FinancingChicago_real_property_transfer_tax_current_ratesHARD
A Chicago property sells for $715,250. Under Chicago's city transfer tax, the seller's rate is $1.50 per $500 (or fraction thereof) of the sale price. A separate county tax of $0.25 per $500 also applies. What is the combined city-seller and county transfer tax owed at closing?
Correct Answer
B) $2,504.25
Divide $715,250 by $500 to get 1,430.5, which rounds up to 1,431 increments. Seller city tax: 1,431 x $1.50 = $2,146.50; county tax: 1,431 x $0.25 = $357.75; combined = $2,504.25.
Answer Options
A
$2,146.50B
$2,504.25C
$1,788.75D
$2,289.60Why This Is the Correct Answer
Sign up free to unlock full analysis
Why the Other Options Are Wrong
Sign up free to unlock full analysis
Deep Analysis of This Financing Question
Sign up free to unlock full analysis
Background Knowledge for Financing
Sign up free to unlock full analysis
Sign up free to unlock full analysis
Real World Application in Financing
Sign up free to unlock full analysis
Common Mistakes to Avoid on Financing Questions
Sign up free to unlock full analysis
Related Topics & Key Terms
Key Terms:
buyer_city_taxchicagochicago_real_property_transfer_tax_current_rateschicago_transfer_tax_750_per_500difficulty_4illinois_statemathscenariotransfer_tax
Was this explanation helpful?
More Financing Questions
West Virginia redemption period is:
A cooperative in Manhattan is converting to a condominium. How does this conversion affect existing shareholders with share loans?
The loan-to-value ratio (LTV) is calculated as:
Compliance case Cedar Docket frames the issue this way. A Florida buyer borrows $272,000 on a purchase price of $320,000. What is the loan-to-value ratio?
Which of these activities can the owner of a life estate NOT do?
- → Which of the following is a key benefit of a VA loan for eligible veterans?
- → In Delaware financing, which theory is practiced?
- → Audit memo Cedar Case highlights this Florida rule. The purchase price is $360,000, and the lender will lend 90% of the price. How much cash down payment must the buyer bring?
- → Kevin is told that his co-op purchase will require board approval even though he has financing pre-approval. Why is board approval necessary for cooperative purchases in New York?
- → Tennessee has which redemption period after foreclosure?
- → Foreclosure in Vermont is typically:
- → Mississippi uses which security instrument?
- → Which of the following is NOT required for a valid bill of sale?
- → Deficiency judgments in Alabama are:
- → Sarah Martinez is purchasing a co-op apartment in Manhattan for $750,000. Her lender explains the financing structure for cooperative units. What type of loan will Sarah receive for this co-op purchase?