Modern Real Estate Practice in Illinois Chapter 12: Transfer of Title

© 2008 Dearborn Real Estate Education Transfer of Title The right to or ownership of the land Represents the owner’s bundle of rights Also serves as evidence of that ownership

© 2008 Dearborn Real Estate Education Voluntary Alienation Legal term for voluntary transfer of title, by either gift or sale of property by owner

© 2008 Dearborn Real Estate Education 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

© 2008 Dearborn Real Estate Education 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

© 2008 Dearborn Real Estate Education Transfer Tax Stamps Illinois Real Estate Transfer Tax –imposes a tax on conveying title to real estate in the amount of $.50 per $500 and in all Illinois counties there is an additional transfer tax of $.25 per $500. Total transfer tax to state and county combined is $.75 per $500 or fraction thereof Tax Formula –Price – Personal property – Assumable mortgage/subject to = Total Taxable Consideration

© 2008 Dearborn Real Estate Education Involuntary Alienation Transfer by Adverse Possession –An individual who makes a claim to certain property, takes possession of it and, most important, uses it, may take title away from an owner who fails to use or inspect the property for a period of years

© 2008 Dearborn Real Estate Education 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

© 2008 Dearborn Real Estate Education 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