{"data":{"id":"us-ky/krs-367.354","jurisdiction":"us-ky","citation":"KRS 367.354","heading":"Residential real property service agreements -- Prohibitions --","body":"Applicability -- Enforcement and penalties -- Administrative regulations.\n(1) As used in this section:\n(a) \"Residential real property\" means real property located in this state that is:\n1. Used primarily for personal, family, or household purposes; and\n2. Improved by one (1) to four (4) dwelling units;\n(b) \"Service agreement\" means an agreement under which an owner of residential\nreal property is required, in connection with the purch ase or sale of the\nproperty, to:\n1. Pay a real estate sales commission to a specified service provider;\n2. Use a specified service provider to list the property for sale; or\n3. Receive other real estate brokerage services from a specified service\nprovider; and\n(c) \"Service provider\" means a person, as defined in KRS 367.110, that:\n1. Is entitled to a real estate sales commission or other payment for real\nestate brokerage services under a service agreement; or\n2. Is required or entitled to:\na. List residential real property for sale under a service agreement; or\nb. Otherwise provide rea l estate brokerage services under a service\nagreement.\n(2) A service agreement shall not:\n(a) Provide for performance under the agreement, or contain any rights or\nobligations that may be exercised or performed, more than two (2) years after\nthe date the a greement becomes effective, except this paragraph shall not bar\nenforcement of an otherwise valid agreement in accordance with KRS\n413.160 or another applicable statute of limitations;\n(b) Except as otherwise provided under KRS 376.075 and 426.720:\n1. Be binding on future owners of interests in the residential real property\nor otherwise purport to run with the land;\n2. Create or impose a lien, encumbrance, or other real property interest on\nthe residential real property; or\n3. Require or permit recording of  the agreement or any notice or\nmemorandum of the agreement;\n(c) To the extent permitted under federal law, restrict the resolution of any\ndisputes, claims, or controversies to binding arbitration or any other form of\nbinding alternative dispute resolution;\n(d) Include a waiver by the residential real property owner or owners of any\nrights to class action relief; or\n(e) Allow for assignment of the service provider's rights under, or interest in, the\nagreement without notice to, and written agreement of, the  residential real\nproperty owner or owners.\n(3) (a) Any provision of a service agreement or a notice or memorandum of a service\nagreement, whether or not recorded, that violates subsection (2) of this section\nshall:\n1. Be void and unenforceable; and\n2. Not bind title to residential real property or run with the land.\n(b) This subsection shall be:\n1. Retroactively applied to service agreements, and notices or\nmemorandums of service agreements, entered or recorded prior to April\n4, 2024; and\n2. Prospectively applied to service agreements, and notices or\nmemorandums of service agreements, entered or recorded on or after\nApril 4, 2024.\n(4) (a) A service provider shall not, on or after April 4, 2024, record, or cause to be\nrecorded, a service agreement or a notic e or memorandum of a service\nagreement, except as otherwise provided in KRS 376.075 and 426.720.\n(b) 1. Any service provider who violates this subsection shall be guilty of a\nClass B misdemeanor, unless the conduct prohibited by this subsection\nconstitutes another crime that provides for greater punishment.\n2. This paragraph may be enforced by the Attorney General or any\nCommonwealth's attorney or county attorney of appropriate jurisdiction.\n(c) Any person with an interest in residential real property that is subject to a\nservice agreement, or a notice or memorandum of a service agreement,\nrecorded in violation of this subsection may institute an action against the\nservice provider in any court of competent jurisdiction to recover:\n1. Actual damages arising from the recording; and\n2. Attorney fees and costs incurred in the action.\n(5) (a) A violation of this section on or after April 4, 2024, shall be deemed to be an\nunfair, false, misleading, or deceptive act or practice in the conduct of trade or\ncommerce in violation of KRS 367.170.\n(b) All of the remedies, powers, and duties provided to the Attorney General or\nany other person under KRS 367.110 to 367.300, and the penalties provided\nin KRS 367.990, pertaining to acts and practices decla red unlawful by KRS\n367.170, shall apply with equal force and effect to a violation of this section.\n(6) (a) The remedies and penalties prescribed in this section shall be cumulative.\n(b) Nothing in this section shall be construed to limit or restrict the powers,\nduties, remedies, or penalties available to the Attorney General, the\nCommonwealth, or any other person under any other statutory or common\nlaw.\n(7) The Attorney General may promulgate administrative regulations in accordance\nwith KRS Chapter 13A n ecessary to effectuate, or as an aid to the effectuation of,\nthe proper enforcement of this section.","path":["KRS Chapter 367"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=54494","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:03Z","sha256":"7b28f4d8086dfe70bdd0fd9207505c1b22faf96b48b1e8524c382e3855e245a9","source_id":"us-ky","stale":false,"prev":"us-ky/krs-367.352","next":"us-ky/krs-367.355"},"notice":"GroundRules: Original legal text. Not legal advice."}