Chapter 9, 11, 12, 13
Attorney-in-fact
A person given the authority to act on behalf of another under a power of attorney. They can sign documents for legal documents for another person.
Adverse Possession aka squatter rights
A person takes possession & use of a property belonging to another. Possession must be open, notorious, hostile & uninterrupted for a certain period of time. In Illinois 20 years. If party whose property is being taken has a "color of title/ flaw in title", the possessory period may be shortened to 7 years.
Sections in a Township
36 sections per township, each one-mile square (1 mile on each side or 640 acres). Section 16 is where schools are built and known as the school section. Half section 320 acres, 1/4 section 160 acres.
How many square feet are in an acre?
43,560 square feet
How many feet in a mile?
5,280 feet (one side of a township section)
rectangular survey system
A system established in 1785 by the federal government, providing for surveying and describing land by reference to principal meridians and base lines.
Benchmarks
Permanent reference marks or points established for use by surveyors in measuring differences in elevation.
Commingling
Illegally mixing deposits or monies, collected from a client, with one's personal or business account.
Township Tiers
Lines running east and west, parallel to the base line and six miles apart. They are designed by consecutive numbers north or south of the base line.
Local Transfer Tax
Municipalities have their own tax as well and can be paid by buyer or seller
Conversion
An illegal act when sponsoring brokers use escrow funds for personal use.
Mutual Assent
An offer and acceptance which together form the terms of a contract.
Insurable Title
Ownership with some known defects that a title insurance company agrees to cover. This title s often offered by banks in a foreclosure sale
Contract Law
Body of law that governs contract agreements
Novation
The substitution, by agreement, of a new contract for an old one, with the rights under the old one being terminated.
tax stamp
These stamps are literally affixed to the deed to show transfer tax has been paid before recording the deed.
Liquidated Damages
These types of damages permits seller to keep earnest money from a buyer in default. Seller may also be entitled to compensatory damages if the buyer breach resulted in further financial loss.
Term "title" has 2 meanings
Title to real estate means the right to ownership or actual ownership of the land. It represents the "bundle of rights". Also serves as evidence of that ownership. Title is also a way of transferring ownership.
Fractional Sections
Undersized or oversized sections
breach of contract
Violation of any terms or conditions in a contract without legal excuse; for example, failure to make a payment when it is due. The no breaching party may sue for specific performance.
Title Insurance
is a contract that protects the policyholder from losses arising from defects in the title. This offers best defense of title.
executor
person who has possession of a will and is designated to execute the terms of a will
Testator
a person who makes a will
Datum
a point, line, or surface from which elevations are measured or indicated
express contract aka express agreement
a written or oral agreement in which all terms are explicitly stated
Consideration
something of value exchanged for something else of value
Voluntary Alienation
the legal term for the voluntary transfer of title ex. selling property or gifting it
3 Methods to describe Real Estate
Metes & Bounds Rectangular Lot & Block
Addendum
(n.) a thing that is added; an appendix or addition to a book or written document
The types of deeds are:
1) Warranty Deed 2) Special (or limited) Warranty Deed 3) Bargain and sale deed 3) Quitclaim Deed 4) Deed in Trust 4) Trustee's Deed 5) Deed Executed pursuant to a court order
5 Covenants of General Warranty Deed
1. Covenant of Seisin - "I guarantee that I own it and have the right to sell it." 2. Covenant of Quiet Enjoyment -"No one will interfere with your possession or right to use the property." 3. Covenant Against Encumbrances - "I promise there are no hidden liens or encroachments other than those stated in the deed." 4. Covenant of Further Assurance -"If there is a defect, I promise to take care of any problems." 5. Covenant of a Warranty Forever - "These promises go back as far as there were public records."
Implied Contract
A contract formed in whole or in part from the conduct of the parties. ex. ordering food at a restaurant
Void Contract
A contract having no legal force or binding effect. It was never a legal contract
Executed Contract
A contract in which all parties have fufilled their promises. EX. After closing the contract is considered this.
Unenforceable Contract
A contract in which the essential elements to create a valid contract are met but there is some legal defense to the enforcement of the contract.
Voidable Contract
A contract that may be legally avoided (canceled, or annulled) at the option of one of the parties. EX. A contract with a minor or mentally ill
Valid Contract
A contract that results when elements necessary for contract formation (agreement, consideration, legal purpose, and contractual capacity) are present.
Land Contract aka contract for deed
A contract used in a sale of real property whereby the seller retains title to the property until all or a prescribed part of the purchase price has been paid.
Executory Contract
A contract when one or both parties still have an act to perform. A sales contract is this until closing.
Trustee's Deed
A deed executed by a trustee conveying land held in a trust. Conveyance from trustee to third party
General Warranty Deed
A deed in which the grantor fully warrants good, clear title to the premises. Used in most real estate deed transfers, a general warranty deed offers the greatest protection of any deed.
Special Warranty Deed
A deed in which the grantor warrants, or guarantees, the title only against defects arising during the period of his or her tenure and ownership of the property and not against defects existing before that time, generally using the language, "by, through, or under the grantor but not otherwise."
Bargain and Sale Deed
A deed that carries with it no warranties against liens or other encumbrances but that does imply that the grantor has the right to convey title. The grantor may add warranties to the deed at his or her discretion. Buyer should purchase title insurance with this type of deed.
Deed in Trust
A deed to real property, which serves the same purpose as a mortgage, involving three parties instead of two. The third party holds naked title for the benefit of the lender. Beneficiary (Lender), Trustor (Borrower), Trustee (Third Party). Conveyance from trustor to trustee.
Quitclaim Deed
A deed to relinquish any interest in property which the grantor may have, without any warranty of title or interest. This type of deed provides the buyer with the least protection of any deed. This type of deed is used to cure a defect, called a cloud on title. ex. misspelled name on title.
Legal Description
A detailed way of describing a parcel of land for documents such as deeds and mortgages that will be accepted in a court of law. Once these descriptions are made they are never changed. The longer the description the smaller the piece of land.
monument
A fixed object and point established by surveyor to establish land locations; includes not only artificial objects such as posts and fences, but natural objects such as trees, mountains and water courses.
acknowledgement/notarized
A formal declaration made before a duly authorized officer, usually a notary public, by a person who has signed a document.
Chain of Title
A history of the ownership affecting title to a parcel of land.
Will
A legally enforceable declaration of how a person wishes his or her property to be distributed after death.
plat map
A map of a town, section, or subdivision indicating the location and boundaries of individual properties.
Principal Meridian
A north-south line designated in the Land Ordinance of 1785 to facilitate the surveying and numbering of townships in the United States. There are 37 in total and only two meridians actually run through Illinois but Illinois real estate can be described by 3 of the 37 PM..
Unilateral contract
A one-sided agreement. One party promies to induce a second party to do something. Second party is not legally obligated to act. EX. Option contract, promise to purchase a property in the future.
Lots and Blocks System aka recorded plat system
A recorded subdivision plat maps, which shows the location of undivided lots in a subdivision.
Certificate of Title
A statement of opinion on the status of the title to a parcel of real property based on an examination of specified public records. It is not full guarantee of ownership.
Correction Lines
A system for compensating inaccuracies in the Government Rectangular Survey System due to the curvature of the earth. Every fourth township line, 24 mile intervals, is used as a correction line on which the intervals between the north and south range lines are remeasured and corrected to a full 6 miles.
Metes and Bounds
A term used in describing the boundary lines of land, setting forth all the boundary lines together with their terminal points and angles. Metes (length or measurements) and Bounds (boundaries) description is often used when a great deal of accuracy is required. Starts and ends at a point of interest.
Involuntary Alienation
A transfer of title to real property without the owner's consent . EX. Property sold at a tax sale, eminent domain or escheat
contract
A voluntary agreement between two parties in which specific promises are made for a consideration
Illinois Uniform Vendor and Purchaser Risk Act
An Act that states seller bears any loss that occurs before the title passes
Abstract and attorney's opinion of title
An opinion of title status based on a review of the abstract by an attorney. Similar to a certificate of title, the opinion of title does not protect against defects that cannot be discovered from the public records.
Townships
Areas of earth = 36 Sq. Miles (23,040 acres), Aka township squares
Bilateral contract
Bi means two= you must have two promises. Both parties promise to do something. EX. Seller promises to sell to a buy who promises to pay. The status of an option contract that has been exercised is considered to be this type of contract.
Deed executed pursuant to a court order
Deeds issued as a result of a will or court decision
Actual Notice
Express information or fact; that which is known; direct knowledge. Information that has already been given.
Government lots
Fractional sections in the rectangular (government) survey system that are less than one quarter section in area.
Marketable Title
Good or clear title, reasonably free from the risk of litigation over possible defects.
Requirements for a valid deed
Grantor has legal competency to execute the deed Grantee named with reasonable certainty to be identified Statement of Consideration Granting clause Habendum clause-defines the ownership right received by the grantee Accurate legal description of land Any relavant exemptions or reservations Acknowledgment of signature of grantor- grantee does NOT need to sign Delivery of deed and acceptance by grantee to pass title
Testate
Having made and left a valid will.
Recorder of Deeds
In Illinois A recorder of deeds must be elected if population of 60,000, under 60,000 the county clerk serves as the recorder of deeds.
Probate
Legal process by which a court determines who will inherit a deceased person's property and what the assets of the estate are
Constructive Notice
Notice given to the world by recorded documents. All people are charged with knowledge of such documents and their contents, whether or not they have actually examined them. Possession of property is also considered constructive notice that the person in possession has an interest in the property.
devise
Real property in a will. The person receiving this real property is known as a devisee.
Descent and Distribution
Refers to the distribution to heirs according to state statutes.
Transfer Tax Stamps
Tax paid by grantor when deed recorded. States require tax to be paid and so do many municipalities.
Government Check
The 24-mile-square parcels composed of 16 townships in the rectangular (government) survey system of legal description. it is an irregular area created by correction lines aka fractional sections.
The Plat Act
The Act that states: When an owner divides a parcel of land into two or more parts, any of which is less than five acres, the parts must be surveyed and a plat of subdivision recorded.
recording
The act of placing documents in the public record. Illinois does not require documents to be recorded in a specific time frame. Documents to land need to be recorded in county it is located in.
title search
The examination of public records relating to real estate to determine the current state of the ownership.
Grantor/Grantee
The grantor gives, sells, or transfers the property to the grantee. The grantee receives the property.
Ranges
The land on either side of a principal meridian is divided into six-mile-wide strips by lines that run north and south, parallel to the meridian.
North American Vertical Datum of 1988 (NAVD88)
The name of the "general datum" used by Illinois surveyors
Chicago City Datum
The name of the "official" datum for Chicago
Escrow Agent / Settlement Agent
The neutral third party holding funds or something of value in trust for another or others.
Subrogation
The process by which an insurer can, after it has paid a loss under the policy, recover the amount paid from any party (other than the insured) who caused the loss or is otherwise legally liable for the loss.
survey
The process by which boundaries are measured by calculating the dimensions and area to determine the exact location of a piece of land.
Spot Survey
The survey that shows the location, size, and shape of buildings on the lot
Amendment
The word for A change to an existing contract
Illinois Probate Act of 1975
This act states that if an owner died intestate, relatives will inherit the property. If owner dies intestate and has no heirs property will escheat to the Illinois county it lies in.
Chicago Bar Association v Quinlan and Tyson
This court decision states that licensee can only fill out pre-printed contract forms.
Illinois Law of Descent and Distribution
This law governs intestate distribution. ex. probate
Illinois Real Estate Transfer Tax Law
This law imposes a tax on conveying tilte to real estae in the amount of .50 cents per $500 for the state and .25 cents per $500 for county (.75 cents in total). Seller usually pays the state and county tax. Transfer tax must be paid before the recording of a deed.
Delivery and acceptance of deed
Title is conveyed when a deed is delivered to the grantee or the grantee's agent and is accepted by that party.
To Assign a contract for the sale of real estate means to
Transfer one's rights under a contract is also know as.....this?
Plat Act (756 ILCS 205)
When an owner divides a parcel of land into 2+ parts, any of which is less than 5 acres, the parts must be surveyed and a plat of subdivision is recorded
Parol Evidence Rule
Written agreement that is assumed to be the complete agreement of the parties
bequest (aka legacy)
a gift of personal property by will
Option Contract
contract to hold an offer to make a contract open for a fixed period of time
Intestate
dying without a will
Deed
document of title that transfers ownership of land. MUST be recorded. Conveys property from a grantor to a grantee
Abstract of Title
summary report of what the title search found in the public record. Performed by an abstractor.
A suit to quiet title refers to
the removal of a cloud on the title by court action.
Assignment
the transfer of contractual rights to a third party
