Essential Real Estate Law: Real Estate Closings & Title
When purchasing property, there are a few ways that a new owner can “take” title. There are three ways that the State of Illinois allows multiple property owners such as family members or business partners to hold title. 1) tenants in common, 2) joint tenants with right of survivorship, or 3) tenants by the entirety. Typically, new owners can choose which way to hold title and this can be changed in the future. It is important for Buyers to understand the different ways title can be held as it may affect the rights of creditors or the transfer of the property after an owner’s death.
In addition, there are different types of deeds that can be used to transfer title. There are four main types: General Warranty Deed, Special Warranty Deed, Bargain and Sale Deed, and a Quitclaim Deed. We will cover these types of deeds below after the types of title.