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 County
  • 2015 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 charge a seperate Premium tax in KY.
  • 2015 Premium Tax Rates Use "All Other Risk" Column

Commitment/Policy Special Requirements

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

Post Closing Requirements

• Recon follow up required --