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Titles and Deed Matters in Illinois

Real Estate Lawyer Serving DuPage County, Will County & Cook County

When it comes to buying or selling a property, there are many complications which can arise. The entire process can not only be difficult to navigate through, but one small oversight or error during this process could drastically affect the sale. In order to ensure that your rights are protected and you are able to secure the best outcome for you, it is important that you are educated regarding the important aspects of the case. Two crucial things to be informed about in real estate law are titles and deeds.

Titles: Equitable & Legal

What exactly are titles? A title is defined as a bundle of rights regarding a certain piece of property. When a property is being sold, the rights can be transferred as well. This, however, is not necessarily so, as possession and the title can be transferred separately. There are two types of titles: equitable and legal. Whoever has the equitable title has the right to have full ownership of the property while whoever has possession of the legal title actually owns the property.

When a property is for sale, the sale is closed when the legal title has transferred from the owner to the buyer. An example of when an equitable title may be used is in a trust. The trustee may have actual ownership of the property, meaning they possess the equitable title. The beneficiary possesses the equitable title meaning that they have the right to obtain ownership in the future.

Deeds: Warranty, Quitclaim, Deed of Trust

What are deeds and what role do they play in the purchase of a home? A deed is an instrument whereby the owner of a home transfers their ownership over to another individual. The deed of the property will have the name of the current owner, the grantor, as well as the new owner, the grantee. Other information which can be found on a deed includes the grantor's signature and a description of the property from a legal standpoint. As this is a legal document, any transfer of a deed has to be notarized and then recorded in the county where the property is.

The most commonly used type of deed in Illinois is the warranty deed. This is used for real property when it needs to be transferred from one individual to another and requires a signature from the grantor. A warranty deed is beneficial to the grantee because they can be confident they are getting a title that is legally sound. Within the category of warranty deeds are more types of deeds, including to an individual grantee, several grantees, or to a corporation. The elements included on the warranty deed is the amount of consideration, the names and addresses of both the grantor and the grantee (or grantees), and address of the property, the signature of the grantor and the grantee, and a notary acknowledgement.

Another type of deed is the quitclaim deed. This deed transfers interest in a property without any guarantee that the title of the property is good or without any complications. In cases where a property is merely being transferred from one spouse to another, however, it can be beneficial. A deed of trust is comparable to a mortgage in that a trustee holds ownership of the title until a loan is paid off by the borrower. If they cannot pay it off, the property can be sold to make up for the loan.

Choose the Law Office of Al Beaudreau, LTD.

If you have any more questions concerning titles and deeds and how they can be transferred smoothly, please do not hesitate to contact our team at the Law Office of Al Beaudreau, LTD.

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We have years of experience in these types of cases and have closed over one billion dollars in real estate transactions. Contact our office as soon as possible to learn more.