KY Operations Summary

Licensed Entity:

• WFGNTIC/WFG LS
• See Attached HUD Sample for Additional Information File:Kentucky HUD-1.pdf

Banking Information

• 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

Payment Customs

• 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.

Escrow/Settlement

• 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

Audits

• Required -- No

Recording Process

• E-recording --
• Record before disbursement --
• Special recording procedure -- Consideration statement for deeds

Recording/Document Requirements

• 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: --

Document Types

• Conveyance -- Warranty Deed, Limited Warranty Deed, Quitclaim Deed
• Security Instrument -- Mortgage
• Release -- Release

Tenancies

• Tenants in Common -- Yes
• Joint Tenants -- No
• Tenancy by Entireties -- Yes – can be created
• Community Property -- No
• Homestead -- Yes
• Joinder of Non-titled Spouse -- Yes

Taxes

• 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.

Commitment/Policy Special Requirements

• Who can sign Commitment/Policy -- No restrictions
• Other --

Post Closing Requirements

• Recon follow up required --