Chapter 1
Kentucky Real Estate Law & Regulations
Course: Kentucky Real Estate Exams Prep
Subject: Kentucky State Sales Associate Exam Prep
Chapter: Finance Amp Settlement Of Kentucky National Sales Associate Exam Prep
Role of the Attorney:
- Kentucky as an Attorney-Closing State: This is a defining characteristic of Kentucky real estate practice. Unlike many states where title companies or escrow agents handle closings, Kentucky requires a licensed attorney to conduct the settlement. This attorney represents the transaction, not necessarily the buyer or seller individually, and has a duty to ensure the legality and proper execution of documents.
- Attorney's Key Duties:Title Examination: Reviews the chain of title, identifies liens or encumbrances, and ensures the seller can convey clear title.Document Preparation/Approval: Prepares or reviews the deed, the settlement statement, and other critical closing documents.Conducting the Closing: Oversees the signing of all documents, explains key terms to the parties, and ensures proper notarization.Disbursement: Acts as the escrow agent, receiving funds from the buyer/lender and disbursing them to the seller, payoff existing loans, and pay other parties (agents, counties for taxes).Recording: Files the deed and the new mortgage with the County Clerk's office immediately after closing to perfect the transaction and give public notice.
- Title Examination: Reviews the chain of title, identifies liens or encumbrances, and ensures the seller can convey clear title.
- Document Preparation/Approval: Prepares or reviews the deed, the settlement statement, and other critical closing documents.
- Conducting the Closing: Oversees the signing of all documents, explains key terms to the parties, and ensures proper notarization.
- Disbursement: Acts as the escrow agent, receiving funds from the buyer/lender and disbursing them to the seller, payoff existing loans, and pay other parties (agents, counties for taxes).
- Recording: Files the deed and the new mortgage with the County Clerk's office immediately after closing to perfect the transaction and give public notice.