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Real Estate • Closing • Title • Costs

Illinois Real Estate Closing, Title & Costs FAQ

A simplified guide to common title-review, closing-cost, tax, deed, possession and closing issues in Illinois residential transactions.

Last updated: September 17, 2026
General legal information only — not legal advice. Laws, court rules, procedures, amounts and deadlines can change and may apply differently to your facts. Do not rely on this page to calculate a deadline or decide what action to take. Contact a qualified attorney promptly to confirm current law and any deadlines that may apply. Viewing this page or contacting the firm does not by itself create an attorney-client relationship. Learn more about Attorney Wendi J. Wade.  •  Last updated September 20, 2026.

Closing, Title & Cost Questions

This page covers the issues that usually remain after contract and inspection matters are resolved: title, surveys, liens, taxes, closing costs, deeds and possession.

What Does the Attorney Do Before Closing?

The attorney may review the title commitment and survey, address title defects, confirm contract compliance, review tax prorations and closing figures, prepare or review conveyance documents and coordinate with the lender and title company.

What Is a Title Commitment?

A title commitment identifies current ownership, requirements that must be satisfied before a title policy is issued and exceptions that may remain on title. Mortgages, judgments, taxes, easements and restrictions may appear in the title work.

What Is Title Insurance?

Title insurance protects against covered title defects. The contract and transaction determine how title coverage and related charges are handled.

Does Every Transaction Need a Survey?

No. Whether a survey is required depends on the contract, lender, title requirements, property type and circumstances. When obtained, it can identify boundaries, easements and encroachments.

Have a title, survey or closing question?
Attorney Wendi can review the actual title commitment, survey and contract rather than relying on general rules.
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How Are Mortgages, Liens and Taxes Handled?

Liens that must be removed are addressed through payoff, release or another title-clearing process. Property taxes are prorated using the method stated in the contract and reflected on the closing statement.

Who Pays Closing Costs?

There is no single Illinois rule assigning every charge. The contract, lender requirements, title arrangements, transfer taxes, recording charges and negotiated credits determine the allocation.

What Are Illinois Transfer Taxes and PTAX-203?

Illinois currently imposes a state real estate transfer tax of $0.50 for each $500 of value or fraction thereof. Counties may impose $0.25 per $500, and home-rule municipalities may impose additional local taxes.

PTAX-203 is the Illinois Real Estate Transfer Declaration used for many transfers and is generally filed with the deed unless an exemption applies.

When Does the Buyer Get Possession?

The contract controls. Possession may occur at closing or at another agreed time. A post-closing possession arrangement can raise issues involving timing, money, insurance and responsibility for the property.

What Happens to the Deed?

After closing, the deed is submitted for recording with the appropriate county recorder. Common closing records include the recorded deed, final title policy, closing statement and loan documents.

Can the Parties Close Remotely?

Sometimes. Pre-signing, remote procedures or a valid power of attorney may be possible depending on the lender, title company and documents. Availability and requirements depend on the transaction.

Useful Illinois sources:
Illinois Department of Revenue — Real Estate Transfer Tax
Illinois Department of Revenue — PTAX-203 Instructions
Illinois Department of Insurance — Title Insurance

Quick Answers

Common Illinois Real Estate Questions

General information only. The signed contract and facts of the transaction control.

Who pays closing costs in an Illinois home sale?

There is no single statewide rule assigning every charge to one side. The contract, lender requirements, title arrangements, local taxes and negotiated credits determine the allocation.

What is a title commitment?

A title commitment identifies current ownership, requirements that must be satisfied before a title policy is issued, and exceptions that may remain on title.

What is title insurance?

Title insurance protects against covered title defects. The purchase contract and local practice determine how title coverage and related charges are handled.

Does every Illinois home sale require a survey?

No. Whether a survey is required depends on the contract, lender, title requirements, property type and circumstances.

How are property taxes handled at closing?

The contract determines the tax-proration method. Closing professionals use available tax information and the agreed formula to allocate the buyer's and seller's shares.

What is the Illinois real estate transfer tax?

Illinois imposes a state transfer tax on qualifying real estate transfers. Counties may impose an additional tax, and home-rule municipalities may impose additional local transfer taxes.

This information is general and is not a substitute for legal advice about a particular transaction.

Have a question about your specific documents or facts?
General rules only go so far. Attorney Wendi can review the actual documents, evidence or circumstances that control your matter.
Request a Consultation →

Official Resources for Further Reading

Primary-source links can be useful when checking current statutes, court information, and agency guidance. Laws and procedures can change, and these resources do not replace legal advice about a specific matter.

Approaching an Illinois Real Estate Closing?

Attorney Wendi J. Wade can assist with title, surveys, tax prorations, closing figures, deeds, possession and other legal issues involved in the closing process.

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