Illinois Real Estate Law for Paralegals
Illinois Real Estate Law for Paralegals Transactions and Landlord-Tenant Law Thomas Wendt Carolina Academic Press Durham, North Carolina
Copyright 2017 Thomas C. Wendt All Rights Reserved ISBN 978-1-53100-025-7 eisbn 978-1-53100-169-8 LCCN 2017938481 Carolina Academic Press, LLC 700 Kent Street Durham, North Carolina 27701 Telephone (919) 489-7486 Fax (919) 493-5668 www.cap-press.com Printed in the United States of America
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? 12 6. Forms of Ownership 13 Fee Simple Defeasible 13 Types of Fee Simple Defeasible 14 1. Fee Simple Determinable 14 2. Fee Simple Subject to Condition Subsequent 14 3. 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 53 1. Do We Have a (Binding) Deal? 54 v
vi CONTENTS 2. Actors in the Transaction 58 3. Engagement Letters 59 4. Contract Review 61 Provisions of the IRELA Multi-Board Residential Real Estate Contract 6.0 62 Attorney Review 64 Key Terms 64 Review Questions 65 Chapter 2 Appendix 66 Chapter 3 Contract Contingencies 105 Learning Objectives 105 Chapter Summary 105 1. Home Inspection Contingency 105 What Is Radon? 107 Radon Abatement System 109 As-Is Clause 113 Some Definitions 114 2. Financing Contingencies 115 Key Terms 116 Review Questions 117 Chapter 3 Appendix 118 Chapter 4 Title Insurance Surveys 147 Learning Objectives 147 Chapter Summary 147 1. Title Insurance 147 Owner s Policy 148 Lender s Policy 149 2. Marketable Title 149 3. Contract Provisions 150 4. Preliminary Title Insurance Policy 150 5. Surveys 152 Key Terms 157 Review Questions 158 Chapter 4 Appendix 159 Chapter 5 Condominiums and Cooperatives 177 Learning Objectives 177 Chapter Summary 177 1. Condominium Overview 177 Condominium Association 179 2. Administration of the Condominium Property 181 3. Condominium Associations in Real Estate Closings 186 4. Contract Provision 188
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 209 1. Deeds 209 Present Covenants 211 Future Covenants 211 Homestead Rights 212 Notary Clauses 213 2. Closing Documents 214 Bill of Sale 215 Affidavit of Title 215 ALTA Statement 216 1099-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 265 1. Notes and Mortgages 265 2. Real Estate Taxes 268 Annual Tax Sale 270 Sale of Forfeited Taxes (Scavenger Sale) 271 Tax Deed Court Process 271 3. 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 327 1. Leases and Rentals 327 Federal Law 328
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 363 1. 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
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