![]() Contact me or consult an underwriter for further information. The most common types of deeds are the quitclaim deed, warranty deed, and special warranty deed. This transfer can be accomplished through a legal document known as a deed. When insuring a subsequent act of the trustee, the Company is viewing this as ratification and evidence of acceptance of the conveyance into the trust. The statute does not require that the deed formally reflect actual acceptance it requires only evidence of acceptance."Īttorneys who are representing clients at a home purchase where the home is conveyed from the seller directly to the trust should always insist that trustee acceptance occur in writing on the deed at the closingĪttorneys that want to reconsider re-recording of deeds need also be aware of new re-recording requirements for the Cook County Recorder of Deeds. A conveyance of real property is the transfer of ownership of real estate from one person or entity to another. ![]() In the case of a conveyance by the settlor to himself as trustee of his own revocable living trust, the Company believes that the execution of the trust agreement and recording of the deed is evidence of acceptance of the conveyance into the trust. "Chicago Title has adopted a pragmatic approach to addressing this new statute. While the Company encourages and suggests that a conveyance to a trust contain an acknowledgement of acceptance of the conveyance by the trustee, Chicago Title will not require that all deeds into a trust strictly conform to the statute. ![]() ![]() Attorneys who prepared/drafted/recorded such deeds after Janumay elect to consider a re-recording of the deed to correct the error.Ĭhicago Title's current position on the matter for purposes of insuring transactions where there was such a conveyance is as follows: However, compliance with the new provision of the Act is a matter of good practice, and attorneys should be including an additional signature line on the Quit Claim Deed into trust for the trustee of the trust to indicate their acceptance. Probably not, if the trust was created as a personal living trust and the clients home was conveyed into the Trust for simple estate planning purposes. What is the effect of this? Is this a now defective deed? In more than a few cases, no signature line indicating trustee acceptance was included on the deed. I have run across many attorneys who did not know of this change, yet drafted common revocable living trusts funded by a conveyance of the client's home into the trust. (b) If the transferor is a trustee of the trust, an interest in real property does not become trust property unless the instrument of conveyance is recorded in the office of the recorder of the county in which the property is located. It can (and often is) also used for commercial property where the owner wishes to control who among multiple gen-erations receives the economic benefit of the real estate. (a) The transfer of real property to a trust requires a transfer of legal title to the trustee evidenced by a written instrument of conveyance and acceptance by the trustee. no longer wants or is able to do so, and to then transfer the property to the children of a first marriage. The change to the Act became effective January 1, 2017. The provision does not apply to Illinois Land Trusts. In a nutshell, the new provision requires evidence of Trustee "acceptance" on any transfer of real property into a trust. This type of conveyance is used by mortgage lenders when a borrower has paid off their mortgage with the debt having been satisfied, the lender no longer has conditional claims to the property.Over the last year, there has been confusion among Illinois' attorneys on the effect of Public Act 99-743, which added Section 6.5 to the Trust and Trustees Act. Reconveyance deeds are used when prevailing conditions have changed and the deed needs to be "re-conveyed".Quitclaim deeds are often used for gifting title as it is a basic type of deed that simply convey that the grantor does not hold any interest in the property being transferred. The grantor of a quitclaim deed makes no assertion over the ownership or condition of the property. Quitclaim deeds are used to convey title without any covenants.Commonly used by banks on foreclosed properties, these type of conveyances hold little to no claims regarding prior ownership of the property. Bargain and sale deeds, sometimes called special warranty in other states, occur when the grantor makes assertions about the title, but the covenants in the agreement only relate to any time period in which the grantor owned the property.
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