Chicago, IL real estate: buy or sell with a local AXEN agent
Chicago is the only town in the area that charges its own transfer tax and splits it between buyer and seller. You also cannot record your deed until the city signs off that the water bill is paid. Those two steps run on the city's clock, not the county's.
Buying a home in Chicago: what to know
The rules that apply everywhere in Illinois are on the Illinois page. These are the Chicago details that trip people up.
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The city transfer tax is split between both sides. The Chicago Department of Finance charges $5.25 per $500 of price. The buyer pays $3.75 of that as the city portion and the seller pays $1.50 as the transit portion. That is separate from anything the county or state charges on the same deed.
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No water clearance, no closing. A Full Payment Certificate from the Department of Finance proves the water and sewer account is paid. Without it you cannot get transfer tax stamps, and without stamps the county will not record the deed. The water bill controls your closing date.
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Chicago is its own reassessment group. Cook County reassesses on a three-year cycle by township, and the city's townships are reassessed together in their own year. In the off years a Chicago property is only reassessed if a permit, a division or a special circumstance changes it.
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Lead water service lines are common here. The city says about 400,000 homes have a lead service line, and a house or two-flat built before 1986 is very likely to have one unless it was already replaced. Ask what the line is made of before you write the offer.
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Short-term renting is a registration, not a free-for-all. A City of Chicago shared housing registration costs $250 a year and has to be renewed. Some buildings sit on the city's prohibited buildings list, and some precincts are restricted residential zones where it is banned outright. Check the address before you buy for rental income.
Selling a home in Chicago
Start the Full Payment Certificate early.
The application is filed with the Department of Finance and needs the legal description plus a deed, a title commitment or a signed contract. Walk-ins can finish same day, but drop-offs can take up to 10 business days.
You need that certificate even on an exempt transfer.
The fee is waived if the deal is exempt from the transfer tax, but the certificate is still required. Skip it and buyer and seller are both on the hook for the leftover utility charges.
Budget the transit portion.
The seller's $1.50 per $500 share of the City of Chicago transfer tax is a closing cost, separate from anything the county charges.
Chicago real estate questions
What are transfer stamps and why do they hold up my closing?
Chicago will not issue transfer tax stamps until the city has your Full Payment Certificate showing the water and sewer account is clear, and the county will not record the deed without stamps. So the water bill controls the closing date. Start the certificate as soon as you have a contract.
Who pays the Chicago transfer tax?
Both sides. Under the Chicago Municipal Code the total is $5.25 per $500 of the price. The buyer pays $3.75 as the city portion and the seller pays $1.50 as the transit portion. This is separate from anything the county or state charges on the same deed.
When will my Chicago home be reassessed?
Cook County works on a three-year cycle and the city's townships are reassessed together in the same year. Between those years your assessment usually only changes if you pull a permit, split the lot or hit another special circumstance.
Can I rent this place out on a nightly basis?
Maybe. You need a shared housing registration at $250 a year, renewed annually. But some buildings are on the city's prohibited buildings list and some precincts are restricted residential zones where short stays are banned. Check the address first.
Is there a refund on the transfer tax for older buyers?
There is a refund of the transit portion for buyers 65 or older when the price is at or under a set threshold and you live in the home for at least a year. You apply to the Department of Finance. Ask about it rather than assuming it is automatic.
Buying or selling in Chicago? Talk to a local agent.
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