Property Management
A Kentucky property manager who discovers the rental property has an illegal structure (unpermitted addition) should:
AContinue to rent the property without disclosing the issue
BInform the owner of the violation and recommend consulting an attorney or local building department✓ Correct
CImmediately contact KREC
DReduce the rent to account for the unpermitted space
Explanation
An unpermitted structure is a material issue that the manager should disclose to the owner and recommend professional guidance. Continued rental without addressing the issue could expose the owner to liability.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
State-Specific Concepts
DRE Regulation
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