A property in Chicago sells for $750,000. What is the City of Chicago municipal transfer tax due on this transaction?
Correct Answer
A) $3,750.00
The City of Chicago imposes a municipal real property transfer tax at a rate of $3.75 per $500 (or fraction thereof) of the sale price. $750,000 ÷ $500 = 1,500 increments × $3.75 = $3,750.00. This is the Chicago municipal transfer tax, which is separate from the Cook County transfer tax ($0.50 per $500) and the Illinois state transfer tax ($0.50 per $500).
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Related Topics & Key Terms
Key Terms:
Related Concepts
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
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.
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