Illinois Real Estate Law for Paralegals
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1 Illinois Real Estate Law for Paralegals
2
3 Illinois Real Estate Law for Paralegals Transactions and Landlord-Tenant Law Thomas Wendt Carolina Academic Press Durham, North Carolina
4 Copyright 2017 Thomas C. Wendt All Rights Reserved ISBN eisbn LCCN Carolina Academic Press, LLC 700 Kent Street Durham, North Carolina Telephone (919) Fax (919) Printed in the United States of America
5 Contents Author s Notes and Acknowledgments ix Chapter 1 Introduction to Real Estate Transactions 3 Learning Objectives 3 Chapter Summary 3 1. Introduction 3 2. The Lawyer s Role in Real Estate Transactions in General 4 3. Why Is an Attorney Needed in Real Estate Transactions? 5 4. Definition of Property 6 Conveyance of Property 9 5. What Does a Real Estate Paralegal Do? Forms of Ownership 13 Fee Simple Defeasible 13 Types of Fee Simple Defeasible Fee Simple Determinable Fee Simple Subject to Condition Subsequent Fee Simple Subject to Executory Limitation 14 Adverse Possession 15 Legal Forms of Ownership 18 Sole 18 Tenancy in Common 18 Joint Tenancy 19 Tenancy by the Entirety 20 Community Property 25 Trusts 25 Life Estate 26 Transfer on Death Instrument (TODI) 27 Key Terms 32 Review Questions 33 Chapter 1 Appendix 34 Chapter 2 Commencement of the Transaction 53 Learning Objectives 53 Chapter Summary Do We Have a (Binding) Deal? 54 v
6 vi CONTENTS 2. Actors in the Transaction Engagement Letters Contract Review 61 Provisions of the IRELA Multi-Board Residential Real Estate Contract Attorney Review 64 Key Terms 64 Review Questions 65 Chapter 2 Appendix 66 Chapter 3 Contract Contingencies 105 Learning Objectives 105 Chapter Summary Home Inspection Contingency 105 What Is Radon? 107 Radon Abatement System 109 As-Is Clause 113 Some Definitions Financing Contingencies 115 Key Terms 116 Review Questions 117 Chapter 3 Appendix 118 Chapter 4 Title Insurance Surveys 147 Learning Objectives 147 Chapter Summary Title Insurance 147 Owner s Policy 148 Lender s Policy Marketable Title Contract Provisions Preliminary Title Insurance Policy Surveys 152 Key Terms 157 Review Questions 158 Chapter 4 Appendix 159 Chapter 5 Condominiums and Cooperatives 177 Learning Objectives 177 Chapter Summary Condominium Overview 177 Condominium Association Administration of the Condominium Property Condominium Associations in Real Estate Closings Contract Provision 188
7 CONTENTS vii 5. Cooperatives 190 Key Terms 191 Review Questions 191 Chapter 5 Appendix 192 Chapter 6 Deeds and Closing Documents 209 Learning Objectives 209 Chapter Summary Deeds 209 Present Covenants 211 Future Covenants 211 Homestead Rights 212 Notary Clauses Closing Documents 214 Bill of Sale 215 Affidavit of Title 215 ALTA Statement S or Principal Place of Residence Certificate 216 Transfer Stamp Declarations 218 Other Closing Documents 218 Key Terms 218 Review Questions 219 Chapter 6 Appendix 221 Chapter 7 Financing and Real Estate Taxes 265 Learning Objectives 265 Chapter Summary Notes and Mortgages Real Estate Taxes 268 Annual Tax Sale 270 Sale of Forfeited Taxes (Scavenger Sale) 271 Tax Deed Court Process Foreclosure 271 General Foreclosure Process 272 Steps in a Foreclosure 272 Key Terms 274 Review Questions 275 Chapter 7 Appendix 276 Chapter 8 Landlord-Tenant Law 327 Learning Objectives 327 Chapter Summary Leases and Rentals 327 Federal Law 328
8 viii CONTENTS Leases 328 Duration 328 Construction of Leases 329 Security Deposits 329 Security Deposit Interest 331 Late Fees 332 Warranty of Habitability 332 Covenant of Quiet Enjoyment 332 Key Terms 335 Review Questions 335 Chapter 8 Appendix 336 Chapter 9 The Eviction Process 363 Learning Objectives 363 Chapter Summary The Eviction Process 363 Eviction 363 Notice of Breach (or Notice of Non-Renewal) 364 Failure to Pay Rent 364 Breach of a Material Term in the Lease 365 Non-Renewal of Tenancy 365 How to Calculate the Notice Period 366 Filing the Action 366 Key Terms 386 Review Questions 387 Chapter 9 Appendix 388 Chapter 10 The Transaction 421 Learning Objectives 421 Chapter Summary 421 Review Questions 422 Chapter 10 Appendix 424 Index 453
9 Author s Notes and Acknowledgments The author wishes to acknowledge the following people and organizations for their assistance in the assembly of this material. Illinois Real Estate Lawyers Association (IRELA). The Multi-Board Residential Real Estate Contract 6.0 is the property of the IRELA. American Land Title Association Illinois Legal Aid Online Truman College, one of the City Colleges of Chicago Wright College, one of the City Colleges of Chicago Please note: This text is intended for informational and instructional use only. Nothing in this text is intended to be taken as legal advice and nothing in this text is intended as a substitute of the advice of an attorney. If an attorney is required for representation, it is recommended to contact the local bar association or the IRELA website for referrals to an experienced real estate attorney. ix
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