Can Mistakes in Deeding Property be Fixed?

What if you contract to sell one piece of property to a buyer, but end up selling the wrong piece of land at closing? What if you promise to sell the buyer a whole piece of land, but mistakenly only deed a part of the land to the buyer? Worse yet, what if you promise to deed the buyer only a portion of the land, but you inadvertently deed the entire land to the buyer at closing? Can these errors be rectified? The simple answer is yes, but it must be qualified. An error in the transfer of property can only be corrected if there is a mutual mistake of fact between the parties. In such an instance, the court can modify or re-write the deed to make it consistent with the seller's and buyer's actual mutual intent. What happens when the seller and buyer cannot agree?

A recent court case, Wheeler-Dealer, Limited v. Christ, 319 Ill.Dec. 79 (1st Dist. 2008) illustrates the consequences, which can be disastrous. In that case, the seller and the buyer entered into a contract to sell / purchase real estate; no property address was written in the contract, only a legal description. The legal description identified only a portion of the lot; specifically, it referred to the "east 165 feet of lot 4". At the time of closing, the seller deeded all of lot 4 to the buyer.

Afterwards, the seller sued the buyer, stating that he only meant to deed the east 165 feet of lot 4, as per contract, and he should receive the rest of the lot back. The buyer claimed that his intention had always been to purchase the entire land. The court believed the buyer, who won the case.

Moral of the story? Be very, very, very careful when drafing deeds and other documentation affecting the sale of real estate. A simple typographical error can cause a great deal of expense and heartache, and it can't always be fixed!

Home Repair and Remodeling Act Basics

If you are entering into a contract to repair or remodel your home, you should be aware of the Home Repair and Remodeling Act (815 ILCS 513/1 et seq.). The purpose of this law is to protect Illinois homeowners and contractors, and it requires some disclosures and documentation so that the parties are aware of their respective obligations.

Specifically, if a homeowner is remodeling or completing repairs for $1,000 or more, the contractor must give that homeowner a brochure entitled "Home Repair: Know Your Consumer Rights" prior to signing the contract. Then, prior to beginning work, the contractor must obtain a signed contract or work order. If a contractor does not comply with these requirements and the other requirements of the Home Repair and Remodeling Act, the contractor will be unable to enforce the agreement against the homeowner.

It is important for homeowners to understand, however, that in a recent case, MD Electrical Contractors, Inc. v. Abrams, 228 Ill.2d 281 (2008), the Illinois Supreme Court determined that this law applies only to contractors, not to subcontractors . Subcontractors contract directly with the general contractor; they do not typically sign an agreement with the homeowners, and are therefore not required to provide disclosures to the homeowner either. If your general contractor is working with subcontractors to complete repairs on your home, it is important for you to make sure that the subcontractors are being paid and are providing mechanic's lien waivers on an ongoing basis. If you are diligent throughout your home repair project and ensure that the documentation completed and the payments made are correct, you can prevent costly mechanics' liens and suits.

Complying with Smoke and Carbon Monoxide Detector Laws in Illinois

Smoke detectors and carbon monoxide detectors have helped save many lives. Illinois has codifed the necessity for these devices in the Smoke Detector Act and the Carbon Monoxide Detector Act. Following these rules can not only protect you and your family, but will also assist you in selling or leasing your home.

Smoke Detector Act -- Per state law, every single-family home must have a smoke detector installed on each floor, including the basement. For other dwelling units, there must be at least one working smoke detector within 15 feet of every bedroom or other room used for sleeping purposes. All smoke detectors must be installed on the ceiling, at least 6 inches from any wall. Smoke detectors may also be installed on the wall, so long as they are between 4-6 inches away from the ceiling. Additionally, if a building contains more than one residential unit, or if the building is a mixed-use building and there is at least one residential unit, then a smoke detector must be installed on the highest ceiling of all stairwells inside the building.

Carbon Monoxide Alarm Detector Act -- Per state law, most residential units must have at least one working carbon monoxide detector within 15 feet of every bedroom or other room used for sleeping purposes.

Keep in mind that when you go to sell your home, your buyer will probably hire a professional inspector to inspect the home. Property inspectors are trained to look for smoke and carbon monoxide detectors, test them, and make sure they are properly installed in appropriate locations. Having these devices installed and in working order will help your inspection go smoothly.

Additionally, if you are leasing your unit, by state law you are required to have all smoke and carbon monoxide detectors installed and in working order. Once your tenant has moved in, maintenance of the smoke detector becomes his resposibility, including testing and changing batteries. If there is anything seriously wrong with either the smoke or carbon monoxide detectors, then the tenant should notify the landlord in writing and the landlord should have the problem corrected.