Kentucky Real Estate Practices

Laypersons may conduct real estate closings, but may not answer legal questions that arise at the closing, or offer any legal advice to the parties. However, preparation of deeds and mortgages constitutes the practice of law and must be prepared by an attorney. Countrywide Home Loans, Inc .v. Kentucky Bar Association; 113 S.W.3d 105 (Ky 2003).

Cancellation fee is permitted, but not required, and should be negotiated up front.

No one other than the lender is authorized by statute or otherwise to release a mortgage.

General warranty deeds are customary. In some instances, a special warranty deed may be insured. Quit-claim deeds may or may not be insurable, depending on the situation, and an underwriter should be contacted.

No (9-4-19)

Kentucky recognizes the dower/curtesy interest of non-titled spouses, and therefore, a non-titled spouse must join in a deed or mortgage to convey his/her interest in the property. KRS 392.020. Kentucky does not recognize civil unions.

None.

(a) Owner’s policy - Buyer pays
(b) Transfer Tax - Seller pays
Recording Fees - Buyer pays deed and mortgage recording fees; Seller pays recording fee for the release of existing mortgage(s)
(c) Survey Charges - Buyer pays
(d) Closing/Settlement Fees – Customarily the Buyer pays the majority of the closing fee, with perhaps a small part paid by the seller; it can vary between closers and areas of the state.

No signature other than that of the issuing agent is required.

Tax bills generally come out in late October or into November, and can be paid with a discount until December 1, after which the face amount is due. Taxes become delinquent after January 1 of the following year. KRS 134.020. City taxes should be verified directly with the particular city, as their schedules may vary.

There are no state-imposed search periods, no marketable record title acts, and no standards imposed by a state bar association. Each underwriter sets its own search standards.

It is customary to charge a separate title search fee (which can be called an “exam” fee but it is the same fee). Kentucky is not an “all-inclusive” premium state.

Who can be listed as the trustee on the Deed of Trust (e.g., residency and/or natural person requirements, etc.)? Can an underwriter or title agent be designated as the trustee, and, if so, is it customary?

Mortgage.

Standard Exceptions are:

Rights or claims of parties in possession not shown by the public records.

Easements or claims of easements, not shown by the public records.

Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey and inspection of the premises.

Any lien or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law and not shown by the public records.

Subject to _______ taxes, which are not yet due and payable (if applicable).

"Minerals of whatsoever kind, subsurface and surface substances, including but not limited to coal, lignite, oil, gas, uranium, clay, rock, sand and gravel in, on, under and that may be produced from the Land, together with all rights, privileges, and immunities relating thereto, whether or not appearing in the Public Records or listed in Schedule B. The Company makes no representation as to the present ownership of any such interests. There may be leases, grants, exceptions or reservations of interests that are not listed."

No state-specific changes required.

Rates and forms are filed with the Kentucky Department of Insurance prior to use. Kentucky is not a rating bureau state.

Transfer tax is uniform across the state. Transfer tax is imposed at fifty cents for each $500 of value as declared in the deed. KRS 142.050(2). See KRS 142.050(7) for exceptions.

Usury coverage is available. For more information see KRS 360.010.

None.

Witnesses are not required for deeds and mortgages, however, both must be acknowledged. KRS 382.270.