Kentucky Rent-to-Own Lease Agreement

Requirement to Record: Options are not required to be recorded, but may be. An option must be recorded to create constructive notice. ^[1]

Expiration: Kentucky law does not define an expiration for constructive notice.

Maximum Term: There is no maximum permitted term.

No Duration: Kentucky case law suggests that a contract without a specified duration may be held invalid by a court.^[2] However, an option to purchase that is part of a lease agreement will expire at the end of the lease if no term is defined.

Signing Requirements: Must be in writing and signed by the seller.^[3]

1. Authorized Access – The landlord must describe and mention in the lease individuals allowed onto the property, such as managers, agents, etc.^[4]

2. Lead-Based Paint Disclosure & EPA Pamphlet – A law created by the Federal Environmental Protection Agency (EPA) that requires the landlord to provide notice to the tenant about the paint on the property’s interior. Only required for buildings constructed prior to 1978.

3. Move-In Inspection Form – If a security deposit is accepted, the landlord is required to report the pre-existing damage on the property. The tenant should verify the report and sign it.^[5]

4. Security Deposit Receipt – If a security deposit is accepted, the landlord must state where the deposit is being held and include the bank’s account number.^[6]

1. Seller’s Disclosure of Property Condition (required) – As Kentucky is not a buyer-beware state, the seller of a residential property must provide the buyer with full disclosure of the condition of the property prior to signing a purchase agreement.