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Illinois laws and regulations topic guide

Illinois ownership interests and property rights

Start with two questions: who holds title, and what interest does the person actually own? In an Illinois land trust, the beneficiary can control the property without holding title to it. A condo deed and a co-op share purchase also create different rights, even when the apartments look alike.

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The short answer

Illinois ownership questions turn on title, the interest held, creation language and transfer rights. A land-trust trustee holds legal and equitable title; the beneficiary holds a personal-property interest. Tenancy in common generally has no survivorship, while a valid joint tenancy does. Tenancy by the entirety requires qualifying spouses or civil-union parties, the statutory homestead connection and an express instrument. Condominium ownership pairs a unit interest with its common-element percentage. A cooperative usually pairs an entity interest with occupancy rights. Homestead protection has limits; it is not protection from every creditor.

Reviewed October 25, 2026. PSI Illinois III.A.1-6 covers trusts, homestead, government powers, co-ownership, condominiums and cooperatives. The whole Additional Illinois Laws and Regulations domain has 10 of 40 scored state questions, with no page-specific quota. State III.A.7-8 marks business entities and deed restrictions/CC&Rs managing-broker-only, but national I.D.6 and II.C.1-2 separately cover those subjects for broker candidates. Do not treat that state label as permission to skip them nationally.

Read the ownership facts in this order

  1. Name the title holder and the asset. A trustee holding land, a beneficiary holding a land-trust interest and a co-op member holding shares do not hold the same asset. Avoid using owner as a substitute for identifying the actual interest.
  2. Read the creating instrument. Two individual names alone do not establish survivorship. For an ordinary Illinois multi-owner conveyance, distinguish the tenancy-in-common default from an express, valid joint tenancy or tenancy by the entirety.
  3. Track the event the question gives you. Death while joint tenancy remains intact differs from a lifetime conveyance that severs an interest. Tenancy in common does not automatically pass the deceased owner's interest to the other co-owner.
  4. Separate homestead rules. Section 12-901 begins with a $50,000 individual amount and adds an ownership-percentage ceiling tied to $100,000 when two or more individuals own the qualifying property. Those are judgment-exemption rules, not a tax deduction, a guaranteed payment or a promise that the entire home is protected.
  5. Check the stated exception before choosing creditor protection. Taxes, assessments, purchase or improvement debt and the specified condominium enforcement matters are treated differently under Section 12-903. Entirety judgment-sale protection has its own conditions and is not a substitute for examining the debt, lien and instrument.
  6. For a condo, read the declaration and plat before classifying a unit, parking space or balcony. For a co-op, identify the entity interest and occupancy agreement. A floor plan or a resident's exclusive use does not by itself establish separate fee title.
  7. Match government action to its effect. Regulation, taxation, a compensated public-use taking and intestate escheat are different powers. Explain the exam distinction, then refer an actual title, trust, creditor or estate-planning issue for qualified legal review.
Illinois ownership interests: what changes the answer
Interest or ruleCore distinctionCheck before answering
Illinois land trustTrustee: legal and equitable title; beneficiary: personal propertyTitle versus control and proceeds
2026 judgment homesteadIndividual amount $50,000; multiple-owner proportional ceiling tied to $100,000Qualifying interest, ownership share and exceptions
Tenancy in commonSeparate undivided interests; no automatic survivorshipGeneral default for an ordinary silent multi-owner deed
Joint tenancySurvivorship while the estate remains intactExpress creation and any later severance
Tenancy by the entiretyQualifying couple and homestead; express instrumentBoth-signature rule and separate creditor limits
CondominiumUnit interest plus corresponding common-element percentageFee simple or a lesser estate; declaration and plat
Limited common elementCommon element reserved to specified unitsUse allocation is not automatically a separate parcel
CooperativeEntity interest plus a lease or other occupancy rightNo individual apartment deed in the usual share-and-lease model
Government powersRegulate, tax, acquire for public use, or receive by escheatNo-will alone is not escheat

The distinctions that matter

Illinois ownership interests and property rights: key distinctions
DistinctionHow it worksWhat to notice
Trustee vs. beneficiaryThe Illinois land-trust trustee holds legal and equitable title. The beneficiary holds a personal-property interest and the trust-defined rights of management, possession, direction, and proceeds.Title question or control question?
Real property vs. land-trust beneficial interestThe underlying land is real property. Illinois defines the beneficiary's interest in the land trust as personal property.Classify the asset actually being transferred.
Judgment homestead vs. property-tax homesteadThe 2026 judgment exemption starts with a $50,000 individual amount and a multiple-owner proportional ceiling tied to $100,000. Property-tax homestead relief is a different system concerning assessed value; neither amount is a guaranteed tax-bill reduction.Creditor collection or tax bill?
Tenancy in common vs. joint tenancyTenancy in common has no automatic survivorship and is the usual Illinois default. Joint tenancy must be expressly created and carries survivorship.Silent deed versus express joint-tenancy language.
Joint tenancy vs. tenancy by the entiretyBoth carry survivorship. Tenancy by the entirety adds a qualifying spousal relationship, homestead limitation, both-signature rules, and special one-spouse-creditor protection.Any co-owners, or qualifying spouses in their homestead?
One-spouse debt vs. joint debtQualifying entirety property generally is not sold on a judgment against only one tenant, subject to the statutory debt-avoidance exception. A valid obligation or instrument of both owners is different.Who signed and against whom was judgment entered?
Police power vs. eminent domainPolice power regulates use for public health, safety and welfare. Eminent domain concerns taking or damaging private property for public use with just compensation. A regulation can raise a takings issue; calling an action zoning does not decide every constitutional claim.Regulation or acquisition?
Eminent domain vs. escheatEminent domain concerns public-use acquisition and compensation. Under the Illinois intestate-succession provision, escheat follows only when the statutory private successors do not take; dying without a will alone is not enough.Public project or ownerless succession?
Condominium vs. cooperativeA condominium pairs a unit interest with a corresponding common-element percentage. A cooperative typically pairs an interest in the property-owning entity with a proprietary lease or occupancy agreement. A condominium interest is not necessarily fee simple in every case.Individual deed or entity shares plus occupancy agreement?
Common element vs. limited common elementBoth are outside the unit. A limited common element is allocated for the exclusive or limited use of one or more units under the declaration.Shared by all or assigned in use?
Homestead value exemption vs. entirety protectionSection 12-901 protects a limited value of a qualifying homestead against covered enforcement. Section 12-112 separately limits judgment sale of qualifying entirety property for a judgment against one tenant, with exceptions. They are not the same rule.Protected value, or a particular ownership estate and judgment?

Work through the facts

The land-trust title question

A buyer places an Illinois rental property in a land trust. The deed names Prairie Trust Company as trustee, while Dana is the beneficiary with power of direction and the right to rents.

  1. The deed places record title in Prairie Trust Company as trustee.
  2. Illinois's statutory land-trust definition places legal and equitable title in the trustee subject to the trust.
  3. Dana controls management, direction, possession, and proceeds under the beneficial interest.
  4. Dana's beneficial interest is personal property.
  5. The separation of title and control does not make beneficiary identity immune from every statutory disclosure.

Answer: Prairie Trust Company holds title. Dana holds the personal-property beneficial interest and the trust-defined control rights.

The old homestead amount

An October 2026 practice question says a sole qualifying Illinois homeowner can protect only $15,000 of the homestead interest from an ordinary judgment creditor.

  1. The former individual amount was $15,000.
  2. Public Act 104-120 changed the relevant amounts effective January 1, 2026.
  3. Section 12-901 now begins with an individual amount of $50,000.
  4. The multiple-owner rule separately imposes an ownership-percentage ceiling tied to $100,000.
  5. The exemption is limited to the qualifying interest and covered enforcement; it is not a property-tax deduction.

Answer: The $15,000 statement is outdated. Use the $50,000 individual amount for the stated sole qualifying owner, subject to the statutory limits.

The silent deed to two buyers

An Illinois deed conveys a house to Ari and Blake but does not say joint tenants, right of survivorship, or tenants by the entirety.

  1. Two names alone do not create survivorship under the Illinois Joint Tenancy Act.
  2. The Act requires an express declaration for joint tenancy.
  3. There is no express entirety declaration either.
  4. The default is tenancy in common.
  5. Each owner's interest can pass through that owner's estate rather than automatically to the other owner.

Answer: Ari and Blake hold as tenants in common, absent some other legally effective instrument or fact.

One spouse tries to mortgage the homestead

Married owners validly hold their Illinois homestead as tenants by the entirety. One owner signs a mortgage on the homestead, but the other refuses to sign.

  1. The estate is a valid tenancy by the entirety in homestead property.
  2. Section 1c names mortgages among the instruments that require both tenants' signatures.
  3. One signature does not satisfy that rule.
  4. The creditor-protection issue is separate from the instrument-validity issue.
  5. A broker should not advise the parties how to cure the legal defect.

Answer: The mortgage is not effective under the statutory both-signature rule. The parties need legal and lender guidance, not a broker-drafted solution.

The condo parking space

A condominium declaration assigns a parking space as a limited common element for Unit 4. The Unit 4 owner argues that the space is an independent parcel that can be deeded to anyone.

  1. A limited common element remains part of the common elements.
  2. Its use is assigned to one or more units under the condominium instruments.
  3. Section 26 permits transfer of limited-common-element use between unit owners only under the instruments and statutory process.
  4. The required declaration amendment, consent of affected owners with use rights, board-delivery certificate and recordation cannot be replaced by an informal promise.
  5. The owner cannot assume the space is an independent fee-simple parcel.

Answer: The parking space is a limited common element, not automatically a separate deeded parcel. Any transfer must follow the declaration and the Condominium Property Act.

The apartment without an individual deed

A purchaser buys shares in an entity that owns an apartment building and receives a proprietary lease granting exclusive possession of Unit 7.

  1. The scenario states that the entity owns the building.
  2. The purchaser acquires shares, not a deed to the individual apartment.
  3. The proprietary lease supplies the right to occupy Unit 7.
  4. That share-and-lease pattern identifies a cooperative.
  5. Condominium ownership instead involves a unit interest and its corresponding common-element percentage.

Answer: The purchaser holds a cooperative interest, not condominium title to Unit 7.

Four owners, not four $50,000 claims

Four individuals each own 25% of a qualifying homestead and claim $50,000 each against covered creditor enforcement. Assume sufficient qualifying interests and no exception.

  1. Section 12-901 contains the individual amount and the multiple-owner percentage limit.
  2. A 25% ownership share of $100,000 is $25,000.
  3. Claiming $50,000 each would exceed that stated proportional ceiling.
  4. This exercise identifies the ceiling, not a judicial allowance or a guaranteed recovery.

Answer: The stated proportional ceiling is $25,000 per owner, or $100,000 together, subject to the other requirements.

The tax debt exception

A qualifying homeowner argues that the $50,000 homestead amount prevents a sale for unpaid property taxes.

  1. The question concerns the judgment homestead exemption, not property-tax relief.
  2. Section 12-903 expressly excludes sale for unpaid taxes and assessments from this protection.
  3. The exemption therefore does not establish the asserted defense.

Answer: The homestead exemption does not, by itself, bar the stated tax enforcement.

No will, but a qualifying heir

An Illinois owner dies without a will. A qualifying child survives, and a student says the real estate must escheat to the State.

  1. No will means the applicable intestate-succession rules must be examined.
  2. A qualifying private successor prevents the no-successor conclusion.
  3. Section 2-1(h) addresses county escheat when the earlier statutory classes do not take; it is not triggered by the absence of a will alone.

Answer: Do not choose escheat merely because there is no will. Apply the actual succession facts.

The missing common-element phrase

A condominium instrument identifies the unit by the number shown on the recorded plat and in the declaration, but does not separately repeat the owner's common-element percentage.

  1. Section 7 recognizes the specified unit description.
  2. That description also affects the corresponding common-element percentage even when it is not expressly repeated.
  3. A missing repeated phrase does not establish that the owner has lost all common-element rights.

Answer: The specified unit description has the corresponding common-element effect even without repeating that percentage. Review the actual instruments for the particular interest.

A small beneficiary is still identified

A land-trust beneficiary holds only 1%. The trustee applies to an Illinois local government for a property-related permit and proposes to omit that beneficiary because the interest is small.

  1. Section 405/2 reaches the stated governmental property-related application.
  2. It requires each beneficiary's identification, regardless of interest size.
  3. The trustee cannot rely on a small-percentage exception that the provision does not supply.

Answer: Identify that beneficiary as required. Land-trust privacy is not absolute.

The condo is held in a lesser estate

The facts expressly establish a valid lesser estate in an Illinois condominium unit. A student rejects that result because every condominium must always be fee simple absolute.

  1. Section 6 says a unit is capable of ownership in fee simple or a lesser estate.
  2. The actual estate and condominium instruments matter.
  3. The usual fee-simple example should not become an all-cases rule.

Answer: The student's absolute statement is incorrect. Classify the actual unit interest and its accompanying common-element rights.

Mistakes to avoid

  • A land-trust beneficiary holds record title to the real estate. The trustee holds legal and equitable title; the beneficiary's interest is personal property with trust-defined control and economic rights.
  • Land-trust beneficiary identity can never be disclosed. Illinois law requires disclosure in specified applications for government benefits, authorizations, licenses, or permits tied to the trust property.
  • The current Illinois judgment homestead exemption is $15,000. Effective January 1, 2026, Section 12-901 uses a $50,000 individual amount and an ownership-percentage ceiling tied to $100,000 for multiple individual owners. Apply the qualifying-interest requirements and exceptions.
  • Homestead protection prevents tax or mortgage enforcement. The statute contains exceptions for taxes, assessments, purchase or improvement debt, specified liens, and valid written waivers or security interests.
  • Putting two names on an Illinois deed creates survivorship. Illinois generally presumes tenancy in common unless joint tenancy or tenancy by the entirety is expressly and validly created.
  • Any two family members can own as tenants by the entirety. The estate is limited to qualifying spouses or civil-union parties and property maintained or intended as their homestead.
  • One entirety tenant may mortgage the homestead alone. The Joint Tenancy Act requires both tenants to sign a deed, contract for deed, mortgage, or lease of the entirety homestead.
  • Eminent domain is the same as zoning. Eminent domain takes or damages property for public use with just compensation. Zoning regulates land use under police power.
  • A condominium association owns every unit. The unit interest and corresponding common-element percentage belong to the unit owner. Section 6 allows fee simple or a lesser estate; the association is not the owner of every unit merely because it administers the property.
  • A cooperative resident receives a deed to the apartment. The cooperative entity owns the property, while the resident's shares or membership are linked to a proprietary lease or occupancy agreement.
  • Every qualifying co-owner automatically receives $50,000. Read the ownership-percentage ceiling as well as the individual amount. Four equal owners do not each get a $50,000 ceiling.
  • An owner dying without a will automatically causes escheat. Apply the statutory succession order. A qualifying heir can take without a will.
  • A balcony or parking space is always separately deeded. Its classification depends on the actual condominium instruments; limited use does not by itself create a separate parcel.

Check your understanding

These are original teaching questions, not recalled or predicted PSI questions. Answer first, then explain why the other choices fail.

1. Under the Illinois statutory land-trust definition, how is the beneficiary's interest classified?

  1. A life estate
  2. Personal property
  3. A condominium common element
  4. Fee-simple real property
Show answer and explanation

Answer: B. Personal property

The trustee holds title to the real estate. The beneficiary holds the personal-property beneficial interest with the trust-defined rights of direction and proceeds.

2. In October 2026, what individual amount does Section 12-901 use for a sole qualifying Illinois homeowner, subject to the statutory limits?

  1. $100,000
  2. $25,000
  3. $15,000
  4. $50,000
Show answer and explanation

Answer: D. $50,000

Public Act 104-120 increased the individual amount to $50,000 effective January 1, 2026. It is a judgment-exemption amount, not a property-tax deduction or a guaranteed payment.

3. An Illinois deed conveys property to two people but contains no survivorship language. What ownership form is generally presumed?

  1. Tenancy in common
  2. Cooperative ownership
  3. Joint tenancy
  4. Tenancy by the entirety
Show answer and explanation

Answer: A. Tenancy in common

The Joint Tenancy Act requires an express declaration for joint tenancy. A silent multi-owner conveyance generally creates tenancy in common.

4. Which instrument affecting Illinois homestead property held in tenancy by the entirety generally requires both tenants' signatures?

  1. A home inspection report
  2. A mortgage
  3. A broker's comparative market analysis
  4. A property tax bill
Show answer and explanation

Answer: B. A mortgage

Section 1c requires both tenants to sign a deed, contract for deed, mortgage, or lease of the entirety homestead.

5. Which ownership description identifies a cooperative rather than a condominium?

  1. A trustee's deed plus a personal-property beneficial interest
  2. A deed to a unit plus an undivided common-element interest
  3. Shares in the property-owning entity plus a proprietary lease
  4. Two deeded interests with express survivorship
Show answer and explanation

Answer: C. Shares in the property-owning entity plus a proprietary lease

A cooperative entity holds the real estate. The resident's entity interest is paired with the right to occupy a particular unit.

6. Four individuals each own 25% of a qualifying homestead. What is each person's stated proportional ceiling under the $100,000 multiple-owner rule, assuming sufficient qualifying interests?

  1. $25,000 each
  2. $100,000 each
  3. $400,000 each
  4. $50,000 each
Show answer and explanation

Answer: A. $25,000 each

A quarter of $100,000 is $25,000. The ownership-percentage ceiling matters; this exercise does not decide an actual exemption claim.

7. A sole homeowner says the judgment homestead exemption prevents sale for unpaid property taxes. Which is correct?

  1. Section 12-903 excludes the stated tax enforcement from that protection
  2. The exemption cancels every property tax
  3. Only a condominium owner must pay taxes
  4. The owner receives $50,000 from the tax collector
Show answer and explanation

Answer: A. Section 12-903 excludes the stated tax enforcement from that protection

Section 12-903 expressly addresses nonpayment of taxes and assessments. Judgment protection and property-tax relief are different rules.

8. An Illinois owner dies without a will, and a qualifying child survives. What follows?

  1. Every debt disappears
  2. No will automatically sends the real estate to the State
  3. Apply intestate succession; the absence of a will alone does not establish escheat
  4. The surviving co-worker must receive all property
Show answer and explanation

Answer: C. Apply intestate succession; the absence of a will alone does not establish escheat

Section 2-1 provides a succession order. County escheat under subsection(h) is not the automatic result whenever a person has no will.

9. A permit application covered by 765 ILCS 405/2 omits a 1% land-trust beneficiary. Which is correct?

  1. The section requires each beneficiary regardless of interest size
  2. Only the largest beneficiary must be identified
  3. Every beneficiary below 5% is exempt
  4. Trust title eliminates all government disclosures
Show answer and explanation

Answer: A. The section requires each beneficiary regardless of interest size

The stated government property-related application must identify every beneficiary. The provision has no small-percentage exception.

10. A condominium instrument uses the unit number shown on the plat and in the declaration, without separately repeating the common-element percentage. What does Section 7 provide?

  1. The owner has no common-element interest
  2. The association automatically confiscates the unit
  3. The description has the corresponding common-element effect even without that repetition
  4. The description automatically creates a cooperative
Show answer and explanation

Answer: C. The description has the corresponding common-element effect even without that repetition

The section gives the specified unit description its corresponding percentage effect. Do not infer the loss of all common-element rights from the omitted repetition.

11. A parking space is expressly a limited common element reserved to Unit 4. The owner wants to transfer its use to another unit owner. Which is correct?

  1. A text message alone satisfies every statutory requirement
  2. Exclusive use always makes it an independent parcel
  3. Any buyer anywhere can receive a separate parcel automatically
  4. Follow the instruments and Section 26 amendment, consent and recording process
Show answer and explanation

Answer: D. Follow the instruments and Section 26 amendment, consent and recording process

Limited-common-element use transfers between unit owners must follow the Act and instruments. Exclusive use does not itself establish separate fee title.

12. An Illinois condominium question expressly establishes a valid lesser estate in a unit. Which statement conflicts with Section 6?

  1. The common-element percentage accompanies the unit interest as provided by the Act
  2. The declaration and plat matter
  3. The actual estate matters
  4. Every condominium interest must always be fee simple absolute
Show answer and explanation

Answer: D. Every condominium interest must always be fee simple absolute

Section 6 permits ownership in fee simple or a lesser estate. Do not turn the common fee-simple example into an absolute rule.

Common questions

Who holds title in an Illinois land trust?

Under the definition in 765 ILCS 405/1, the trustee holds both legal and equitable title, subject to the trust. The beneficiary retains the specified rights of management, control, possession and proceeds. The beneficiary's interest is personal property. Do not substitute the ordinary legal-title/equitable-title trust shorthand for this specific Illinois land-trust definition.

Does a land trust make the property personal property?

The beneficiary's interest is personal property; the underlying land remains real estate. Identify what the question asks you to classify. Transferring a beneficial interest and conveying title to the land are different acts, with requirements that need their own review.

Can an Illinois land-trust beneficiary always stay anonymous?

No. Section 405/2 requires identification of every beneficiary in the specified property-related applications to Illinois, its agencies or political subdivisions, regardless of the beneficiary's percentage. It also has verification and supplement requirements. The trust is not a blanket exemption from disclosure, taxes or creditor law.

What is the Illinois judgment homestead exemption in October 2026?

Section 12-901 begins with $50,000 of an individual's qualifying homestead interest. For property owned by two or more individuals, it also limits each person to the proportionate share of $100,000 based on ownership percentage. Public Act 104-120 made the increased amounts effective January 1, 2026. These are limits on covered enforcement, not a cash benefit or an assurance that the whole property is protected.

Do two or more owners each get a separate $100,000 exemption?

No. The multiple-owner rule is tied to $100,000 and each person's ownership percentage, not $100,000 per person. Four equal owners have a stated proportional ceiling of $25,000 each. Qualifying interests and the other statutory limits still matter; this page does not decide an actual creditor or bankruptcy claim.

Is that the same as the general homestead property-tax exemption?

No. The judgment homestead provision concerns protection of a qualifying interest against specified creditor enforcement. Property-tax homestead relief concerns assessed value under separate tax provisions. Do not subtract $50,000 from a tax bill or assume a property-tax approval establishes judgment immunity.

Does judgment homestead protection stop every forced sale?

No. Section 12-903 excludes the stated taxes, assessments, purchase or improvement debt, specified condominium liens and eviction enforcement. Section 12-904 separately addresses release, waiver and conveyance. A valid mortgage and the applicable waiver matter. Examine the debt, documents and law before drawing a conclusion from the exemption amount alone.

What happens to qualifying homestead sale proceeds?

Section 12-906 protects qualifying proceeds up to the stated $50,000 individual-owner or $100,000 multiple-owner amount for one year after receipt by the person entitled to the exemption. Reinvestment in a homestead receives the stated continuing exemption. This is not permission to ignore tracing, competing rights or the other requirements, and not a tax-free-sale rule.

Does homestead protection prevent another co-owner from asserting ownership rights?

Section 12-901 says it is not applicable between joint tenants or tenants in common, while it applies as to their creditors. Do not use that creditor exemption as a blanket answer to a co-owner's partition or ownership dispute. Entirety ownership and other legal issues have separate rules.

What does an Illinois deed to two people create if it says nothing about survivorship?

For an ordinary conveyance to individual co-owners, the general statutory default is tenancy in common unless a different estate is validly created. Section 1 has qualifications, including fiduciary situations. Two names, a family relationship or equal contributions alone are not an express joint-tenancy declaration.

What happens when a tenant in common dies?

There is no automatic survivorship to the other tenant in common. The deceased owner's interest follows the applicable estate and succession arrangements. Each owner has an undivided interest, rather than necessarily owning an exclusive physical half of the property.

Can a joint tenancy end before an owner dies?

Yes. A qualifying lifetime conveyance can sever the affected joint-tenancy interest. The exact act matters: the Illinois Harms decision distinguishes giving a mortgage from a severing conveyance. Do not assume every lien or signed paper has the same effect. Survivorship applies only to an interest still held in joint tenancy at death.

Who can hold Illinois property as tenants by the entirety?

Apply Section 1c: qualifying spouses or civil-union parties, property maintained or intended for maintenance as their homestead, and an instrument expressly creating that estate. The provision also addresses qualifying trust arrangements and conversion events. Marriage alone does not automatically convert every property into entirety ownership.

Can one entirety tenant mortgage or lease the homestead alone?

Section 1c requires both tenants to sign a deed, contract for deed, mortgage or lease of the homestead held in tenancy by the entirety for it to be effective. That rule is distinct from the judgment-sale protection. It does not mean every document in every transaction requires two spouses' signatures regardless of the ownership facts.

Does tenancy by the entirety defeat every creditor?

No. Section 12-112 limits sale on a judgment against only one tenant, but includes the specified exception for a transfer made solely to avoid existing debts beyond the ability to pay them as due. It addresses income garnishment separately. Joint obligations, valid security interests and federal tax liens raise different issues. The ownership label alone does not settle all creditor rights.

How do police power, taxation, eminent domain and escheat differ?

Police power regulates use; taxation raises public revenue through authorized charges; eminent domain takes or damages private property for public use with just compensation; escheat concerns property passing under the no-private-successor rules. In Illinois Section 2-1(h), the real estate escheat destination is the county where the real estate lies, not simply an automatic State transfer whenever a person dies without a will.

What does an Illinois condominium owner own?

The unit interest plus its corresponding undivided percentage in the common elements. Section 6 permits ownership in fee simple or a lesser estate, subject to the Act. Section 7 gives the specified unit description its corresponding common-element effect even if that percentage is not repeated. Read the declaration and plat for the actual rights.

What is a limited common element, and can its use be transferred?

It remains a common element, but the declaration reserves its use to certain units. A balcony, patio or parking space may be an example when so classified. Section 26 permits use transfers between unit owners under the instruments and Act through the required amendment, consents, board-delivery certificate and recordation. Exclusive use alone does not make it an independent parcel that can be deeded to anyone.

How is a cooperative different from a condominium?

In the usual co-op model, the entity holds the property interest and the resident acquires shares or membership linked to a proprietary lease or other occupancy right. The resident does not receive the usual condominium deed to an individual apartment. Read the actual entity and occupancy documents; do not assume every cooperative has identical financing, resale, transfer or tax rules.

Are these actual PSI questions or a passing guarantee?

No. These are original teaching questions aligned with the public outline. Use them to identify title, the actual interest, survivorship, creation requirements and exceptions. A short practice result is not a validated readiness score, and the page is not approval of an actual title, trust, tax or creditor arrangement.

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Official sources and scope

Checked October 25, 2026 against the identified Illinois provisions and public PSI outline. The increased homestead amounts took effect January 1, 2026. Earlier actual primary readings and selected indexed passages are identified in the review. The HUD compilation supplies basic co-op terminology, not current financing or eligibility advice. All scenarios are original; actual title, estate, creditor and tax questions require their own analysis.

This is exam preparation, not advice for a specific transaction. State law and the applicable facts control. Our editorial and corrections process explains how to report an issue.

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