Transfer of Title

Acknowledgment

A formal declaration before a notary public or other authorized officer that the person signing a document is doing so voluntarily and that the signature is genuine.

The grantor acknowledges the deed before a notary so it can be recorded.

Adverse Possession

A method of acquiring title to real property by open, notorious, continuous, hostile, and exclusive possession for the statutory period without the owner's permission.

A neighbor who fences and openly uses a strip of land for more than 20 years may claim title by adverse possession.

Bargain and Sale Deed

A deed that conveys the grantor's interest in the property but contains no warranties against encumbrances. It implies that the grantor has title.

Some states use bargain and sale deeds in tax sales or foreclosure situations.

Beneficiary

The person or entity who receives the benefits of a trust, will, or insurance policy. In a deed of trust, the lender is the beneficiary.

Under a will, the children are named as beneficiaries of the real estate.

Bequest

A gift of personal property made by a will. Real property given by will is called a devise.

The testator's will includes a bequest of jewelry and cash to a niece.

Deed

A written instrument that transfers ownership of real property from the grantor to the grantee. It must meet statutory requirements to be valid.

At closing the seller signs and delivers a deed that conveys title to the buyer.

Deed in Trust

A deed used to convey real property to a trustee who holds it for the benefit of a beneficiary, often as part of a land trust or financing arrangement.

A land trust uses a deed in trust to transfer title to a trustee while the beneficiary retains control.

Devise

A gift of real property made by a will. The person who receives the real property is the devisee.

The will devises the family home to the oldest child.

General Warranty Deed

A deed that provides the greatest protection to the grantee. The grantor warrants title against all defects, whether arising before or during the grantor's ownership.

Most residential sales use a general warranty deed so the buyer receives the strongest guarantees.

Grantee

The person who receives title to real property by a deed. The buyer in a typical transaction is the grantee.

The deed names the buyers as grantees as joint tenants.

Granting Clause

The words of conveyance in a deed that state the grantor's intention to transfer the property (for example, 'convey and warrant' or 'grant, bargain, and sell').

The granting clause is the heart of the deed and must clearly show the intent to transfer ownership.

Grantor

The person who transfers title to real property by a deed. The seller in a typical transaction is the grantor.

The sellers sign the deed as grantors and deliver it to the buyers.

Intestate

Dying without a valid will. Property of an intestate person is distributed according to state laws of descent and distribution.

Because the owner died intestate, the property passes to the heirs under Illinois intestacy statutes.

Involuntary Alienation

The transfer of title to real property against the owner's will, such as by foreclosure, adverse possession, condemnation, or tax sale.

Foreclosure is a common form of involuntary alienation.

Probate

The formal legal process of proving a will's validity, identifying heirs, paying debts, and distributing the deceased person's property under court supervision.

After the owner dies, the will is submitted to probate so the executor can transfer the real estate.

Quitclaim Deed

A deed that transfers whatever interest the grantor may have in the property without any warranties. It is often used to clear clouds on title.

A relative who may have a possible claim signs a quitclaim deed to remove any cloud on the title.

Special Warranty Deed

A deed in which the grantor warrants only against defects that arose during the grantor's period of ownership, not against earlier defects.

Corporate sellers and some banks often use special warranty deeds.

Testate

Dying with a valid will. The property is distributed according to the instructions in the will.

Because the owner died testate, the property is transferred as directed in the will.

Testator

A person who makes a will. A female testator is sometimes called a testatrix.

The testator signed the will in the presence of two witnesses.

Title

The right to or ownership of land. It also refers to the evidence of that ownership (the deed or other documents).

Clear title means the owner has the full legal right to possess, use, and transfer the property.

Transfer Tax

A tax imposed by state or local government on the transfer of real property. In Illinois it is commonly called the real estate transfer tax.

At closing the parties pay the Illinois real estate transfer tax based on the sale price.

Trustee's Deed

A deed executed by a trustee that conveys property held in trust to a third party, often used in deed-of-trust foreclosure sales.

After a nonjudicial foreclosure, the trustee issues a trustee's deed to the successful bidder.

Voluntary Alienation

The intentional transfer of title by the owner, usually by deed, will, or gift.

Selling a home by signing and delivering a deed is voluntary alienation.

Will

A written legal document that directs how a person's property is to be distributed after death. It must meet statutory formalities to be valid.

The owner's will leaves the house to a spouse and the investment properties to the children.