The Best and Worst Types of Illinois Property Deeds

 Posted on April 18, 2024 in Real Estate

When you are buying real estate, you must make sure that the type of deed you take adequately protects you. Not all deeds are created equal. Allowing a seller to transfer you a weak type of deed could mean that you find out years later that the seller never actually owned the property - and neither did you. Any deed offered by the seller should be reviewed by an experienced Cook County, IL real estate attorney. A lawyer can make sure that you are well-protected if any issues arise after the sale or draft the deed himself to make sure it contains language holding the seller accountable for certain problems you might encounter later.

Why You Should Avoid Quitclaim Deeds 

If you are ever offered a quitclaim deed, it is best to walk away from the sale, no matter how much you like the property or how reasonable the cost is. The problem with quitclaim deeds is that they may or may not actually convey anything. A quitclaim deed essentially says, “I may or may not have any ownership interest in this property, but if I do I am transferring it to you.” If it turns out that the seller did not have any ownership interest in the property, you have effectively paid for nothing. There is also the possibility that the seller is only a co-owner and someone else might still co-own the property you just bought.

Warranty Deeds Are a Good Option 

A warranty deed promises the seller that he or she legally owns the property. If the seller is not the lawful owner, he or she can be held accountable to you for breach of contract. Your lawyer can review the deed to ensure that the seller is the property’s rightful owner.

Special Warranty Deeds Are Used in Foreclosure Cases 

There is some risk to buying a house that a bank has taken possession of after foreclosing on it. In a special warranty deed, the bank promises that it owned the house at the time it sold it to you. However, the bank cannot make any promises about what might have happened before it repossessed the house and you purchased it. The seller could theoretically have sold ownership interest or taken out a yet-unsatisfied loan using the house as collateral.

Contact a Chicago Real Estate Transactions Lawyer 

Whitacre & Stefanczuk LTD will treat you like family and do all we can to make you feel secure in your real estate purchase. Our experienced Cook County, IL real estate buyer’s attorneys will carefully review any deed you are considering accepting to ensure that it contains the right promises. Contact us at 773-622-6100 for a complimentary consultation. Mówimy po Polsku.