A Chicago property sells for $715,250. Under Chicago's city transfer tax, the buyer's rate is $3.75 per $500 (or fraction thereof) of the sale price. What is the total city transfer tax owed by the buyer?
Correct Answer
A) $5,366.25
Under Chicago Municipal Code § 3-33, the transfer tax is calculated per $500 or fraction thereof. Dividing $715,250 by $500 yields 1,430.5, which rounds up to 1,431 taxable units. Multiplying 1,431 × $3.75 = $5,366.25. The 'fraction thereof' rule requires rounding any partial unit up to the next whole unit, which is why 1,430.5 becomes 1,431.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
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