Warranty Deed vs. Quitclaim Deed

Warranty Deed vs. Quitclaim Deed

When you’re in the process of selling (or purchasing) a house, you will most likely, encounter several kinds of documents: all with different names and with different uses and functions. Two of the most misunderstood documents are the warranty deed vs. quitclaim deed. Many think that these two forms are alike, but they are not.

A warranty deed is a document which the seller presents to you and is used in the majority of all sales transactions. The warranty deed simply states that the seller owns the property being sold and that it is free from any sort of liens. By presenting a warranty deed, the buyer is assured that the holder of the title has the legal right to transfer ownership of the unit and is assured that no one (financial institution or other creditors) would come after him to make a claim on the property. In the eventuality that someone does lay claim to the property that has just been purchased (or that the claims stated in the warranty are erroneous), the buyer is further protected by law and would be entitled to receive a form of compensation. Warranty deeds seldom stand alone as these documents are usually backed up by a title insurance policy.

A quitclaim deed, on the other hand, is presented to a buyer by someone who does not necessarily own the property being sold but holds responsibility for it. This occurs due to several reasons such as when the owner dies and bequeaths the property to one of his heirs, or when there is a marriage and the owner wants to include the name of his/her spouse to the title (among others). A quitclaim deed offers a lower level of protection to buyers. This kind of document is used primarily when the property in question will just stay within a family.

Incidentally, there are times when both a warranty deed and a quitclaim deed are presented to a potential buyer. An example is when the property lies on the border of rivers and or lakes; where ownership of the underwater land on which his property stands on remains unclear.

If you are unsure which kind of deed works best for your property, consult a real estate agent or a real estate lawyer.

Understanding Title Insurance

Understanding Title Insurance

Title to a property is a record detailing the owners of the property and rights associated with the ownership. Title typically shows a progression of ownership from the first owner to the current one. Title is a fairly simple concept, but when it goes wrong it is a nightmare. That is where title insurance comes in, and why it’s important to understanding title insurance.

Title Insurance

Title insurance guarantees that the title on a property is marketable when you purchase the home, condo, land, etc. You should always pay for title insurance. It typically costs a few hundred dollars and will save you a bundle if problems arise.

When you buy title insurance, a title insurance company researches the title for the property. The insurance company will look to see if the title is clear. Clear simply means that the seller is truly transferring title to you and no other person can claim ownership. While this sounds fairly simple, rest assured that title problems arise all of the time.

Title Problems

You might be wondering how you could possibly have title problems. Here are a few examples:

  1. Divorcing Couples Divorce is unpleasant and sometime very ugly. In particularly nasty situations, one spouse may attempt to sell a home without telling the other. To gain clear title, you need both spouses to sign off on the sale. If you dont, you are going to become a party of the divorce proceedings. Now, wouldnt that be fun?
  2. Estate Sales If you are purchasing a house as part of an estate sale, there can be real problems. The heirs may not be getting along and in an effort to get whats mine, may try to sell the residence without including all the heirs in the transaction. If you buy this home, you could end up involved in a lawsuit filed by an heir left out of the transaction.
  3. Ingress and Egress Issues Title to a property can have technical issues related to egress and ingress. Occasionally, one finds title to a property that is so messed up that the owner doesnt have the right to enter or leave the land because to do so would require crossing another persons property. In short, the property is landlocked and something must be worked out with the neighbors. Typically, a solution comes in the form of hard, cold cashlots of it.

These are just a few issues that can arise with title. With real estate, unique issues can arise all the time.

If you buy title insurance, you dont have to worry about problems with title. If a problem arises, you calmly pick up the phone and call the title insurance company. The insurance company will come up with a solution, even if it means paying you for bad title.

Illinois Real Estate License Act (RELA) signed into law

Gov. J.B. Pritzker signed the Illinios Real Estate License Act (RELA) into law, a move that strengthens rules for training and professionalism and enhances consumer protections.  

Public Act 101-0357 was signed on August 9, 2019. It is a rewrite of the Illinois Real Estate License Act, which by statute must be revised every decade to reflect industry changes. 

New Illinois law prohibits landlords from evicting tenants…

Illinois has become the second state to prohibit landlords from evicting tenants solely because they’re living in the U.S. illegally.

The measure Democratic Gov. J.B. Pritzker signed into law also prohibits landlords from reporting or threatening to report tenants’ immigration status to authorities in order to intimidate them, or as retaliation for exercising their rights as tenants, or to force them to move out.

Read more in the article posted in the Chicago Tribune.

https://www.chicagotribune.com/politics/ct-jb-pritzker-immigrant-tenant-protection-20190821-vh32aefcwnaurp2a5d4u3v37ni-story.html

Give A Smile-Get A Smile

In today’s world of technology, we do not have ample opportunity to get personal. Life is fast-paced and everyone seems to be in a rush. We dial the phone and we talk to machines. We spend long hours on the computer playing games, emailing one another or working with our web pages. Even in the office environment, we email the person in the cubicle 3 feet away instead of walking over to hand them a task list.

Don’t get me wrong. I love technology. I cannot imagine ever being without my computer and am guilty of spending a large part of my day working online. The computer and the Internet afford many opportunities. Now at no charge outside of my Internet connection, I can communicate with persons all over the world. If screened carefully young people have a world of education available at their fingertips. I could continue to expound on the many benefits that technology has brought into our lives. However, that is not the gist of this article.

As a result of the technological age of today’s world, our personal touch with one another is decreasing. We need to take full advantage of the opportunity to be personal. Humans are becoming strangers to one another. People are in a hurry to get on with the business of living and walk past each other on the street without even a nod.

Have you wondered why there is so much clinical depression in the world today? Ask yourself why our young people are so distressed. Why so many of them attempt suicide or worse the murder of their classmates or families. Do you conclude as I do that we need more of a personal touch?

Have you taken notice to how you felt when you were standing in line at a bank and someone turned and smiled at you? Prior to that smile, you were feeling very anxious, possibly tapping your foot in impatience. You weren’t very happy to be there waiting in a long line. You had things to get done and you were getting more frustrated by the minute. It was one of the mundane drudgeries we all have to go through. Then comes this smile from the person in the line next to you and suddenly you feel much better. You are compelled to smile back. You do so without giving it thought, as though it is a natural inclination to reciprocate the smile.

Think about it, don’t you feel compelled to smile back when someone smiles at you? Doesn’t if lift your mood, and bring you out of a frustrated frame of mind? But that smile does so much more than that. It makes you feel accepted and liked. Somebody cares and shares the things you go through. It makes you part of a group, an integral part of the human race. If you do not think that our society, do research into why our young people join gangs. The kids will tell you they are seeking to belong, to be a part of something. The gang becomes an extension of the family.

There is power in the smile, you see. Its as though that instant someone waved a wand and all the drudgery disappeared. You suddenly feel warm and responsive and the person who offered you a smile has just gone from a stranger to be wary of to a kindred spirit. Sometimes a conversation is started and now the mundane drudgery has actually become an enjoyable experience. You no longer feel frustrated and rushed and in spite of yourself and enjoying yourself. The world is now warm and fuzzy instead of cold, fearful and bitter.

I do not mean to imply that giving and receiving a smile is the solution to the world’s problems, but it is a very good place to start. We all need to feel that sense of belonging. We are after all members of the same human family. We should feel moved to embrace each other in our hearts and minds.

So go ahead and smile. I dare you. But be careful. You might find the world a friendlier place to live. You might find that people are warm and kind and appreciative. Your smile might just make their day.

Installment Sales Contracts

New Real Estate Act of 2018 involves Installment Sales Contracts related to Real Estate… It provides that a real estate installment contract for residential real estate is subject to the foreclosure provisions of the Code if the purchase price is to be paid in installments over a period in … Adds a corresponding change in the Consumer Fraud and Deceptive Business Practices Act. Effective January 1, 2018.

To learn more about this new act visit: http://bit.ly/2qfAZHw

Things to know before signing a Rent-to-Own contract

What does rent-to-own mean?

Also known as a lease option, a rent-to-own contract allows renters to lease a property and, at the end of the lease (usually one to three years), have the option to purchase the home at a predetermined price. Ideal candidates for a rent-to-own option are potential home buyers who dream of ownership but are also concerned they haven’t saved up enough cash for a down payment.

As a renter, you must be cautious before you sign a rent-to-own contract. There are many stipulations… READ MORE