Kentucky's Seller Disclosure Law: What Home Sellers Are Legally Required to Tell Buyers

Kentucky requires most residential sellers to complete a formal disclosure form before a sale closes — but the law has real limits, and misunderstanding those limits is one of the most common sources of post-closing disputes between buyers and sellers. Here's what it actually covers, and what it doesn't.

The legal basis

Under KRS 324.360, sellers of most residential real property must complete the Seller's Disclosure of Property Conditions form, which is promulgated by the Kentucky Real Estate Commission. The form asks the seller to disclose known conditions of the roof, foundation and structure, mechanical systems (HVAC, electrical, plumbing), water supply and sewer or septic, drainage and flooding history, and known hazardous conditions such as radon, lead-based paint, or termite damage. The completed form must be provided to the buyer before an offer is accepted.

It's a 'known conditions' disclosure, not a warranty

This is the part buyers most often misunderstand: the law only requires sellers to disclose defects they actually know about when they complete the form. A seller who genuinely doesn't know their sump pump has been failing intermittently isn't violating the law by leaving that box unchecked. The disclosure form is not a guarantee of condition and it doesn't replace an inspection — it's a starting point, and an independent inspection is what verifies current condition regardless of what the seller knew, remembered, or disclosed.

Common exemptions

Several transaction types are exempt, including new construction never previously occupied, court-ordered transfers (probate, divorce), foreclosure and lender-owned (REO) sales, transfers between co-owners or close relatives, and transfers by a fiduciary administering an estate or trust. If you're buying a foreclosure or an estate sale, don't assume "no red flags on the disclosure" means anything reassuring — there may be no disclosure form in the file at all, which is very different from a clean one.

What happens if a seller lies on the form

If a seller knowingly conceals a material defect on the disclosure form, a buyer may have grounds for legal action after closing — but proving what the seller actually knew at the time is difficult and expensive to litigate, and it's rarely a fast or cheap process even when a buyer is clearly in the right. This is exactly why a professional inspection during your due diligence period matters more than the disclosure form itself: it documents the home's actual condition independent of what anyone claims to have known.

How this connects to your inspection

Read the disclosure form before your inspection and flag anything vague or concerning for your inspector to look at closely — a seller who checked "unknown" next to "roof leaks" is telling you exactly where to look. If you're selling, see our guide on pre-listing inspections. Getting ahead of issues before they show up on a buyer's report, and potentially conflict with what you already disclosed, protects you on both fronts at once. Buyers across the river should note that Southern Indiana follows Indiana Code 32-21-5 instead, with its own form and rules.

Key takeaways

• KRS 324.360 requires most Kentucky residential sellers to complete the Seller's Disclosure of Property Conditions form before an offer is accepted.
• Sellers must disclose known conditions only — the form is not a warranty and doesn't replace an independent inspection.
• New construction, foreclosures, REO sales, estate transfers, and transfers between relatives are commonly exempt.
• Reading the disclosure before your inspection helps you flag specific areas for the inspector to examine more closely.