A commercial property in Chicago sells for $2,500,000. What is the total Cook County transfer tax due? (Assume this is a Class 2 property over $1,000,000)
Correct Answer
A) $18,750.00
$18,750.00 is correct. Cook County imposes a transfer tax on Class 2 properties over $1,000,000 at a rate of $7.50 per $1,000 of consideration. Dividing $2,500,000 by $1,000 yields 2,500 increments; multiplying by $7.50 produces $18,750.00. This rate structure is established under the Cook County Real Property Transfer Tax Ordinance, which sets tiered rates based on property class and sale price.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
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