Most Illinois sellers pay off their mortgage, pay title and closing charges, cover what they agreed to pay their agent, and customarily pay the state transfer tax. County and local transfer taxes vary by location, so the first step is learning what applies where your home is.
The costs, in plain terms
- Mortgage payoff. Whatever you still owe is paid from your proceeds at closing.
- Real estate commission. Compensation is negotiable and is not set by law. Whatever is agreed is written into your listing agreement before the home is marketed.
- Title, escrow and closing fees. These vary by title company and by what your contract says.
- Transfer taxes. Covered below.
- Prorated property taxes. Illinois property taxes are paid in arrears, so sellers typically credit the buyer for the time they owned the home in the current tax year.
- Attorney fees. Most Chicagoland sellers are represented by a real estate attorney.
- Repairs or credits. Anything negotiated after the buyer’s inspection.
Transfer taxes: who pays what
Illinois charges a state transfer tax of $0.50 per $500 of the sale price, which is customarily paid by the seller. Counties add their own, and many cities and villages charge a local transfer tax as well. The rate, and whether the buyer or seller pays it, differs from place to place and is governed by local ordinance and the contract.
Contract terms can shift who pays a given cost. Treat this as a starting point, not a quote.
How to see your own number
Ask for a net sheet before you list. It estimates your proceeds after the payoff, taxes, fees and credits so there are no surprises at the closing table. Darren can walk you through one for your home.
Frequently asked questions
Who pays transfer taxes in Illinois?
The state transfer tax is customarily paid by the seller. County and local transfer taxes vary by location, and in some municipalities the buyer pays. Your contract and local ordinance decide.
What is a net sheet?
A net sheet is an estimate of what you would take home after paying off your mortgage and covering taxes, fees and any credits at closing.
Is the real estate commission set by law?
No. Compensation is negotiable and is agreed in writing in your listing agreement.
Sources
- Illinois Department of Revenue — state real estate transfer tax
- Illinois Realtors — consumer resources
This article is general educational information for Illinois home buyers and sellers. It is not legal, tax, lending or financial advice, and rules, rates and fees change. Confirm details with your attorney, lender or title company. Darren Reagan, REALTOR®, License 475.170639, Charles Rutenberg Realty.
