Seller's Closing Costs
Title Charges The seller is required to purchase a policy of title insurance, which protects the seller from liability if he fails to transfer a good and clear title. Costs for title insurance include charges for title search, title examination and issuance of insurance. The cost is increased if there are any unusual risks or circumstances (i.e., the home is built so that it crosses the seller's property line). Charges for "basic title insurance generally run approximately $400.00 and up.
Survey The purpose of the survey is to determine whether the seller's or the seller's neighbor's buildings cross over property boundaries. The charge for the survey is approximately $300 to $500.
State Transfer Stamps The state of Illinois imposes a tax on the transfer of real property. The tax is $.50 per each $500 (or portion thereof of the sales price of the home.
County Transfer Stamps Cook County imposes a tax on the transfer of real property. The tax is $.25 per $500 (or portion thereof of the sales price of the home.
Recording Fee The seller must pay a fee to have the old deed "released" by the recorder of deed. This fee is approximately $60 to $100.
Credit to Buyer for Real Estate Taxes Real estate tax bills are sent out to homeowners in two installments usually in February and August of the year following the year for which the taxes are incurred. For example, the first installment of the real estate tax bill for 2007 is sent out in February of 2008 and is due by March 1, 2008; the second installment of the real estate tax bill for 2007 is sent out in August of 2008 and is due September 1, 2008. Without some type of credit to the buyer for these future tax bills, a buyer would have to pay property taxes for a period when he wasn't the owner of the property. This "credit" to the buyer reduces the seller's proceeds from the sale in the amount of the tax liability "accrued and unpaid" up to (but not including) the date of closing. The calculation of the amount of "accrued and unpaid" real estate taxes at the time of closing is somewhat complex, and you should ask your attorney to figure this amount. As a general rule of thumb, this amount will include all real estate taxes for the current year, and any unpaid installments for the prior year.
Attorney's Fees The amount charged by area attorney for representing the seller varies significantly. Fees can range from $400 and up.
Commission The amount of the commission charged varies, but is usually five to seven percent of the sales price of the residence.
The information provided is correct to the best of our knowledge and belief, but is provided without obligation or guarantee. Please consult your tax or legal professional with questions about any specific transaction.