831 KAR 1:020 - Standards of conduct and complaints
RELATES TO: KRS 330.110, 330.120, 330.130
NECESSITY, FUNCTION, AND CONFORMITY: KRS 330.050(8) authorizes the Board of Auctioneers to promulgate administrative regulations with the approval of the executive director of the Kentucky Real Estate Authority in accordance with KRS Chapter 13A as required to fulfill the duties and functions assigned to the board. This administrative regulation establishes requirements to protect the public through adequate recordkeeping and accounting by licensees.
Section 1. Personal Property
Auction Proceeds.
(1) Proceeds due from the
sale of personal property shall be disbursed to the seller no later than thirty
(30) days after the date of each auction. If the seller's personal property is
not sold in a single auction, proceeds from the sale shall be disbursed to the
seller no later than thirty (30) days after the auction at which such personal
property was sold. Notice shall be given to the seller of the tentative date of
auction of the remaining personal property.
(2) Proceeds of a personal property auction
not disbursed to the seller on auction day shall be deposited in an auction
escrow account by the auctioneer or auction firm no later than three (3)
banking days following the date of auction or sale of the personal property,
whichever occurs first.
Section
2. Real Property Auction Proceeds.
(1) If an auction consisted of both personal
property and real property for the same seller, the proceeds due from the sale
of the personal property may be disbursed to the seller in conjunction with the
real property closing and settlement if the real property closing and
settlement occurs within sixty (60) days following the date it was
auctioned.
(2) Proceeds from a real
estate auction shall be held in escrow until settlement in accordance with the
agreement of sale.
Section
3. Auctioneer Escrow Accounts.
(1) Auctioneers and auction firms shall use
federally insured depositories in the Commonwealth of Kentucky.
(2) The auction escrow account or accounts
shall be separate from any individual or office account and used solely for the
preservation and guarantee of money belonging to others consisting of auction
proceeds and real property contract deposits.
(3) Funds for any other purpose shall not be
commingled with the auction escrow account.
(4) Escrow funds shall only be disbursed at
settlement or withdrawn by agreement in writing by all parties, by an order of
a court of competent jurisdiction or, in the case of real property contract
deposits held by a broker, in accordance with KRS Chapter 324 and 201 KAR
Chapter 11.
(5) Moneys due to the
auctioneer or auction firm shall not be withdrawn from the auction escrow
account until final settlement is made with the seller.
Section 4. Complaints and Discipline.
(1) A licensee shall comply with all
applicable provisions of KRS Chapter 330 and 831 KAR Chapter 1.
(2) Failure to comply shall subject a
licensee to discipline in an administrative action.
(3) A complaint against a licensee for a
violation of this administrative regulation or KRS Chapter 330 shall be
notarized, filed with the board on the Complaint Form, and shall not require a
fee.
(4) All claims for monetary
damages or relief from the auctioneer's education, research, and recovery fund
established pursuant to KRS 330.192 shall be made in writing and submitted to
the board within twelve (12) months of the act of the auctioneer giving rise to
the loss.
(5) Amendments to a
timely filed proof of claim shall be accepted.
(6) A licensee shall file a notarized answer
to a complaint with the board no later than twenty (20) days of receiving the
complaint from the board.
(7) A
licensee shall maintain and provide to the board at least one (1) physical
residential mailing address that is not a P.O. Box and a business address which
may be a P.O. Box.
Section
5. Incorporation by Reference.
(1) "Complaint Form", KBA-6, May 2019, is
incorporated by reference.
(2) This
material may be inspected, copied, or obtained, subject to applicable copyright
law, at the Kentucky Board of Auctioneers, 656 Chamberlin Avenue, Suite B,
Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m.
Notes
STATUTORY AUTHORITY: KRS 330.050(8)
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