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Kentucky · TitleKentucky private transfer fees: prohibited since April 11, 2012

On and after April 11, 2012, private transfer fee obligations are prohibited in Kentucky, whether recorded or not, and any contract, covenant or other instrument that attempts to create one is void and unenforceable as against public policy. A person who records or enters into an agreement imposing a private transfer fee obligation in its own favor is liable for all damages from imposing it on a transfer, including the amount of any fee a party paid, and for the attorneys' fees, expenses and costs a party to the transfer or a mortgagee incurs to recover the fee or in a quiet title action; when an agent acts for a principal, the principal is liable rather than the agent. Any provision that purports to waive a buyer's rights under the statute is void (KRS 382.794).

What the statute sets

  1. Prohibited (KRS 382.794(1))

    Since April 11, 2012, recorded or not; the creating instrument is void.

  2. Liability (KRS 382.794(2))

    Damages, the fee paid, attorneys' fees and quiet title costs; the principal, not the agent.

  3. No waiver (KRS 382.794(3))

    A clause waiving the buyer's rights is void.

What the TC does with a transfer fee covenant in Kentucky

  • Read the title commitment's exceptions for any transfer fee covenant or notice.
  • Ask the title company whether the statute makes it void and what it needs to insure over it.
  • Don't put the fee on the settlement statement until the title company confirms it is owed.

Questions about private transfer fees in Kentucky

Can a Kentucky buyer agree to pay a private transfer fee?

No. A provision that purports to waive the buyer's rights under the statute is void (KRS 382.794(3)).

Does it matter whether the Kentucky fee covenant was recorded?

No. Private transfer fee obligations are prohibited since April 11, 2012, whether recorded or not (KRS 382.794(1)).

Related guides

Track each title exception and the title company's decision as tasks in ClosingCode.

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Source: KRS 382.794 (apps.legislature.ky.gov), read October 30, 2026.

General information, not legal advice. ClosingCode is software; it is not a law firm or brokerage. This guide is not a substitute for the advice or services of an attorney.