{"data":{"id":"us-ky/krs-381.9171","jurisdiction":"us-ky","citation":"KRS 381.9171","heading":"Transfer of special declarant rights.","body":"(1) No special declarant right created or reserved under KRS 381.9101 to 381.9207\nmay be transferred except by an instrument evidencing the transfer recorded in\nevery county in which any portion of the condominium is located. The instrument is\nnot effective unless executed by the transferee.\n(2) Upon transfer of any special declarant right, the liability of a transferor declarant is\nas follows:\n(a) A transferor is not relieved of any obligation or liability arising before the\ntransfer and remains liable for war ranty obligations imposed upon him or her\nby KRS 381.9101 to 381.9207. Lack of privity does not deprive any unit\nowner of standing to maintain an action to enforce any obligation of the\ntransferor;\n(b) If a successor to any special declarant right is an af filiate of a declarant, the\ntransferor is jointly and severally liable with the successor for any obligations\nor liabilities of the successor relating to the condominium;\n(c) If a transferor retains any special declarant right, but transfers other special\ndeclarant rights to a successor who is not an affiliate of the declarant, the\ntransferor is liable for any obligations or liabilities imposed on a declarant by\nKRS 381.9101 to 381.9207 or by the declaration relating to the retained\nspecial declarant rights and arising after the transfer; and\n(d) A transferor has no liability for any act or omission or any breach of a\ncontractual or warranty obligation arising from the exercise of a special\ndeclarant right by a successor declarant who is not an affiliate of the\ntransferor.\n(3) Unless otherwise provided in a mortgage, in case of foreclosure of a mortgage, tax\nsale, judicial sale, or sale under Bankruptcy Code or receivership proceedings, of\nany units owned by a declarant or real estate in a condominium subject  to\ndevelopment rights, a person acquiring title to all the real estate being foreclosed or\nsold, but only upon his or her request, succeeds to all special declarant rights related\nto that real estate held by that declarant. The judgment or instrument conv eying title\nshall provide for transfer of only the special declarant rights requested.\n(4) Upon foreclosure, tax sale, judicial sale, or sale under Bankruptcy Code or\nreceivership proceedings, of all units and other real estate in a condominium owned\nby a declarant:\n(a) The declarant ceases to have any special declarant rights; and\n(b) The period of declarant control terminates unless the judgment or instrument\nconveying title provides for transfer of all special declarant rights held by that\ndeclarant to a successor declarant.\n(5) The liabilities and obligations of a person who succeeds to special declarant rights\nare as follows:\n(a) A successor to any special declarant right who is an affiliate of a declarant is\nsubject to all obligations and liabilities i mposed on the transferor by KRS\n381.9101 to 381.9207 or by the declaration;\n(b) A successor to any special declarant right, other than a successor described in\nparagraph (c) or (d) of this subsection, who is not an affiliate of a declarant, is\nsubject to a ll obligations and liabilities imposed by KRS 381.9101 to\n381.9207 or the declaration:\n1. On a declarant which relate to his or her exercise or nonexercise of\nspecial declarant rights; or\n2. On his or her transferor, other than:\na. Misrepresentations by any previous declarant;\nb. Warranty obligations on improvements made by any previous\ndeclarant, or made before the condominium was created;\nc. Breach of any fiduciary obligation by any previous declarant or his\nor her appointees to the executive board; or\nd. Any liability or obligation imposed on the transferor as a result of\nthe transferor's acts or omissions after the transfer;\n(c) A successor to only a right reserved in the declaration to maintain models,\nsales offices, and signs, i f he or she is not an affiliate of a declarant, shall not\nexercise any other special declarant right, and is not subject to any liability or\nobligation as a declarant; and\n(d) A successor to all special declarant rights held by his or her transferor who is\nnot an affiliate of that declarant and who succeeded to those rights pursuant to\na deed in lieu of foreclosure or a judgment or instrument conveying title to\nunits under subsection (3) of this section, may declare his or her intention in a\nrecorded instrument to hold those rights solely for transfer to another person.\nThereafter, until transferring all special declarant rights to any person\nacquiring title to any unit owned by the successor, or until recording an\ninstrument permitting exercise of all those  rights, that successor shall not\nexercise any of those rights other than a right held by his or her transferor to\ncontrol the executive board in accordance with KRS 381.9169(4) for the\nduration of any period of declarant control, and any attempted exercis e of\nthose rights is void. So long as a successor declarant may not exercise special\ndeclarant rights under this subsection, he or she is not subject to any liability\nor obligation as a declarant other than liability for his or her acts and\nomissions under KRS 381.9169(4).\n(6) Nothing in this section subjects any successor to a special declarant right to any\nclaims against or other obligations of a transferor declarant, other than claims and\nobligations arising under KRS 381.9101 to 381.9207 or the declaration.","path":["KRS Chapter 381"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=36849","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:12Z","sha256":"881653721f3bac5cc9b24bfbaca3a3621486e331fdd5360398606c8132336552","source_id":"us-ky","stale":false,"prev":"us-ky/krs-381.9170","next":"us-ky/krs-381.9173"},"notice":"GroundRules: Original legal text. Not legal advice."}