Modern Real Estate Practice in Illinois Eighth Edition Chapter 12: Transfer of Title ©2014 Kaplan, Inc.

Transfer of Title The right to or ownership of the land Represents the owner’s bundle of legal rights Also serves as evidence of ownership

Voluntary Alienation Legal term for voluntary transfer of title, by either gift or sale of property by owner

Voluntary Alienation Requirements for a Valid Deed –Grantor –Grantee –Consideration –Granting clause (words of conveyance) –Legal description of real estate –Exceptions or reservations –Signature of grantor –Acknowledgment –Delivery and acceptance

Voluntary Alienation Execution of Corporate Deeds Types of Deeds –General Warranty Deed –Special Warranty Deed –Bargain and Sale Deed –Quitclaim Deed –Deed in Trust –Trustee’s Dead –Reconveyance Deed –Deed executed pursuant to court order

Deed Covenants Seisin Encumbrances Quiet enjoyment Further assurance Warranty forever

Transfer Tax Stamps Illinois Real Estate Transfer Tax –a tax on conveying title to real estate –State tax = $.50 per $500 –All Illinois counties = $.25 per $500. –Total state and county tax = $.75 per $500 Tax Formula –Price – Personal property – Assumable mortgage/subject to = Total Taxable Consideration

Involuntary Alienation Transfer by Adverse Possession –An individual who makes a claim to certain property, takes possession of it and, most important, uses it (20 yrs in Illinois), may take title away from an owner who fails to use or inspect the property for a period of years

Transfer of a Deceased Person’s Property Transfer of Title by Will –Devise –Devisee –Legacy or bequest –Legatee or beneficiary –Probate Legal requirements for making a will Transfer of Title by Descent

Transfer of a Deceased Person’s Property Probate Proceedings –Proves or confirms validity of a will –Determines the precise assets of the deceased person –Identifies the persons to whom the assets are to pass