Key Takeaways
- The Kentucky Seller Disclosure Act (KRS 324.360) requires sellers to provide written disclosure of known property conditions
- The disclosure covers structural issues, systems, environmental hazards, and other material defects
- Sellers must disclose known defects but are not required to investigate or inspect
- Certain transfers are exempt including foreclosures, estate sales, and new construction with warranties
- Lead-based paint disclosure is required for homes built before 1978 (federal requirement)
Kentucky Seller Disclosure Act
The Kentucky Seller Disclosure Act (KRS 324.360) requires sellers to provide buyers with written disclosure of known property conditions.
When Disclosure is Required
The Seller Disclosure is required for sales of:
| Property Type | Required? |
|---|---|
| Single-family homes | Yes |
| Condominiums | Yes |
| Townhomes | Yes |
| 1-4 unit residential | Yes |
| Commercial property | No |
| 5+ unit residential | No |
What Must Be Disclosed
The Kentucky Seller Disclosure covers:
| Category | Items |
|---|---|
| Structural | Foundation, roof, walls, floors |
| Systems | Plumbing, electrical, HVAC, septic |
| Appliances | Built-in appliances, water heater |
| Property condition | Known defects, previous repairs |
| Environmental | Flooding, drainage, radon, lead paint |
| Legal issues | Easements, encroachments, zoning |
| Pests | Termites, other wood-destroying insects |
| Water | Well water, water quality, water damage |
Seller's Duty
The seller must disclose:
| Must Disclose | Not Required |
|---|---|
| Known defects | Discover unknown defects |
| Material facts | Perform inspections |
| Latent defects | Guarantee condition |
| Previous problems | Future performance |
Key Point: The seller only discloses what they know—they have no duty to investigate or hire inspectors.
Timing of Disclosure
| Event | Requirement |
|---|---|
| Before contract | Preferred - buyer can review |
| After contract | Buyer may have termination right |
| Never provided | Buyer may terminate before closing |
If Buyer Receives Disclosure After Contract
If the buyer receives the disclosure after signing the contract:
- Buyer may have limited time to review and terminate
- Contract terms may specify termination rights
- Consult with attorney if questions arise
Exemptions from Seller Disclosure
Certain transactions are exempt from the Seller Disclosure requirement:
| Exemption | Reason |
|---|---|
| Foreclosure sales | Bank/lender sale |
| Estate/probate sales | Personal representative sale |
| Bankruptcy sales | Trustee sale |
| Court-ordered sales | Divorce, judgment |
| New construction | Builder warranties apply |
| Transfers to family | Gift, inheritance |
| Transfers between co-owners | Buyout, dissolution |
Warning: Even in exempt transactions, agents must still disclose known material defects.
Lead-Based Paint Disclosure
For homes built before 1978, federal law requires:
| Requirement | Description |
|---|---|
| Disclosure form | Seller must complete lead disclosure |
| EPA pamphlet | "Protect Your Family From Lead in Your Home" |
| 10-day period | Buyer has 10 days to conduct inspection |
| Records | Seller must provide any lead test records |
Agent Disclosure Duties
What Agents Must Disclose
Kentucky agents must disclose material facts they know about:
| Must Disclose | Examples |
|---|---|
| Property defects | Structural issues, water damage |
| Environmental hazards | Flooding history, radon, mold |
| Legal issues | Zoning violations, boundary disputes |
| Agency relationships | Representing both parties |
Agent vs. Seller Responsibility
| Agent | Seller |
|---|---|
| Must disclose known facts | Must complete Seller Disclosure |
| Cannot guarantee accuracy | Responsible for disclosure accuracy |
| No duty to investigate | No duty to discover unknown |
| Liable for misrepresentation | Liable for fraud or concealment |
Under the Kentucky Seller Disclosure Act, sellers must:
Which of the following transactions is exempt from Kentucky Seller Disclosure requirements?