Chapter 9 - Title, Transfer, and Records Flashcards
Grantor (deeds)
Seller of the property
Grantee (deeds)
Recipient of property
Who is requited to sign a deed?
The grantor only
Which 8 items are required of a valid deed?
- Name of Grantor
- Name of Grantee
- Consideration (usually $10)
- Granting clause (words of conveyance)
- Legal description of the property
- Excemptions or reservations (encumberances, etc.)
- Signature of grantor
- Delivery of the deed and acceptance by grantee
Types of deeds to remember
General warranty deed
Special warranty deed
Quitclaim deed
Most common type of deed
General warranty deed (greatest protection of any)
Covenant of seisin
Grantor guarantees that she ownes the property and has the right to convey it (seisin means “posession”)
Special warranty deeds contains which two basic warranties?
- That grantor (previously) received title
2. That property was not encumbered during time grantor held the title (except what’s been noted in the deed).
Quitclaim deed
Least protection of any deed; Carries no covenants or warranties.
What is the state tax on conveying title to real estate?
50¢ per $500 (round up to nearest $500)
What is the county tax on conveying title to real estate?
25¢ per $500 (round up to nearest $500)
What is the total transfer tax for conveying title?
75¢ per $500 (round up to nearest $500)
How is personal property accounted for in transfer tax?
It is deducted from the purchase price, then tax is calculated.
Testate
Died with a will
Intestate
Died with NO will, WITH heirs
Escheat
Died with NO will, NO heirs
Intestate, how is estate divided?
1/2 to spouse, 1/2 divided amongst children
Intestate w/ no spouse or kids, how is estate divided?
Evently among mom, dad siblings, etc.
Adverse posession
aka squatters rights.
Open, Notorious, Hostile, Continuous, and
Uninterrupted for 20 years (in IL)
Mortgagee
Lender/Bank (“monee”)
Mortgagor
Buyer
Involuntary Alienation
When title to property is transferred without the owner’s consent (such as tax or mortage delinquincy)
Probate
Judicial process prior to posession of estate being given to heirs.
Devise
Gift of real property
Devisee
Recipient of a gift of real property
Bequest
Gift of personal property (aka a legacy)
Beneficiary (or legatee)
Recipient of a gift of personal property
Public Records contain ______
Detailed information about each parcel of rea estate in a city or county
Recording is…
The act of placing documents in the public record
Constructive notice
“Telling the world” about an individual’s rights or interest of a particular property.
Actual notice
Proof that an individual has proven constructive notice (by visiting the property, for example).
What would be an example of an unrecorded document? (titles)
Real estate taxes and special assessments (not recorded until past due)
Chain of title
Shows a trail/history of property’s ownership
What is the term for examining the chain of title, and how far back must it go?
Title search. 40 years in Illinois.
Abstract of Title
Report delivered by a title search
Marketable title
Provided to buyer by seller at closing
Certificate of title
Statement of opinion regarding title status
When is the premium for title insurance paid?
Once, at closing.
