real estate

Deeds
A deed is a written instrument that transfers the title of property from one person to another. There are many different types of deeds. Generally, in Illinois, title is transferred by a general warranty deed. A general warranty deed provides the greatest protection to the purchaser because the seller pledges or warrants that he or she legally owns the property and that there are no outstanding liens, mortgages, or other encumbrances against it. A warranty deed is also a guarantee of title, which means that the seller may be held liable for damages if the buyer discovers that the title is defective. A warranty deed is no substitute for title insurance, however, because a warranty from a seller who later dies or goes bankrupt may have little value.

Another type of deed used is a quitclaim deed. A quitclaim deed relinquishes whatever interest, if any, the seller may have in the property to the buyer. A quitclaim deed gives the buyer the least protection of any deed. If the seller is the sole owner of the property, the quitclaim deed is enough to transfer title, but the buyer takes a risk by accepting a quitclaim deed because it offers the buyer no guarantee that the title is valid. Quitclaim deeds customarily are used during the property settlement phase of a marriage dissolution.

Recording
In Illinois, real estate owners and parties with real estate interests are required to file with the county all documents affecting their interest in property in order to give public notice of the interest. Since 1992, Illinois titles are transferred under the abstract system. Abstract records go back hundreds of years and an abstract of title is a record of all the entries for that property.

Buying or Selling a Home
Because Illinois has many programs to help people buy a home, home ownership is a possibility for people at all income levels. Buying a home may be both rewarding and stressful. Every home purchase involves a number of complex legal issues, unfamiliar terminology, and lots of paperwork. Knowing how the process works may reduce much of the headache.

Real Estate Agents
One of the first decisions for someone interested in buying or selling a home is whether to use the services of a real estate agent. Real estate agents are hired to help buyers and sellers meet to complete the sale of a house. Home buyers and sellers may choose to work with an agent exclusively or non-exclusively.

A person who decides to work with an agent will sign several contracts to clarify the relationship between the consumer and the agent. These contracts may include provisions regarding dual agency. This term refers to the arrangement in which an agent represents both the buyer and the seller of the house. It may be difficult for one agent to represent both a buyer and a seller fairly. When the agent finds a buyer for a house that the agency has listed, the agent's dual loyalties become apparent. The seller wants the highest price possible while the buyer wants to pay the lowest price. The contracts state what the agent may share with the other party and which information must remain confidential.

Seller Disclosures
In Illinois, the Residential Real Property Disclosure Act requires that when a seller signs the standard purchase agreement, he or she must attach a disclosure document. This document must disclose to the buyer any material defects, which are known hazards or problems with the structure or the heating, plumbing, mechanical, or electrical system. Just because problems are listed on this statement does not mean that the seller must repair the problems, but the buyer may request either repair or a price break because of the problem. In some communities, the seller also is required to complete an inspection report. In that case, an inspector checks the house for defects and these defects are listed in the report.

Home Warranties
Whenever a builder sells a home in Illinois, the home comes with an implied warranty of habitability. This means that the builder guarantees that there are no major problems with the home, even problems that may not be apparent right away. The buyer has a reasonable amount of time to discover any major problems covered under the warranty. For example, if it rains every day for a month and the roof does not leak, everyone may assume the roof is sound. If the roof begins leaking during a rainy period a year later, it is probably too late to claim the house was sold with a defective roof. The buyer had a reasonable amount of time to discover the defect. The leaky roof would not be covered under the implied warranty of habitability.

Illinois law also provides that any residential unit sold by installment contract is voidable unless there is attached to the contract information about dwelling code compliance. The seller may attach either a certificate of compliance, or may include an express written warranty that the home has not been the subject of any dwelling code violations in the past ten years. If there have been violations, the seller must attach a copy of every notice of violation.

Home buyers should be aware of state laws dealing with removal of lead-based paint from a home. The Lead Poisoning Prevention Act requires owners to remove, replace, or secure and permanently cover walls covered in lead-based paint. Owners must take care of lead problems after receiving notice from the Department of Public Health. Failure to comply with the Act may subject the owner to criminal misdemeanor charges.

Foreclosure
Nobody in the process of buying a house wants to think about the possibility of falling behind in house payments to the extent that the bank or mortgage company will foreclose on the loan and claim possession of the house. Nevertheless, it is wise for a consumer to understand why a lender forecloses on a piece of property, so the consumer can minimize the possibility of losing a house

Up to a point, a lender will typically work with a homeowner who falls behind in making payments because the lender does not want to go through the hassle and expense of foreclosing on a property. Homeowners should communicate with their lenders if there are financial difficulties present that make paying the mortgage difficult. It can take months for a lender to begin a foreclosure, and more months before it is completed, so usually there is time to get the money needed to assure a lender that there will not be a default. After a lender begins the foreclosure process, there is a period of time called a redemption period during which a homeowner can stop the foreclosure by making all delinquent mortgage payments plus the lender's court costs and attorney fees.

In Illinois, a lender may accept the deed to the property instead of foreclosing. The property owner loses the property, but if he or she truly has no other way to avoid foreclosure, offering the deed as a way to satisfy the debt can prevent his or her credit rating from being severely damaged by a foreclosure. However, because lenders generally want cash and not real estate, there is no guarantee that a lender will accept a deed offered in lieu of foreclosure.

A notice of foreclosure must state the name of the person whose property is subject to foreclosure, the court, the case number, the name of the person who holds the title to the property, a legal description of the property, and the mortgage identification information. It must be signed by the foreclosing party or the party's attorney.