UNOFFICIAL COPY 25 RS BR 1063
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AN ACT relating to real property purchased at a master commissioner's sale. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 91.514 is amended to read as follows: 3
(1) (a) Upon the confirmation of the sale by the court and the expiration of the right 4
of redemption provided in KRS 91.511, the title to any real estate purchased 5
from the master commissioner pursuant to KRS 91.481 to 91.527 shall vest in 6
the purchaser. 7
(b) The title of the real estate shall be an absolute estate in fee simple, subject to 8
rights-of-way of public utilities on which tax has been otherwise paid and 9
subject to any right of redemption of the United States of America[, if any]. 10
(c) All persons, including the Commonwealth of Kentucky, infants, 11
incompetents, absentees, and nonresidents who may have had any right, title, 12
interest, claim or equity of redemption in or to, or lien upon the land shall be 13
barred of all right, title, interest, claim, lien or equity of redemption, and the 14
court shall order that immediate possession of the real estate be given to the 15
purchaser. Any person so barred shall thereafter have as his or her exclusive 16
remedy a claim for a share of the proceeds of the sale of the real estate by the 17
master commissioner. 18
(2) The title shall be subject to the liens of any tax bill which may have attached to the 19
parcel of real estate prior to the time of the filing of the petition affecting the parcel 20
of real estate not then delinquent, or which may have attached after the filing of the 21
petition and prior to the expiration of the period provided for redemption and not 22
including any answer to such petition. 23
(3) If the parcel of real estate is sold to the city or to a land bank authority created 24
pursuant to KRS 65.350 to 65.375, the title shall be free of any liens to the extent of 25
the interest of any taxing authority in any such real estate. 26
(4) The title shall not be subject to the lien of special tax bills which have attached to 27 UNOFFICIAL COPY 25 RS BR 1063
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the parcel of real estate but the lien of the special tax bill shall attach to the 1
proceeds of the master commissioner's sale or to the proceeds of the ultimate sale of 2
the parcel by the city. 3
(5) Failure of any party other than the purchaser to follow the procedures set out in 4
KRS 91.484 to 91.527 shall not affect the vesting of title in the purchaser. 5
(6) (a) 1. Except as provided in subparagraphs 2. and 3. of this paragraph, any 6
purchaser who obtains title to real property under this section, which 7
had been occupied at any time within the two (2) years prior to the 8
time the collector of taxes filed the list of unpaid tax bills as required 9
under KRS 91.484, shall: 10
a. Begin renovation of the property no later than six (6) months 11
after obtaining title; and 12
b. i. Return the property to a state of occupancy no later than 13
eighteen (18) months after obtaining title; or 14
ii. If subject to a land bank authority established pursuant to 15
KRS 65.210 to 65.300 and 65.350 to 65.375, within the 16
period of time required by the authority for returning the 17
property to effective utilization for the county in which the 18
property is located. This date may be extended if the land 19
bank authority provides a process for an extension of this 20
time period and a project extension application with all 21
required documentation has been filed with the appropriate 22
authority, or other procedural requirements have been met, 23
and approval of the extension is pending or has been 24
granted. 25
2. If the property obtained under subparagraph 1. of this paragraph is 26
subject to an existing lease at the time of sale, the time required for the 27 UNOFFICIAL COPY 25 RS BR 1063
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purchaser to begin renovation and return the property to a state of 1
occupancy shall not begin until the end of the lease period, with the 2
remaining lease period not to exceed eleven (11) months. 3
3. If the property obtained under subparagraph 1. of this paragraph is 4
subject to the six (6) month right of redemption under KRS 426.530, 5
the time required for the purchaser to return the property to a state of 6
occupancy shall not begin until the end of the redemption period. 7
4. Establishing occupancy under subparagraph 1. of this paragraph may 8
be offered by affidavit of the master commissioner, sheriff, appraiser, 9
or other person designated by the court. 10
(b) As used in this subsection, "state of occupancy" means: 11
1. Actual occupancy of the property by the purchaser or by a lessee 12
pursuant to a long-term lease or any short-term rental agreement as 13
may be authorized by local zoning provisions; or 14
2. Actively marketing the property for sale or rent. As used in this 15
subparagraph, "actively marketing the property" means: 16
a. A "for sale" or "for rent" sign has been prominently placed on 17
the property with accurate contact information; 18
b. If the owner has engaged the services of a licensed real estate 19
agent, the agent has complied with the requirements of KRS 20
324.117; and 21
c. The owner has continued to make a good-faith effort to sell or 22
rent the property at a price that reflects the circumstances and 23
market conditions until rented or sold for immediate occupancy. 24
(c) Failure to comply with this subsection: 25
1. Shall result in a fine in the amount of one hundred dollars ($100) per 26
day for each day of violation, payable to the chief financial officer of 27 UNOFFICIAL COPY 25 RS BR 1063
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the local government in which the property is located; and 1
2. May result in an order of sale of the property under KRS 426.205. 2
(d) This subsection shall only apply to residential property located in a county 3
that has a land bank authority created pursuant to KRS 65.210 to 65.300 4
and 65.350 to 65.375. 5
(e) This subsection shall not apply to vacant lots or residential property that is 6
delipidated or deteriorated to the extent it cannot be returned to a state of 7
occupancy. 8
SECTION 2. A NEW SECTION OF KRS CHAPTER 426 IS CREATED TO 9
READ AS FOLLOWS: 10
(1) (a) Except as provided in paragraph (b) of this subsection, any purchaser who 11
obtains title to real property sold under an order or judgment of a court, 12
other than an execution, by a commissioner or other officer selling the 13
property, which had been occupied at any time within the two (2) years prior 14
to the time of the appraisal required under KRS 426.520, shall: 15
1. Begin renovation of the property no later than six (6) months after 16
obtaining title; and 17
2. a. Return the property to a state of occupancy no later than 18
eighteen (18) months after obtaining title; or 19
b. If subject to a land bank authority established pursuant to KRS 20
65.210 to 65.300 and 65.350 to 65.375, within the period of time 21
required by the authority for returning the property to effective 22
utilization for the county in which the property is located. This 23
date may be extended if the land bank authority provides a 24
process for an extension of this time period and a project 25
extension application with all required documentation has been 26
filed with the appropriate authority, or other procedural 27 UNOFFICIAL COPY 25 RS BR 1063
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requirements have been met, and approval of the extension is 1
pending or has been granted. 2
(b) If the property obtained under paragraph (a) of this subsection is subject to: 3
1. An existing lease at the time of sale, the time required for the 4
purchaser to begin renovation and return the property to a state of 5
occupancy shall not begin until the end of the lease period, with the 6
remaining lease period not to exceed eleven (11) months. 7
2. The six (6) month right of redemption under KRS 426.530, the time 8
required for the purchaser to return the property to a state of 9
occupancy shall not begin until the end of the redemption period. 10
(2) As used in this section, "state of occupancy" means: 11
(a) Actual occupancy of the property by the purchaser or by a lessee pursuant 12
to a long-term lease or any short-term rental agreement as may be 13
authorized by local zoning provisions; or 14
(b) Actively marketing the property for sale or rent. As used in this paragraph, 15
"actively marketing the property" means: 16
1. A "for sale" or "for rent" sign has been prominently placed on the 17
property with accurate contact information; 18
2. If the owner has engaged the services of a licensed real estate agent, 19
the agent has complied with the requirements of KRS 324.117; and 20
3. The owner has continued to make a good faith effort to sell or rent the 21
property at a price that reflects the circumstances and market 22
conditions until rented or sold for immediate occupancy. 23
(3) Failure to comply with this section: 24
(a) Shall result in a fine in the amount of one hundred dollars ($100) per day 25
for each day of violation, payable to the chief financial officer of the local 26
government in which the property is located; and 27 UNOFFICIAL COPY 25 RS BR 1063
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(b) May result in an order of sale of the property under KRS 426.205. 1
(4) This section shall only apply to residential property located in a county that has a 2
land bank authority created pursuant to KRS 65.210 to 65.300 and 65.350 to 3
65.375. 4
(5) This section shall not apply to vacant lots or residential property that is 5
delipidated or deteriorated to the extent it cannot be returned to a state of 6
occupancy. 7