Richard B. Taylor, Attorney at Law - Explanation of Document Terms

Explanation of Document Terms

Glossary of Terms of Seller Documents

DEED: Document used to grant an interest in real estate to another person. In order words, it transfers title of the real estate from seller to the buyer.

BILL OF SALE: Document used to transfer title in personal property from seller to buyer IE washer, dryer, stove, refrigerators, etc. If it is not permanently attached to the real estate then it is personal property.

AFFIDAVIT OF TITLE: Document given by the seller to the buyer stating that from the time of the title search until the actual day of closing the seller has done nothing to effect the title to the real estate. IE has not sold the property to someone else, leased the property, borrowed money against the property, etc.

ALTA STATEMENT: Document similar to an Affidavit of Title except that both buyer and seller sign and give this document to the Title Company stating that from the time of the title search until the actual day of closing neither seller nor buyer has done nothing to effect the title to the real estate.

TITLE COMMITMENT: It is a commitment from the title company to issue a Owner's Policy to the buyer and an ALTA Loan Policy to a lender, if any, for the sales price and loan amount, subject to any exceptions that the title company found during their search of public records concerning the seller, buyer and the real estate. If the title company issues a title policy that is satisfactory to the buyer and lender you should have a marketable title.

CLOSING STATEMENT: A statement that is prepared, usually by an attorney, showing all the debits and credits of the sale IE: brokerage fees, prorations of real estate taxes, costs for surveys, termite inspections, well and septic inspections, state county and local revenue stamps etc. These closing figures from the closing statement will be used by the title company on the HUD-1 Statement. The HUD-1 settlement statement is the standard real estate settlement form for federally related mortgage loans.

ILLINOIS P-TAX: A document that must be present at the time the deed is recorded signed by both buyer and seller stating, among other things, the address of the property, terms of the sale and a calculation of the county and state real estate transfer tax.

POWER OF ATTORNEY: A document used by a person to legally give another person the power to sign their name and legally bind them. In the event a seller is unable to personally appear at closing they can give a Power of Attorney to someone to act in their place for them.

SURVEY: Document drawn by a licensed registered land surveyor that shows the legal boundaries lines of the real estate and all improvements on the property. Normally, a lender will not accept a survey over 6 months old.

MORTGAGE PAYOFF LETTER: A document sent by the lender stating the amount needed to pay off the mortgage. A title company will not accept verbal payoff amounts. They have to be in writing.

WELL AND SEPTIC INSPECTION REPORT: A report done by a licensed company who comes out to the real estate and tests the well and/or septic field. They will take samples of the water and forward them on to the health department to make sure the water is potable. They will do a dye test to make sure the septic field is working properly.

Servicing clients in the following cities and towns in Will County: Beecher, Bolingbrook, Braidwood, Channahon, Crest Hill, Crete, Custer Park, Elwood, Forest Park, Frankfort, Homer Glen, Joliet, Lockport, Manhattan, Mokena, Monee, New Lenox, Peotone, Plainfield, Preston Heights, Rockdale, Romeoville, Shorewood, University Park, Wilmington, and Wilton Center.
DuPage County: Addison, Aurora, Bartlett, Batavia, Bensenville, Bloomingdale, Bolingbrook, Burr Ridge, Carol Stream, Chicago, Clarendon Hills, Darien, Downers Grove, Elk Grove Village, Elmhurst, Glendale Heights, Glen Ellyn, Hanover Park, Hinsdale, Itasca, Lemont, Lisle, Lombard, Naperville, Oak Brook, Oakbrook Terrace, Roselle, Schaumburg, St. Charles, Villa Park, Warrenville, Wayne, West Chicago, Westmont, Willowbrook, Winfield, Wood, and Woodridge.
Cook County: Alsip, Arlington Heights, Barrington, Barrington Hills, Barrington Woods, Bartlett, Bedford Park, Berwyn, Blue Island, Bridgeview, Broadview, Brookfield, Buffalo Grove, Burbank, Burnham, Burnside, Calumet City, Calumet Park, Chicago, Chicago Heights, Chicago Ridge, Cicero, Country Club Hills, Countryside, Crawford Countryside, Crestwood, Des Plaines, Elk Grove Village, Elmwood Park, Evanston, Evergreen Park, Flossmoor, Forest Park, Forest View, Franklin Park, Glencoe, Glenview, Glenwood, Golf, Hickory Hills, Hillside, Hoffman Estates, Homewood, Inverness, Kenilworth, La Grange, La Grange Park, Lemont, Lincolnwood, Markham, Matteson, Maywood, Melrose Park, Midlothian, Morton Grove, Mount Prospect, Niles, Norridge, North Northfield, North Riverside, Northbrook, Northfield, Northfield Woods, Northlake, Oak Forest, Oak Lawn, Oak Park, Oakglen, Olympia Fields, Orland Hills, Orland Park, Palatine, Palos Heights, Palos Hills, Palos Park, Park Forest, Park Ridge, Prospect Heights, Richton Park, River Forest, River Grove, Robbins, Rolling Meadows, Rosemont, Schaumburg, Schiller Park, Skokie, South Barrington, South Holland, Steger, Streamwood, Tinley Park, University Park, Western Springs, Wheeling, Willow Springs, Wilmette, and Winnetka.
Kane County: Allens Corners, Almora, Aurora, Bald Mound, Barrington Center, Batavia, Big Rock, Bowes, Burlington, Campton Hills, Carpentersville, Coleman, Dunham Castle, East Dundee, Elburn, Elgin, Exposition View, Five Island Park, Fox River Estates, Geneva, Gilberts, Hampshire, Kaneville, Lily Lake, Maple Park, Marywood, McQueen, Meredith, Middlebury, Montgomery, Mooseheart, North Aurora, North Plato, Nottingham Woods, Novak Park, Pingree Grove, Plato Center, Rainbow Hills, Richardson, Saint Charles, Scraper-Moecherville, Sleepy Hollow, South Elgin, South Park, Starks, Sugar Grove, Troxel, Udina, Valley View, Virgil, Wasco, West Dundee, Woodland Hills, Youngsdale.