A property disclosure statement is a written document provided by a seller of real property to the prospective buyer stating that the property has a material or significant problem or defect and disclosing the nature of the problem or defect—or stating the seller is unaware of any such problems or defects.
In Kentucky, a property disclosure statement is a mandatory document that sellers of residential real property must provide to prospective buyers. This disclosure is governed by Kentucky Revised Statutes (KRS) 324.360, which requires the seller to disclose any known material or significant defects in the property. The disclosure must be made in good faith and include details about the condition of various aspects of the property, such as the roof, foundation, electrical systems, plumbing, heating, and any other relevant components or environmental hazards. The purpose of this requirement is to inform buyers about the true condition of the property before they commit to the purchase. If a seller knowingly withholds information about defects or misrepresents the condition of the property, they could be held liable for fraud. It is important for sellers to complete the disclosure statement accurately and for buyers to review it carefully before finalizing the purchase.