Real Estate Law in Kentucky: Deeds, Transfer Tax, Foreclosure and Liens
Kentucky real estate work is paperwork with consequences: a deed the county clerk must refuse if a required statement is missing, a transfer tax due before recording, a mortgage enforced by court sale, and lien deadlines counted in days. Those details decide whether a closing, a lender or a contractor's claim holds.
William J. Brown, our Managing Partner, is admitted in Kentucky and handles real estate matters for the firm.
What a Kentucky deed, sale and lien must satisfy
A Kentucky deed must carry the full names and mailing addresses of grantor and grantee, a statement of the full consideration, an in-care-of address for the tax bill, and a sworn, notarized certificate of consideration (for a gift, of estimated fair cash value) signed by both sides. The county clerk may not lodge a deed without them (KRS 382.135), and the instrument must show the name and address of the person who prepared it (KRS 382.335). The transfer tax is $0.50 per $500 of value, imposed on the grantor and collected at recording (KRS 142.050, 382.260). Exemptions include transfers between spouses, parent and child for nominal consideration, and foreclosure or deed in lieu (KRS 142.050(7)).
A mortgage is enforced by court judgment and sale. Before a judicial sale the property is appraised under oath by two disinterested county residents (KRS 426.520). If it sells for less than two-thirds of the appraised value, the owner may redeem within 6 months by repaying the purchase price with 10% annual interest and the buyer's reasonable carrying costs, and the buyer takes immediate possession subject to that right (KRS 426.530).
A contractor's or supplier's lien is dissolved unless a sworn statement is filed with the county clerk within 6 months after the last labor or materials and a copy is mailed to the owner within 7 days (KRS 376.080), and suit is brought within 12 months of filing (KRS 376.090). A subcontractor without a contract with the owner must give written notice within 120 days, or 75 days for claims under $1,000 or on an owner-occupied one- or two-family home (KRS 376.010). Spouses who take title together hold as tenants in common unless the deed expressly provides survivorship (KRS 381.050).
Deed Drafting and Recording
Deeds that satisfy KRS 382.135 and 382.335, with the consideration certificate and transfer tax exemption analysis.
Closings and Title Review
Purchase and sale documents, title review, and lien and survivorship language in the deed.
Foreclosure Defense and Redemption
Defense of a judicial foreclosure and tracking the 6-month redemption right under KRS 426.530.
Construction Liens
Perfecting or contesting a lien within the KRS 376.010, 376.080 and 376.090 deadlines.
What must a Kentucky deed contain?
Full names and mailing addresses of grantor and grantee, the full consideration, an in-care-of tax bill address and a sworn consideration certificate (KRS 382.135), plus the preparer's name and address (KRS 382.335). A clerk cannot lodge a noncompliant deed.
How much is the Kentucky real estate transfer tax?
$0.50 for each $500 of value, imposed on the grantor and collected by the county clerk at recording (KRS 142.050). A deed is not legally lodged for record until it is paid (KRS 382.260).
Can I get my home back after a Kentucky foreclosure sale?
Only if the sale price was under two-thirds of the appraised value. Then you may redeem within 6 months by paying the purchase price, 10% annual interest and the buyer's reasonable carrying costs (KRS 426.530).
How long does a contractor have to file a mechanic's lien in Kentucky?
You have 6 months after the last labor or materials to file a sworn statement, and 7 days after filing to mail the owner a copy (KRS 376.080). A suit to enforce must follow within 12 months of filing (KRS 376.090).
Facing a real estate question in Kentucky?
The first consultation is confidential, and we respond within one business day.