Kentucky · RentalsKentucky tenant security deposits when selling a rental: the account, the damage listings and the notice of sale

Every Kentucky landlord of residential property that requires a security deposit before occupancy must keep the deposits in an account used only for that purpose, at a bank or lending institution regulated by Kentucky or a federal agency, and tell prospective tenants where the account is and its number. Before taking the deposit, the landlord gives the tenant a listing of existing damage with estimated repair costs, and at the end of the occupancy the landlord inspects and compiles a final listing; both are signed by landlord and tenant, or the tenant signs a specific written dissent. A landlord that didn't use a separate account and provide both listings can't keep any part of the deposit (KRS 383.580). The Uniform Residential Landlord and Tenant Act applies only where a city, county or urban-county government has adopted it in its entirety (KRS 383.500). Where it applies, unless otherwise agreed, a landlord who conveys the premises in a good-faith sale to a bona fide purchaser is relieved of liability under the rental agreement and the Act as to events occurring after written notice of the conveyance to the tenant (KRS 383.600(1)).