State guide

Buying or Selling a Home in Kentucky: What You Need to Know

Kentucky home sales are shaped by federal rules and state-specific laws set by the Kentucky Real Estate Commission.

Are you buying or selling?

TL;DR

Kentucky home sales are shaped by federal rules and state-specific laws set by the Kentucky Real Estate Commission. Sellers must fill out a property condition disclosure form before signing, and only a licensed Kentucky attorney can prepare the deed at closing. Since August 17, 2024, buyers also have to sign a written agreement with their agent before touring a home.

10 things every Kentucky buyer or seller should know

  • When you sell a home in Kentucky, you must complete the Seller's Disclosure of Property Conditions form and give it to the buyer before or when the contract is signed. The form covers known problems with the roof, plumbing, electrical, septic, and other major systems—it is based on what you actually know, not what an inspector might find.

  • In Kentucky, only a licensed Kentucky attorney can prepare the deed that transfers ownership. That means every home closing has at least one attorney involved—either through the title company or hired separately. Real estate agents and title officers cannot legally draft or fill in the deed for you.

  • Kentucky charges a real estate transfer tax of $0.50 for every $500 of the sale price—about $1 per $1,000. The seller usually pays this at closing unless the contract says otherwise, so on a $300,000 home the tax is about $300. The deed cannot be recorded without it.

  • Dual agency—where the same Kentucky agent represents both the buyer and the seller in one deal—is legal but only with informed written consent from both parties. A dual agent cannot share your bottom-line price or push hard for either side, so you trade some advocacy for the convenience of one agent.

  • Since August 17, 2024, the NAR settlement requires buyer's agents in Kentucky to sign a written buyer representation agreement with you before showing you any home. The agreement must spell out how much the agent will be paid and who is responsible for paying it.

  • Kentucky MLS systems can no longer advertise how much a seller is offering to pay the buyer's agent. Compensation is now negotiated outside the listing service—through the purchase contract, a buyer-broker agreement, or direct broker-to-broker conversation.

  • If a Kentucky home was built before 1978, federal law requires the seller to give buyers a lead-based paint disclosure and an EPA information pamphlet. Buyers also get a 10-day window to inspect for lead unless they waive it in writing.

  • A Kentucky property that was used as a methamphetamine lab and has not been certified as cleaned up must be disclosed to buyers. Local health departments post these properties as contaminated, and any meth history shows up on the Seller's Disclosure of Property Conditions form.

  • Kentucky does not require sellers or real estate agents to tell you about registered sex offenders living near a property. You are expected to check the Kentucky State Police Sex Offender Registry yourself—it is free, public, and searchable by address.

  • Kentucky maintains a Real Estate Education, Research and Recovery Fund that can pay consumers who lose money because of a Kentucky licensee's misconduct. You first need a court judgment against the agent or broker—the Fund is a last-resort backup, not a quick claims process.

The guides

Common questions

Do I need an attorney to buy or sell a home in Kentucky?
Yes, at least for one step—only a licensed Kentucky attorney can prepare the deed that transfers ownership. In bigger markets like Louisville and Lexington, title companies handle most of the closing and bring in an attorney just for the deed. In some rural areas and on commercial deals, an attorney runs the entire closing.
Who pays the real estate transfer tax when I sell a home in Kentucky?
The seller usually pays the transfer tax at closing, since the seller is the party transferring ownership. Kentucky's rate is $0.50 per $500 of the sale price—roughly $1 per $1,000—so a $400,000 home generates about a $400 tax. You and the buyer can agree to split it differently in the contract.
Do I have to sign an agreement with a buyer's agent before they show me homes?
Yes. Since August 17, 2024, the NAR settlement requires any MLS-participating buyer's agent in Kentucky to have a signed written agreement with you before touring a home. The agreement must say how much the agent will be paid and who is responsible for paying it.
What do I have to disclose when I sell my Kentucky home?
Kentucky sellers must complete the Seller's Disclosure of Property Conditions form, which covers known issues with the roof, foundation, plumbing, electrical, septic, water, and environmental hazards. You only have to disclose what you actually know—the form is not a warranty of condition. Known issues like a former meth lab, an underground storage tank, or major defects must be reported.
Can one agent represent both me and the other side of the deal in Kentucky?
Yes—dual agency is legal in Kentucky, but the agent must get fully informed written consent from both the buyer and the seller before acting that way. A dual agent cannot share your bottom price or push hard for your interests, so many buyers and sellers prefer designated agency, where two different agents from the same brokerage represent each side.
How do I find out if there are sex offenders near a Kentucky home I'm thinking of buying?
You have to check the Kentucky State Police Sex Offender Registry yourself—Kentucky does not require sellers or agents to tell you. The registry is free, public, and searchable by name, address, or geographic area. Running this search before you make an offer is a smart part of due diligence.
Are real estate commission rates fixed or regulated in Kentucky?
No. Commission rates in Kentucky are always negotiable—federal antitrust law actually prohibits brokerages from agreeing with each other on what to charge. Every Kentucky brokerage sets its own rates independently, and you can negotiate compensation with your agent before signing any agreement.
What can I do if a Kentucky real estate agent cheats me out of money?
Start by filing a complaint with the Kentucky Real Estate Commission (KREC, the state regulator) and pursuing a civil lawsuit against the licensee. If you win a court judgment and cannot collect from the agent, you can apply to Kentucky's Real Estate Education, Research and Recovery Fund. The Fund is supported by license fees and is meant as a last-resort backstop for victims of licensee misconduct.

Glossary

2 terms
NAR — National Association of Realtors
The national trade group for real-estate agents. The 2024 NAR settlement is the legal deal that changed how buyer's agents get paid.
MLS — Multiple Listing Service
The shared database agents use to list and find homes for sale. Most homes you'll see online started here.