AN ACT relating to judicial sales.

UNOFFICIAL COPY 26 RS HB 566/EN
Page 1 of 4
HB056620.100 - 1682 - XXXX 3/31/2026 8:02 PM Engrossed
AN ACT relating to judicial sales. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 426.522 is amended to read as follows: 3
(1) If real or personal property is sold at public sale under any order or decree of any 4
court in this state, then the court under whose jurisdiction the sale is to be made 5
may secure the services of an auctioneer licensed in this state to conduct the public 6
sale, fix the auctioneer's fee, and order the fee to be paid out of the proceeds of the 7
sale. The fee: 8
(a) When the sale is the result of a foreclosure process initiated upon the request 9
of a creditor or mortgage holder: 10
1. Shall not exceed ten percent (10%) [six percent (6%)] of the sale price 11
on sales of real property , which may be an auction premium or 12
commission charged to the sale of the property; and 13
2. Shall not exceed twenty-five percent (25%) [twenty percent (20%)] of 14
the sale price on sales of personal property . Notwithstanding this 15
subparagraph, the fee for sales of personal property may include an 16
additional auction premium of up to ten percent (10%) of the sale 17
price; 18
(b) In the instance of any other court -ordered or court-decreed sale of real or 19
personal property,[ the fee paid the auctioneer] shall be agreed upon between 20
the auctioneer and the person making the request; and 21
(c) Shall not include th e fees and expenses provided for by rule of the Supreme 22
Court under KRS 31A.010(4) that are incurred by the master commissioner 23
for the sale. 24
(2) Upon the request of the creditor or mortgage holder, when property is ordered to be 25
sold by a court , the master commissioner, as described in KRS Chapter 31A, shall 26
employ a licensed auctioneer to handle the sale upon terms and conditions 27
UNOFFICIAL COPY 26 RS HB 566/EN
Page 2 of 4
HB056620.100 - 1682 - XXXX 3/31/2026 8:02 PM Engrossed
acceptable to the creditor or mortgage holder. 1
(3) If real property is sold at a public sale conducted by a licensed auctioneer , then the 2
sale shall be conducted on the site of the real property to be sold. Notwithstanding 3
this subsection, the sale may be conducted at another location in the county in 4
which the real property is located if the licensed auctioneer determines that is the 5
best site for the sale. 6
(4) If the master commissioner is also a licensed auctioneer, then the master 7
commissioner shall not receive any extra fee for acting as an auctioneer, but shall 8
receive fees in his or her capacity as master commissioner or spe cial commissioner 9
under KRS 31A.010(4). 10
(5) [Nothing contained in ]This section shall not waive any provision of KRS 426.160, 11
426.200, or 426.560. 12
(6) Nonforeclosure sales shall be conducted in a manner agreed to by the master 13
commissioner or plaintiff and the auctioneer. 14
Section 2. KRS 382.110 is amended to read as follows: 15
(1) All deeds, mortgages , and other instruments required by law to be recorded to be 16
effectual against purchasers without notice, or creditors, shall be recorded in the 17
county clerk's office of the county in which the property conveyed, or the greater 18
part of the property conveyed[thereof], is located. 19
(2) A[No] county clerk or deputy county clerk shall not admit to record any deed of 20
conveyance of any interest in real property equal to or greater than a life estate [,] 21
unless the deed plainly specifies and refers to the immediate source from which the 22
grantor derived title to the property or the interest conveyed in the deed[therein]. 23
(3) (a) An authentic photocopy of any original record may be certified [,] as a true, 24
complete, unaltered copy of the original record on file by the official public 25
custodian of the record. 26
(b) A certified copy of a document [ certified by the official public custodian of 27
UNOFFICIAL COPY 26 RS HB 566/EN
Page 3 of 4
HB056620.100 - 1682 - XXXX 3/31/2026 8:02 PM Engrossed
that document] may be submitted for filing in any other filing officer's 1
jurisdiction as though it were the original record. However, a[no] county clerk 2
or deputy county clerk shall not accept for filing any original document or 3
certified copy of any document unless the original document and its certified 4
copy conform[conforms] to all statutory requirements for filing the document 5
under KRS Chapter 382.[ The provisions of ] 6
(c) This subsection shall apply only to a record generated and filed in Kentucky, 7
and only if the certified copy of the record [thereof] is to be utilized in 8
Kentucky. If the record is a foreign record or a Kentucky record to be filed or 9
utilized in a foreign jurisdiction, then this subsectio n shall not apply and 10
applicable federal, Kentucky, or foreign law shall apply. 11
(4) If the source of title is a deed or other recorded writing, the deed offered for record 12
shall refer to the former deed or writing, and give the office, book , and page where 13
recorded, and the date of recording [thereof]. If the property or interest in the 14
property[therein] is obtained by inheritance or in any other way than by recorded 15
instrument of writing, the deed offered for record shall state clearly and accurately 16
how and from whom the title to the property or interest [thereto] was obtained by 17
the grantor. 18
(5) If the title to the property or interest conveyed is obtained from two (2) or more 19
sources, the deed offered for record shall plainly specify and refer to each of t he 20
sources in the manner provided in subsections (2) and (4) of this section, and shall 21
show which part of the property, or interest in the property [therein], was obtained 22
from each of the sources. 23
(6) A[No] grantor shall not lodge for record, and a[no] county clerk or deputy shall not 24
receive and permit to be lodged for record, any deed that does not comply with [ the 25
provisions of] this section. 26
(7) A[No] clerk or deputy clerk shall not be liable for[to] the fine imposed by 27
UNOFFICIAL COPY 26 RS HB 566/EN
Page 4 of 4
HB056620.100 - 1682 - XXXX 3/31/2026 8:02 PM Engrossed
subsection (1) of KRS 382.990 because of any erroneous or false references in any [ 1
such] deed, nor because of the omission of a reference required by law where it 2
does not appear on the face of the[such] deed that the title to the property or interest 3
conveyed was obtained from more than one (1) source. 4
(8) This section does not apply to deeds made by any court commissioner, sheriff, or by 5
any[ officer of] court officer in pursuance of his or her duty as a court [such] 6
officer, nor to any deed or instrument made and acknowledged before Mar ch 20, 7
1928. A[No] deed shall not be invalid because it is lodged contrary to [ the 8
provisions of] this section. 9
(9) A mortgage holder shall file a deed in lieu of foreclosure in the county clerk's office 10
of the county in which the property conveyed, or the greater part of the property 11
conveyed[thereof], is located, no later than forty -five (45) days after the date the 12
deed in lieu of foreclosure is executed. 13
(10) (a) A deed filed pursuant to KRS 426.577 shall be filed by the grantee within five 14
(5) business days of receipt of the deed from the commissioner appointed by a 15
court to convey the property. 16
(b) If the property is located within the boundaries of a municipal government 17
and the grantee has not filed the deed from the commissioner within thirty 18
(30) b usiness days of its receipt, the municipal government may file a 19
petition in the Circuit Court of the county where the property is located 20
requesting the court to enter an order: 21
1. Compelling the filing of the deed by the grantee; and 22
2. Awarding court co sts and attorney's fees incurred in bringing the 23
petition. 24