A buyer pays the Chicago municipal real estate transfer tax at closing. Which statement correctly describes how that payment affects the Illinois state real estate transfer tax obligation on the same deed?
Correct Answer
C) Paying the Chicago municipal transfer tax does not satisfy the Illinois state transfer tax; the two are separate, independent taxes that can both apply to the same transaction.
Illinois imposes its own state real estate transfer tax under 35 ILCS 200/31-1 et seq., calculated at $0.50 per $500 of consideration. Chicago imposes a separate municipal transfer tax under its home-rule authority, with buyer and seller components. These are entirely independent tax obligations — neither satisfies nor offsets the other. Cook County also imposes its own transfer tax layer. All applicable taxes must be paid separately, meaning a single deed can trigger state, county, and municipal transfer taxes simultaneously.
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Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
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