INFORMATION THAT WILL BE
ADDED TO THE 4th EDITION
Any man made addition to the land is an improvement. Improvements
can also be referred to as appurtenances.
In June of 2004, Chicago’s Fourth Presbyterian Church
announced the sale of air right’s over the 90 year old gothic church on
fashionable Michigan Avenue for $25 million to a developer that plans to build
luxury condominiums over the church.
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Another form of legal life estate that provides protection for a limited
amount of equity in a home is called the homestead exemption. The purpose of
a homestead exemption is for the debtor and his family to be financially able to
secure the necessary shelter during difficult economic times. This exemption
allows every Illinois resident an estate of homestead in the principal place of
residence and extends to all owners residing in the property. An amount of up to
$15,000 per individual but a
maximum of $30,000 is protected
from unsecured (general) creditors. The protection continues to exist as long as
they live in the homestead residence. The exemption exists in Illinois without
having to give notice or record a Declaration of Homestead as required in some
states. Homestead rights are released or waived only in writing and with the
signature of the individual or, if married, both spouses. In chapter 3, we will
discuss another homestead exemption pertaining to a reduction in real estate
taxes. The two homestead exemptions are unrelated.
(The homestead
exemption amounts have recently changed to $15,000 per owner residing in the
property with a maximum of $30,000. The book will have the old amounts of
$7500/$15,000.)
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PUTTING IT TO WORK
A person with bad credit cannot improve their credit by marrying someone
with good credit. If a married couple finances a property and only one has good
credit, the lender will make the loan to the spouse with the good credit, if
they can qualify for the mortgage on their own, and have the spouse with poor
credit waive their homestead rights.
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TO
GO AHEAD TO CHAPTER 3 - CLICK HERE
