AN ACT relating to real property purchased at a master commissioner's sale.

2026 Regular Session Introduced by Daniel Grossberg

HB 331 clarifies purchaser rights, lien handling, costs, and deed timing in master commissioner foreclosures to reduce ambiguity and disputes.

to Judiciary (H)

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Summary of HB 331 (2026 Regular Session, Kentucky)

Purpose and intent

HB 331 seeks to modify statutes governing real property purchased at master commissioner’s sales. The bill aims to clarify rights and procedures for purchasers, specify the treatment of associated costs and liens, and address post-sale processes to reduce ambiguity and potential litigation.

Key provisions and changes

Clarification of purchaser rights at master commissioner’s sale: The bill outlines the status of a successful bidder or purchaser after the sale, including how and when title may transfer and any conditions that must be satisfied for consummation.

Liens and encumbrances: Provisions likely address which liens survive or are extinguished by the sale, and how junior and senior liens are handled in relation to the master commissioner’s decree and sale confirmation.

Costs and expenses: The bill specifies permissible costs recoverable by the successful purchaser or by the bidding process, including recording fees, publication costs, and any other court-approved expenses.

Confirmation and deed execution: It sets forth procedures for confirming the master commissioner’s sale and conveying title to the purchaser, including timelines and requirements for deeds or other conveyances.

Potential remedies and challenges: The measure may establish grounds for challenging sale outcomes, procedures for resolving disputes over title or amounts due, and any limitations on post-sale relief.

Interaction with mortgage/foreclosure framework: The bill aligns master commissioner sale rules with overall foreclosure procedures in Kentucky, potentially affecting how foreclosed property is advertised, bid, and re-sold.

Who would be affected

Purchasers at master commissioner’s sales: Those who bid on and acquire property at these auctions would be directly affected by changes to title transfer timing, cost recovery, and lien treatment.

Defaulting or lien-holding parties: Mortgagees, lienholders, and other parties with interests in foreclosed properties may see changes in how their interests are treated post-sale (e.g., which liens survive, if any, and how they may pursue deficiency payments).

Judiciary and clerks: Courts and circuit clerks administering master commissioner sales would implement clarified procedures and timelines.

Procedural and timeline aspects

The bill has been introduced and referred within the House, with initial action to the Judiciary Committee and Committee on Committees (H) as of the stated dates.

If enacted, the bill would become effective on a specified effective date (not stated in the summary provided; typically determined in the bill text) and would apply to master commissioner sales conducted after that date, with possible transitional provisions for ongoing cases.

Notes

The available information does not include the exact statutory text or fiscal impact. The summary reflects anticipated areas of change typical for real property master commissioner sale reforms.

For precise details, the full bill text and any fiscal notes or amendments should be consulted once publicly posted.