Buying a home can be one of the most important steps in your life and the lives of your family and it's a step you don't want to take lightly. It's important to understand the real estate law in Kentucky before you venture too far into the real estate buyer's market.
Real estate agents in Kentucky can represent either the buyer or the seller or both; but under law, they must provide you consumer's guide and disclosure explaining these agent options and stating whether he is representing anyone in the sale. The agent has a fiduciary duty to the parties he represents. You may opt to hire a buyer's agent who will specifically look out for your interests when you purchase a home.
When you decide to buy a home, the owner must provide you with a disclosure of any problems that may exist with the home. This is a very important step because you don't want to end up with a home that could cause you some unexpected and expensive repairs down the road. In Kentucky this document is called a Seller Disclosure of Property Condition form and it will inform you of any problems. The home inspection process is a crucial part of the buying process. An inspection is a thorough examination of all the essential components that make up a house from foundation, plumbing and heating, and right up to the condition of the roof. Understanding real estate law in Kentucky can help you to avoid the dangers of buying a home with serious problems.
Be aware that often a property may have a lien against it meaning that a charge is placed against property due to a past debt of the current owner. These liens are public record and can include past taxes, judgments and mortgages.
Closing costs in Kentucky can include title search, appraisal, credit reports, attorney fees and the cost of the home inspection. Your portion of the closing fees will depend on an agreement you made previously with the seller. You may be able to negotiate to have the seller pay all the closing costs or at least a portion of them. A mortgage is basically a promissory note that you must sign before you can take possession of your new home. You agree to specific terms set forth by the lender that puts up the money for the property. The lender will keep the original document until the loan is paid in full. Before you sign any documents it's important to consult with an attorney experienced with real estate law in Kentucky.