Real Estate Ch 9

Front 1

Title has what 3 meanings?

Back 1

1. Way of referring to ownership

2. Reps the owner bundle rights

3. Evidence of ownership

Front 2

Requirements for a valid deed

Back 2

Grantor & grantee, recital of consideration (acknowledges the grantor has received consideration without the sell price), granting clause (words of conveyance that estate the grantor’s intention to convey), accurate legal description, relevant exceptions, signature of the grantor, delivery of the deed.

Front 3

habendum clause

Back 3

Ownership taken by the grantee “to have & to hold”

Front 4

Grantor’s name must be perfectly on all the docs and signatures. What is required of the grantee on a deed?

Back 4

Be specifically named but not required to sign.

Front 5

Who prepares the deed?

Back 5

Attorney of grantor

Front 6

A title is not considered transferred until what?

Back 6

The deed is delivered to and accepted by the grantee.

Front 7

True or False: Acknowledgment/notarization is essential to a valid deed.

Back 7

False, it is not essential

Front 8

Types of Deeds

Back 8

General Warranty deed, special warranty deed, bargain and sale deed, quitclaim deed, deed in trust, trustee’s fee, deed executed pursuant to court order

Front 9

General Warranty deed

Back 9

Greatest protection of any deed.

Front 10

Special Warranty Deed

Back 10

Grantor defends the title against them self but not against previous encumbrances.

Front 11

Bargain & Sale Deed

Back 11

No express warranties against encumbrances. Implies that the grantor holds title and possession of the property.

Front 12

What are the 5 covenants of a general warranty deed

Back 12

Covenant of seisin, covenant against encumbrances, covenant of quiet enjoyment, covenant of further assurance, & covenant of warranty forever.

Front 13

Bargain and sale deed is similar to a warranty deed but...

Back 13

Less complete in it’s warranties

Front 14

Quitclaim deed

Back 14

Provides the grantee w/ the least protection. No covenants/warranties, only w/e interest the grantor may have when the deed is delivered. W/o interest from grantor, grantee will acquire nothing.

Front 15

Quitclaim deed frequently is used to cure a defect called...

Back 15

Cloud on the title

Front 16

Deed in Trust

Back 16

A trustor conveys real estate to a trustee for the benefit of a beneficiary.

Front 17

Trustee’s deed

Back 17

A deed executed by a trustee is a trustee’s deed to covey real estate held in the trust to the beneficiary.

Front 18

Transfer Tax Stamps

Back 18

1. State tax on conveying to real estate in the amount of 50 cents per $500.

2. Additional transfer tax in IL of 25 cents per $500

3. Total transfer tax to state & county combined is 75 cents per $500

Must be paid before the recording of the deed.

Front 19

Escheat

Back 19

Owner died w/o a will and left no heirs, property goes to IL county

Front 20

Transfer by Will

Back 20

Different than deed b/c this must be delivered after life

Front 21

Gift of personal property by will is known as a legacy or...

Back 21

bequest

Front 22

Gift of real property by will is known as a

Back 22

Devise. Receiver of property is devisee

Front 23

Probate

Back 23

Legal procedure for verifying the validity of a will and accounting for the decendent’s assets, necessary for title to pass.

Front 24

Codicil

Back 24

Modification of, an amendment of, or an addition to a previously executed will and may be set forth in a separate doc.

Front 25

Holographic Will

Back 25

Written in the testator’s own handwriting.

Front 26

Nuncupative Will

Back 26

Deathbed bequest, given orally by a testator for personal property.

Front 27

Illinois courts do not recognize holographic or nuncupative wills unless...

Back 27

Also witness by two people in each case

Front 28

How is a will distributed to those who do not leave a will behind for their loved ones?

Back 28

Spouse 100%

If children; spouse 50%, children 50% split

No spouse/children; family members

None of the above: distant relatives

No heirs; property escheat

Front 29

Intestate

Back 29

Did not leave a valid will

Front 30

True or False: concerning a will, a surviving spouse may be disinherited by a decedent spouse

Back 30

False, no they may not

Front 31

K

Back 31

K

Front 32

Estate of an intestate decedent must be probated to determine...

Back 32

Which statutory heirs will inherit as well as assets/claims of the estate

Front 33

Recording

Back 33

Recording is the act of placing documents in the public record and open to public

Front 34

Deeds in other languages from English must have

Back 34

Appropriate translation available

Front 35

Constructive Notice

Back 35

Info may be obtained by an individual through due diligence, consulting the public docs. (Could know)

Front 36

Actual Notice

Back 36

Not only that info is available, but also that someone has been given the info and actually knows it. (Should know)

Front 37

F

Back 37

F

Front 38

Priority

Back 38

The order of rights in time

Front 39

What is the most commonly used evidence that an owner of IL property tenders to a prospective purchaser?

Back 39

Title insurance policy

Front 40

IL Title Insurance Act requires that parties to a contract for the sale of residential property who are obligated to

Back 40

Provide and pay for title insurance have the right to choose the title insur. co & agent

Front 41

Unrecorded Docs

Back 41

Real estate taxes and special assessments are liens on specific parcels of real estate and usually not recorded as of Jan.1 of that year for taxes.

Front 42

True or False: Mechanic’s lien that has not been recorded may nonetheless still have priority over other liens that have been recorded

Back 42

True

Front 43

Chain of Title

Back 43

Record of property’s ownership.

Front 44

Title Search

Back 44

Examination of all of the public records to determine whether any defects exist in the chain of title

Front 45

Abstract of Title

Back 45

Summary report of what the title search found in the public record.

Front 46

How many years do title searches go back in IL? What about when there’s litigation?

Back 46

40 years & 75 years

Front 47

Proof of Ownership

Back 47

Deed by itself is not sufficient evidence of ownership. Certificate of title is not a fully guaranteed but can be used

Front 48

Are abstract and attorneys opinion of title used in some areas as evidence of title?

Back 48

Yes

Front 49

Title Insurance

Back 49

Contract under which the policy holder (buyer) is protected from losses arising from defects in the title. Premium paid at closing.