Which of the following statements about Illinois real estate transfer taxes and closing practice is NOT correct under current Illinois law?
Correct Answer
B) The Illinois state real estate transfer tax does not apply to properties located within Cook County because Cook County's own transfer tax replaces the state tax in that jurisdiction.
Option B is incorrect because the Illinois state real estate transfer tax under 35 ILCS 200/31-1 applies statewide, including to all properties in Cook County. Cook County imposes its own separate transfer tax in addition to the state tax — it does not replace it. All three layers (state, county, and municipal where applicable) are independent obligations that can apply simultaneously to the same transaction. There is no geographic carve-out that exempts Cook County properties from the state transfer tax.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
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