Revised 7-30-08Chapter 12

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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

Revised 7-30-08Chapter 12

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VALID DEED REQUIREMENTS

(Page 225)

Grantor - has legal capacity

Grantee - named with reasonable certainty

Consideration

Granting clause - words of conveyance

Legal description

Revised 7-30-08Chapter 12

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VALID DEED REQUIREMENTS

(Page 225)

Exceptions or reservations

Signature of grantor

Notarization

Delivery and acceptanceDirect action of the grantorDuring the life-time of the grantor

Revised 7-30-08Chapter 12

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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)

Revised 7-30-08Chapter 12

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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

Revised 7-30-08Chapter 12

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SPECIAL WARRANTY DEED (Page

230)

Warranty that grantor received title

Warranty that property was unencumbered by grantor

Revised 7-30-08Chapter 12

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BARGAIN & SALE DEED (Page

230)

Common Lawno express warrantiesimplies grantor holds title

Illinois LawFee simple ownershipFree from encumbrancesGrantor warrants quiet

enjoyment

Revised 7-30-08Chapter 12

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QUIT CLAIM DEED (Page

230)

No expressed warranties

No covenants

No promises of any kind

Revised 7-30-08Chapter 12

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DEEDS IN A LAND TRUST

(Page 231)

Dee

d in

tru

stTrustee’s deed

Re-

conv

eyan

ce

deed

Trustee

BeneficiaryTrustor

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DEEDS PURUSANT TO COURT ORDER

Sherriff’s Deed - Mortgage Foreclosure

Tax Deed -Tax Foreclosure

Revised 7-30-08Chapter 12Slide #11

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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

Revised 7-30-08Chapter 12Slide #12

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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

Revised 7-30-08Chapter 12Slide #13

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TRANSFER TAX CALCULATIONS

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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

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TRANSFER BY DEATH (Page 235)

Devise

Devisee

Legacy or Bequest

Legatee or Beneficiary

Terms

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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

Revised 7-30-08Chapter 12Slide #17

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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

Revised 7-30-08Chapter 12Slide #18

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TYPES OF WILLS (Page 236)

Holographic WillWritten in the testator’s own handwriting

Nuncupative WillVerbal, deathbed will