Which of the following statements about Illinois real estate transfer taxes and closing documentation is NOT correct under current Illinois law?
Correct Answer
D) A seller who qualifies for a transfer tax exemption under 35 ILCS 200/31-45 is not required to complete Form PTAX-203 for the transaction.
Under 35 ILCS 200/31-25 and Illinois Department of Revenue guidance, Form PTAX-203 is generally required to be filed with the deed at the time of recording, even when a transaction qualifies for a transfer tax exemption. Exempt transactions typically require Form PTAX-203-B (the exempt version) rather than eliminating the filing obligation entirely. A blanket claim that exempt sellers need not complete any PTAX-203 form is incorrect.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Predatory lending refers to unfair, deceptive, or abusive lending practices that impose unjustified terms on borrowers, often targeting vulnerable populations. It includes practices like excessive fees, inflated appraisals, and unnecessary refinancing.
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.
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