4.2 Property Ownership in Illinois
Key Takeaways
- Illinois recognizes tenancy in common (the default), joint tenancy, and tenancy by the entirety.
- Joint tenancy requires the four unities — Time, Title, Interest, Possession (TTIP) — plus express language.
- Tenancy by the entirety is for married/civil-union couples and only on a homestead/principal residence.
- Illinois is a separate-property (equitable distribution) state, NOT a community-property state.
- Effective January 1, 2026, the Illinois homestead exemption rose from $15,000 to $50,000 per owner.
Co-ownership in Illinois
When two or more people hold title, Illinois recognizes three forms. The deed's wording controls; silence creates the default.
Tenancy in common (TIC) — the default
| Feature | Rule |
|---|---|
| Default | Assumed unless the deed says otherwise |
| Shares | May be unequal (e.g., 70/30) |
| Survivorship | None — share passes by will/probate |
| Transfer | Each owner may sell or devise their share |
| Partition | Any cotenant may force a partition sale |
Joint tenancy — survivorship
Illinois will not presume joint tenancy; the deed must expressly state "as joint tenants with right of survivorship." It demands the four unities (TTIP):
| Unity | Meaning |
|---|---|
| Time | All acquire title at the same moment |
| Title | All take through the same deed |
| Interest | All hold equal shares |
| Possession | All have equal right to the whole |
Breaking any unity severs the joint tenancy into a tenancy in common. Classic exam trigger: one joint tenant sells their interest — the buyer takes as a tenant in common, while remaining joint tenants stay joint among themselves. With three joint tenants, if one sells, the buyer is a one-third tenant in common while the other two remain joint tenants (with survivorship) as to their combined two-thirds.
Tenancy by the entirety (TBE)
| Feature | Rule |
|---|---|
| Who | Married couples or civil-union partners |
| Property | Only homestead / principal residence |
| Survivorship | Automatic to the surviving spouse |
| Creditor shield | A creditor of one spouse cannot force sale |
| Severance | Cannot be severed unilaterally; ends on divorce -> TIC |
TBE's creditor protection is the headline: an individual judgment against one spouse alone cannot reach the entireties home. This is unique to TBE and frequently contrasted with joint tenancy, which offers no such shield. Note that a joint debt — like a mortgage both spouses signed — can still reach a TBE home; only a debt of one spouse alone is blocked.
Ownership in severalty
When one person (or one legal entity) holds title alone, the form is ownership in severalty — "sole and severed" from others. Despite the word "several," it means one owner, a common distractor on the exam. A single LLC, a corporation, or an unmarried individual all hold in severalty.
Illinois homestead exemption (UPDATED 2026)
The homestead exemption (735 ILCS 5/12-901) shields a principal residence from judgment creditors up to a set dollar amount of equity. Effective January 1, 2026, the amount increased from $15,000 to $50,000 per owner (Public Act 104-120). For jointly owned homes the combined cap rises accordingly (roughly $100,000 for two owners).
| Item | Old (pre-2026) | Current (2026+) |
|---|---|---|
| Per-owner exemption | $15,000 | $50,000 |
| Property | Principal residence | Principal residence |
| Filing | Automatic | Automatic |
Worked example: A home worth $300,000 carries a $230,000 mortgage, leaving $70,000 equity. A general judgment creditor can reach only the equity above the $50,000 exemption — about $20,000 — and the purchase-money mortgage is unaffected.
What homestead does NOT stop
- Purchase-money mortgage foreclosure
- Property-tax liens / tax sales
- Mechanic's liens for work on the property
- Properly recorded HOA assessment liens
Separate-property (not community-property) state
| Concept | Illinois rule |
|---|---|
| System | Equitable distribution |
| Marital property | Divided fairly, not necessarily 50/50 |
| Separate property | Pre-marriage, gifts, inheritance stay with owner |
| Divorce | Court weighs many factors for a fair split |
Never answer "community property" for Illinois — that is California/Texas-style law. Illinois courts divide marital property equitably, weighing each spouse's contribution, the length of the marriage, and economic circumstances. "Equitable" means fair, which is not the same as an automatic half-and-half split.
Life estates and freehold basics
| Estate | Detail |
|---|---|
| Life estate | Lasts the life tenant's lifetime |
| Remainderman | Takes fee simple when the life ends |
| Waste | Life tenant cannot damage the asset |
| Conveyance | Life tenant may convey only the life estate |
A life tenant who sells transfers an interest that still ends at the measuring life — the buyer's interest evaporates when the life tenant dies, a favorite trick question.
Condominiums, co-ops, and townhomes
| Form | What you own |
|---|---|
| Condominium | Fee title to your unit + undivided share of common elements |
| Cooperative | Shares in a corporation + a proprietary lease (personal property, not real) |
| Townhome (fee) | The structure and the land beneath it |
The Illinois Condominium Property Act (765 ILCS 605) governs condos and requires the seller of a resale unit to deliver association documents — declaration, bylaws, budget, and a statement of any unpaid assessments — to the buyer. A co-op owner technically holds personal property (stock), a distinction the exam likes to test against the condo owner's real property interest. Failing to disclose a special assessment or a large reserve shortfall is a frequent fact pattern triggering buyer remedies.
Effective January 1, 2026, what is the Illinois homestead exemption amount per owner?
Two unmarried friends take title 'as tenants in common.' One dies leaving a will giving everything to a cousin. What happens to the deceased's share?
Which co-ownership form protects the home from a judgment against just one of the owners?