Antitrust and Commission Practices in Kentucky

Before you start — 7 things to know

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  There is no 'standard' buyer-agent commission in Kentucky. The Sherman Antitrust Act (15 U.S.C. §1) makes it illegal for competing brokerages to agree on rates, so any number an agent quotes you is that single firm's price and is negotiable.

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  If a Kentucky agent tells you 'everyone charges X%' or 'the going rate is Y%,' treat that as a red flag. Under antitrust law, agents aren't supposed to share or coordinate pricing with competitors, so claims about an industry-wide rate are either inaccurate or describe conduct that would itself be illegal.

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  Since the 2024 NAR settlement, MLS systems can no longer publish or require a buyer-agent commission offer from the seller. That means in Kentucky you may end up directly responsible for paying your agent if the seller doesn't choose to cover it.

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  Before you tour homes with a buyer agent in Kentucky, you'll sign a written buyer-representation agreement that states the agent's fee. After the 2024 NAR settlement, this written agreement is required nationwide so the price is locked in by contract, not by industry custom.

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  You can interview multiple Kentucky buyer agents and compare their rates side by side. Antitrust law is designed to protect exactly this — competing firms must each give you their own independent price.

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  Your buyer-agent fee in Kentucky can be a percentage, a flat fee, or even an hourly arrangement. There is no legally required structure, and the Sherman Act protects your right to negotiate the format as well as the amount.

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  The Kentucky Real Estate Commission doesn't enforce antitrust law itself, but anticompetitive conduct by Kentucky agents can be reported to the U.S. Department of Justice or the Federal Trade Commission. The Sherman Act applies directly to Kentucky real estate practitioners.

The timeline — step by step

1. 1

   Step 1 — Interview multiple buyer agents. Talk to two or three Kentucky buyer agents and ask each one directly what they charge. Comparing competing quotes is legal and is exactly what the Sherman Act is meant to protect.

2. 2

   Step 2 — Negotiate the rate one-on-one. Pick your agent and negotiate the fee directly with that single brokerage. The Sherman Antitrust Act forbids competing firms from coordinating prices, so the number is strictly between you and that one firm.

3. 3

   Step 3 — Sign a written buyer-representation agreement. Before you tour homes, you'll sign a contract that spells out the agent's fee, how it's calculated, and who pays it. After the 2024 NAR settlement, this written agreement is required nationwide.

4. 4

   Step 4 — Find out what the seller is offering on each home. When you write an offer on a Kentucky home, your agent has to ask whether the seller is offering to cover the buyer-agent fee, because the offer can no longer be posted inside the MLS after the 2024 NAR settlement.

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   Step 5 — Build the gap into your offer if needed. If the seller is offering less than your agent's agreed fee, you can ask the seller to cover the difference inside your purchase offer or pay it yourself at closing.

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   Step 6 — Confirm the fee on the Kentucky closing statement. At closing, double-check that the buyer-agent fee on the settlement statement matches the number in your signed buyer-representation agreement before you sign.

Common questions