Terms
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
Revised 7-30-08
Copyright – David A. McGowan
All rights reserved
Chapter 12
Slide #1
VALID DEED REQUIREMENTS
(Page 225)
Grantor - has legal capacity
Grantee - named with reasonable certainty
Consideration
Granting clause - words of conveyance
Legal description
Revised 7-30-08
Copyright – David A. McGowan
All rights reserved
Chapter 12
Slide #2
VALID DEED REQUIREMENTS
(Page 225)
Exceptions or reservations
Signature of grantor
Notarization
Delivery and acceptance
Direct action of the grantor
During the life-time of the grantor
Revised 7-30-08
Copyright – David A. McGowan
All rights reserved
Chapter 12
Slide #3
GENERAL WARRANTY DEED
(Page 229)
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
Revised 7-30-08
Copyright – David A. McGowan
All rights reserved
Chapter 12
Slide #4
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 7-30-08
Copyright – David A. McGowan
All rights reserved
Chapter 12
Slide #5
SPECIAL WARRANTY DEED
(Page 230)
Warranty that grantor received title
Warranty that property was
unencumbered by grantor
Revised 7-30-08
Copyright – David A. McGowan
All rights reserved
Chapter 12
Slide #6
BARGAIN & SALE DEED
(Page 230)
Common Law
no express warranties
implies grantor holds title
Illinois Law
Fee simple ownership
Free from encumbrances
Grantor warrants quiet enjoyment
Revised 7-30-08
Copyright – David A. McGowan
All rights reserved
Chapter 12
Slide #7
QUIT CLAIM DEED
(Page 230)
No expressed warranties
No covenants
No promises of any kind
Revised 7-30-08
Copyright – David A. McGowan
All rights reserved
Chapter 12
Slide #8
DEEDS IN A LAND TRUST
(Page 231)
Trustee
Trustor
Revised 7-30-08
Beneficiary
Copyright – David A. McGowan
All rights reserved
Chapter 12
Slide #9
DEEDS PURUSANT TO COURT
ORDER
Sherriff’s Deed - Mortgage Foreclosure
Tax Deed -Tax Foreclosure
Revised 7-30-08
Copyright – David A. McGowan
All rights reserved
Chapter 12
Slide #10
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 7-30-08
Copyright – David A. McGowan
All rights reserved
Chapter 12
Slide #11
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 7-30-08
Copyright – David A. McGowan
All rights reserved
Chapter 12
Slide #12
TRANSFER TAX CALCULATIONS
Revised 7-30-08
Copyright – David A. McGowan
All rights reserved
Chapter 12
Slide #13
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
Revised 7-30-08
Copyright – David A. McGowan
All rights reserved
Chapter 12
Slide #14
Terms
TRANSFER BY DEATH
(Page 235)
Devise
Devisee
Legacy or Bequest
Legatee or Beneficiary
Revised 7-30-08
Copyright – David A. McGowan
All rights reserved
Chapter 12
Slide #15
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 7-30-08
Copyright – David A. McGowan
All rights reserved
Chapter 12
Slide #16
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 7-30-08
Copyright – David A. McGowan
All rights reserved
Chapter 12
Slide #17
TYPES OF WILLS
(Page 236)
Holographic Will
Written in the testator’s own handwriting
Nuncupative Will
Verbal, deathbed will
Revised 7-30-08
Copyright – David A. McGowan
All rights reserved
Chapter 12
Slide #18