Legal Question in Real Estate Law in Illinois

Transfer of real estate

Someone I know wants to transfer his property over to a friend. Not asking for value or anything of that sort - basically his friend will take over mortgage payments until he qualifies to have the mtg under his name. If and when that happens then he would have his name on title / deed. However, in the meantime he is only taking over payments. His name is not on title/deed or finance company. What kind of legal document can be made between both parties (friends)? And what items should be made in document to make it a legal binding document? Any suggestions would be appreciated.


Asked on 5/09/07, 3:08 pm

2 Answers from Attorneys
Thomas Moens Moens Law Offices, Chartered

Re: Transfer of real estate

First of all, most mortgages contain what is called a due on sale clause, which prohibits the owner from allowing someone to take over the payments, sell it on contract, or otherwise transfer any interest in the property. The lender would have the right to demand the full balance of the loan due immediately. The owner could rent the property to the friend, but that would be about all if the friend cannot get financing.

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Answered on 5/10/07, 9:38 am
Benjamin Berger Berger-Harrison, A Professional Corporation

Re: Transfer of real estate

This is the type of deal that creates major problems almost every time. If the seller doesn't sit down with a lawyer for a thorough consultation, the seller is CRAZY.

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Answered on 5/09/07, 3:59 pm


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