The seller disclosure report plays a critical role in every real estate transaction. The primary purpose of this report is to inform buyers of the condition of the property. In other words, it should spell out both existing problems and potential issues. Real estate law varies by state, though, which means a seller’s disclosure obligations do, too. If you’re planning on buying or selling property in Kentucky, here is what you should know about these reports.
What the Report Should Include
In the state of Kentucky, the Seller’s Disclosure of Property Condition has 10 sections for property owners to complete. These sections address everything from plumbing and electrical to roofing, drainage, and environmental hazards. And under the section titled “Miscellaneous,” sellers must disclose any defects that are not addressed in the other nine sections. Once completed, this report should provide potential buyers with a comprehensive understanding of the property’s history and current condition.
Penalties for Nondisclosure
If a seller fails to disclose a known defect in the report and the transaction proceeds, the penalties could be costly once the buyer learns of the issue. Depending on the circumstances, the new owner may be able to sue the old owner for fraud or breach of contract. In addition to the costs associated with litigation, the seller may also have to cover all necessary repairs. And in some scenarios, the sale can be reversed, and the buyer can be reimbursed for all expenses that result from doing so.
The real estate law attorneys at Gess Mattingly & Atchison, P.S.C. are well-versed in the statutes governing seller disclosure reports in Kentucky. Based in Lexington, they have protected the financial interests of clients throughout the Bluegrass State for more than six decades. They also help individuals and businesses resolve complicated legal disputes. In addition to real estate law, they practice civil litigation, family law, criminal defense, commercial law, and estate planning. To learn more about the firm’s impressive history, visit their website. To schedule an initial consultation, call (859) 252-9000.