Buying or selling a condo in the Loop and not sure who pays Chicago’s transfer tax or when it is due? You are not alone. Transfer taxes are a normal part of closing, but the layers and local customs can feel confusing if you do not handle them every day. This guide breaks down who typically pays what in 60603, when the tax is collected, and how to estimate your costs with confidence. Let’s dive in.
Chicago transfer tax at a glance
Transfer charges can include multiple layers in a Loop condo sale. There is no routine federal transfer tax. You will usually see a state documentary tax, county recording fees, and the City of Chicago’s Real Property Transfer Tax.
- Illinois state documentary or transfer tax is assessed on most real estate conveyances. You can verify guidance with the Illinois Department of Revenue.
- Cook County handles recording and related fees when your deed is filed. Check requirements with the Cook County Clerk.
- Chicago adds its own Real Property Transfer Tax (RPTT). For current rules, forms, and rates, visit the City of Chicago Department of Finance.
What this means for 60603 condos
If you are buying or selling a condo in the Loop, expect a combination of state, county, and city transfer charges to appear on your closing statement. Exact amounts depend on the current rates on the day the deed records, which your title company or closing attorney will confirm before closing.
Who pays in Loop condo deals
Payment responsibility is negotiable and should be spelled out in your purchase agreement. Local custom can guide expectations, but the contract controls.
- In many markets, sellers often cover the city transfer tax while buyers cover state and county transfer taxes or stamps. This is a conventional pattern, not a legal rule, and it can vary by building, market conditions, or negotiation.
- Downtown condo contracts often follow local MLS conventions, but individual terms may differ. Ask your agent and title company to confirm what your specific contract says.
- Title companies or closing attorneys prepare the forms and remit payment at recording. The settlement statement will show who is paying each line item based on your contract.
How it appears on your closing statement
You will see separate lines for each layer. A typical breakdown includes:
- State transfer or documentary tax
- City of Chicago Real Property Transfer Tax
- Cook County recording fees
- Title and recording service fees
Each line should show the payer, amount, and any related form number. Review an early draft of the settlement statement so there are no surprises.
When it is due and how it is paid
Transfer taxes are generally due when the deed is recorded with the county, which is typically the day of closing or shortly after. Your settlement agent collects the funds at closing and remits payment with the deed and required forms.
- Deed and transfer tax forms are submitted for recording with the Cook County Clerk.
- City RPTT filings and payments are processed through the City of Chicago Department of Finance, which provides forms and filing instructions.
- Late or incorrect filings can trigger penalties, interest, or delayed recording. If you need to change a closing date, alert your title company quickly so filings stay aligned.
Estimate your total transfer tax
Rates can change, so use a simple, repeatable process. Here is a quick template you can use with your title company or agent:
- Identify the layers that apply to your condo transfer: State of Illinois, Cook County, and City of Chicago.
- Find the current rates using the Illinois Department of Revenue for state tax and the City of Chicago Department of Finance for RPTT. Confirm any county fees with the Cook County Clerk.
- Calculate each component. Many transfer taxes are expressed as a percentage of price or as a dollar amount per $500 of value. Compute tax = sale price × current rate, or number of $500 increments × current charge.
- Add the components to get the estimated total transfer tax. Label it “estimate” and note the date of your calculation.
Tips to stay accurate:
- Ask your title company for an early estimated closing statement so you can see line items and payers.
- Chicago’s RPTT and some state or local fees may have different tiers or treatment based on property type or price. Verify your exact scenario before relying on any estimate.
Exemptions and special situations
Some transfers can be exempt or handled differently. Common examples include certain transfers between spouses, transfers incident to divorce, some family gifts, transfers involving trusts, government or charitable transfers, and some foreclosure or bankruptcy transactions.
- Exemptions have specific eligibility rules and documentation requirements. Review the resources on the City of Chicago Department of Finance and confirm state requirements with the Illinois Department of Revenue.
- Condominium unit transfers are generally treated like any real property conveyance unless a specific exemption applies. Confirm with your title company or closing attorney before you rely on an exemption.
60603 closing checklist
Use this quick list to keep your Loop condo closing on track:
- Confirm in writing who pays each transfer tax in your purchase agreement.
- Ask your title company for an early estimated settlement statement with transfer tax line items.
- Verify current state, city, and county rates on the official sites listed above.
- Confirm what forms are required for the City of Chicago RPTT and state stamps.
- Align your funding and timing with the expected recording date to avoid delays or penalties.
Local guidance you can trust
Downtown closings move fast, and details matter. An agent who understands Chicago contract norms, title workflows, and 60603 condo practices can help you avoid last‑minute surprises and keep your timeline tight. If you are preparing to buy or sell in the Loop, have your team confirm rates, payers, and forms early so your closing day is smooth.
Ready to plan your sale or purchase in 60603? Connect with a local expert who coordinates details end to end and keeps you informed at every step. To discuss your goals or request your free valuation, reach out to Vergis Eiland.
FAQs
Who pays transfer taxes in a Chicago Loop condo sale?
- It is negotiable and set by your contract. A common pattern is sellers covering the city transfer tax and buyers covering state and county taxes, but practices can vary. Confirm with your title company and agent.
When are Chicago transfer taxes due at closing?
- Transfer taxes are generally due when the deed is recorded. Your title company collects funds at closing and remits payment to the City of Chicago and Cook County with required forms.
How do I estimate transfer taxes for a 60603 condo?
- Identify applicable layers, look up current rates on the Illinois Department of Revenue and City of Chicago sites, calculate each component using the rate method described, then add them together. Ask your title company for an early estimate.
Are family, trust, or divorce transfers exempt from Chicago RPTT?
- Some transfers qualify for exemptions if specific requirements are met. Review the City of Chicago and Illinois Department of Revenue resources, then confirm with your title company or closing attorney.
Who can give me an exact transfer tax number before closing?
- Your title company or closing attorney can provide the most accurate figure, since they prepare the settlement statement and handle filing. Your agent can coordinate timing and documentation.
