1. Revised 7-30-08 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

2. Revised 7-30-08 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

3. Revised 7-30-08 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

4. Revised 7-30-08 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)

5. Revised 7-30-08 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

6. Revised 7-30-08 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

7. Revised 7-30-08 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

8. Revised 7-30-08 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

9. Revised 7-30-08 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

10. Revised 7-30-08 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

11. Revised 7-30-08 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

12. Revised 7-30-08 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

13. Revised 7-30-08 Chapter 12 Slide #13 Copyright – David A. McGowan All rights reserved TRANSFER TAX CALCULATIONS

14. Revised 7-30-08 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

15. Revised 7-30-08 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

16. Revised 7-30-08 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

17. Revised 7-30-08 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

18. Revised 7-30-08 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