NOTICE TO POTENTIAL PURCHASERS AT A JUDICIAL FORECLOSURE SALE REGARDING SURETY ON A BOND

A surety is one who undertakes to pay money or to do any other act in the event that his principal, who would be the purchaser at the Judicial Foreclosure Sale, fails therein.  Simply stated, if the purchaser fails to pay the amount due, the Surety will be liable for that amount and the Court will look to the Surety for payment.

Requirements of a Surety:

1.   The Surety for a Purchaser at a Judicial Foreclosure sale must be present at the time of sale and may be one of the following:

a.   A lending institution authorized and doing business in Kentucky (See "3" below).

b.   A reputable fidelity or surety company, authorized and doing business in Kentucky (See "3" below).

c.   A resident of the Commonwealth of Kentucky (See "3" below).

2.   The Surety must be worth double the sum to be secured beyond the amount of his debts and have property liable to execution in Kentucky equal to the sum to be secured. If there are two or more sureties in the same bond they must, in the aggregate, have the prescribed qualifications. KRS Section 454.185.

3.   The person acting as Surety or as an authorized agent of the Surety must be present at the time of the sale and place his or her signature on the bond of sale.  The Surety may not be the spouse of the purchaser.

4.   Failure to provide surety on the date and at the time of sale will result in the property being re-sold immediately.

These terms must be complied with and are not subject to exception.

 

GENERAL TERMS OF SALE 

(See specific advertisement for specific terms if any should apply)

The terms of the sale shall be either cash or ten (10%) percent of the purchase price in the form of a cash deposit (a personal check is acceptable) at the time of sale and balance of the purchase price on a credit of 60 days. If the purchaser elects to take credit for the balance then the purchaser will be required to post bond and furnish acceptable surety thereon. [See link to "Bond of Sale"]  Said bond shall be for the unpaid balance of the purchase price and bear interest at the rate of twelve (12%) percent per annum from the date of the confirmation of sale until paid.

The purchaser shall be required to assume and pay all taxes levied against said property for the current tax year and all subsequent years. The sale of the real estate shall be made subject to all zoning and building regulations, restrictions, ordinances, easements, covenants, and rights-of-way, of record, or otherwise. The property shall be sold "as is".  Possession shall pass to the purchaser upon delivery of deed. It should be noted that the risk of loss passes to the purchaser upon execution of bond of sale or payment of the purchase price in full should the purchaser so elect.

A right of redemption may exist in favor of any party.

Possession of the real property will be given to the purchaser upon confirmation of the report of sale by the Jessamine Circuit Court, delivery of a Commissioner's Deed to the purchaser and full payment of the purchase price plus interest if applicable.