Knott County authorizes closing attorney to disburse NRCS buyout funds, with checks-and-balances discussed

Knott County Fiscal Court on May 20 authorized a closing attorney to handle disbursements for an NRCS buyout process, allowing the attorney to pay mortgages, taxes and liens on behalf of affected property owners and then issue remaining proceeds to those owners.

Speaker 6 explained the practical need: several participants have outstanding mortgages or taxes, and routing all checks through the fiscal court for individual approval would delay closings. "If we give the funds to the closing attorney, the closing attorney can write all of the checks without approval of the fiscal court," Speaker 6 said, adding that the attorney would issue payments to satisfy debts and then provide the residual funds to the survivor or property owner.

Courts members sought and received clarifications. Speaker 1 confirmed the closing attorney must be bonded, will place funds into escrow, and is responsible for making payments for mortgages and back taxes before issuing a final check to the owner. Speaker 5 recommended an additional check-and-balance: placing both the closing attorney's name and the recipient's name on checks so the recipient also signs, reducing later disputes. Speaker 1 responded that homeowners must sign required documentation after title and deed searches and that duplication-of-benefit, mortgages and liens will be identified and agreed on before payout.

After discussion, the court moved and voted to authorize the closing attorney to handle the NRCS buyout disbursements. The record does not provide the closing attorney's full name, the escrow agent's identity, or a timetable for the buyouts; members indicated administrative follow-up would occur.

Next steps noted in the meeting included informing county staff ("Tell Jared") and proceeding with the administrative steps needed to effect the buyout closings.