PROPERTY LAW & DESCRIPTIONS — CHEAT SHEET

Real Property & Fixtures

What makes something "real property"?

Land + permanently affixed improvements + appurtenances (easements, water rights)

Fixture Test (4-factor) — Is the item part of the property or personal property?

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Trade Fixtures exception: Tools/equipment installed by business tenant = removable (tenant keeps them).

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Legal Descriptions (Illinois Uses All Three)

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Government Survey grid:

Section = 640 acres (1 mi × 1 mi)

Township = 36 sections (6 mi × 6 mi)

Range = 6 mi east/west of meridian

Sections numbered 1–36 (NE corner = 1; SW corner = 36; boustrophedon pattern)

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Encumbrances & Liens

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Lien priority: Generally follows recording order (race-notice jurisdiction); tax liens often superior.

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Property Descriptions: Illinois Context

Recording System (Illinois):

Race-Notice jurisdiction: first to record wins (even if constructive notice applies)

Constructive Notice: Proper recording gives notice to all; recording = essential

County Recorder of Deeds maintains records

Transfer Tax (Illinois):

Rate: $0.50 per $500 of sale price (round UP)

Who pays: Seller

Formula: (Sale Price ÷ 500, round up) × $0.50

Exemptions: Family transfers, gifts, certain corporate transfers

Example: $150,000 sale = (150,000 ÷ 500) = 300 × $0.50 = $150 tax

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Deed Types & Title Transfer

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Torrens System (Cook County only): Registered title system; simplified transfers.

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Forms of Ownership

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JTWROS unities:

Possession (equal right to possess all)

Interest (equal ownership %)

Time (acquired simultaneously)

Title (from same instrument)

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Encroachments & Easements (High-Yield Distinctions)

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Manner of attachment	Permanently affixed (bolted, cemented)	Easily removable
Factor	Real Property	Personal Property
Adaptation	Customized to property use	General-purpose item
Intent	Seller intended to keep it	Seller intended to remove it
Relationship	Tenant/landlord context matters	Owner-occupant context
Method	When/How	Example
Metes & Bounds	Precise boundary tracing from point of beginning; compass directions (N/S/E/W) & distances	"Beginning at the NW corner, thence East 100 ft, thence South 200 ft..."
Government Survey (T-R-S)	Based on 5th Principal Meridian (IL's reference line); Township-Range-Section numbering	T6N, R2E, Section 14
Lot & Block	Subdivision plat reference; easiest for residential	"Lot 7, Block 3, Westwood Subdivision"
Type	Duration	Who Files	Notes
Mechanic's Lien (General)	4 months from completion	Contractor/supplier	Secures unpaid construction work
Mechanic's Lien (Residential 1–4 unit)	2 months from completion	Same	Shorter deadline in IL residential
Property Tax Lien	Perpetual if unpaid	County Assessor	Paid in arrears (seller credit at closing)
Easement	Per terms (often perpetual)	Grantee	Right to use land (not own)
Deed Type	Warranty	Risk to Buyer	When Used
Warranty Deed	Full covenants (title + quiet enjoyment)	Lowest	Standard sale
Special Warranty	Grantor's acts only (no prior defects)	Medium	Foreclosure, estate sales
Quitclaim	None (grantor disclaims all claims)	Highest	Clearing title, marital property
Trustee's Deed	Limited (trustee capacity only)	Varies	Trust/estate administration
Type	Default in IL?	Transfer on Death	Key Feature
Tenancy in Common (TIC)	YES (default)	Via will/probate	Unequal shares OK; no survivorship
Joint Tenancy w/ JTWROS	No (requires writing)	Automatic to survivor	4 unities (PITT): Possession, Interest, Time, Title
Tenancy by Entirety	No (married couples only)	To surviving spouse	Enhanced survivorship; creditor protection
Fee Simple Absolute	—	Via will/probate	Full, unrestricted ownership
Fee Simple Defeasible	—	Conditional	Reverts/forfeits if condition broken
Life Estate	—	Ends at death	Pur autre vie or measured by owner's life
Encroachment	Easement
Unauthorized use of another's land	Authorized right to use another's land
No legal right; may be actionable	Legal right (recorded or prescriptive)
Adverse possession risk if 20 yrs (IL)	Burden runs with land; appurtenant easements transfer
Trespasser has no claim	Holder has enforceable right

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Red Flags for Exam

✓ All brokerage agreements (SB 3740, Jan 1, 2025): Must be written; no oral agreements ✓ Property tax in arrears: Seller credits buyer at closing (buyer gets reimb

Property Law & Descriptions