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.
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.