Unit 12 Flashcards
Title
right to ownership and provides evidence of that ownership
A way of transferring ownership
Deed
Document by which owner transfers title to another
Grantor to Grantee
Transfer voluntarily by sale or gift
Transfer involuntarily by operation of law
Voluntary Alienation
Legal Term for voluntary transfer of title
Requirements of a Valid Deed
in writing
grantor has legal capacity to sign (over 18 year old)
grantee name; if more than 1 list how taking title
recital of consideration
granting clause
legal description
any exceptions - encumbrances, easements, restrictions
signature of grantor with acknowledgement/notarized
delivery of deed and acceptance
Corp Deeds
only convey if authority in bylaws and all sold must be resolution by stockholders
deed signed by authorized officer
General Warranty Deed
“Convey and warrant”
greatest protection legally binding grantor by certain covenants and warranties
covenant of seisen - possession; owns property and right to convey title; can sue for full purchase price
covenant against encumbrances - can sue for cost of removing encumbrances
Covenant of quiet enjoyment
covenant of further assurance - provide any additional docs to make title good
warranty forever - promises to compensate for loss if title fails at any time
**Goes back to origin of Property
Special Warranty Deed
“Remises, releases…”
grantor received title
not encumbered unless stated
good for beneficiary or someone bought property at tax sale
**only while in ownership
Bargain and Sale Deed
“Grant, bargain and sell”
no warranties against encumbrances
Quit Claim
“remises, releases and quit claims”
no covenants or warranties
used to correct error, divorce - generally not used in real estate transactions
Deed in Trust
trustor conveys real estate to trustee for benefit of a beneficiary. Transfer into a trust
Trustees Deed
executed by trustee. Used when a trustee conveys real estate held in a land trust or living trust for a beneficiary. Transfer out of trust
Deed Executed per Court Order/Executor Deed/Sheriff’s Deed
established by statute used to convey title transferred by court order or by will. Listed sales price
Transfer Tax Stamps
IL .50/$500
County .25/$500
Total .75/$500
Seller usually pays
based on net value of transfer
(Price/$500) x .75 = transfer tax
Local - check each municipalities Some buyer pays
Real Estate Transfer Declaration
This is form used to determine transfer taxes
shows amount of consideration. Attached to deed
Misdemeanor if misreport purchase price
Tax Stamps and Land Trusts
Land trustee obligated to record the assignment of beneficial interest
