Banking and Business Monthly – December 2022

Effective January 1, 2023, the Illinois Conveyances Act (“Act”), 765 ILCS 5/0.01 et seq., is amended to provide an optional statutory form for special warranty deeds. Id.at §8(b). Below is the optional statutory form:

The grantor (here insert the name or names and address of the grantor), for and in consideration of (here insert consideration), hereby grants, bargains, sells, and conveys to the grantee all of the following described land and the improvements thereon situated in the County of . . . ., State of Illinois, legally described and known as follows: (insert legal description, common address, and permanent index number) together with all and singular the hereditaments and appurtenances thereto; to have and to hold the same, with the appurtenances thereto, forever, subject to the following matters: . . . .(insert known encumbrances).   

Dated (insert date)

(signature of grantor or grantors)

Special warranty deeds are preferred by grantors because the warranties are more limited than in a general warranty deed, in which the grantor warrants that the premises are free from all encumbrances and the grantor will defend title against all persons who may lawfully claim possession. Id. at §9. Compare that to the more limited covenants from the grantor in a special warranty deed described in Act Section 8(b) (emphasis added):

(1) that at the time of making and delivery of such a deed, the grantor was the lawful owner of an indefeasible estate in fee simple in and to the premises therein described and that grantor had good right and full power to convey the same,

(2) that the premises were free from encumbrances done or suffered by or through the grantor, except the rents and services that may be therein reserved, and

(3) that the grantor will warrant and defend the premises against the lawful claims and demands of all persons claiming through the grantor but none other.

We should expect the use of special warranty deeds to accelerate and become more prevalent now that there is a statutory form. For further inquiries or questions about special warranty deeds or other banking, business, or real estate matters, please contact me at smigala@lavellelaw.com or at (847) 705-7555.

Happy Holidays to all!