Clauses, Addendums, and the License Law
Escalation Clauses. The license act does not prohibit an escalation clause to be included in an offer, however keep in mind the purchase contract agreed to by the buyer and seller MUST have a definite purchase price. K.S.A. 58-3062(a)(12) states that “no licensee, whether acting as an agent, transaction broker or a principal, shall….Procure a signature to a purchase contract which has no definite purchase price, method of payment, description of property or method of determining the closing date.”
Transaction Broker Addendums. This addendum can only be used when the broker has a written buyer agency agreement with the buyer and a written seller agency agreement with the seller. The addendum is used to avoid dual agency. The addendum is needed in the following situations:
- The broker has a written buyer agency agreement with the buyer and a written seller agency agreement with the seller with no designated agent named in either agreement.
- The broker has a written buyer agency agreement with the buyer and a written seller agency agreement with the seller with the same affiliated licensee named as a designated agent in both agreements.
With full disclosure, a seller’s agent or designated seller’s agent can assist a buyer in the purchase of the client’s property.
“In Its Present Condition” Addendums. These addendums are often used to modify the inspection section of a purchase contract. While the license law does not prohibit this, under the Kansas Brokerage Relationships in Real Estate Transactions Act (BRRETA), licensees engaged as agents and transaction brokers must disclose material defects they are aware of and advise consumers to obtain expert advice for material matters beyond the expertise of the licensee. For more information on requirements of buyers’ agents, sellers’ agents, and transaction brokers see K.S.A. 58-30,106, 107, and 113.
Licensees are encouraged to review the license law in its entirety, discuss with their supervising broker, and consult an attorney.
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Employee Spotlight
Stacey Warren works in the compliance department as an investigator at KREC. She holds an inactive salesperson license in Florida and served as a police officer in Texas for 27 years prior to retirement. Stacey has undergraduate and master’s degrees in criminal justice. She has one daughter who teaches elementary education in Texas. Stacey is active in animal rescue and enjoys spending time with her family and many, many dogs.
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Tips For Navigating Kansas Broker License Requirements
Alycia Smith | Licensing Director
Applying for a broker license is a big decision and understanding the process can feel overwhelming, especially with differing requirements from state to state. We’re here to help! The most common questions we receive about broker licensing are related to experience requirements and are answered below.
How long do I have to be licensed before applying for a broker license?
Per K.S.A. 58-3039(d), applicants are required to have been licensed as a salesperson or broker in Kansas or another state AND have been actively engaged in activities requiring a Kansas license for at least two of the three years preceding their application.
Do I have to be a broker in my state of residence to obtain a Kansas broker license?
Yes. K.S.A. 58-3040(a)(1) requires nonresident broker applicants to be licensed as a broker in their state of residence to qualify for a Kansas broker license. There is no minimum length of time you are required to have held the broker license in your home state as long as you have been licensed for at least two years total.
Can I apply if I don’t meet the experience requirements?
Applicants who do not meet the experience requirements must be reviewed by the Commission. Commission staff do not conduct preliminary reviews of experience, you must submit a complete license application to have your file reviewed by the Commission. Upon review, the Commission will make a final determination regarding eligibility.
For more information, review the Broker License Requirements and download the Broker Pre-Licensing Checklist for a full step-by-step guide through the process. Check out the updated FAQ’s page for helpful information.
Connect with the Commission!
Did you know KREC is on social media? Weekly posts feature topics such as renewal reminders, advertising do’s and don’ts, and regulation spotlights. Find us on the following platforms:
Disciplinary Actions
Revocations, suspensions, and aggregate fines greater than $500 issued 05/17/23 – 06/21/23.
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Docket
Number
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Last
Name
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First
Name
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License
Number
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Legal
Action
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Effective
Date
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23-1305
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Smith
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Gordon
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00249842
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License Suspended
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6/19/2023
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