Practice Flashcards
Who typically handles transfer of title?
Lawyers and title companies
If challenged in court, who would be able to recover or retain ownership or possession of a parcel of real estate?
The person holding the title
___ is a way of referring to ownership, but is not an actual printed document
Title
To transfer property during one’s lifetime, the owner must use some form of ___.
Deed of conveyance
The statute of frauds requires that all deeds be…
in writing
In Illinois, how old must a grantor be?
18
In Illinois, a deed executed by a minor is usually ___.
Voidable
Real estate owned by someone who is legally incompetent can be conveyed…
only with a court’s approval
The grantors name must be ___ and consistently throughout the deed
spelled correctly
If a grantor’s name has been changed since title was acquired (such as by marriage), which name should be shown?
Both names
If Mary Jones changes her last name after marrying Mr. Smith, how should it be written in the deed?
“Mary Smith, formerly Mary Jones”
To be valid, a deed must specifically name a(n) ___.
grantee
Who does not sign the deed?
Grantee
Phil wanted to convey Napa Ranch to his nephew, James Christian. In the deed, Phil wrote the following words of conveyance: “I, Phil, hereby convey to nephew James Christian all my interests in Napa Ranch.” Why is this deed valid?
Because the grantee was specifically named
If a deed has more than one grantee, what clause might state that they will take the title as “joint tenants,” “tenants in common,” or “tenants by the entirety?”
Granting clause
In Illinois, the grantee’s ___ is required as an element of a valid deed.
present address
In Illinois, if no specific form of ownership is selected for multiple grantees, ___ is assumed.
Tenancy in common
In Illinois, one can determine how ownership is held by consulting the ___.
Deed language
A valid deed must contain a clause acknowledging that the grantor has received ___, generally stated in dollars.
Consideration
To be valid a deed must contain an accurate ___ of the real estate conveyed.
Legal description
Land is considered adequately described if…
A surveyor can locate the property using the description
A valid deed must specifically note any ___, ___, or ___ that affect the title being conveyed
Encumbrances
Reservations
Limitations
Where is power of attorney usually recorded?
County where property is located
In Illinois, in addition to the grantor, who else is expected to sign any deed of conveyance to waive homestead rights?
Grantor’s spouse
In Illinois, acknowledgement is ___ to the validity of the deed
not essential
In Illinois, even though it is not essential, it is still customary that all documents conveying title are ___.
Acknowledged / notarized
Recording offices expect deeds to be ___ before they will record them in Illinois.
Notarized
Most title insurance companies require ___ for deeds covered by their policies.
Acknowledgment / notarization
A title is not considered ___ until the deed is actually delivered to and accepted by the grantee.
Transferred
Title must be delivered during the ___ lifetime
Grantor’s
Title must be accepted during the ___ lifetime
Grantee’s
When is the effective date of the transfer of title from grantor to grantee?
The date the deed was delivered
If a deed is delivered in escrow, the date of delivery is generally…
The date of deposit with the escrow agent
A corporation can convey real estate only by authority granted in its ___ or upon ___.
Bylaws
Resolution passed by its board of directors
Who should be consulted for all corporate conveyances?
Attorney
If the grantor’s spouse has failed to sign away dower rights, the grantor must deliver a(n) ___ deed to clear the title
Quitclaim
If the grantor’s spouse has failed to sign away dower rights, the grantor must deliver a quitclaim deed to clear the title, under which covanent?
Covenant of further assurance
Illinois law provides that a deed using the words ___ and ___ implies and includes all covenants of general warranty.
Convey and warrant
The covenants in a general warranty deed extend back to its…
origins
It is sufficient for a general warranty deed to recite only ___.
Nominal consideration
In areas where special warranty deeds are more commonly used, the purchase of ___ is viewed as providing adequate protection to the grantee
Title insurance
If the grantor has no interest in a quitclaim deed, how much does the grantee acquire?
nothing
A quitclaim deed provides none of the ___ that a warranty deed does.
Guarantees
If the name of the grantee is misspelled on a warranty deed filed in the public record, a(n) ___ deed with the correct spelling may be executed to the grantee to perfect the title.
Quitclaim
In Illinois, a(n) ___ deed is used when a grantor inherits property but is not certain that the decendent’s title was valid.
Quitclaim
Illinois Real Estate Transfer Tax Law imposes a tax on conveying title to real estate in the amount of $___ per $___ or part thereof.
$0.50 per $500
In addition to the $0.50 per $500 or part thereof state transfer tax in Illinois, there is an additional transfer tax of $___ per $___ or part thereof in all Illinois counties.
$0.25 per $500
The Illinois portion of tax trnasfer is divided up between 3 funds:
50% to the ___
35% to the ___
15% to the ___
50% to the Affordable Housing Fund
35% to the Open Space Lands Acquisition and Development Fund
15% to the Natural Areas Acquisition Fund
A parcel of real estate sold for $350,000. The purchaser agreed to assume the seller’s existing mortgage of $128,000 and to pay $222,000 in cash upon receipt of the seller’s deed. The purchase price includes $25,000 of personal property. What amount of county and state stamps must the seller affix to the deed in Illinois?
$197,000
Who must sign the Real Estate Transfer Declaration form in Illinois?
Buyer and seller or their agents
In Illinois, real estate conveyed from or between government bodies, charitable, religious, or educational institutions are exempt from ___.
Transfer tax
When the actual consideration for conveyance is less than $___ in Illinois, the transfer is considered as a gift and is exempt from tax.
100
In Illinois, if a person dies and leaves no heirs, title to real estate passes to the ___ by state power of ___
Passes to the county by power of escheatment
If land is needed for public use, it may be taken by the government through which processes?
Eminent domain and condemnation
Process in which a creditor takes property following nonpayment of a debt secured by real property
Foreclosure
In Illinois, a woman held property in adverse possession for 5 years. Then her daughter held the same property for 10 years, and then her son held the property for 5 more years. What can the son do if he desires?
Claim the property by adverse possession
The right of adverse possession is a(n) ___ right
Statutory
In Illinois, if a property was owned by a married couple in “tenancy by the entirety” or in “joint tenancy”, who automatically becomes the owner after one spouse passes?
The surviving spouse
In Illinois, if a property was held as a “life estate” by a married couple, what happens when one spouse dies?
Property automatically reverts to former owner or passes to a remainderman
If one spouse dies in Illinois, and the property was held as either “joint tenancy,” “tenancy by the entirety,” or “life estate, what is not required?
Probate
In Illinois, if a property was not held in joint tenancy, tenancy by the entirety, or as a life estate, and the owner died testate, who will own the real estate?
The devisees
What is the difference between a will and deed?
Will = after death
Deed = during lifetime
For title to pass to devisee(s), state laws require that upon death of a testator, the will must be…
Filed with the court and probated
Who may make a will in Illinois?
Any person 18+ with mental capacity
Who cannot witness a will in Illinois?
Beneficiaries
What happens if a beneficiary witnesses a will in Illinois?
Their gifts will likely be voided by the probate court
What must be paid before any distribution of a will?
Estate taxes and debts
Who is designated to present the will for filing with the court?
Executor
Who is responsible for determining that a will meets the statutory requirements for its form and execution?
The court
Probate courts distribute assets according to ___ only when no other reasonable alternative exists.
Statute
What are the 4 ways that title to real estate is transferred?
1) voluntary alienation
2) involuntary alienation
3) will
4) descent
In transfer of title to real estate, the owner is the ___
Grantor
In transfer of title to real estate, the purchaser / recipient is the ___.
Grantee
The deed should be properly ___, ___, and ___ before a notary public to provide evidence of a genuine signature and to facilitate recording
Witnessed
Acknowledged
Notarized
The deed should be properly witnessed, acknowledged, and notarized before a notary public to provide evidence of a ___ and to facilitate ___.
genuine signature
recording
The level of guarantee a grantor offers is determined by the form of the ___.
Deed
A bargain and sale deed implies that the ___ holds title to the property
Grantor
The ___ of each deed is a key as to its type
Granting clause
An owner’s title may be transferred with or without their permission by ___ or ___
Court action or death
In Illinois, a bargain and sale deed includes covenants that make it similar to a(n) ___ deed yet less complete
Special warranty
Generally, state and county transfer tax stamps are paid for by the ___.
Seller
Municipal transfer taxes can be paid by….
either the buyer or the seller
