Attorneys practicing in and around the Chicagoland area. Experienced in the practice areas of Real Estate Law, Mortgage Foreclosure Defense Litigation, Social Security Disability, Business Law, & Estate Law.

 - Attorneys practicing in and around the Chicagoland area. Experienced in the practice areas of Real Estate Law, Mortgage Foreclosure Defense Litigation, Social Security Disability, Business Law, & Estate Law.

Quitclaim Deed vs Warranty Deed – The Differences You Need to Know

Real Estate red tape

Photo by Max Pixel

In this post, we discuss the differences between two of the most widely used deeds in real estate: quitclaim deeds and warranty deeds.

When buying, selling or transferring ownership of a property, it is critically important to pay attention to the paperwork of the transaction.

This is why people employ real estate agents and real estate attorneys, in order to help them navigate the unfamiliar contracts and paperwork.

You need to know what type of deed a property has, and the correct type of deed to use when transferring your interest in a property to another person.

The two most commonly used deeds when transferring real estate are quitclaim deeds and warranty deeds.

 

What is a quitclaim deed?

mortgage applicationA quitclaim deed is a type of deed that transfers the actual legal rights to a property if any exist, that the grantor — the person who is transferring a stake in a property to another person — has without any representation, warranty or guarantee.

In other words, a quitclaim deed gives no guarantee of the title status of a property, any liens against it or any encumbrances.

 

What is a warranty deed?

A warranty deed is a type of deed that is generally used in more complex situations, including when someone is getting a mortgage to buy a home.

With a warranty deed, the person transferring title of a property (the seller) is guaranteeing that they have a defensible ownership interest in the property and can, therefore, transfer their ownership interest to the other party (the buyer), Sian says.

Since the seller or “grantor” is guaranteeing their ownership, the warranty deed provides more peace of mind and less room for trouble.

 

When is a quitclaim deed used?

Home lending daysA quitclaim deed may work just fine if the grantor truly has the legal rights to a property and there are no liens or problems to be aware of. For the most part, quitclaim deeds are used in safer situations where there’s little question about the ownership interest in a property.

Quitclaim deeds are often used when someone is transferring ownership interest of a property they own to a limited liability company or trust they also control.

Quitclaim deeds can be used when someone is transferring ownership of the real estate to family members. For instance, maybe a couple is getting married and one spouse wants to add the other to the deed as a result.

In the event of a divorce, one spouse can quitclaim their interest in the property to the other spouse as well.

 

When is a warranty deed used?

If the grantor of a warranty deed misrepresents the ownership they promised in a property that made the transfer viable, they can be sued.

An example of how this could work in a situation that may seem “safe.” is as follows.

Say a few siblings inherit a home from a parent. They don’t need the house and they decide to sell it. However, one of the siblings didn’t sign off on the sale and decides they want to keep the house after the fact.

That sibling can sue to get possession of the home back, but the current owners would be allowed to use the warranty they received under the warranty deed to bring in the other siblings to the lawsuit.

In this case, the warranty protects the people who bought the home since some of the siblings sold the property without the permission of all siblings involved.

With a quitclaim deed, however, the buyer of the property would have no such protection. Instead, they would be left to defend themselves and their ownership of the property, most likely in a lengthy court battle. This underscores the importance of purchasing an owner’s title insurance in case the ownership of the property is disputed.

 

What are the differences between quitclaim deeds and warranty deeds?

Model Home TaxWarranty deeds are a safer option when buying a property. If you are the seller, you should also expect most buyers to request this option. Buyers want to be sure you own the property and will want you to sign a warranty deed.

If it comes out at a later date that you don’t own the property, the buyer will be able to sue you for a breach of the warranty.

There are many scenarios where this could happen, including when transfers of real estate are taking place within a family or extended family.

Even scenarios that seem inherently safe may be anything but, so you may want to use a warranty deed in any scenario where you’re not entirely sure of you or someone else’s ownership stake in any property.

When transferring the property to your child or your revocable trust agreement as part of an estate plan, then in that case a quitclaim deed could be the right choice. It will accomplish the change of ownership, but you are not providing any warranty that applies to the transaction.

It’s up to you, as a buyer or seller, to know and understand the kind of transaction you need and how much protection you want.

 

Original source: Quitclaim vs Warranty Deeds

 


The Law Offices of Lora Fausett P.C. provides real estate law services including loan modificationsbuying and selling legal assistanceshort sales and deeds in lieumortgage foreclosure defense, and more.

Located in Glen Ellyn, Illinois and serving clients in DuPageCookKane, Will, and Kendall Counties.

For Information Call 630-858-0090

 


Home Buyer Education Class – September 14, 2019

Assistance for first time home buyers in DuPage County

Date: September 14, 2019
Time: 9:00 am – 5:00 pm
Location: HO.M.E. DuPage, Inc . 1600 E. Roosevelt Rd. Wheaton, IL

 

Description:

As we ease into the cooler weather of autumn, we welcome these industry experts who generously donate their time and expertise while presenting vital information to our clients going through the home buying process.

Homebuyer Education is an 8 hour class by H.O.M.E. DuPage, Inc for the market-ready first time home buyer.

Our goal is to empower you to make informed decisions and become successful homeowners.

 

Presenters:

Andrea Lopez-BartoszewiczAndrea Lopez-Bartoszewicz
Associated Bank
312-375-0870
Andrea.LopezBartoszewicz@AssociatedBank.com

Andrea has over 15 years bi-lingual mortgage experience specializing in first time home buyers. She will work with you to make confident decisions about financing your home. She understands that every client and situation is unique and will work with you to achieve your financing goals.

 

Josie Morrison ABR CRS SRESJosie Morrison ABR, CRS, SRES
RE/MAX Action
630-781-6383
www.MyRealtorJosie.com
4josiem@gmail.com

Josie is an experienced Certified Residential Specialist, Senior Real Estate Specialist and Accredited Buyer’s Representative. Josie specializes in first time home buyers in the western suburbs. She was voted Top Real Estate agent in Chicago Magazine for 2011-2017.

 

Rick CarlbergRick Carlberg
The Housedoctors
847-309-3000
wemakehousecalls@aol.com

Rick Carlberg has over 18 years experience helping homebuyers in Illinois. He believes in practicing the lost art of customer service. Rick is state licensed, ASHI certified and available days, nights and weekends – analysis report delivered within 24 hours guaranteed!

 

John TrappJohn Trapp
Buttrey Wulff Mamminga
630-879-0111
jtrapp@bwmins.com

An Accredited Insurance Adviser and Vice President of Sales, John believes that customers are his most important asset. He represents insurance companies that are financially secure and that provide the most comprehensive policies that are adaptable to the changing needs of his customers. BWM prides itself on being the easiest independent insurance agency to do business with!

 

Timothy BarnesTimothy Barnes
TMB Law
630-207-5391
timothy.m.barnes@me.com

Tim has been practicing law since 2009 – in addition to real estate, he also handles wills, trusts, probate, divorce and more. Tim handles all cases personally and is always available outside of routine office hours by appointment.

 


The Law Offices of Lora Fausett P.C. provides real estate law services including loan modificationsbuying and selling legal assistanceshort sales and deeds in lieumortgage foreclosure defense, and more.

Located in Glen Ellyn, Illinois and serving clients in DuPageCookKane, Will, and Kendall Counties.

For Information Call 630-858-0090

 


How Fast Are Chicago Homes Selling in 2019?

In this post, we look at recent home sales data and the analysis of a top Chicago real estate agency leader to determine how fast Chicago homes are selling in 2019.

If you are planning or even just starting to think about selling your home in Chicago, it’s an obvious question to ask yourself:

How fast are homes in Chicago selling?

The rate that homes are selling and the time spent on the market gives you insights into how strong the real estate market is and what the trends are.

 

Average days on the market in Chicago

For Sale SignA simple market time analysis is available through many real estate databases.

For example, Redfin provides a market trends analysis that is based on the averages of all homes sold.

Redfin Chicago Housing Market Trends

As of August 2019, Redfin data shows the average number of days on the market for a house in Chicago is 57 days.

This gives you a simple trend analysis but has a couple of flaws. It looks only at averages and only looks at homes that sold.

If you are not looking at how long homes sit on the market without selling, how many get pulled from the market, and when homes are pulled off the market, you’re not seeing the entire picture.

 

How fast homes sell or don’t sell in Chicago

In order to get a more accurate view of the market that also includes homes that are not selling, you need to give new listings enough time frame that the market gets to play out.

Gary Lucido of Lucid Realty in Chicago performs this analysis each August, using homes that were listed in late February/ early March.

This gives a measure of the market beyond just average homes that sell. It is still imperfect because the results of this analysis will be slightly tainted by the common realtor practice of relisting properties that are not selling in order to make it appear new again and increase visibility. However, it does still give you a wider view.

How fast are homes selling in Chicago or not selling?

To summarize these results:

  • 24.5% of the listings sell within the first two weeks.

That’s pretty fast but it’s slower than in 2018 when 30% of Chicago houses sold in the first two weeks.

  • 4% of the listings get pulled from the market in the first two weeks.

These numbers are comparable to 2018. Most likely many of those homes came back as new listings fairly quickly because that is a short amount of time to have a home on the market before giving up.

  • At the end of 30 days 36% of homes have gone under contract and not quite 13% have been pulled from the market.

The market in this regard is definitely slower compared to 2108. Last year 41% of homes were selling within 30 days.

  • At the end of the 5 1/2 month period studied,  52% of Chicago homes on the market had sold

This is a lower percentage of sales compared to 57% in 2018. Of homes pulled from the market within this period, 42% were pulled, compared to only 37% last year.

  • 2018 was slower than 2 years prior when 64% sold by the end of the time period.

 

Home sales by age of listing

Probability of Chicago home sale by age of listing

As noted in the data above, 36% of new listings sell within 30 days but only 18% of the listings that are still on the market at 30 days will sell within the next 30 days.

This is totally consistent with what most realtors realize but sellers often don’t: the longer a home sits on the market the less likely it is to sell.

The longer a home is on the market the more it will exhaust the existing pool of buyers. New buyers will enter the market of course, but it is natural for them to wonder what is wrong with a home that has been on the market for six months and not yet sold.

We hope you find this real estate market analysis interesting and useful!

 

This article was based on a post that originally appeared on the Getting Real Blog on ChicagoNow written by Gary Lucido of Lucid Realty.

 


* Advertising Material: To the extent that the information in this post is interpreted as attorney advertising in accordance with the Illinois Rules of Professional Conduct or within the meaning of state bar rules from all other localities, this statement is made pursuant to those rules.

Specialties: Specialization claims are prohibited by Illinois Supreme Court Rules and we do not claim to be specialists. The content of this e-mail is organized and presented for the sole purpose of general information. None of the included content should be construed as legal advice. Viewing this e-mail or e-mailing the account holder does not create an attorney-client relationship. NOTICE: This page may be considered advertising material.


 

The Law Offices of Lora Fausett P.C. provides real estate law services including loan modificationsbuying and selling legal assistanceshort sales and deeds in lieumortgage foreclosure defense, and more.

Located in Glen Ellyn, Illinois and serving clients in DuPageCookKane, Will, and Kendall Counties.

For Information Call 630-858-0090

How to Determine Whether to Put Rental-Income Property Into an LLC

Creating a real estate LLC

Have you thought about whether creating an LLC for your rental properties would be a beneficial idea for managing them?

If you own rental property, creating an LLC to manage your properties can be a good way to protect your personal assets.

In the article linked below, real estate expert Ilyce Glink, author of “100 Questions Every First-Time Home Buyer Should Ask” answers questions about the financial benefits of a real estate LLC.

 

The excerpt below was originally published in The Washington Post on July 31, 2019, and was written by Ilyce Glink and Samuel J. Tamkin.

Q: My husband and I jointly bought a rental property this year with our son, who is 18 years old. He has started his own single-owner limited liability company. We are planning to move the property into the LLC so that he can use the rental income from the business for his college expenses.

What is the best way to do this so we avoid future gift taxes? The property cost $124,000. Will there be any tax implications for us if we move the property to our son’s LLC now vs. next year?

DuPage County PropertyA: You’ve asked two separate questions.

The first has to do with the tax consequences of transferring ownership of the property to your son.

The second is whether your son should own the property in a limited liability company (LLC).

We’ll start with the LLC issue.

We know that most real estate investors hold their real estate holdings in one or more LLCs.

While these professionals handle their operations in this manner, it may not be the best way for your son to hold this investment.

Click to Continue Reading at Washington Post

 


* Advertising Material: To the extent that the information in this post is interpreted as attorney advertising in accordance with the Illinois Rules of Professional Conduct or within the meaning of state bar rules from all other localities, this statement is made pursuant to those rules.

Specialties: Specialization claims are prohibited by Illinois Supreme Court Rules and we do not claim to be specialists. The content of this e-mail is organized and presented for the sole purpose of general information. None of the included content should be construed as legal advice. Viewing this e-mail or e-mailing the account holder does not create an attorney-client relationship. NOTICE: This page may be considered advertising material.


 

The Law Offices of Lora Fausett P.C. provides real estate law services including loan modificationsbuying and selling legal assistanceshort sales and deeds in lieumortgage foreclosure defense, and more.

Located in Glen Ellyn, Illinois and serving clients in DuPageCookKane, Will, and Kendall Counties.

For Information Call 630-858-0090


Calling JULIE in Illinois Before Digging – Common Questions

Call JULIE in Illinois before digging

In this post, we talk about how to call JULIE, what it stands for, what happens when you call and other common questions about JULIE.

JULIE is your one-call system to call before you dig that keeps you safe.

Before digging in your yard, by law in Illinois, you must always contact J.U.L.I.E. to make sure you don’t end up accidentally damaging a utility line and causing a dangerous or expensive issue.

Even if it is a small project, why take chances? It is FREE to call JULIE and it is the law.

 

Questions answered about JULIE

  • How do you call JULIE? What is the number to call JULIE?
  • Can you contact JULIE online?
  • What happens when you call JULIE?
  • Is Julie free?
  • When can you call JULIE? When is JULIE open?
  • Is it illegal to dig before calling JULIE or 811?
  • How many days before beginning work involving digging should you contact JULIE 811?
  • Why is it called Julie? / What does Julie stand for?

 

If You Could See What We See from JULIE Illinois1Call on Vimeo.

 

How do you call JULIE? What is the number to call JULIE?

To avoid damaging underground utility lines, Illinois law requires you to call JULIE by dialing 811 or 800-892-0123. You may also contact JULIE by submitting a request online.

Call Julie at 811 before you dig

 

Can you contact JULIE online?

Besides calling 811, you can submit a request to JULIE online by visiting the JULIE E-Request page.

 

What happens when you call JULIE?

When you contact JULIE, you will need to submit a date that you are planning to begin your digging project. You must give 48 hours notice.

Utility companies should have their utility lines marked sometime between the receipt of your JULIE request confirmation and date requested for digging.

A representative from each utility company will mark the location of their lines with either paint and/or flags, or let you know that their lines are not in conflict with the area in which you are planning to dig.

It is important that your property is accessible or delays may occur.

 

JULIE color code flags

Is Julie free?

Calling JULIE and utilizing the locating service provided by utilities are free to both homeowners and contractors, 24 hours a day, 365 days per year.

 

When can you call JULIE? When is JULIE open?

Call Center operators are available 24 hours a day, 365 days per year.

llinois state law requires that anyone planning an outdoor project that requires digging, regardless of the depth or the size of the project, must notify JULIE first.

 

JULIE call before you digIs it illegal to dig before calling JULIE or 811?

Illinois state law requires that anyone planning an outdoor project that requires digging, regardless of the depth or the size of the project, must notify JULIE first.

 

How many days before beginning work involving digging should you contact JULIE 811?

According to state law, the person doing the digging is required to call JULIE with the locate request information at least 48 hours/two working days in advance of the start of the excavation.

If the digging is being done by a contractor or subcontractor, that means they are legally responsible for contacting JULIE before work begins.

 

Why is it called Julie? / What does Julie stand for?

JULIE stands for Joint Utility Locating Information for Excavators.

 

What is the JULIE Illinois website?

Visit the official JULIE Illinois website at https://www.illinois1call.com/


 

The Law Offices of Lora Fausett P.C. provides real estate law services including loan modificationsbuying and selling legal assistanceshort sales and deeds in lieumortgage foreclosure defense, and more.

Located in Glen Ellyn, Illinois and serving clients in DuPageCookKane, Will, and Kendall Counties.

For Information Call 630-858-0090