Are Kentucky closing companies allowed to disburse commission checks directly to licensees?

In Kentucky, the regulations governing real estate practices stipulate that commission payments should generally be handled by the brokerage firm. However, it is permissible for closing companies to disburse commission checks directly to licensees, provided that the brokerage firm has given its authorization for this arrangement. This stipulation recognizes the role of the brokerage in overseeing commission disbursements while allowing flexibility in how funds are managed at closing.

This approach ensures that all parties are in agreement and helps maintain compliance with state regulations regarding trust funds and commission distribution. The importance lies in the brokerage's oversight, serving to protect both the licensee and the interests of buyers and sellers involved in the transaction.