During the 2010 regular session, the Kentucky General Assembly passed H.B. 391, the Kentucky Condominium Act (“KCA”). The new law took effect on January 1, 2011, overhauling and replacing Kentucky’s outdated and inconsistent condominium laws. The KCA is a streamlined version of the Uniform Condominium Act, which has seventy-four sections in its first four articles. The KCA eliminated twenty sections and modified several others.

The KCA is divided into three sections. The first addresses the formation of a condominium regime, the second addresses the powers and duties of associations and boards of directors, and the third section addresses the rights of unit buyers. Together, these three sections provide substantially more direction for all parties involved with the creation, management and operation of condominiums in Kentucky.

The KCA includes significant changes to the language of the laws affecting condominiums, including expansion and clarification of the definition of the word condominium itself. The KCA also includes a mandatory timeline for the transition of control from a developer to an association and provides associations with a range of powers regarding the collection of delinquent fees and assessments. Further, the new law establishes the rights and responsibilities of unit owners and provides criteria regarding the sale of units by unit owners. The KCA also establishes a procedure for distribution of proceeds relating to common elements.

Another significant change under the KCA is the requirement of a seller’s “certificate”. This certificate is now required for all sales, including the original sale by the developer as well as any subsequent sale by a unit owner. Additionally, the law requires that the association provide the seller with much of the information to be included on the certificate. This requirement serves as the first real measure of consumer protection for condominium unit buyers in Kentucky.