Affidavit of Conversion to Real Estate

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This document is filed to execute a conversion of a manufactured home (mobile home) permanently to real estate.

• The Kentucky title must first be free of lien notations.
• Document must have signature of the owner(s), signature(s) notarized
• A Preparation Statement is not required

The Deed Book and Page Number of the property where the manufactured home is to be permanently affixed must be referenced; no legal description (as that required in a Deed) is required. The document along with a copy of the surrendered title is filed in the Miscellaneous book with the owner(s) indexed as the Party One/Grantor. Linking of the document to the Deed Book and Page source is helpful. This document must be filed in the county clerk’s office of the county where the property is located (or the greater part).

 

Assignment of Rents/Leases

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The document must have the following information:

The clerk shall request a return mail address.

The borrower must sign the document, and the signature must be acknowledged (notarized)

 

Condominium Deed

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The document must have the following:

• First party and their mailing address
• Second party and mailing address
• Description (unit number, condo name, etc)
• State that the property is “a condominium unit”
• Source of title must include the Book & Page reference to the master deed and the cabinet and slide to the floor plan
• Preparation Statement
• Consideration certificate
• In-care-of address for tax bill

The clerk shall request a return mail address.

The grantors must sign the deed and the signatures must be acknowledged (notarized). The grantor and grantee must sign the consideration statement & the signatures must be notarized. The document must be filed in the county clerk’s office of the county where the property is located (or the greater part).

Effective August 1, 2008 KRS 382.135 is amended to read a statement indicating the in-care-of address to which the property tax bill for the year in which the property is transferred may be sent is required for ALL deeds.

 

Condominium – Master Deed

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The master deed establishes a Horizontal Property Regime per KRS381.815 & 381.810. Definitions regarding the horizontal property are found in KRS381.810 & recording requirements are listed in KRS381.835.

The document must have:

• The name of the property owner
• The name of the condominium
• Description of the land
• General description and the number of each unit
• Description of the general common elements of the building
• Preparation Statement
• A set of the floor plans must be filed simultaneously with the master deed. These are recorded in the condominium plat records, or the regular plat records, if a separate set of plat records is not maintained.
• In-care-of address for tax bill

The property owner must sign the document, and the signature must be acknowledged (notarized).

Effective August 1, 2008 KRS 382.135 is amended to read a statement indicating the in-care-of address to which the property tax bill for the year in which the property is transferred may be sent is required for ALL deeds.

The clerk shall request a return mail address.

 

Consideration Certification

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Provides that a statement of consideration be on virtually all deeds. The Statement shall be sworn and notarized by both parties as to the true consideration in the deed.

A statement of the full consideration is required on all deeds except for the following:

1. Deeds which only convey utility easements;
2. Deeds which transfer property through a court action pursuant to divorce proceedings;
3. Deeds that convey right-of-ways that involve governmental agencies;
4. Deeds which convey cemetery lots; and
5. Deeds which correct errors in previous deeds, conveying the same property, from the same grantor to the same grantee.
6. Deeds which convey real property to a local airport board.**

In the case of a transfer other than by gift, or with nominal or no consideration a sworn, notarized certificate signed by the grantor or his agent and the grantee or his agent, or the parent or guardian of a person under eighteen (18) years old, that the consideration reflected in the deed is the full consideration paid for the property; or

In the case of a transfer either by gift or with nominal or no consideration, a sworn, notarized certificate signed by the grantor or his agent and the grantee or his agent, or the parent or guardian of a person under eighteen (18) years old, stating that the transfer is by gift and setting forth the estimated fair cash value of the property.

In the case of an exchange of properties, the fair cash value of the  property being exchanged shall be stated in the body of the deed.

In the event of a transfer of property by will or under the laws of intestate succession, the personal representative of the estate, prior to closing out the estate, shall file an affidavit with the county clerk.

OAG 96-21 Deeds of nominal or no consideration and deeds of gift require the statement stating the fair market value of the property.

**It is important to note that although the document does not require a consideration certificate, transfer tax is still due.  The preparer should offer some supporting documentation for the county clerk as it relates to real estate transfer tax due.

Contract for Deed (Land Purchase Contract)

Document must have:

• Name of seller
• Name of the buyer and their mailing address
• Legal description of the property (Common Law & OAG 81-100)
• Source of title
• Preparation Statement

The clerk shall request a return mail address.

Document must be: Signed and acknowledged (notarized) by both parties.

The title remains with the seller until the completion of the contract, at which time the seller must tender a deed to the buyer.

Transfer tax is then collected on the deed. It is not collected on the contract. Legal process tax is collected because the land contract is analogous to a mortgage and a conveyance has occurred.

 

Deed

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Recording of deeds, KRS382.110

The document must have:

• First party (seller, grantor) and their mailing address
• Second Party (buyer, grantee) and their mailing address
• Consideration statement
• Legal Description
• Source of title
• Preparation Statement
• Return mail address
• In-care-of address for tax bill

The grantor (seller) must sign the deed and the signatures must be acknowledged (notarized). The grantor (seller) & grantee (buyer) must sign the consideration statement and the signatures must be notarized. (KRS 382.135 & KRS382.120) The document must be flied in the county where the property is located (or greater part). KRS382.110

Effective August 1, 2008 KRS 382.135 is amended to read a statement indicating the in-care-of address to which the property tax bill for the year in which the property is transferred may be sent is required for ALL deeds.

Transfer tax is collected on the consideration in the deed per KRS142.050. The tax is computed at the rate of $.50 per $500 value or fraction thereof. (Example: A deed lists a purchase price of $10,000.00. The deed tax due would be $10.00 plus the filing fee.) The transfer tax applies to the value listed in the deed and is imposed upon the grantor (seller). KRS142.050 (7) lists the types of deeds that are exempt from this tax.

 

Deeds Executed in a Foreign Country

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Deeds not executed within the United States or any of its dependencies, may be, admitted to record when certified, under his/her seal of office, by any foreign minister, officer in the consular service of the United States, secretary of legation of the United States, or by the secretary of foreign affairs or a notary public of the nation in which the acknowledgement is made, or by the judge or clerk of a superior court of the nation where the deed is executed, to have been acknowledged or proven before him/her in the manner prescribed by law

 

Deed of Correction

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A deed of correction may be prepared to clear up a defect in title or to correct a mistake.

An example may be the number of acres or a source of title. A deed of correction does not convey interest in land. It is important to note that the original grantor (seller) and grantee (buyer) must be the same in the deed of correction. One cannot add, remove or change a grantor and grantee in a deed of correction. If the deed includes any other parties it is not a deed of correction.

The document must have:

• First Party (seller, grantor) and their mailing address (KRS 382.135, KRS382.200)
• Second Party (buyer, grantee) and their mailing address
• Consideration Statement
• Legal Description
• Source of title
• Preparation Statement
• Return mail address
• The reason for the correction must be apparent
• The document must state that it is a deed of correction and must refer to the deed it is correcting
• In-care-of address for tax bill

The grantor must sign the deed and the signatures must be acknowledged (notarized). The grantor and grantee must sign the consideration statement and the signatures must be notarized. The document must be filed in the county clerk’s office where the property is located.

Effective August 1, 2008 KRS 382.135 is amended to read a statement indicating the in-care-of address to which the property tax bill for the year in which the property is transferred may be sent is required for ALL deeds.

Transfer tax would apply only if the consideration amount has been changed.

 

Deed of Easements

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The document must have:

• Name of the grantor
• Name of the grantee and their mailing address
• Consideration statement signed by both parties and notarized*
• Legal description (Common Law and OAG 81-100)
• Address of each parcel
• Source of title
• Preparation Statement
• Return mail address
• In-care-of address for tax bill

* indicates Documents which convey only utility easements do not require a consideration statement.

Documents must be: signed and notarized in the same manner as a deed. The grantor must sign the easement and the signatures must be acknowledged (notarized). The grantor and grantee must sign the consideration statement and the signatures must be notarized.

Effective August 1, 2008 KRS 382.135 is amended to read a statement indicating the in-care-of address to which the property tax bill for the year in which the property is transferred may be sent is required for ALL deeds.

To be recorded in the deed book and indexed in the general index to deeds. Indexed under both parties and each parcel affected. The first party is the seller (grantor). The second party is the buyer (grantee).

 

Deed of Release

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Also known as:

• Deed of Release
• Satisfaction of Mortgage
• Discharge of Mortgage

The document must have the following information:

• Name of the person or entity releasing the obligation
• Name of the individual or entity being released
• The mortgage book and page reference being released, or the deed book and page in the case of a vendors lien
• Partial releases require a description of the property being released
• Release must state whole or partial release
• Preparation Statement

The clerk shall request a return mail address.

Document must be signed by the party or parties executing the release and the signature(s) notarized.

 

Deed of Trust or Assignment

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Also known as Bankruptcy Deed

The document must have:

• First Party (debtor seller, grantor) and their mailing address
• Second Party (Trustee) and their mailing address
• Consideration Statement/Fair Market Value would be applicable if real property is involved
• Legal description (Common Law) and OAG 81-100
• Source of title if applicable
• Preparation Statement
• Return mail address
• In-care-of address for tax bill

The grantor must sign the deed and signatures must be acknowledged (notarized). The grantor and grantee must sign the consideration statement and the signatures must be notarized. The document must be filed in the county clerk’s office of the county where the property is located (or the greater part).

Effective August 1, 2008 KRS 382.135 is amended to read a statement indicating the in-care-of address to which the property tax bill for the year in which the property is transferred may be sent is required for ALL deeds.

Deed Quit Claim

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A Quit claim deed is defined as follows:

A deed of conveyance operating by way of release; that is, intended to pass any title, interest or claim which the grantor may have in the premises, but not professing that such title is valid, no containing any warranty or covenants for title.

The purpose is for an individual to convey away any real or perceived interest in a piece of real estate and can encompass on property or all property in the county.

You do not receive the legal assurance of the general warranty of title when a quit claim deed is used.

Lease

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The document must have the following information:

• Name of the lessor
• Name of the lessee and their mailing address
• Legal description (Common Law and OAG 81-100)
• A Preparation Statement

The clerk shall request a return mail address.

Both parties must sign the document and the signatures must be acknowledged (notarized).

 

Power of Attorney

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Filing requirements for a power of attorney to convey or release property are the same as required for recording a deed.

Document must have the following information:

• Name of the person granting the power (grantor)
• Name of the person receiving the power (grantee)

The clerk shall request a return mail address.

Document must be: Signed and acknowledged (notarized) by grantor

There are two types of powers. A general power of attorney that grants full power and a specific that allows only specific acts.

Note: This document must be filed at the same time as recording a deed or mortgage signed by the power of attorney or the document must be on file in the county which the land record is being recorded.

Power of Attorney Revocation

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The document has the same requirements as a Power of Attorney.

Document must have the following information:

• Name of the person revoking the power attorney
• Name of the person being removed from the power attorney

Document must be: Signed and acknowledged (notarized) by the person revoking the power of attorney.

Deed Transfer Tax

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Transfer tax is collected on the actual consideration paid or to be paid in the deed, unless it is a gift

If the deed is a gift or indicates nominal consideration, the tax is paid on the estimated price the property would bring in an open market

The transfer tax is imposed upon the grantor.

The tax is computed at the rate of $.50 for each $500.00 of value or fraction thereof. A deed cannot be recorded unless the real estate tax has been collected. The tax required to be levied by this section shall be collected only once on each transaction and in the county in which the property is conveyed, or the greater of the property is located.

There are some exemptions from the deed transfer tax.  The following list is an example of common exemptions: deeds between husband and wife, or between former spouses as part of a divorce proceeding; a merger or consolidation between and among corporations, partnerships; under a foreclosure proceeding; between parent and child or grandparent and grandchild; between a trustee and a successor trustee.