Consider Illinois Property Ownership
Being part of a real estate purchase in Illinois comes with its own set of regulatory requirements, rules, and considerations3 min read
Being part of a real estate purchase in Illinois comes with its own set of regulatory requirements, rules, and considerations. This is why it is important to understand your rights, obligations, and options when it comes time to take an ownership interest in a property. We’ll break down the top 5 things that you will need to consider when making this important commitment.
Understanding the difference between joint and shared tenants, understanding title insurance, knowing loan obligations, understanding the transfer of deed taxes, and familiarizing yourself with Illinois property dispute laws will be key to protecting yourself as an owner of an Illinois property.
Understanding the Difference Between Joint and Shared Tenants
The first thing to consider when taking an ownership interest in an Illinois property is the type of tenancy you will have. It is important to understand the difference between joint and shared tenants. Joint tenants have equal ownership interests in a property, with each tenant possessing an undivided and equivalent interest in the same portion of a property. The interest in the property of the other joint tenants cannot be defeated or otherwise impaired by the one tenant.
On the other hand, in a tenancy in common, each tenant has a distinct interest in the property and the interest of one tenant may differ from the interest of the other tenant. Under a tenancy in common, each tenant's interest is transferable upon death, sale or other transfer of one of the respective tenant's. Illinois law recognizes joint tenants, and tenants in common, however joint tenants require a special instrument of conveyance.
Understanding Title Insurance
The second thing to consider when taking an ownership interest in an Illinois property is title insurance. Purchasing title insurance is an important part of any real estate transaction and provides protection to the property owners from losses that can occur due to Liens, unpaid mortgages, boundary disputes, clerical errors or undisclosed estates. Title insurance is issued at the time of the transfer of title, and protects owners from potential claims that can occur after the purchase of a property.
Knowing Loan Obligations
The third thing to consider when taking an ownership interest in an Illinois property is loan obligations. When purchasing a property, properly understanding the loan agreement is important. Loan agreements are contracts from a lender to a borrower, and outline the terms of the loan, including the amount of the loan, interest rate, terms of repayment, conditions of default, and other related information. Understanding the terms, conditions, and obligations of the loan agreement is important.
Understanding the Transfer of Deed Taxes
The fourth thing to consider when taking an ownership interest in an Illinois property is transfer of deed taxes. In Illinois, any time ownership of real estate changes hands, a transfer of deed tax is assessed. The tax rate varies based on the county where the property is located, and the amount of transfer of deed tax owed must be paid with the deed. It is important to understand the rate, and the amount of transfer of deed tax that is due when transferring a title.
Familiarizing Yourself with Illinois Property Dispute Laws
The fifth and final thing to consider when taking an ownership interest in an Illinois property is familiarizing yourself with Illinois property dispute laws. Property disputes can occur for a variety of reasons, and understanding the Illinois property law codes is important. These codes establish the rights and obligations of tenants, and outline the procedures for settling property disputes. It is also important to understand the remedies provided to tenants in the event of a dispute.
When taking an ownership interest in an Illinois property, it is important to understand the difference between joint and shared tenants, understand title insurance, know loan obligations, understand the transfer of deed taxes, and familiarize yourself with Illinois property dispute laws. Taking time to research and understand these five topics is key to protecting yourself as an owner.
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