Seller disclosure requirements in Kentucky (KREC Form 402)

Is a disclosure form required?

Yes, in most agent-assisted sales. KRS 324.360 applies to sales of single-family residential dwellings “if any person licensed under this chapter receives compensation.” The Kentucky Real Estate Commission (KREC) adopted the form by regulation. 201 KAR 11:121 tells agents to direct sellers of a single-family dwelling, duplex, triplex, fourplex, condominium or townhouse to complete and sign it.

The statute sets the timing:

• At listing. The seller completes and signs the form when signing the listing agreement.
• On request. The listing agent gives a copy to any prospective buyer who asks.
• After an offer. The listing agent delivers a copy to the buyer within 72 hours of receiving a written, signed offer, and asks the buyer to sign it.
• Sale by owner with an agent involved. If the owner sells without a listing agreement but a licensee is involved, the licensee gives the owner a blank form and delivers a completed form no later than 120 hours after a contract is created.

A seller may refuse to complete the form. In that case the agent must tell the buyer of the refusal in writing, without unreasonable delay. An agent may fill in the form only when the owner asks, and the request is acknowledged in writing on the form.

What the form covers

KREC Form 402 (version 12/2022) asks the seller to answer yes, no, unknown or not applicable on 13 topics, based on the seller’s knowledge:

• preliminary questions (rental use, vacancy of more than three months);
• house systems: plumbing, electrical, appliances, heating, cooling, water heater;
• building structure, including foundation, basement leaks and wood infestation;
• the roof, with its age and any leaks or repairs;
• land and drainage, including whether the house is in a Special Flood Hazard Area;
• boundaries, surveys and encroachments;
• water and sewer or septic systems;
• construction and remodeling, and whether permits were obtained;
• homeowners association rules and condominium status;
• hazardous conditions: underground tanks, lead-based paint, radon and methamphetamine contamination;
• miscellaneous items: legal action, fire damage, mold, historic district;
• anything else the buyer should know.

If the seller learns before closing of a fact that changes an answer, the form requires the seller to notify the agent or buyer of the change in writing.

What the form does not do

The form says it “shall not be a warranty by the Seller or real estate agent” and “shall not be used as a substitute for an inspection,” and it encourages buyers to get their own inspections. It records what the seller knows, “however and whenever” the seller learned it. A seller who truthfully does not know may mark “unknown.”

I did not find a set penalty for the seller in KRS 324.360 or in 201 KAR 11:121. The form itself warns that failing to disclose methamphetamine contamination, if the owner chooses not to decontaminate, is a Class D felony under KRS 224.99-010. For other disputes, see a lawyer; our guide on real estate attorneys explains what they do.

Exemptions

KRS 324.360(7) says the form is not required for:

• residential purchases of new homes if a warranty is offered;
• a sale of real estate at auction;
• a court-supervised foreclosure.

The statute reaches only sales where a licensee is paid. A sale by owner with no licensee is outside the statute’s mandate. Condominium sales have an extra document: agents must tell condo clients of their right to a Condominium Seller’s Certificate (KREC Form 404) and of the buyer’s right to void the sales contract under KRS 381.9203.

The federal lead-based paint rule (homes built before 1978)

Federal law adds a separate duty for most homes built before 1978. Before the buyer signs a contract, the seller and the agent must (EPA):

1. give the buyer the pamphlet “Protect Your Family From Lead In Your Home”;
2. disclose any known lead-based paint or hazards and give the buyer all available records and reports;
3. include a Lead Warning Statement, with confirmation that the seller complied;
4. give the buyer 10 days to test for lead-based paint, unless the parties agree in writing to a different period or the buyer waives it.

The seller and agent keep a signed copy for three years. The rule does not apply to foreclosure sales or to housing built after 1977. KREC Form 402 asks whether the house was built before 1978 and whether the seller knows of lead-based paint, but the federal paperwork is separate.