KY Operations Summary

Licensed Entity:

Bank account -- <<INSERT ACCOUNT #/ROUTING #/BANK NAME>>
Checks stale dated after -- ___ days of issuance
Good Funds Law -- No statute
Disbursements Requirements --
Special Bank Requirements (IOLTA/IOTA/OTHER or account specific to that state’s funds) -- None

Buyer customarily pays for Owner’s policy
Seller pays Transfer Tax -
Buyer pays deed and mortgage recording fees; Seller pays recording fee for the release of existing mortgage(s)
Buyer pays Survey Charges
Customarily the Buyer pays the majority of the closing fee, with perhaps a small part paid by the seller; it can vary between closers and areas of the state.

Who can prepare the HUD -- No restrictions
Who can sign the HUD (EO/LTP/Attorney) -- No restrictions
Who orders hazard insurance -- Customary -
When is transaction consummated for new HUDS --
Record before/after disburse -- Disburse then record
Filed/restricted escrow rates -- No
Record retention requirements -- No statutes
Is an attorney involved in the closing -- No
Who can handle loan document signing -- Notary
Doc Prep Restrictions -- Doc Prep is UPL
Use Escrow Instructions or not -- No
Use Estimated HUD or Final -- Final
Pass-thru charges -- No restrictions
Rates Inclusive or not -- Not inclusive. Customary to charge a separate title search fee (which can be called an “exam” fee). Kentucky is not an “all-inclusive” premium state.
Up Charging -- No restrictions
Junk Charges -- No restrictions
Special HUD Requirements -- None – BUT Premium Taxes in KY by City & County
- 2018 Premium Tax Rates Use "All Other Risk" Column
Special Disclosures -- None
CPL --
UPL Issues -- Doc Prep is UPL
Joinder of non-titled spouse -- Yes
Survey Required -- OP – Yes for extended coverage; LP – no

Marital Status Stated -- Not required
Transfer Tax -- Yes Transfer tax is uniform across the state. Transfer tax is imposed at fifty cents for each $500 of value as declared in the deed. KRS 142.050(2). See KRS 142.050(7) for exceptions.

Mortgage Tax -- No
Address for grantor/grantee/property -- Grantee required
Witnesses -- None Required for deeds and mortgages, both must be acknowledged. KRS 382.270.
Names typed/printed -- Yes
Prepared by/return to -- Name, address, signature
Notary Stamp/requirements --
Parcel or tax index number -- 1st page
Recitation of Consideration -- Required
Derivation Clause -- Required
Corporate Signatures/Attestation --
Ink Color/Font -- Black/8 pt minimum
Legal Description -- State/county/municipality in 1st paragraph
Margins -- 2” 1st page, 1” all other
Other Special Recording: --

Taxes Levied --
Taxes due -- 9/15
Delinquent -- 1/1 KRS 134.020
City taxes should be verified directly with the particular city, as their schedules may vary.
Cities and counties may charge a seperate Premium tax in KY. It is the responsibility of the agent to track and charge these
- 2018 Premium Tax Rates Use "All Other Risk" Column

- If both a county and a municipality are charging a tax – sometimes they stack and charge both, sometimes charge the higher and split between them. depends on when the ordinance was enacted. KRS 91A.080(12) requires insurance companies to credit city license fees or taxes against the county license fees or taxes imposed for the same license fees or taxes imposed by the county. This credit only applies if the county ordinance was enacted on or after July 13, 1990. DOI Source

- The following information is from 2012 so may not be current.
  - Kenton County tax has ONLY been imposed on all unincorporated areas within the county. The following incorporated cities that do not impose a tax are exempt from the Kenton County premium tax: Crestview Hills, Edgewood, Fairview, Independence and Kenton Vale.

- - Some counties charge a higher premium tax than the cities located within their county. In these instances, the county tax is collected and the city tax is paid with the remainder of the tax paid to the county. Those counties are as follows: COUNTY CITY/CITIES Bullitt 5% Hebron Estates 3%; Mt. Washington 4%; Shepherdsville 4% Mason 7% Dover 5% Meade 5% Ekron 3% Pulaski 5.5% Science Hill 5% Example: Bullitt County premium tax is 5%. City of Shepherdsville receives 4% and Bullitt County receives 1% for a total tax collected of 5%.

- - There are three (3) cities and counties where you must collect premium taxes from each: City of Lawrenceburg 8% and Anderson County 4% City of Hickman 3% and Fulton County 3% City of Springfield 6% and Washington County 4% Example: City of Hickman receives 3% and Fulton County receives 3% for a total tax collected of 6%. When both city and county premium taxes are charged, both the code and amount for each must be set out on your policy.