Illinois Closing

Illinois Closing: Finance, Closing & Math Understanding how Illinois closings work is essential for the exam — questions on closing procedures, prorations, and transfer taxes appear consistently and reward students who know both the *process* and the *math*. --- ## What Makes an Illinois Closing Distinctive Illinois is an attorney-handled closing state. Unlike many states where title companies or escrow agents run the closing independently, Illinois law and practice center the closing around attorneys for both buyer and seller. Understanding this structure — and the financial mechanics that flow from it — is a primary exam focus. ### The Closing Process Table closing is the standard in Illinois: all parties (or their representatives) gather at one time and place to sign documents, exchange funds, and transfer title. Key features include: - County Recorder of Deeds records the deed and mortgage after closing - Title insurance is typically provided (owner's and lender's policies) - The Closing Disclosure (CD) must be delivered to the buyer at least 3 business days before closing (federal RESPA rule) - The Loan Estimate must be delivered within 3 business days of loan application --- ## Key Closing Costs and Who Pays ### Illinois State Transfer Tax The state transfer tax is one of the most tested math items on the Illinois exam. - Rate: $0.50 per $500 of sale price (or fraction thereof) - Paid by: The seller (in most circumstances) - Formula: (Sale price ÷ 500, *round up* to nearest whole number) × $0.50 > Worked Example: > Sale price = $247,000 > $247,000 ÷ $500 = 494.0 → round up to 494 > 494 × $0.50 = $247.00 in transfer tax > **Worked…