Which of the following statements about Illinois state transfer taxes does NOT accurately reflect current Illinois law or practice?
Correct Answer
D) Payment responsibility for transfer taxes is fixed by statute and cannot be modified by the parties' purchase contract.
Illinois law does not prohibit parties from contractually allocating transfer-tax payment responsibilities. Statutory incidence, local custom, and contractual allocation are distinct concepts, and parties routinely negotiate who pays each applicable tax in the purchase agreement. The statement in D is therefore false.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
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