Illinois Real Estate Practice Exam

When a trustee establishes a land trust in Illinois, what is this type of document known as?

1. Deed Of Trust

2. Personal mortgage

3. Deed In Trust

4. Title Transfer

The correct answer is: Deed In Trust

In the context of Illinois real estate, when a trustee establishes a land trust, the appropriate document involved in this process is known as a Deed in Trust. This document is essential as it formally sets up the land trust arrangement, where the trustee holds legal title to the property for the benefit of the beneficiary. This type of arrangement allows for privacy and flexibility in managing the property, as the beneficiary can remain unnamed in public records. The Deed in Trust outlines the rights and duties of both the trustee and the beneficiary, establishing the framework for how the land trust operates. The other terms mentioned do not accurately reflect the nature of this legal document. A Deed of Trust typically involves security for a loan and is more common in some other states but not specifically for land trusts in Illinois. A personal mortgage refers to a loan secured by real estate, and Title Transfer usually signifies the actual shifting of ownership from one entity to another without the specific context of a trustee's role in a land trust.