Illinois Real Estate Practice Exam

What type of deed is motivated by love and affection?

1. Gift Deed

2. Equitable Title

3. Alienation Clause

4. Acceleration Clause

The correct answer is: Gift Deed

The correct answer is a gift deed. A gift deed is specifically used to transfer property without any exchange of payment, reflecting a transfer motivated by love and affection between the parties involved, often within families or close relationships. This type of deed signifies that the grantor is giving the property willingly and without expecting any financial return, which is the key aspect of such a transfer. In contrast, equitable title refers to a person's right to obtain full ownership of property, which arises when a buyer and seller have a sales contract, but it does not inherently convey any emotional motivations. An alienation clause is related to a mortgage, allowing the lender to call the loan due upon sale of the property, but it has nothing to do with affection or the nature of the transfer. An acceleration clause, also related to loans, allows the lender to demand full payment under certain conditions, again unrelated to the personal motivations behind property transfers.