Request By:
Mr. John A. Celletti
Chairman
Kentucky Real Estate Commission
100 E. Liberty Street
Suite 204
Louisville, Kentucky 40202
Opinion
Opinion By: Steven L. Beshear, Attorney General; John H. Gray, Assistant Attorney General
Thank you for your letter of December 9, 1980 in which you ask:
1. Can a real estate agent, by advertisement, offer a discount, rebate, prizes at open houses, or other inducement to induce a purchaser to purchase a particular property?
2. Can a real estate broker allow his name or the name of his firm to be used in an advertisement of a builder or developer which includes a discount or other inducement to prospective purchasers from the builder or developer of the property?
The answer to both of your questions is that inducements are not prohibited by KRS 324, so long as the inducement goes to the purchaser of the property and not to someone other than the purchaser. An inducement given to someone other than the purchaser himself would be violative of KRS 324.160(1)(i). (See OAG 75-407, a copy of which is attached.) An inducement given to the purchaser, though, would not be considered as the paying of valuable consideration to any person for service performed under the language of KRS 324.160(1)(i) and would, therefore, not be prohibited.
It is hoped that this satisfactorily answers your questions. If we can be of any further assistance, please feel free to contact us.