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49 Cards in this Set

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Title has what 3 meanings?

1. Way of referring to ownership


2. Reps the owner bundle rights


3. Evidence of ownership

Requirements for a valid deed

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.

habendum clause

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

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

Be specifically named but not required to sign.

Who prepares the deed?

Attorney of grantor

A title is not considered transferred until what?

The deed is delivered to and accepted by the grantee.

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

False, it is not essential

Types of Deeds

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

General Warranty deed

Greatest protection of any deed.

Special Warranty Deed

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

Bargain & Sale Deed

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

What are the 5 covenants of a general warranty deed

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

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

Less complete in it’s warranties

Quitclaim deed

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.

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

Cloud on the title

Deed in Trust

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

Trustee’s deed

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

Transfer Tax Stamps

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.

Escheat

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

Transfer by Will

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

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

bequest

Gift of real property by will is known as a

Devise. Receiver of property is devisee

Probate

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

Codicil

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

Holographic Will

Written in the testator’s own handwriting.

Nuncupative Will

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

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

Also witness by two people in each case

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

Spouse 100%


If children; spouse 50%, children 50% split


No spouse/children; family members


None of the above: distant relatives


No heirs; property escheat

Intestate

Did not leave a valid will

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

False, no they may not

K

K

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

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

Recording

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

Deeds in other languages from English must have

Appropriate translation available

Constructive Notice

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

Actual Notice

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

F

F

Priority

The order of rights in time

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

Title insurance policy

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

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

Unrecorded Docs

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.

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

True

Chain of Title

Record of property’s ownership.

Title Search

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

Abstract of Title

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

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

40 years & 75 years

Proof of Ownership

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

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

Yes

Title Insurance

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