Key Takeaways
- The trigger is a paid licensee: KRS 324.360 covers single-family residential sales when anyone licensed under KRS Chapter 324 receives compensation.
- The clock starts at the listing: the seller signs KREC Form 402 with the listing agreement, and the listing agent delivers it within 72 hours of receiving a written, signed offer.
- Fixed problems still count: several sections ask about problems “whether or not they have been corrected.”
- The duty runs to closing: the form tells sellers to notify the buyer in writing right away if something changes before closing.
- No agent, no form, but not no risk: a direct sale sits outside KRS 324.360, but lead paint rules, the meth notice law, and fraud claims still apply.
Kentucky seller disclosure requirements come from one statute and one state form. KRS 324.360 requires the seller to complete the Seller's Disclosure of Property Condition, KREC Form 402, when a real estate licensee is paid on a single-family sale. The form runs five pages and asks about everything from the roof's age to whether the house sat empty for three months.
This guide covers when the form applies, the deadlines, the exemptions, each section, and what changes in a direct sale.
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Let's chatWhat Are Kentucky Seller Disclosure Requirements?
Kentucky seller disclosure requirements apply to sales of single-family residential dwellings when any person licensed under KRS Chapter 324 receives compensation (KRS 324.360(1)). In plain terms, if a real estate agent or broker is getting paid on the deal, the seller fills out the state form.
Subsection (3) sets the floor: basement and roof condition and leaks, water supply, sewage service, and component systems. The Kentucky Real Estate Commission (KREC) may add other matters.
Which regulation sets the form
The current form is KREC Form 402, revision 12/2022. It is incorporated by reference in Section 11 of 201 KAR 11:121, the Commission's standards of professional conduct, last amended effective May 2, 2023. Older guides cite 201 KAR 11:350, but the Legislative Research Commission now lists that regulation as repealed.
The form says that completing it “shall satisfy the requirements of KRS 324.360” (KREC Form 402). It also says it “shall not be a warranty by the Seller or real estate agent” and is no substitute for an inspection.
Single-family in the statute, broader for agents
The statute says single-family, but the Commission's conduct rule reaches further. A licensee must direct a seller-client of a single-family house, duplex, triplex, fourplex, condominium, or townhouse to complete the form (201 KAR 11:121, Section 4). If you list a duplex with an agent, expect to fill it out.
When Is the Seller's Disclosure of Property Condition Due in Kentucky?
In Kentucky, the seller signs the Seller's Disclosure of Property Condition at the same time as the listing agreement. The listing agent then delivers a copy within 72 hours of receiving a written, signed offer (KRS 324.360(4)).
A buyer can also ask for the form before making any offer, and the listing agent has to provide it on request. The agent then asks the buyer to sign a copy for the broker's records.
For-sale-by-owner with an agent on the other side
A seller without a listing agreement can still land inside the statute. If any licensee is involved, that licensee must hand the owner a blank form and ask the owner to complete it (KRS 324.360(5)). If the owner does, the licensee delivers it no later than 120 hours after a sales contract exists.
That order matters. In a for-sale-by-owner deal with a buyer's agent, the buyer may see the disclosure after signing the contract.
When the seller refuses
A seller can decline to fill out the form, and the form has a checkbox for that choice. The broker or sales associate must then tell the buyer in writing “without unreasonable delay” (KRS 324.360(8)). KREC defines that as within 72 hours of the listing agent's receipt of a written, signed offer (201 KAR 11:011).
Refusing is allowed, but buyers notice it and often dig harder during inspection.
Which Kentucky Sales Are Exempt From Form 402?
The statute names three exemptions: the form “shall not be required for residential purchases of new homes if a warranty is offered, for a sale of real estate at an auction, or for a court supervised foreclosure” (KRS 324.360(7)).
The bigger exemption is built into the scope. Subsection (1) limits the whole statute to sales where a licensee receives compensation. An owner who sells directly to a buyer, with no agent paid on either side, is outside KRS 324.360.
Estate sales are not on the exemption list. An executor who lists an inherited house with an agent still faces the form, even without ever living there. Our guide to selling an inherited house in Kentucky covers the executor's power to sell.
An agent cannot fill it in on their own
A licensee may not complete any part of the form unless the licensee owns the property or the owner asked. The request must be acknowledged in writing on the form (KRS 324.360(9)). Form 402's certification section has a box for this, where the seller agrees to hold the agent harmless for what appears on it.
Inside KREC Form 402, Section by Section
KREC Form 402 has 14 numbered sections: 13 sets of questions and a signature page. Most questions offer four boxes: N/A, yes, no, and unknown.
1. Preliminary disclosures
The form opens with your history in the house: whether you lived there, when you bought it, and whether you own it personally or through a company. It then asks whether the house was ever a rental or sat vacant more than three consecutive months. That vacancy question catches many heirs and landlords.
2. House systems
Section 2 lists 12 systems, from plumbing and electrical to the sump pump and chimneys, and asks the ages of the heating system, cooling system, and water heater. The lead-in reads “whether or not they have been corrected.” A problem you already fixed still gets a yes and a short explanation.
3. Building structure and basement
Section 3 asks about the foundation, exterior veneer, floors, walls, doors, and windows. The basement questions ask whether it ever leaked, when it last leaked, what was repaired, and how often it leaks now. The form's own examples are “every time it rains” and “only after an extremely heavy rain.” It also asks about crawl space water, wood rot, and termites.
4. Roof
The roof section asks the covering's age, whether it leaked before or during your ownership, and whether it was repaired or replaced. One question targets patch jobs: repairs that placed shingles instead of replacing the whole covering.
5. Land and drainage
Item 5(a) asks about problems, corrected or not, with soil stability in 5(a)(1), drainage, flooding, or grading in 5(a)(2), and erosion in 5(a)(3). Item 5(b) asks whether the house sits in a Special Flood Hazard Area that requires flood insurance for federally backed mortgages. Item 5(c) asks about a pond, creek, or spring on or next to the lot.
This is where karst shows up on paper. About 55 percent of Kentucky sits on rock that could develop karst, and 25 percent has well-developed karst features (Kentucky Geological Survey, January 2023). A sinkhole in the yard, even a filled one, belongs under soil stability. Our guide to selling a Bowling Green house on karst walks through those answers.
Flood history matters too. After the July 2022 eastern Kentucky floods, “only 5 percent of damaged homes had flood insurance” (Federal Reserve Bank of Cleveland, September 2023). Uninsured flood damage leaves no claim record, but it still belongs in item 5(a)(2) if you know about it.
6 to 8. Boundaries, water, and sewer
Section 6 asks about surveys, boundary markers, encroachments, and unrecorded easements. Section 7 asks the water source, whether pressure runs low, and whether the water was tested. Section 8 asks you to pick one of seven sewer categories, from a public treatment plant (Category I) to septic with a drain field (Category V). Septic and home aerobic systems also list the last inspection date.
9 and 10. Remodeling and HOA
Section 9 asks about additions and structural changes and whether permits were obtained. Section 10 covers HOA rules, dues, pending assessments, shared driveways, and pet or rental limits. A condominium seller also completes KREC Form 404, the Condominium Seller's Certificate.
11. Hazardous conditions
Section 11 asks about underground tanks, old septic tanks, cisterns, abandoned wells, and hazards such as asbestos. It then prints three notices with their own questions. Lead paint asks whether the house predates 1978 and whether you know of lead-based paint. Radon asks about any testing, the results, and whether a mitigation system works.
The meth notice is the strictest line on the form. An owner who chooses not to decontaminate a property used to make methamphetamine “MUST make written disclosure” under KRS 224.1-410(10). The form adds that failure to disclose is “a Class D Felony under KRS 224.99-010.”
12 to 14. Miscellaneous, additional information, and signatures
Section 12 asks about legal actions, special assessments, code violations, fire or disaster damage, mold, pets, and historic status. Section 13 asks whether you know anything else a buyer should be told. In Section 14, the seller certifies the answers, authorizes the agent to fill them in, or refuses.
| Form 402 section | What the seller must answer | What commonly trips sellers up |
|---|---|---|
| 1. Preliminary disclosures | Occupancy, purchase date, ownership type, rental use, vacancy over three months | Heirs and landlords skipping the vacancy question |
| 2. House systems | Problems with 12 systems, plus the age of the heating, cooling, and water heater | Leaving off a problem that was already fixed |
| 3. Building structure | Foundation, walls, basement leaks and frequency, crawl space water, rot, termites | Calling a basement dry because it only leaks after heavy rain |
| 4. Roof | Age, past leaks, repairs, replacement, patching | Guessing the roof age instead of marking unknown |
| 5. Land and drainage | Soil stability, drainage, flooding, erosion, flood zone, nearby water | Treating a filled sinkhole or old flood repair as history |
| 6. Boundaries | Surveys, markers, encroachments, unrecorded easements | A neighbor's fence or shared driveway nobody wrote down |
| 7-8. Water and sewer | Water source, pressure, testing; one of seven sewer categories | Guessing the sewer category |
| 9. Construction and remodeling | Additions, alterations, permits | Unpermitted basement finishes or porch enclosures |
| 10. HOA | Rules, dues, assessments, shared features; Form 404 for condos | Forgetting an announced special assessment |
| 11. Hazardous conditions | Tanks, wells, pre-1978 lead paint, radon, meth | Marking no on radon when a past test exists |
| 12-13. Miscellaneous and additional | Legal action, code violations, disaster damage, mold, anything else | Leaving off an open code violation |
| 14. Certification | Seller signs, authorizes the agent, or refuses | Forgetting the buyer is told of a refusal in writing |
Best of Your Knowledge, Unknown, and Updates Before Closing
Form 402 answers rest on what you actually know as the seller. The form says answers “must be based on the best of your knowledge of the property you are selling, however and whenever you gained that knowledge.”
A report you read, a repair you paid for, or a neighbor's warning all count. The instructions say to report known conditions “regardless of how you know about them or when you learned.”
When unknown is the right answer
Instruction 6 says to mark “unknown” if you truthfully do not know. It fits an heir who never lived in the house. It does not fit a problem you know about and would rather not discuss.
The form also presumes, unless otherwise advised, that the seller has no construction expertise and has not inspected the foundation or roof. You are not expected to crawl under the house to answer.
The duty to update before closing
The form does not freeze on the day you sign it. Instruction 7 says to notify your agent or any potential buyer in writing, immediately, if a fact learned before closing changes an answer. A basement that floods between contract and closing is the classic example.
Lead Paint and Meth: Two Duties That Apply Without an Agent
Two disclosure duties apply whether or not an agent is paid: the federal lead-based paint rule for pre-1978 housing and Kentucky's methamphetamine contamination notice.
Federal lead paint disclosure
For housing built before 1978, federal law applies before the buyer is bound by a contract (40 CFR Part 745, Subpart F). The seller gives the buyer an EPA-approved pamphlet, discloses known lead-based paint, and hands over available reports. The buyer gets 10 days to test unless waived or changed in writing (40 CFR 745.110).
Methamphetamine contamination
Under KRS 224.1-410(10), an owner selling property after a meth contamination notice was posted must tell the buyer in writing that it is contaminated and not decontaminated. Skipping that notice is a Class D felony (KRS 224.99-010(15)). No notice is needed once the state cabinet releases the decontaminated property.
Do You Need Form 402 to Sell a Kentucky House Without an Agent?
You do not need Form 402 when no agent is paid on either side, because KRS 324.360 applies only when a licensee receives compensation.
That does not make honesty optional. Even when Kentucky's disclosure form is not required, sellers can face fraud claims for hiding known defects. The lead paint and meth rules still apply, and a purchase contract can require disclosures of its own.
A direct buyer may still ask for a completed Form 402, since it is the checklist Kentucky buyers know. An honest copy is a written record of what you told the buyer. Ask a Kentucky attorney about any answer you are unsure of.
Why as-is does not erase known defects
As-is means the seller makes no repairs. It does not let a seller hide a known problem. Disclose what you know, then let the price reflect it.
How a Cash Offer Uses Your Kentucky Disclosure Answers
A direct cash buyer typically uses your disclosure answers to price the house once, up front, instead of renegotiating after an inspection.
In a listed sale, a disclosed wet basement or old roof often turns into a repair request, a credit, or a lender condition. Kentucky houses sold in May 2026 spent a median 45 days on market, and 30.3 percent of listings had a price drop (Redfin Data Center, May 2026). Disclosed defects can push a given house past both numbers.
The math also depends on price point. The typical Kentucky house is worth about $232,577, down 0.4 percent from a year earlier (Zillow Home Value Index, August 2026). A major foundation or roof problem takes a larger share of that value than it would in a higher-priced state.
Propcash is a direct cash homebuyer that makes offers as a principal. You can share what you know about the house, including anything on Form 402, and see one cash offer with the reasoning shown. Cash closings can happen in as few as 7 days, with a closing attorney or title company handling the paperwork.
To see your options, get a cash offer and compare it with what a listing would net after repairs. If a cash sale is not your best move, Propcash will say so and point you to a local agent. We may receive compensation from agents we refer. For more, see our Kentucky seller resources and our page on selling a house that needs major repairs.
Why wait? Sell your house “as is” for cash today
Tell us about your house. We'll make you a cash offer based on local market data.
Let's chatFrequently Asked Questions
When does a Kentucky seller have to complete the disclosure form?
The seller completes and signs KREC Form 402 when signing the listing agreement, under KRS 324.360(4). The listing agent must deliver a copy to a buyer within 72 hours of receiving a written, signed offer. A buyer can also ask for a copy before making any offer.
Is the Seller's Disclosure of Property Condition required in a Kentucky for-sale-by-owner sale?
Only if a licensee is involved and paid. Under KRS 324.360(5), that licensee gives the owner a blank form and asks the owner to complete it. If the owner does, the licensee delivers it within 120 hours after the sales contract exists. With no licensee paid on either side, the statute does not apply.
Which Kentucky sales are exempt from the seller disclosure form?
KRS 324.360(7) says the form is not required “for residential purchases of new homes if a warranty is offered, for a sale of real estate at an auction, or for a court supervised foreclosure.” The statute also reaches only sales where a licensee receives compensation. Estate sales handled through an agent are not on the exemption list.
Does a Kentucky seller have to disclose a problem that was already repaired?
Yes, for many items. Form 402's house systems, building structure, and land and drainage sections ask about problems “whether or not they have been corrected.” The seller marks yes and explains the repair in the space provided.
What should a Kentucky seller do if a new problem appears before closing?
Tell the buyer in writing right away. Form 402's instructions and seller certification both call for immediate written notice of any fact learned before closing that changes an answer.
Does selling directly to a cash buyer remove Kentucky disclosure duties?
It removes the KRS 324.360 form requirement when no licensee is paid, but not every duty. Federal lead paint rules for pre-1978 houses and Kentucky's meth contamination notice still apply, and sellers can face fraud claims for hiding known defects. Propcash can review what you disclose and price it into one cash offer.
Data Sources: KRS 324.360, 224.1-410, and 224.99-010; 201 KAR 11:121 and 11:011; KREC Form 402 (12/2022); 40 CFR Part 745; Kentucky Geological Survey; Federal Reserve Bank of Cleveland; Redfin; Zillow. Propcash is a direct cash homebuyer, not a law firm. Consult a Kentucky-licensed attorney about specific disclosure questions.