There are four facets for a property deed to be legal in the State of Illinois. The deed must entail grantor and grantee names, which is the property owner and new owner. It must also recognize the transferred property and stipulate what the grantor collects in return.[1]
Finally, the process is complete once the grantor signs the deed. The deed is legal once the Illinois quitclaim deed or warranty deed entails those aspects. Naturally, the Illinois quit claim deed and warranty deed are considered depending on one’s needs and circumstances.[2]
A quitclaim deed and a warranty deed both have advantages and disadvantages. Here are a few to consider:
However, you should consider getting a valuation of your property before signing a quitclaim. In the past, people would quitclaim a house for a considerably low amount or a ‘good and valuable consideration’. Today, tax authorities require that the transfer taxes are assessed according to the value of the property.[5]
The standard tool when money is exchanged from one hand to another with the title is a warranty deed.
A special or limited warranty authorizes the grantor to be responsible if the individual does anything to ruin the title. The general warranty deed makes the grantor responsible even if the problems of the title stems from the previous owner. Thus, a limited deed is effective when it has explicit language to state the limits.
To file a Warranty or Quitclaim in Illinois, it cost $42.00 for the first four pages and $1.00 each additional page. You can download a free form directly from the Kane County Recorder website or from any website.[10]
Deeds are typically characterized based on the sort of warranties in title delivered by the grantor. For example, the general warranty deed provides the highest protection level to the buyer, while the quitclaim deed often provides the least in an Illinois buyer protection.
Both deeds can benefit from a title insurance policy, but for the quitclaim deed, it can protect you from claims in the future from anyone who may have interest or property lien before you purchased the property. [11]
As you can see, there are various differences between a Quitclaim Deed and a Warranty Deed in Illinois.
[1] http://www.atgf.com/tools-publications/pubs/deed-elements-and-recording-requirements (last visited 11/12/13)
[2] http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2137&ChapterID=62 Illinois General Assembly
[3] http://www.realtor.com/home-finance/homebuyer-information/what-is-a-quitclaim-deed.aspx?source=web By Ben Apple
[4] http://www.bankrate.com/finance/real-estate/quitclaim-deed-affect-credit.aspx By Steve Bucci
[5] http://www.mortgagecalculator.com/can-i-quitclaim-my-house-to-anyone/ (last visited 11/12/13)
[6] http://homeguides.sfgate.com/problems-quitclaim-deeds-1480.html By William Pirraglia
[7] http://www.atgf.com/tools-publications/pubs/deeds-lieu-foreclosure-advantages-disadvantages-and-drafting (Last visited 11/12/13)
[8] http://budgeting.thenest.com/benefits-warranty-deed-22742.html (Last visited 11/12/13)
[9] http://www.realtor.com/home-finance/homebuyer-information/all-about-property-deeds-warranty-deeds.aspx?source=web (Last visited 11/12/13)
[10] http://www.kanecountyrecorder.net/forms.aspx Kane County Recorder’s Office
[11] http://www.bbb.org/boston/industry-tips/read/tip/title-insurance-148