Chapter 9 - Title, Transfer, and Records

Question 1

Grantor (deeds)

Answer 1

Seller of the property

Question 2

Grantee (deeds)

Answer 2

Recipient of property

Question 3

Who is requited to sign a deed?

Answer 3

The grantor only

Question 4

Which 8 items are required of a valid deed?

Answer 4

1. Name of Grantor
2. Name of Grantee
3. Consideration (usually $10)
4. Granting clause (words of conveyance)
5. Legal description of the property
6. Excemptions or reservations (encumberances, etc.)
7. Signature of grantor
8. Delivery of the deed and acceptance by grantee

Question 5

Types of deeds to remember

Answer 5

General warranty deed
Special warranty deed
Quitclaim deed

Question 6

Most common type of deed

Answer 6

General warranty deed (greatest protection of any)

Question 7

Covenant of seisin

Answer 7

Grantor guarantees that she ownes the property and has the right to convey it (seisin means “posession”)

Question 8

Special warranty deeds contains which two basic warranties?

Answer 8

1. 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).

Question 9

Quitclaim deed

Answer 9

Least protection of any deed; Carries no covenants or warranties.

Question 10

What is the state tax on conveying title to real estate?

Answer 10

50¢ per $500 (round up to nearest $500)

Question 11

What is the county tax on conveying title to real estate?

Answer 11

25¢ per $500 (round up to nearest $500)

Question 12

What is the total transfer tax for conveying title?

Answer 12

75¢ per $500 (round up to nearest $500)

Question 13

How is personal property accounted for in transfer tax?

Answer 13

It is deducted from the purchase price, then tax is calculated.

Question 14

Testate

Answer 14

Died with a will

Question 15

Intestate

Answer 15

Died with NO will, WITH heirs

Question 16

Escheat

Answer 16

Died with NO will, NO heirs

Question 17

Intestate, how is estate divided?

Answer 17

1/2 to spouse, 1/2 divided amongst children

Question 18

Intestate w/ no spouse or kids, how is estate divided?

Answer 18

Evently among mom, dad siblings, etc.

Question 19

Adverse posession

Answer 19

aka squatters rights.

Open, Notorious, Hostile, Continuous, and
Uninterrupted for 20 years (in IL)

Question 20

Mortgagee

Answer 20

Lender/Bank (“monee”)

Question 21

Mortgagor

Answer 21

Buyer

Question 22

Involuntary Alienation

Answer 22

When title to property is transferred without the owner’s consent (such as tax or mortage delinquincy)

Question 23

Probate

Answer 23

Judicial process prior to posession of estate being given to heirs.

Question 24

Devise

Answer 24

Gift of real property

Question 25

Devisee

Answer 25

Recipient of a gift of real property

Question 26

Bequest

Answer 26

Gift of personal property (aka a legacy)

Question 27

Beneficiary (or legatee)

Answer 27

Recipient of a gift of personal property

Question 28

Public Records contain ______

Answer 28

Detailed information about each parcel of rea estate in a city or county

Question 29

Recording is…

Answer 29

The act of placing documents in the public record

Question 30

Constructive notice

Answer 30

“Telling the world” about an individual’s rights or interest of a particular property.

Question 31

Actual notice

Answer 31

Proof that an individual has proven constructive notice (by visiting the property, for example).

Question 32

What would be an example of an unrecorded document? (titles)

Answer 32

Real estate taxes and special assessments (not recorded until past due)

Question 33

Chain of title

Answer 33

Shows a trail/history of property’s ownership

Question 34

What is the term for examining the chain of title, and how far back must it go?

Answer 34

Title search. 40 years in Illinois.

Question 35

Abstract of Title

Answer 35

Report delivered by a title search

Question 36

Marketable title

Answer 36

Provided to buyer by seller at closing

Question 37

Certificate of title

Answer 37

Statement of opinion regarding title status

Question 38

When is the premium for title insurance paid?

Answer 38

Once, at closing.