Selling a House in Kentucky

Selling a house is one of the most significant legal transactions you'll ever participate in. It's important to know your legal rights and understand the process.

Working With a Real Estate Agent

In Kentucky, real estate agents may represent sellers, buyers, or act as dual agents, representing both parties. Under state law, real estate agents must provide a prospective party to a real estate sales transaction with a brochure or consumer guide and an agency disclosure statement regarding the agency relationships in a transaction.

Real estate agents have what's called a "fiduciary duty" to the parties who they are representing, in this case, the seller. In addition to duties or obligations that are stated in a listing agreement or other contract, a fiduciary's duties include:

• Loyalty
• Obedience
• Confidentiality
• Reasonable care and diligence
• Accounting

You are required to complete a Seller Disclosure of Property Condition form. This form provides information on the following:

• Roof, structural elements, basement, plumbing, leaks and any repairs
• Sewer and water supply and any repairs
• Age of electrical system and any repairs
• Heating and cooling system and any repairs
• Pest infestations
• Issues related to the property's boundaries
• Zoning, property tax or building code issues
• Lead paint (required under the federal Residential Lead-Based Paint Hazard Reduction Act of 1992 for homes built prior to 1978)and other environmental hazards

Purchase Agreements

When you've got a serious buyer, you'll receive a written offer to purchase your home, sometimes called a "real estate sales contract," which states the finalized terms and conditions for the sale.

You won't have very long to decide whether or not to take the offer or propose a counteroffer so it's important to be informed ahead of time.

Common counter-proposal items include:

• A higher purchase price
• A higher deposit
• Giving buyer less time to remove contingencies
• Excluding certain items from the sale
• Providing you move in time to vacate the house after the sale is closed
• A clause making it a contingency that your attorney approve the contract
• A "liquidated damages clause" that details how much money the buyer will owe you if the buyer backs out of the deal for reasons other than the contingencies listed in the contract

Legal Title Issues

Your real estate lawyer or title company will investigate the legal title of the property you want to sell, and may find issues you'll need to understand.

In Kentucky, for example, an implied easement may be present where a person grants lands to which there is no accessible right-of-way except over her or his land or retains land that is inaccessible except over the land which the person conveys. In such instances a right-of-way is presumed to have been granted or reserved. Such an implied grant or easement in lands or estates exists where there is no other reasonable and practicable way of accessing the property, and it is reasonably necessary for the beneficial use or enjoyment of the part granted or reserved.

Your property may also be subject to a "lien," which is a charge on the property to satisfy a debt or other obligation. A lien encumbers property as long as it exists and has been recorded in the public records.

In Kentucky, liens on a piece of property may include:

• Mortgages
• Construction or mechanics' liens
• Judgment liens
• Tax liens

Closing Costs

In Kentucky, you can expect to pay for some or all of the following charges - called "closing costs"-at the time you sell your home:

• Broker's commission
• Survey
• Title insurance
• Recorded release of mortgage
• Transfer taxes
• Attorney's fee
• Home inspections

Specific Performance

In Kentucky, a seller who agrees to sell a particular property must do so unless the buyer fails to meet all the terms of the purchase agreement. This is called "specific performance," which is a legal action to compel performance of a contract. For this contract remedy, a court can order the parties to complete the contract. The buyer must then deliver the purchase price and the seller must then deliver the deed. If you have second thoughts on a particular sale, you'll want to immediately contact an attorney.