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Real Estate & Property Law

: Closing Real Estate in Chicago

Chicago Transfer Tax and Divorce

By Peter Olson, Esq.

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Okay so we all know that it costs $7.50 per $1,000 of purchase price for the privilege of purchasing property in the City of Chicago. However, there are several types of transactions that are exempt from the transfer tax. Some of the obvious ones being transactions where consideration is under $500 and to correct former deed errors. One area that in my experience used to be exempt at least in practice used to be situations where people got a divorce and one former spouse quit claimed a residence to the other former spouse.

However, in speaking with attorneys of late and the folks over at the Cook Recorder, they're now actively enforcing the transfer tax ordinance in these divorce/quit claim deed situations. The City of Chicago transfer tax form has some specific language noting that divorce scenarios are NOT exempt. So in the near term make sure you're dealing with this in marital settlement agreements, ect. As high as the tax is, it can start to be real money. Saw this in the Sun-Times regarding Alderman Burke's attempts to make divorce transfers exempt.

Full post as published by Closing Real Estate in Chicago on September 11, 2008 (boomark / email).