Under current Illinois law, how does the Chicago city real estate transfer tax relate to the Illinois state real estate transfer tax on the same deed?
Correct Answer
C) Chicago's city transfer tax is a separate, additional layer that can stack with the Illinois state transfer tax and any other applicable local transfer taxes.
Illinois imposes a state real estate transfer tax under 35 ILCS 200/31-1 et seq. at $0.50 per $500 of value. Separately, Chicago imposes its own transfer tax under its home-rule authority. Because these are distinct taxing authorities operating under independent legal bases, both taxes apply to the same deed — they stack rather than substitute for one another. Paying one does not satisfy or waive the other.
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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.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
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