The Kentucky residential real estate purchase agreement (“Contract for Sale and Purchase of Real Estate”) is a contract which commits a buyer to an offer to purchase real estate, according to specific terms agreed by the buyer and seller. Negotiated specifics include the purchase price, financing method, closing date, and more.
Do Sellers in Kentucky Have To Disclose Property Defects?
Kentucky does require real estate sellers to disclose any material defects with the property. In most cases, this is through a standardized disclosure form provided by the state Real Estate Commission.
By mutual agreement, it often may be possible to waive the use of a standard form and handle required disclosures another way. However, the seller always has a duty to disclose all material defects that are not obvious on a standard inspection of the property, even if the buyer agrees to take the property “as-is.”
The basic duty to disclose cannot be waived under any circumstances, unless the sale falls under a recognized legal exemption. Kentucky exempts the following cases from the disclosure form requirement:
- New homes sold under warranty
- Property sold at auction
- Property sold through a court-supervised foreclosure
Required Seller Disclosures in Kentucky
Kentucky sellers of real estate must make the following disclosures, as appropriate, in order for a real estate purchase agreement to be considered legally binding:
- Property Disclosure Statement: Discloses material defects with a property that are known to the seller at the time of sale, and details any potential issues and conditions that may affect the value of the property.
- Lead-Based Paint Disclosure: Any home constructed earlier than 1978 must come with a disclosure upon the transfer of the property which includes any information about the presence of lead on the premises, as well as educational materials that communicate the health risks associated with lead exposure.
Sources
- 1 Ky. Rev. Stat. § 324.360(1) - (3)
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(1) This section shall apply to sales and purchases involving single-family residential real estate dwellings if any person licensed under this chapter receives compensation.
(2) The commission shall promulgate an administrative regulation authorizing a “seller’s disclosure of conditions form.”
(3) The form shall provide for disclosure by the seller of the following:
(a) Basement condition and whether it leaks;
(b) Roof condition and whether it leaks;
(c) Source and condition of water supply;
(d) Source and condition of sewage service;
(e) Working condition of component systems; and
(f) Other matters the commission deems appropriate.
Source Link - 2 Ky. Rev. Stat. § 324.360(7)
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The form shall not be required for residential purchases of new homes if a warranty is offered, for a sale of real estate at an auction, or for a court supervised foreclosure.
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