by consumers is MISREPRESENTATION. Misrepresentation has many different meanings in the complaints reported to KREC. The consumer may think the licensee lied to them, withheld important information, or did not protect their interests. In many cases, the issue is lack of communication.

Many consumers are not familiar with the process of buying or selling real estate. For example, KREC received complaints from buyers because they were not given an opportunity to raise their offer price after a competing offer was presented. Other buyers complain because they think the seller must negotiate with the buyer before other offers can be presented. The license act requires all offers to be submitted. The seller then decides what to do with the offers.

Another complaint KREC receives from consumers regards earnest money disputes. Buyers claim they were told if the loan is not approved the earnest money would be returned. In other cases, the seller was told if the buyer cannot close the transaction then the earnest money would go to them. Many times, the buyer or seller is not aware there is a process to having the earnest money released and it is not automatic.

In the examples provided, the consumers were frustrated because they did not understand the process or what to expect. Taking the time to fully explain the procedures involved with a real estate transaction can save a licensee from an allegation of misrepresentation.

Notice Regarding Extension of Licenses Pursuant to EO 21-02

Executive Order No. 21-02 extends certain license expiration dates to March 31, 2021.

All complete renewal applications for licenses that were to expire on April 30, 2020, June 30, 2020, August 31, 2020, October 31, 2020, December 31, 2020, January 1, 2021, February 1, 2021, and March 1, 2021 will be considered timely if received by the Commission on or before March 31, 2021. The Commission will consider the renewal application late if it is received after March 31, 2021, and a late fee will apply to applicants attempting renewal under those circumstances pursuant to K.S.A. 58-3045(c).

Advertising F.A.Q.'s

New advertising regulations went into effect on July 1, 2020 clarifying that “advertising” means communication in any form of media for any purpose related to licensed real estate activity. K.A.R. 86-3-7(a). Have you updated your advertising since then? Have you checked your social media pages and websites lately?

Understanding the following responses to questions frequently received by KREC may help you stay in compliance.

Does my broker’s trade or business name have to be included on my personal social media posts? Yes, if you are including anything related to licensed real estate activity. K.S.A. 58-3086(b)(B) and K.A.R. 86-3-7(a).
Do I have to include my broker’s trade or business name in my real estate-related posts if it is displayed in an attached link? All advertising must include your broker’s trade/business name in a prominent and conspicuous manner and it must be adjacent to your name or team name. K.S.A. 58-3086(b)(B) and K.A.R. 86-3-7(b)(3).
Can my broker’s trade or business name be included anywhere in my social media posts or website? To be compliant, your supervising broker’s trade or business name must be adjacent to your name or team name and your name or team name must not be more than 2 times larger in font size than the font size of your supervising broker’s trade or business name. K.A.R. 86-3-7(b)(2) and K.A.R. 86-3-7(b)(3).
Do I have to include my broker’s trade or business name if I am not advertising a property? You must comply with the advertising statutes and regulations if you are communicating for any purpose related to licensed real estate activity. This may include advertising properties, services you offer, real estate advice, and many other things. See K.A.R. 86-3-7.
Do I have to obtain my broker’s approval for advertisements posted on my personal social media page? If you are including anything related to licensed real estate activity the advertising must be conducted under the direct supervision of the supervising broker. K.S.A. 58-3086(b)(A).

For all advertising requirements, please review K.S.A. 58-3086, K.A.R. 86-3-7, and K.S.A. 58-3062(a)(7) and (8). Consult your supervising broker regarding advertising questions.

Disciplinary Actions

Revocations, suspensions, and aggregate fines greater than $500 issued 12/15/20-02/16/21.

Docket Number	Last Name	First Name	License Number	Violation	Legal Action	Effective Date
21-9294	Schmidt	Tammy	00228543	Prohibited Act	Suspension	12/28/20
21-9018	Ladd	Donald	00237260	Failure to Comply with Commission Directive	Suspension	1/11/21
21-9108	Scriven	Emily	00241934	Failure to Comply with Commission Directive	Suspension	1/11/21
21-9160	Hamm	David	00244718	Failure to Comply with Commission Directive	Suspension	1/11/21
21-9169	Davis	Jordan	00243887	Failure to Comply with Commission Directive	Suspension	1/11/21
21-9251	Thurman	Kyle	00233649	Failure to comply with Commission Investigation	Suspension	1/11/21
21-9276	Licausi	Paul	00034378	Compliance Review Violations	Fine	1/11/21
21-9302	Dille	Carol	00218932	Felony Conviction	Revoked	1/11/21
21-9452	Cole	James	00233661	Prohibited Act	Suspension	2/16/21
21-9453	Greenstreet	John	00005968	Prohibited Act	Suspension	2/16/21

Upcoming Events

March 29: Commission Meeting
April 1: BRRETA Course
April 7: Broker Supervision Course
May 17: Commission Meeting

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Erik Wisner | Executive Director
Laura Kelly | Governor

krec@ks.gov

krec.ks.gov

(785) 296-3411

Jayhawk Tower
700 SW Jackson St
Suite 404
Topeka, KS 66603

Licenses are renewed every two years. Check your expiration date here.