Property Ownership

What is a distinctive feature of an Illinois land trust compared to typical property ownership?

AThe beneficiary's identity is publicly recorded with the deed

BThe trustee holds legal title while the beneficiary retains all beneficial interest and control✓ Correct

CThe trust automatically terminates after 20 years

DThe property cannot be mortgaged while in trust

Explanation

In an Illinois land trust, the trustee (typically a bank or trust company) holds legal title to the property while the beneficiary holds the beneficial interest. The beneficiary's identity is kept private—not revealed in public records.

People Also Study

Key Terms to Know

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Net Operating Income (NOI)

The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.

Deed of Trust

A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.

Easement

A non-possessory right to use another person's land for a specific purpose.