Kentucky Modifies Provisions Regarding Right of Redemption
by: Zachary Pearlstein
The General Assembly of the Commonwealth of Kentucky has recently amended KRS 426.530, which describes the right of redemption of real property that has been sold in pursuance of a judgment or order of a court. The revisions are effective on July 14, 2014, or 90 days after legislative adjournment.
The update states that if the sale of property in pursuance of a judgment does not bring two thirds of its appraised value, the defendant and his or her representatives may redeem it within six months from the date of sale (previously the defendant was allowed one year to redeem). In order to redeem the property, the defendant must pay the original purchase money and 10% per annum interest on that amount. In addition, the update states that the defendant must also pay any reasonable costs incurred by the purchaser for the maintenance or repair of the property, including but not limited to utilities, insurance, association fees, taxes, and the costs to conform the property to the minimum standards of the local nuisance code as defined in KRS 82.7, and local ordinances as defined in KRS 65.8805.
Where there is a right of redemption, the purchaser is entitled to an immediate writ of possession and a deed containing a lien in favor of the defendant, showing the defendant’s right to redeem. The defendant must pay the redemption money to the clerk of the court where the order of sale was made, or the court in which the judgment was rendered. Upon payment by the defendant, the master commissioner will convey the real property to the defendant.
About the Author
Zachary Pearlstein, J.D. is Regulatory Compliance Consultant at Bankers Advisory. He is a graduate of Brandeis University and earned his Juris Doctor at Suffolk Law School. He is admitted to the Massachusetts Bar. Zachary can be reached at zachary@bankersadvisory.com
Zachary Pearlstein, JD, is a Regulatory Compliance Director with CLA's Mortgage Advisory Division. He joined CLA on January 1, 2014, as part of its acquisition of Bankers Advisory, Inc. Zachary oversees Mortgage Advisory's regulatory compliance team, which focuses on federal and state compliance, fair lending, and the Home Mortgage Disclosure Act (HMDA). He is a graduate of Brandeis University and earned his juris doctor at Suffolk University Law School. He is admitted to the Massachusetts Bar.
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