Kentucky HB 256: AN ACT relating to marketable title.

Bill Text

UNOFFICIAL COPY  25 RS BR 854 
Page 1 of 8 
XXXX   2/3/2025 3:07 PM  Jacketed 
AN ACT relating to marketable title. 1 
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2 
SECTION 1.      A  NEW  SECTION  OF  KRS  CHAPTER  381  IS  CREATED  TO 3 
READ AS FOLLOWS: 4 
As used in Sections 1 to 9 of this Act: 5 
(1) "Marketable record title" means a title of record, as described in Section 2 of this 6 
Act  that  operates  to  extinguish  interest  and  claims  existing  before  the  effective 7 
date of the root of title, as provided in Section 4 of this Act; 8 
(2) "Muniments"  means  the  records  of  title  transactions  in  the  chain  of  title  of  a 9 
person that: 10 
(a) Purport to create the interest in land claimed by the person; and 11 
(b) Upon which the person relies as a basis for the marketability of the person's 12 
title; 13 
 commencing with the root of title and including all subsequent transactions; 14 
(3) "Person dealing with land" means a: 15 
(a) Purchaser of an estate or interest in an estate; 16 
(b) Mortgagee; 17 
(c) Levying or attaching creditor; 18 
(d) Land contract vendee; or 19 
(e) Person seeking to: 20 
1. Acquire an estate or interest in an estate; or 21 
2. Impose a lien on an estate; 22 
(4) "Recording," when applied to official public records of any court, includes filing; 23 
(5) "Records"  means  all  official  public  records  that  affect  title  to  land  and  include 24 
probate  records  and  records  in  the  office  of  the  county  clerk  of  the  county  in 25 
which all or part of the land is located; 26 
(6) "Root of title" means that title transaction in the chain of the title of a person: 27 

UNOFFICIAL COPY  25 RS BR 854 
Page 2 of 8 
XXXX   2/3/2025 3:07 PM  Jacketed 
(a) That purports to create the interest claimed by the person; 1 
(b) Upon which the person relies as a basis for the marketability of the person's 2 
title; 3 
(c) That  is  the  most  recent  to  be  recorded  as  of  a  date  at  least  forty  (40)  years 4 
prior to the time when marketability is being determined; and 5 
(d) The effective date of the root of title is the date on which it is recorded; and 6 
(7) "Title  transaction"  means  any  transaction  affecting  title  to  any  interest  in  land, 7 
including title by: 8 
(a) Will or descent; 9 
(b) Tax deed; 10 
(c) Trustee's, referee's, guardian's, executor's, administrator's, commissioner's, 11 
or sheriff's deed; 12 
(d) Decree of a court; or 13 
(e) Warranty deed, quitclaim deed, or mortgage. 14 
SECTION 2.      A  NEW  SECTION  OF  KRS  CHAPTER  381  IS  CREATED  TO 15 
READ AS FOLLOWS: 16 
Any  person  having  the  legal  capacity  to  own  land  in  this  state  who  has  an  unbroken 17 
chain of  title  of  record  to  an  interest  in  land  for  at  least  forty  (40)  years  has  a 18 
marketable  record  title  to  that  interest,  subject  to  Section  3  of  this  Act.  A  person  is 19 
considered to have this unbroken chain of title when: 20 
(1) The  official  public  records  disclose  a  conveyance  or  other  title  transaction  of 21 
record  that  occurred  at  least  forty  (40)  years  before  the  time  the  marketability  is 22 
determined; and 23 
(2) The conveyance or other title transaction purports to create an interest in: 24 
(a) The person claiming the interest; or 25 
(b) A  person  from  whom,  by  one  (1)  or  more  title  transactions  of  record,  the 26 
purported interest has become vested in the person claiming the interest; 27 

UNOFFICIAL COPY  25 RS BR 854 
Page 3 of 8 
XXXX   2/3/2025 3:07 PM  Jacketed 
 with nothing appearing of record in either case purporting to divest the claimant 1 
of the purported interest. 2 
SECTION 3.      A  NEW  SECTION  OF  KRS  CHAPTER  381  IS  CREATED  TO 3 
READ AS FOLLOWS: 4 
Marketable record title shall be subject to: 5 
(1) All interests and defects that are inherent in the muniments of which the chain of 6 
record title is formed, provided that: 7 
(a) A general reference in the muniments, or any one (1) of them, to: 8 
1. Easements; 9 
2. Use restrictions; or 10 
3. Other interests created before the root of title; 11 
 shall  not  be  sufficient  to  preserve  them,  unless  specific  identification  is 12 
made  in  the  muniments  of  a  recorded  title  transaction  that  creates  the 13 
easement, use restriction, or other interest; and 14 
(b) Possibilities  of  reverter,  and  rights  of  entry  or  powers  of  termination for 15 
breach   of   condition   subsequent,   which   interests   are   inherent   in   the 16 
muniments  of  which  the  chain  of  record  title  is  formed  and  which  have 17 
existed for forty (40) years or more, shall be preserved and remain effective 18 
only in the manner provided in Section 5 of this Act;  19 
(2) All interests preserved by: 20 
(a) Filing proper notice; or 21 
(b) Possession  by  the  same  owner  continuously  for  at  least  forty  (40)  years,  in 22 
accorda