The taxes and fees due to various governmental entities in a typical real estate transaction can be substantial. In calculating your share of the closing costs, don’t forget to account for your Municipality, County, and the State of Illinois financial obligations.
Generally, three “transfer stamps” must be purchased and affixed to the Deed prior to recording. By Statute and Ordinance, State and County transfer stamps are the Seller’s responsibility. Each local municipality has its own Ordinances mandating the percentage of the purchase price to be paid and who pays it. (Visit our link to all Cook County municipalities) In Chicago both sides pay a transfer tax. Most Suburbs put the payment of the transfer tax on the Seller, but not all.
As an example, a Seller of a $300,000.00 dollar home in Chicago would pay the State $300.00, Cook County $150.00, and Chicago $900.00. The Buyer would pay Chicago $2,050.00. A Seller of a $300,000.00 home across the street in Evergreen Park would also pay the State $300.00, the County $150.00, but she would pay the Village $1,500.00. The Buyer pays nothing to EP.
Prior to purchasing the transfer stamps, most municipalities, including Chicago, require proof (certification) that the water bill is paid in full. Some also have very specific rules involving building inspections and zoning issues that can require weeks advance filings, Also prepare yourself for the municipality charging for certifying the water bill and issuing zoning certificates as well as state title taxes and recording fees.
Your Lawyers will handle all of these issues, but it is important for you to be aware at the outset of these considerations and the not insignificant costs involved. We have helpful calculators here to help give you an estimate of the costs involved in a closing. Your Lawyers will go over the numbers with you to firm them up as we proceed to close.