Curious about transferring property in Illinois without a conventional sale? You have a home in Illinois (where roughly 68% of the people reside in homes that they own), so you are probably familiar with a Quit Claim Deed in Illinois. This legal document transfers any interests in the property the seller (grantor) possesses to some other individual (grantee), but without any assurance of title. That is, the grantor is essentially saying, “I give you whatever interest I have, if any.” If the grantor didn’t actually own the house or forgot a lien, the grantee receives whatever is left of that interest (perhaps nothing).
Because there is no title warranty, quit claim deeds are best used between people who trust each other (such as family members or divorced couples), rather than for a market sale to an unrelated buyer. We’ll go over what a quit-claim deed is, the Illinois Quit-Claim Deed Requirements (the legal checklist for validity), and how to file it step by step. We’ll also discuss the benefits and hazards, when to use it, and other essential considerations for Illinois homeowners.
What Is a Quit-Claim Deed?
A quit-claim deed is exactly what it sounds like: the seller (grantor) quits (gives up) any claim they have on the property and transfers it to the buyer (grantee). Illinois law’s standard quitclaim form even says the grantor “conveys and quitclaims” all of their interest to the grantee. As opposed to a general warranty deed, which would “convey and warrant” the title and guarantee a clean title, a quit claim deed guarantees nothing. The grantee merely acquires 100% of whatever interest the grantor possessed. If the grantor actually owned the property, the grantee acquires full ownership; if the grantor possessed no valid interest, the grantee receives nothing. The grantee may not subsequently sue the grantor regarding title issues, since no warranties were provided by the grantor.
For instance, Illinois Statute 765 ILCS 5/10 presents the state’s sample quit claim form. It indicates the precise wording “conveys and quit claims,” demonstrating that the grantor is not warranting title. In simple language, a quit claim deed conveys the property as-is – what you receive is merely what the other party possessed.
Illinois Quit-Claim Deed Requirements
To be valid in Illinois, a quit-claim deed must include several key elements:
- Grantor and Grantee: The full legal names of the seller (grantor) and the buyer (grantee) must appear on the deed. (Mistakes here can invalidate the document.)
- Property Description: Include the exact legal description of the property (typically found on the previous deed or county records). A street address alone is not sufficient.
- Consideration: Even if no real money is paid (quit claim deeds often use a nominal amount like “$10” or the phrase “for love and affection”), the deed should state a consideration amount.
- Signature and Notary: The grantor’s signature is required on the deed, and the signature must be notarized. Illinois requires acknowledgment (notarization) for recording. If a homestead (main residence) is being transferred and the grantor happens to be married, both spouses usually are required to sign unless one is only conveying to the other.
- Statutory Language: The deed should use the statutory phrase “conveys and quit claims” or very similar wording. This makes it clear that no title warranties are included.
- Return Address: List an address on the deed (often under “Return recorded document to”) so the Recorder knows where to mail the filed copy.
- Recording Details: Once signed and notarized, the deed needs to be recorded with the County Recorder of Deeds of the county where the land is situated. You will also need to fill out Illinois Form PTAX-203 (the Real Estate Transfer Declaration) and pay any recording charges. (Form PTAX-203 is necessary for all transfers; review Illinois DOR instructions.) If there is a tax due on transfer, pay it when recording.
By using these components and adhering to the guidelines, you are able to have the deed accurately recorded in Illinois.
How to File a Quit Claim Deed in Illinois
Recording a quit-claim deed is a straightforward process. Here’s a step-by-step guide:
- Get the Form: Obtain the official quit claim deed form in the county where the property is. Most Illinois counties have fillable PDFs available online. Make sure and use the form for that same county.
- Fill in the Details: Fill in the full legal names of the grantor and grantee, the precise legal description of property (taken from an existing deed or county parcel record), and the consideration (even if nominal). Do not date or sign the form.
- Sign and Notarize: Bring the unsigned deed to a notary public. The grantor (and spouse, if necessary) signs the deed before the notary. The notary then signs as a witness and dates the deed.
- Complete PTAX-203: Illinois mandates the completion of Form PTAX-203 (Real Estate Transfer Declaration) with each deed. Download PTAX-203 from the Illinois Department of Revenue website and complete it. Even if the transfer is exempt or given as a gift, you are required to file this form and mark the correct exemption box.
- Record the Deed: Take (or mail) the signed, notarized deed and PTAX-203 form to the county Recorder’s office. Pay the recording fee (usually $50–$100, depending on the county). If a state or local transfer tax stamp is needed (not usually for close-family or less-than-$100 transfers), pay that too. The recorder will file, date, and stamp the deed. At this point, the property transfer is official.
- Keep Copies: Ensure the Recorder provides you with a certified copy of the recorded deed. The grantor and grantee both should retain copies of the recorded deed for their own records. This is your evidence of the transfer.
By following these steps carefully, your Illinois quit claim deed will be properly executed and recorded.
Benefits and Risks of Using a Quit-Claim Deed
Quit-claim deeds have real advantages in the right situations, but also have important downsides:
- Simple and Low-Cost: Quit claim deeds are simple and easy to make, frequently with reduced charges and no requirement for a full title search. That ease hastens family transfers or estate planning.
- Ideal for Family/Spouses: They’re usually utilized when exchanging property between spouses or relatives who are familiar with the title history. One spouse, for instance, might utilize a quit-claim deed to relinquish his interest in a residence in the event of a divorce agreement.
- Title Clean-Up: Quit claims can fix minor title issues. For instance, if a previous deed left out a spouse’s name or had a typo, a quit claim can correct the record without a full sale.
- No Title Guarantee: The major drawback: the grantor warrants nothing. The grantee takes title “as-is”. If a secret lien or claim surfaces after the fact, the grantee cannot hold the grantor accountable since the deed promised nothing.
- Not for Stranger Sales: Quit-claim deeds are not recommended for typical real estate sales. If you’re buying a property with significant money involved, you’d usually want a warranty deed (with title insurance) for protection. Quit claims carry risk if the parties do not fully trust each other.
Common Uses of Quit-Claim Deeds in Illinois
Here are the most typical scenarios where Illinois homeowners use quit-claim deeds:
- Family Gifting: Parents often transfer a home to their children (or vice versa), and siblings sometimes reshuffle ownership, using quit-claim deeds because they trust each other’s information.
- Marriage and Divorce: Adding a spouse to a deed or taking off a spouse upon divorce are traditional examples. For instance, following a divorce, a spouse may quit-claim their share of the residence to the other spouse. (Tip: Illinois law retains a spouse’s homestead interest, so you typically can’t take a spouse from the deed without their agreement or a court order.)
- Trusts: When real estate is transferred into or out of a living trust, quit-claim deeds from the individuals can be employed. However, if a property is in a trust and a trustee wishes to transfer it to an individual, a Trustee’s Deed has to be employed (not a quit claim). That’s due to the fact that a trustee’s deed clearly discharges the property out of trust.
- Clearing Title Issues: If a deed has a mistake (such as a misspelled name) or if co-owners want to clarify their shares, a quit claim can clear up the title without a sale.
- Consolidating Ownership: Where there are several owners of a property and they decide to reassign shares (e.g., purchasing a partner out), quit claim deeds can legally redistribute the title proportions.
In conclusion, quit-claim deeds are best suited for simple, familiar transfers. Quit-claim deeds are not generally employed in arm’s-length sales or loans.
Alternatives to Quit Claim Deeds
If you need more protection or are in a different situation, consider these alternatives:
- General Warranty Deed: In Illinois, a general warranty deed (also referred to as a statutory warranty deed) “conveys and warrants” the title. The grantor warranties a clear title, providing the buyer significantly stronger protections. This is the default option for standard home sales.
- Special Warranty Deed: Similar to a general warranty deed, but the grantor only warrants title against claims arising during the grantor’s ownership. It’s common in commercial deals.
- Trustee’s Deed: As mentioned, when property held in a trust is transferred by the trustee, use a trustee’s deed. It explicitly states the transfer is by the trust’s trustee.
- Deed of Gift: For a genuine gift of property, however, some just execute a quit claim with nominal consideration. (Illinois excludes truly nominal transfers – less than $100 – from state transfer tax, but you still submit PTAX-203.)
- Executor’s or Administrator’s Deed: In the event of death, an executor or administrator employs a special deed to pass the decedent’s property on to heirs or purchasers. It’s more than a quit claim but is specifically designed for probate cases.
The selection of the deed will depend on the level of certainty that the grantee requires. Quit-claim deeds are distinctive in providing speed and ease for the price of no title guarantee.
Key Considerations
Before you move forward, keep these points in mind:
- Do a Title Search: Even within a family, it’s wise to verify the title. A search (or title insurance) will uncover liens, easements, or defects, so there are no unpleasant surprises down the line. If you don’t know the complete history, think about hiring a professional or an attorney to examine the title.
- Mortgage Liability: Keep in mind that a quit-claim deed does not take anyone off a mortgage or loan. If you quitclaim a home to an ex-spouse, you’re still on the mortgage unless it’s refinanced or the lender makes some other agreement. Be sure to settle your financial obligations separately.
- File PTAX-203: Illinois needs Form PTAX-203 with each quit-claim deed. Even when the transfer is exempt (like a gift or $1 consideration), you are still required to file the form and claim the exemption. Some counties employ integrated systems where the county stamp serves as the transfer declaration, but always check and comply.
- Transfer Taxes: Illinois Transfer on Real Estate Tax is payable on deeds with a consideration of more than $100. Family transfers typically employ $1 or $100, so they are exempt at the state level. However, some local governments (cities/counties) impose further deed taxes or stamps, so check whether any local transfer tax applies.
- County Rules: Every county Recorder will have its own formatting demands, index fees, or pay policies. Call the Recorder’s office beforehand or review their website for information. Present the proper fee (often cash, check, or specific electronic payment) and all necessary forms so your filing will not be delayed.
- Keep Copies: After recording, get certified copies of the filed deed for everyone named on it. They serve as proof of ownership and are crucial for future matters (like selling the house or refinancing).
By covering these bases, you’ll help ensure your quit claim deed is accepted and your ownership rights are clear.
Conclusion
In short, quit-claim deeds are well-suited for straightforward trust transfers but are not without risk. They allow you to convey property fast and inexpensively, but you have to take the title as-is. If you have uncertainties regarding liens or ownership, a warranty deed is a better bet, or seek a lawyer’s advice.
Need help? Our attorneys in Illinois can walk you through the process. We’ll prepare and record your quit claim deed properly, deal with any needed forms, and make the transfer easy. Call us to arrange an appointment and have your property transfer done correctly.
Frequently Asked Questions
A quit-claim deed conveys whatever interest the grantor has in the property with no warranties. The grantor is not guaranteeing a clear title. A general warranty deed, on the other hand, states “conveys and warrants” and has covenants that the title is clear of secret claims. Consider a warranty deed as “as-is plus guarantees,” while a quit claim is simply “as-is.
Quit claim deeds are most suitable for use between individuals who understand and trust one another (e.g., relative, spouse, or friend). Typical situations involve selling a house to a relative, eliminating an ex-spouse in divorce, or correcting a title mistake. They are not suited for selling to a stranger, as the buyer would receive no title protection.
You fill out the deed form (received from the county recorder), enter the names and legal description, and sign it in front of a notary. Then submit it to the County Recorder’s office with Illinois Form PTAX-203. Pay the recording fee (and any transfer tax or stamps that are payable). After recording, the transfer becomes official. Don’t forget to obtain a copy of the recorded deed.
Illinois does mandate that the deed be signed and in writing by the grantor. It must specify the grantor and grantee, have the legal description of the property, and state the words “conveys and quit claims”. If the house is a homestead of a married couple, both should sign. The deed would also need to be notarized in order to be recorded.
Although not required by law, obtaining a title search or title insurance is extremely advisable. A title search can reveal mortgages, liens, or easements that a quit-claim deed would not. Without such safeguards, a grantee might inherit unforeseen encumbrances on the property.
Fees for recording range by county (typically $50–$100). You also submit PTAX-203 (typically a nominal fee or no fee). Most family gift transfers of $100 or less are exempt from the Illinois transfer tax. Contact your county recorder to determine the exact fee and payment options.
For most intra-family quit claim transfers, the state transfer tax is waived (they use $1 or $100 consideration). However, the PTAX-203 form is still required on file. If real money is involved (over $100), then state tax stamps apply. Some municipalities also have their deed taxes, so always verify local rules.
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