Legally, a title serves to claim that you own a right to something. A deed, on the other hand, represents the legal written document that actually transfers title from one person to another person. The person on the title has the legal right to occupy and utilize the property, but throughout ownership, there may come a time where the title needs to be changed. In this scenario, a deed is necessary in order to change or transfer the title.
Understanding what is necessary in order to change a property title is an important first step in doing so. The exact steps required to change a deed vary from state to state. As such, it is absolutely essential to consult with an experienced attorney as your prepare to transfer or change title. The most common documentation needed to do so includes:
- Sales Contract
- Power of Attorney
- Wills and Trust Documents
- Installment Agreement
Once your gather these documents, you must determine the type of deed you want to have on the property. More often than not, people wish to have the general warranty deed. This type of deed transfers the property with a clear title, assuring that other prospective claims to the property. However, some people may need a special or limited warranty deed or even a quitclaim deed. As such, consulting with a title attorney is paramount.
Next, you must be prepared to pay the Illinois Department of Revenue any taxes and fees linked to the transfer. The transference tax is only applicable to the remaining equity in the property. The Illinois Department of Revenue states that counties may charge 25 cents per $500 of value in taxes on the real estate transactions.
Finally, you must complete the Illinois Real Estate Transfer Declaration and then file that document with the appropriate county. Conveying and recording title is a quick, but complex process that can lead to problems in the future if not done correctly. If you are making changes to title, please contact our office and our experienced staff can help you accomplish your goals quickly and accurately.