Selling in Oak Brook and trying to avoid last‑minute surprises at the closing table? One of the most common line items that trips up sellers is the real estate transfer tax. You want clarity on what it is, who pays it, and how much to budget. In this guide, you’ll learn the Illinois rules, how local taxes may apply in Oak Brook, what paperwork and stamps you need, and a simple checklist to keep your closing smooth. Let’s dive in.
Illinois transfer tax basics
Illinois imposes a state real estate transfer tax that is paid when the deed is recorded. The tax is calculated on the consideration stated on the deed, which is generally the sale price and may include other amounts like an assumed mortgage.
- State rate: $0.50 per $500 of consideration, which equals $1.00 per $1,000, or 0.001 of the price.
- Example: If you sell for $400,000, the state tax is $400.
- Timing: The tax is paid at or before recording, and counties will not record the deed without the required declaration and evidence of payment.
You will also file a Real Estate Transfer Declaration, commonly the PTAX‑203 form, as part of recording. Your title company or closing attorney prepares and files this for you and ensures the deed shows proof the transfer tax has been paid.
DuPage County and Oak Brook: do local taxes apply?
In Illinois, some counties and municipalities add their own real estate transfer tax. Whether DuPage County or the Village of Oak Brook imposes an additional tax must be confirmed for each closing, since local rules can change.
- To verify, ask your title company to check current requirements with the DuPage County Recorder of Deeds and the Village of Oak Brook.
- If a local tax applies, the deed will typically need the municipal or county stamp in addition to the state indication of payment.
Who usually pays in the Oak Brook area?
Who pays is a contract decision. In many Chicago suburbs, sellers commonly pay the transfer tax, at least the state portion. That said, it is negotiable and your purchase contract controls the allocation.
- Review your contract carefully for the lines that assign transfer tax responsibility.
- If an unexpected local tax appears, it can be a negotiation point with the buyer.
Required forms, stamps, and timing
Here is what to expect on paperwork and stamping at closing:
- Real Estate Transfer Declaration, often PTAX‑203, filed with the deed at recording.
- Deed must show that the state transfer tax is paid. If a local tax applies, a county or village stamp is added too.
- Title company or closing attorney calculates and remits all transfer taxes and fees and coordinates recording.
If taxes are unpaid or forms are incomplete, recording can be refused, which delays your transfer of title.
How to estimate your transfer tax
Start with the Illinois state rate, then add any confirmed local tax.
- State calculation: Sale price × 0.001. Example: $350,000 × 0.001 = $350.
- If a mortgage is assumed by the buyer and it counts as consideration, your title team will add that amount before applying the rate.
Hypothetical local add‑on
The presence and rate of any DuPage County or Village of Oak Brook transfer tax must be verified. For illustration only:
- If a local tax existed at $0.25 per $500 and your sale price was $350,000, then the state tax would be $350 and the local tax would be $175, for a total of $525.
Common exemptions to discuss
Exemptions exist for certain transfers, such as between spouses, incident to divorce, by will or inheritance, to or from government entities, or in cases of nominal consideration that qualify under statute. Documentation and definitions vary, so ask your title company or closing attorney to confirm whether an exemption applies to your situation.
Seller checklist
Use this quick list to stay ahead of transfer‑tax details.
- Before listing: Ask your agent to confirm local custom on who pays and to connect you with a title company for preliminary estimates.
- At contract: Review the purchase agreement for who pays state and any local transfer taxes.
- Before closing: Request a preliminary closing statement showing the state tax and any county or village tax, plus recording fees.
- Deed details: Confirm the consideration is correctly stated, especially if a mortgage payoff or assumption is involved.
- At closing: Verify final transfer‑tax amounts and payor on the Closing Disclosure or settlement statement.
- After closing: Keep copies of the recorded deed and transfer declaration for your records.
Avoidable pitfalls
- Assuming there is no local tax. Always confirm with your title company.
- Misstating consideration on the deed. Inaccuracies can trigger audits or delays.
- Failing to file the required transfer declaration. Recording will not proceed without it.
- Overlooking who pays in the contract. Do not rely only on custom.
What to expect at closing
Your title company or closing attorney will prepare the PTAX form, calculate the tax, collect the funds, and ensure the deed carries the proper stamp or notation when recorded. You will review and sign the final settlement statement that shows transfer taxes and who paid them. Once recorded, you will receive copies of the deed and transfer declaration.
Next steps for Oak Brook sellers
- Ask your agent and title company to confirm whether any DuPage County or Village of Oak Brook transfer tax applies to your property.
- Review your contract to confirm who pays. If you prefer a clean closing, consider aligning with local custom, or negotiate accordingly.
- Request a preliminary closing statement early so you can budget and avoid last‑minute surprises.
If you want a smooth, well‑prepared sale with clear numbers from day one, connect with our boutique team for guidance tailored to your property. Schedule your private consult with Ginny Stewart.
FAQs
What is the Illinois real estate transfer tax rate?
- The state rate is $0.50 per $500 of consideration, which equals $1.00 per $1,000, or 0.001 of the sale price.
Who typically pays the transfer tax in Oak Brook home sales?
- It is contract dependent, though many Chicago‑area sellers customarily pay at least the state portion, so confirm your contract terms.
Do DuPage County or the Village of Oak Brook add their own transfer tax?
- Local taxes vary by jurisdiction and can change, so ask your title company to confirm current county and village requirements for your address.
What is the PTAX‑203 transfer declaration, and who files it?
- The PTAX‑203 is the Illinois Real Estate Transfer Declaration filed at recording, and your title company or closing attorney typically prepares and files it.
When is the transfer tax paid during the sale process?
- It is paid at or before recording, and the county will not accept the deed for recording without the declaration and proof of payment.
Are there exemptions to the transfer tax for certain sellers?
- Some transfers, such as between spouses, incident to divorce, inheritance, or qualifying nominal‑consideration deeds, may be exempt, subject to documentation and statutory definitions.
What happens if the transfer tax is not paid or forms are incomplete?
- The recorder can refuse to record the deed, and penalties or interest may apply, which can delay or complicate your closing.
