Real Estate Vocab - Illinois only Flashcards

Real Estate Vocab - Illinois only Flashcards Condominium Property Act (Illinois)Governs the creation of condominiums in Illinois- must submit a declaration with3-D platattached w/size and locationof units;- not on leased land;-fee simple titles;- undivided shared interest in commons;- taxes assessed on percentage; EscheatmentWhen a state is unable to find living heirs for real property; inIllinoisproperty escheats to thecounty in which it is located; Illinois Tax stamps$0.75 for every $500 ($0.50 to state, $0.25 to county) 28/36 Rule (front-end ratio)For homebuyers that can provide a 10% down-payment, the total monthly housing payment should not exceed 28% of gross income (pretax) AND all long-term debts should not exceed 36% Illinois Tax penalty1.5% per month added to unpaid amount Cooperative CommissionPaid by the sellerto both the buyer's and seller's agent; in Illinois the seller pays first the listing sponsoring broker, who then pays the buyer's sponsoring broker

Illinois Radon Awareness Act Exemptions: between co-owners

future interestspossibility of reverter and right of re-entry; may never take effect;- in Illinois grantor's right of reverter limited to 40 years; Illinois Real Estate License Actall exclusive brokerage agreementsmust be in writingand must indicate the required minimum services to be provided to the consumer in return for compensation net listingthe broker is entitled to any amount over seller's required net;- legal in Illinois but not encouraged;- P = AP - NET; brokerage agreementwritten or oral agreement between sponsoring broker and a consumer for licensed activities in return for compensation; in Illinois exclusive brokerage agreement must be in writing; cooperative commission (illinois)both the buyer's and seller's commissions arepaid by seller; tenancy in common (illinois)single deed with proportional interest of each owner listed (if not listed assumed equal shares); or- multiple deeds each showing individual proportional interest; disclosure of property conditiondisclosure of wide range of structural, mechanical, and physical conditions of a property that must be given to the buyerprior to offer and acceptance;- buyer has 3 days to rescind the contract, based on negative disclosures;- required ofallsellers in Illinois; Dual Agencywhen an agent represents both the buyer and seller in a transaction; legal in Illinois butnotencouraged;

indemnification (hold harmless) wordinglisting agreement may include agreement between seller and broker to not sue one another for any incorrect information provided by either side;- in Illinois client is not liable for acts or omissions of licensee on behalf of the client; Minonk State Bank v. GassmanIllinois Supreme Court 1983;- ajoint tenant may sever the tenancyby conveying interest to themselves as a tenant in common;- may elect to will interest to heirs or sell;- joint tenancy may be severed by mutual agreementby conveyance to third parties, or by partition suit in court; Real Estate Timeshare Act of 1999 (illinois) strictly regulates the timeshares in IL;- resale agents must be licensed broker;- sale of less than 8 timeshares/year creates exemption from broker rule;- public offering statement required; Who administers the Illinois Real Estate License Act?Illinois Department of Financial and Professional Regulation (IDFPR) Termination of AgencyIn Illinois, a definite date of termination must be included in a brokerage agreement marital property (illinois)Illinois recognizes joint rights to all property aquired after marriage and for duration of the marriage, all of which is divided in the event of divorce Illinois Plat Actwhen an owner divides a parcel into more than one part, any less than five acres the must be surveyed an a plat subdivision recorded; types of licensees in Illinois1.) broker;2.) managing broker;3.) leasing agent; Electronic Mail Act (illinois)imposes additional regulations on use of commercial email in Illinois nonmarital property (illinois)property aquired before marriage or by gift or inheritance during the marriage as well as any exchange, increase, or income generated from the property land trust beneficiary name required (illinois) 10 days after receiving a complaint;- applying for a license or permit;- if selling property;- trustee named in private lawsuit or criminal complaint;- fire inspector investigating arson; Uniform Probate Codein Illinois these laws replace common-law concepts of dower and curtsy easement by prescriptionuse of another's land for 10-21 years; InIllinoismay be granted after20 years; Illinois requires carbon monoxide detectors within 15 feetof all bedrooms home inspectionthorough visually surveys property's structure, systems, and site conditions; requires special license in Illinois; designated agentlicensee assigned by the sponsoring broker to represent a specific principal; commonly used in Illinois to avoid dual agency

mixed property (illinois)non-marital property is commingled with marital property it transmutes and is presumed marital property Illinois Mortgage Theory StateIllinoisis neither lien theory or title interest state;- *only conveys qualified title to lender;- subject to thedefeasance clausewhich states that the title must be fully reconveyed to mortgagor at the time the debt is paid in full; survey method in Illinoislot-and-block partition (illinois)filed in circuit courtof Illinois countywhere located;- court appointed commissioner(s);- dividewithout harm to value;- else,report valuation;- propertypublicly offered;- price no lower than2/3 value set;- divided byfractional interest; Duty of AccountingIllinois licenseesmustdeliver copies of final sales contracts to those who signwithin 24 hours;- funds entrusted to licensee deposited inspecial escrow accountbynext business day;-illegalif funds come from licensee;- mustkeep on file for 5 years; severalty (illinois)property held solely by husband or wife usually requires other spouse to sign in order torelease any homestead rights; tenancy by the entirety (illinois)a special form of co-ownership which allows husband and wives where owners are considered one unit and has an equal undivided interest in the property and automatically becomes sole owner upon spouses death Types of involuntary title transfer1. Escheatment2. Eminent Domain3. Foreclosure4.Adverse Possession;- called squatter's rights;- in Illinois takes 20 years; Licensee renews on April 30 on ____ years. even disclosure of no agencymeans by which Illinois agents are required to disclose whose interests they legally represent to a customer universal agentagent authorized to act for the principal entirely; in Illinois, a written power of attorney is required; reasons for quick take- Illinois Toll Highway Authority takes property for highways;- sanitary district takes property to remove obstructions in a river;- airport authority takes land for airport purposes; minimum services(Illinois)requiredin listing agreement:1.) accept and present alloffers and counteroffers;2.)assist clientin developing, communicating, negotiating, and presenting offers and counteroffersuntil agreement signed;3.) answerclients questions; all parties to the instrument are legal bound to act as prescribed; both parties promise to do something; an exchange; for example in Illinois Exclusive Right to Sell contract; bilateral contract

comparative market analysisdetermining value of a property by analyzing properties of similar to size, location, and amenities;- sometimes calledbroker price opinion;- results in a range of values;- required in Illinois; Types of involuntary title transfer1. Escheatment2. Eminent Domain3. Foreclosure4.Adverse Possession;called squatter's rights;IL = 20 years; Illinois requires carbon monoxide detectors within15 feetof all bedrooms quick takethe condemning of land through eminent domain given by the Illinois Constitution and Illinois Code of Civil Procedure;- plaintiff must deposit sum with county treasures that is considered just compensation by court but can be litigated; land trust (illinois)real estate is the only asset and the title is conveyed to a trustee and the beneficial interest belongs to the beneficiary (usually the trustor);- beneficiary retains management and control;- beneficiary has right to income generated;- beneficiary has the right to proceeds from sale;- often created for conservation of land and environment; Equity in Eminent DomainIllinois law passed inresponse to Kelo decisionwhich places the burden on the government to prove an area is blighted before forcing owners to sell property;- helps owners receivefair market valueand requiresrelocation costsand payment ofattorney's fees; co-ownership (illinois)Illinois is a marital property state, and also recognizes:- tenants in common;- joint tenants;- tenants by the entirety;- ownership in trust;- partnership;- by commercial entities;- corporations;- LLC's; Illinois Land Sales Registration ActFor 25 or more lots and part of a common promotional plan branch office licensein Illinois a separate license must be obtained for each branch office a sponsoring broker wishes to establish Managing broker renews on April 30 on ____ years. odd commission agreementlisting agreement will specifically state how compensation for the agent will be paid whether it is a flat fee or percentage;- illegal to be set by regulatory agency, trade association, or industry organization;- in Illinois changes required to be in writing and signed by all parties; express contract (illinois)a contract executed by spouses to exclude certain property from being classified as marital property listing feefee paid to listing broker; common in Illinois to share with buyers broker joint tenancy (illinois)allows sole owner to execute a deed to themselves and others as joint tenants and not as tenants in common in order to create valid joint tenancy