Many people prepare a Kentucky quitclaim deed and assume the deed itself is the only document that matters. Then they discover that Kentucky also wants a sworn statement showing the consideration or value involved in the transfer.
Important Kentucky Recording Note:
Kentucky county guidance says a statement of consideration is required on virtually all deeds, sworn and notarized by both parties as to the true consideration.
If the transfer is a gift, or uses nominal or no consideration, the certificate generally states that the transfer is by gift and sets out the estimated fair cash value of the property.
What Is a Kentucky Certificate of Consideration?
A Certificate of Consideration is a sworn and notarized statement showing the value or consideration involved in a deed transfer.
In plain English, it tells the county clerk what value should be used when the deed is reviewed for recording and transfer tax.
The Certificate of Consideration is not the quitclaim deed itself. It's usually included in the deed or attached as part of the deed package.
How Do I Get a Certificate of Consideration?
In many cases, the Certificate of Consideration is part of the Kentucky deed form or deed preparation package.
Some county clerk offices provide deed recording instructions and sample certificate language. If you're preparing your own deed, the safest step is to use a Kentucky deed form that already includes the required Certificate of Consideration language.
You can also check with the county clerk in the Kentucky county where the property is located to confirm exact local recording requirements.
Who Signs the Certificate?
Kentucky county guidance commonly states that the grantor and grantee must sign the consideration statement, and that the signatures must be notarized.
In some situations, an authorized agent may sign for a party. If a party is under eighteen, a parent or guardian may be involved.
The key point for most visitors is simple: don't leave the Certificate of Consideration unsigned or unnotarized.
What Information Does It Include?
A Kentucky Certificate of Consideration commonly includes:
- the grantor or seller information
- the grantee or buyer information
- the consideration paid or value being declared
- gift, nominal consideration, or no-consideration language when applicable
- estimated fair cash value when required
- required signatures
- notary acknowledgment
What If the Deed Is a Gift?
Many quitclaim deeds are used for family transfers, gifts, estate planning, or transfers between related parties.
If the deed is a gift, or states only nominal or no consideration, Kentucky may still require the certificate to state that the transfer is by gift and provide the estimated fair cash value of the property.
That value matters because Kentucky transfer tax may be based on the estimated open-market value unless a statutory exemption applies.
Important:
Don't assume that "$1.00 and love and affection" eliminates Kentucky transfer tax or value-reporting requirements.
How Kentucky Transfer Tax Is Decided
Kentucky transfer tax is generally based on the value declared in the deed.
For a normal sale, value usually means the full actual consideration paid or to be paid, including liens.
For a gift, nominal-consideration deed, or deed without stated consideration, value generally means the estimated price the property would bring in an open-market sale between a willing buyer and willing seller.
The county clerk calculates and collects the tax before accepting a taxable deed for recording.
Kentucky transfer tax is generally $0.50 for each $500 of value or fraction of $500.
Example: if the taxable value is $100,000, the transfer tax would generally be about $100.
What About Exemptions?
Some Kentucky transfers may be exempt from transfer tax.
Common exemption situations may include certain transfers between spouses, transfers between parent and child or grandparent and grandchild for only nominal consideration, corrective deeds, deeds given only to provide or release security for a debt, and certain government-related transfers.
The exemption must match the actual transfer. If an exemption applies, the deed or recording package may need to clearly identify it.
Because exemptions can be confusing, we cover this as a separate topic on our Kentucky Transfer Tax Exemptions page.
Sample Certificate Language
County and deed forms may use different layouts, but a typical consideration certificate for a sale may include language similar to:
Sale example:
The parties certify that the consideration reflected in this deed is the full consideration paid for the property.
For a gift or nominal-consideration transfer, the certificate may need to state that the transfer is by gift and provide the estimated fair cash value.
Gift or nominal consideration example:
The parties certify that this transfer is by gift and that the estimated fair cash value of the property is $__________.
These examples are simplified educational examples. Use the wording required by the county clerk, deed form, or applicable Kentucky law.
When a Certificate May Not Be Required
Kentucky county guidance lists several situations where a full consideration statement may not be required, including certain utility easements, divorce-related court transfers, government right-of-way deeds, cemetery lot deeds, correction deeds involving the same property and same parties, and deeds conveying property to a local airport board.
Even when a Certificate of Consideration isn't required, transfer tax or supporting information may still be required in some situations.
Important:
Don't skip the certificate just because the transfer feels informal or family-related. Confirm whether an exception actually applies.
Common Kentucky Certificate of Consideration Mistakes
- Leaving the consideration information blank
- Using nominal consideration without providing required fair cash value information
- Assuming a gift transfer never needs value information
- Failing to sign the certificate
- Failing to notarize the required signatures
- Using inconsistent names between the deed and the certificate
- Forgetting to identify a transfer tax exemption when one applies
- Assuming every county handles deed intake exactly the same way
How This Fits Into the Kentucky Quitclaim Deed Process
Think of the Certificate of Consideration as the value statement that supports the deed recording.
The deed transfers the property interest. The Certificate of Consideration helps the county determine consideration, fair cash value, and transfer tax handling.
See the main Kentucky Quitclaim Deed Instructions page for the complete step-by-step guide.
Kentucky Certificate of Consideration FAQ
Is the Certificate of Consideration the same as the deed?
No. The quitclaim deed transfers the property interest. The Certificate of Consideration provides value and consideration information for recording and transfer tax purposes.
How do I get a Kentucky Certificate of Consideration?
It's often included in the Kentucky deed form or deed preparation package. County clerk offices may also provide recording instructions or sample certificate language.
Can a gift transfer require value information?
Yes. A gift or nominal-consideration transfer may still require estimated fair cash value information.
Who determines the Kentucky transfer tax amount?
The county clerk calculates and collects transfer tax before accepting a taxable deed for recording.
Is this legal advice?
No. This page provides general educational information and is not legal advice.