A property in Illinois sells for $450,000. Using the Illinois state real estate transfer tax rate only, what is the state transfer tax due?
Correct Answer
C) $450.00
Under 35 ILCS 200/31-10, the Illinois state real estate transfer tax rate is $0.50 per $500 of value (or fraction thereof). For a $450,000 sale: $450,000 ÷ $500 = 900 increments × $0.50 = $450.00. This $450.00 represents the state-only obligation. Cook County is separately authorized to levy an additional $0.25 per $500, but that is a county-level tax, not a state tax, and the question asks for the state transfer tax only.
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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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