Illinois

Illinois is an attorney-involved state for residential closings. Both buyer and seller customarily retain attorneys, who handle contract review (often using the standard form with attorney modifications), title commitment review, and the closing itself. The closings are typically split between the title company (which handles funds and recording) and the attorneys (who handle legal review and document preparation), with both showing up at the closing table.

Transfer taxes are layered: the state charges $0.50 per $500 of sale price (about 0.10%), counties may add their own rate, and several cities have substantial additional transfer taxes. Chicago's transfer tax is the most consequential local layer, currently $5.25 per $500 (about 1.05%) split between buyer and seller, with the buyer paying $3.75 per $500 and the seller paying $1.50 per $500. There's been ongoing political debate about a Chicago "real estate transfer tax for homelessness" structure that would raise rates on higher-value transactions; the specific rates have moved over time and should be verified at the moment of any specific transaction.

Cook County itself adds $0.25 per $500 (about 0.05%). Other counties typically don't add transfer tax, but several have their own recording-fee structures.

What property taxes look like in Cook County

Cook County (Chicago and several inner-ring suburbs) has a complicated and politically contested property-tax system. Assessment cycles run on a triennial basis (every property gets reassessed once every three years) which means assessed values can lag market values by several years, sometimes producing dramatic shifts when a property's reassessment year arrives. The Cook County Assessor handles initial assessments; the Board of Review handles appeals.

The homestead exemption for primary residences in Cook County reduces the equalized assessed value by $10,000, with additional exemptions for seniors, persons with disabilities, and veterans. A separate senior assessment freeze caps assessed-value growth for qualifying seniors. Applications go through the assessor and have specific filing windows.

Assessment appeals in Cook County are common, roughly a third of properties file an appeal at some point in any given assessment cycle, often producing meaningful reductions. New homeowners often appeal in their first year if the assessed value seems out of line with the purchase price.

What buyers should know

Buyer's attorneys are typically retained at offer signing or shortly after. Fees run $500–$1,500 for residential transactions; complex deals run higher. The attorney's job covers contract review, attorney-modification negotiation (the period after offer acceptance when both attorneys negotiate non-price contract terms), title commitment review, and closing-day representation.

The Illinois standard residential purchase contract includes the attorney modification period, typically 5–10 business days after acceptance during which either side's attorney can request changes to non-price terms. Inspection contingencies typically run 5–10 business days. Earnest money is usually held by the buyer's broker or the listing brokerage in escrow.

Title insurance is not state-promulgated in Illinois, premiums vary by insurer, and the lender's policy is required while the owner's policy is customarily included on residential transactions. The buyer typically pays for both.

What sellers should know

Sellers retain their own attorney for contract review, deed preparation, and closing representation. The seller's portion of the transfer tax stack varies by jurisdiction, in Chicago specifically, the seller pays roughly 0.30% in city + county + state transfer tax, plus the Chicago heat-and-water-line declaration filing.

Required disclosures include the Illinois Residential Real Property Disclosure (covering known defects, environmental conditions, and HOA information) and lead-based paint disclosure for homes built before 1978. As-is sales don't waive the disclosure requirement.

Illinois state cap-gains tax is 4.95% (flat rate, taxed as ordinary income). Sellers with large gains above the federal § 121 exclusion pay federal LTCG + 4.95% Illinois + 3.8% NIIT (for high earners), combined effective rate of 24%–34% on the taxable portion.

How closing typically works

Closings in Cook County typically happen at the title company's office or at one of the attorneys' offices, with all parties (buyer, seller, both attorneys, title company representative, lender representative for financed transactions) present. The full process takes 2–4 hours.

Outside Cook County, closings work similarly but the Chicago-specific transfer-tax filings don't apply. The standard sequence is: review and sign closing documents, sign the deed, fund the transaction, record at the county recorder, and exchange keys.

For contract negotiation and closing representation, an Illinois-licensed real estate attorney is the primary professional. For property tax assessment appeals, attorneys specializing in property tax (often separate from real estate transactional attorneys) handle the Board of Review process.