Kentucky Real Estate Contract: Different Types and Key Terms to Include

Quick Facts — Real Estate Contract Lawyers

What is a Kentucky Real Estate Contract?

A Kentucky real estate contract, sometimes called a purchase and sale agreement, is a legally binding document that facilitates the sale of real estate between a buyer and a seller.

The contract lays out the details of the sale and will include important information about the transaction like the purchase price, closing date, and any contingencies or conditions that must be met before the sale can be completed. To be legally binding and enforceable, a real estate contract must be signed by both the buyer and the seller, and any agents or brokers involved in the transaction.

Common Kentucky Real Estate Contracts

There are several types of real estate contracts that can be used to outline the agreement between a buyer and a seller. Most parties hire realtors to help them through the process and draft the contract using an approved form. The two most popular forms used in Kentucky include:

  • Kentucky Association of Realtors contract . Once filled out and signed, this document is legally binding and it can only be used by realtors who are members of the Kentucky Association of Realtors.
  • Kentucky Real Estate Commission (KREC) contract . A purchase and sale agreement form that has been approved for use by the KREC and includes all necessary terms and conditions under Kentucky law.

4 Essential Elements of a Kentucky Real Estate Contract

All Kentucky real estate contracts must abide by Kentucky contract laws and the Kentucky statue of frauds. The Statute of frauds requires that all contracts that involve the sale of real estate must be in writing. In addition, real estate contracts must also contain the following 4 essential elements:

  1. A legal purpose (the contract cannot violate the law)
  2. Legally competent parties
  3. An agreement that involves an offer, acceptance, and consideration
  4. Consent of both parties to enter into the agreement

What are the requirements for a Valid and Enforceable Real Estate Contract in Kentucky?

Real estate contracts need to include specific information to be enforceable in Kentucky. The following terms must be included in a valid real estate contract:

  • Party information. The names and addresses of the parties involved in the transaction, including the buyer, seller, and any agents or brokers involved.
  • Property description. The legal description of the property including the full address.
  • Purchase price. The agreed upon purchase price for the property.
  • Contingencies. Conditions that must be met before the sale can be completed like a home inspection or securing financing.
  • Disclosures. Warranties or representations made by the seller regarding the condition of the property. Kentucky requires that all real estate contracts include a seller’s disclosure and a lead-based paint disclosure. such as whether it is free from defects or liens.
  • Addition terms. Terms and conditions agreed upon by both parties like the inclusion of fixtures, appliances, or furniture.
  • Closing date. The date on which the sale will be completed.
  • Signatures. The signature of the buyer, seller, and any agents or brokers involved in the transaction.
  • Notarization. The contract must be notarized.

For a real estate contract to be valid and enforceable in Kentucky, it must include all necessary information and comply with all laws regarding real estate sales in Kentucky.

Is Kentucky a Buyer Beware State for Real Estate?

No. Kentucky is not a "buyer beware" state in real estate. Under Kentucky laws, the seller is required to disclose any known issues or defects with the property to the buyer prior to the sale. The seller must provide the buyer with a property disclosure form, which lists any known issues or defects with the property. However, buyers are still responsible for their own due diligence and inspections before purchasing a property.

Frequently Asked Questions

How do I hire a lawyer to draft a real estate contract in Kentucky?

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