Legal Question in Real Estate Law in Illinois

Since your dad wants some kind of assurance, or reassurance, in writing, it's never too late to work up a short contract that effectively backdates to 1991, recites what has happened as what was supposed to happen, and that obligates your dad on payment in full to convey the property to you with the kind of restriction he seems to want. The only oddball thing about that is that normally a buyer would want to record such a contract against fee title to the prpoerty, when the contract first starts, and you and your dad are about 19 years too late on that one!!! But it speaks of a wonderful relationship as well as your diligence.

And on the required Illinois transfer declarations you should both declare this was the fulfillment of a "contract sale" that originated in 1991, and then both of you have "evidence" of actual payment. But the question I have is why until he passes? Is he living in the house? If so then the reservation should be for a life estate or his sooner relocation to another housing facility. If he needs to move to a nursing home or something, then keeping the house may hurt if you need money before he passes away. And the restriction should NOT prohibit you from taking out a loan if you want, or need -- only an outright sale to a third party. Based on the facts you gave that would be a way to handle your desire for title and his for the restriction -- but how old is he? Once this is a "done deal" you may be stuck for years. So until there are more facts I would not suggest the reservation of a life estate for him (basically giving him the absolute right to live on the property for life), but that would be a notch or two up. I would NOT suggest any kind of joint ownership if you in fact paid in full. But one other thing you may need the paperwork for -- if he does need to move to a nursing home or for major medical expenses -- is to prove you bought it more than 5 years ago (here's where having NOT recorded it could be an issue) because if it's LESS time the government can claim an interest in the property as still "his". I would see a local real estate or wills/probate attorney who can help with this.

You need a written agreement stating the terms of the agreement, the money you have paid for the house (which should have been done at the beginning), and the terms under which the property is given to you. You then need to sign the deed and file both with the title at the county recorder of deeds. This way anyone doing a title search will be able to see that you are the current owner and the covenant (agreement) you signed. And you'll need to pay all the title transfer and recording fees.