Revised Chapter 12 Slide #1 Copyright – David A. McGowan All rights reserved Chapter 12 Transfer of Title (Page 225) Deed – an instrument that conveys title Grantor – Giver of the deed Grantee – Receiver of the deed Vendor – Seller of personal property Vendee – Receiver of personal property Terms

Revised Chapter 12 Slide #2 Copyright – David A. McGowan All rights reserved VALID DEED REQUIREMENTS (Page 225) Grantor - has legal capacity Grantee - named with reasonable certainty Consideration Granting clause - words of conveyance Legal description

Revised Chapter 12 Slide #3 Copyright – David A. McGowan All rights reserved VALID DEED REQUIREMENTS (Page 225) Exceptions or reservations Signature of grantor Notarization Delivery and acceptance Direct action of the grantor During the life-time of the grantor

Revised Chapter 12 Slide #4 Copyright – David A. McGowan All rights reserved Covenant of Seisin - right to convey Covenant against Encumbrances – purchaser is aware of all known encumbrances Covenant of Quiet Enjoyment – defend against third party claims GENERAL WARRANTY DEED (Page 229)

Revised Chapter 12 Slide #5 Copyright – David A. McGowan All rights reserved GENERAL WARRANTY DEED Covenant of Further Assurance - obtains all legal documentation necessary Covenant of Warranty Forever - protects purchaser’s right so long as purchaser or purchaser’s heirs retain ownership

Revised Chapter 12 Slide #6 Copyright – David A. McGowan All rights reserved SPECIAL WARRANTY DEED (Page 230) Warranty that grantor received title Warranty that property was unencumbered by grantor

Revised Chapter 12 Slide #7 Copyright – David A. McGowan All rights reserved BARGAIN & SALE DEED (Page 230) Common Law no express warranties implies grantor holds title Illinois Law Fee simple ownership Free from encumbrances Grantor warrants quiet enjoyment

Revised Chapter 12 Slide #8 Copyright – David A. McGowan All rights reserved QUIT CLAIM DEED (Page 230) No expressed warranties No covenants No promises of any kind

Revised Chapter 12 Slide #9 Copyright – David A. McGowan All rights reserved DEEDS IN A LAND TRUST (Page 231) Deed in trust Trustee’s deed Re-conveyance deed Trustee Beneficiary Trustor

Revised Chapter 12 Slide #10 Copyright – David A. McGowan All rights reserved DEEDS PURUSANT TO COURT ORDER Sherriff’s Deed - Mortgage Foreclosure Tax Deed -Tax Foreclosure

Revised Chapter 12 Slide #11 Copyright – David A. McGowan All rights reserved TRANSFER TAX STAMPS (Page 232) State & County tax imposed on seller Allows purchaser to record deed State $.50 / $500 of value or fraction thereof County $.25 / $500 of value or fraction thereof

Revised Chapter 12 Slide #12 Copyright – David A. McGowan All rights reserved TRANSFER TAX RULES Total consideration less than $100 – no tax Taxable value is reduced by the amount of the assumed mortgage Tax must be paid prior to the recording of the deed

Revised Chapter 12 Slide #13 Copyright – David A. McGowan All rights reserved TRANSFER TAX CALCULATIONS

Revised Chapter 12 Slide #14 Copyright – David A. McGowan All rights reserved ADVERSE POSSESSION (Page 235) An individual who takes possession of it and uses it for a period of time, may lay claim to the title Not available on publicly owned property

Revised Chapter 12 Slide #15 Copyright – David A. McGowan All rights reserved TRANSFER BY DEATH (Page 235) Devise Devisee Legacy or Bequest Legatee or Beneficiary Terms

Revised Chapter 12 Slide #16 Copyright – David A. McGowan All rights reserved PROBATE (Page 238) Proves or confirms the validity of a will Determines the precise assets of the deceased person Identifies the persons to whom the assets are to pass Identifies the creditors and extent of unpaid debt

Revised Chapter 12 Slide #17 Copyright – David A. McGowan All rights reserved FORMAL WILL (Page 236) Written & Signed 18 years of age plus Sound mind and memory Declaration as last will and testament Witnessed by two people

Revised Chapter 12 Slide #18 Copyright – David A. McGowan All rights reserved TYPES OF WILLS (Page 236) Holographic Will Written in the testator’s own handwriting Nuncupative Will Verbal, deathbed will