Which of the following statements about Illinois real estate transfer taxes is INCORRECT?
Correct Answer
D) Illinois state transfer tax is $0.25 for each $500 of value or fraction thereof.
Answer D is incorrect — and therefore the answer to this EXCEPT question — because the Illinois state real estate transfer tax rate is $0.50 per $500 of value or fraction thereof, not $0.25. The correct rate is established under 35 ILCS 200/31-10. Stating the rate as $0.25 understates the tax by half and would cause a licensee to miscalculate transfer tax due at closing.
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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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