What kind of property is exempt from needing a sellers disclosure form?

The correct answer pertains to commercial real estate because, under Kentucky law, sellers of commercial properties are generally not required to provide a seller's disclosure statement. This is primarily because the buyer of commercial real estate is usually considered to be more experienced and knowledgeable, often conducting their due diligence before completing a purchase.

In contrast, residential properties, such as single-family homes and multi-family units, do require sellers to disclose known material defects affecting the property. Newly constructed homes also often have disclosures related to builder warranties and other pertinent information for prospective buyers. Therefore, the need for a seller's disclosure form is largely tied to the residential nature of the property, which aims to protect less experienced buyers from potential hidden issues.