During a brokerage meeting in Evanston, Sawyer Hayes asks who must legally bear transfer taxes in every Illinois closing. What is the best answer under current Illinois law or practice?
Correct Answer
D) Who pays depends on the applicable tax and the parties' agreement; customary practice and contractual allocation are not always the same thing.
Illinois transfer-tax questions must separate statutory incidence, local custom, and the parties' contractual allocation instead of assuming one universal payer in every file.
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Related Concepts
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
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.
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