How to Buy Real Estate in Illinois

How to Buy Real Estate in Illinois

We believe real property transactions should always be clear and simple. This will help you and your family to have a bright future. We are passionate about helping people start the next chapter in their lives.

Real Estate Agent in Mchenry IL does not just include your primary residence in real estate. It also includes other properties, such as a vacation house or rental property.

The type of property you have will determine the best form of ownership. Below we will look at different types of real property and advise on the best ownership form for each.

Illinois Primary Residences

Your primary residence is eligible for special tax treatment. It would be best if you considered how you own your home.

Tenancy in the entirety protects married couples from creditors (with an exception for federal tax lien) while still providing relevant tax benefits. This allows for the automatic transfer of ownership to the surviving spouse in the event of the first spouse’s death without the need for court intervention.

Illinois allows you to transfer your primary residence ownership to a joint trust while maintaining complete protection. Trust ownership also means that real estate won’t go through lengthy, costly public probate processes. Instead, it will be managed according to your wishes, as stated in the trust document.

Vacation Homes in Illinois

Some families view their vacation home as a significant financial asset and an important source of emotional fulfilment.

A trust or limited liability company (LLC), which owns a vacation home, can be advantageous as it addresses two key priorities: asset protection and ease of transfer to the next generation.

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A trust or LLC allows you to set rules about how the property will be used and maintained. You can also designate what happens to the vacation home after you die. This can be a good option if you want to make sure that the vacation home remains in the family for future generations.

Rental Properties in Illinois

Asset protection is often the main concern because the rental property is more of an income stream than a residence.

You face higher chances of being sued as a landlord or owner of rental property due to the possibility of occupant changes.

It is possible to transfer ownership of the rental property to an LLC. Renters can sue the LLC if they are injured on the rental property. The judgment will be higher than any property insurance.

After the death of a loved one, you can sell your home.

It is not easy to sell a house after the death of a loved one. Many families find it difficult to clean the house and prepare it for sale. A host of time-consuming and expensive legal issues can impede a family’s ability to sell their house.

If the property owner did not plan for it, the heirs (people who inherit the property) would need to file a case in court to have the property sold. They may also need to make a bond to a title firm. These bonds may be as high as 2% to 3.3% of the purchase price. Many title companies will require heirs to indemnify and reimburse the title company for any claims arising after the sale.