Under the Kentucky Seller Disclosure Act, which of the following properties is generally EXEMPT from the required seller's disclosure of property condition?
Correct Answer
B) A residential property transferred as a gift between family members
Under KRS 324.360, the Kentucky Seller Disclosure Act requires sellers of residential real property to complete a disclosure form regarding the property's condition. However, certain transfers are exempt, including transfers made as gifts or between family members without a sale transaction. Other common exemptions include transfers by court order, foreclosure sales, and transfers between co-owners. Standard arm's-length sales of single-family homes, condominiums, and new construction sold by builders to first buyers are generally subject to disclosure requirements.
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Related Topics & Key Terms
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Related Concepts
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
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