A licensee is advising a client on transfer taxes for a property sale in Cook County, Illinois. The client asks whether Illinois counties may impose a transfer tax in addition to the state rate. Which statement is correct?
Correct Answer
C) Yes. Illinois counties may impose a county transfer tax of $0.25 for each $500 of value or fraction thereof.
Under Illinois law, counties are authorized to impose a county-level real estate transfer tax of $0.25 per $500 of value or fraction thereof, separate from and in addition to the state rate of $0.50 per $500. This county component is reflected on Form PTAX-203.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
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