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How to Transfer a Real Estate Title in Chicago, IL

Transferring a real estate title in Chicago, Illinois, is a detailed and legally significant process that finalizes the transfer of property ownership from one party to another. Whether buying or selling a home, gifting property to a family member, or transferring ownership as part of an estate plan or divorce agreement, it's critical to understand the local and state-specific procedures governing title transfers in Chicago.

Chicago is Illinois’s largest city and sits within Cook County, which comes with its own municipal rules, taxes, and administrative offices that handle real estate transactions. The city also imposes additional requirements, including local transfer taxes and utility clearance, making the process slightly more complex than in other Illinois municipalities. In this guide, you'll learn every step of the title transfer process in Chicago, from preparing your documents to recording the deed at the Cook County Clerk’s Office.

Step 1: Gather Required Documentation

Before initiating the transfer, the grantor (seller or current owner) and the grantee (buyer or new owner) must gather all required documents.

Essential Documents for Title Transfer:

• The Original Deed: This proves ownership and includes a legal property description. If you are the seller, this document must be reviewed for accuracy. If the title has changed hands, you should ensure all prior documents are in order.

• PTAX-203 Illinois Real Estate Transfer Declaration: This statewide form must be filed with the deed. It reports the consideration (purchase price) and helps determine applicable taxes. You can access the form through the Illinois Department of Revenue.

• Form 7551 – Chicago Real Property Transfer Tax Declaration: This is a Chicago-specific form used to calculate and declare payment of the city's transfer tax.

• Grantor/Grantee Statement (if claiming an exemption): This form provides information about the relationship between the parties and the reason for the exemption.

• Government-Issued IDs: The buyer and seller must present valid identification.

• Full Payment Certificate (FPC): Required in Chicago to verify that all city water, sewer, and sanitation bills have been paid in full.

Step 2: Conduct a Title Search and Clear Any Issues

A clean title is essential for a successful transfer. It ensures there are no existing liens, disputes, or legal issues related to the property.

What Is a Title Search?

A title search is a detailed examination of public records to verify a property's legal ownership and determine whether there are any claims or liens against it. A title company or real estate attorney typically performs this step.

Common Issues Uncovered by Title Searches:

• Outstanding mortgages or home equity loans

• Mechanic's liens from contractors

• Back taxes or municipal fines

• Easements or encroachments

• Judgments from lawsuits

If any issues are found, they must be resolved before the title can be transferred. This may include paying off debts, getting lien releases, or resolving boundary disputes.

Step 3: Obtain a Full Payment Certificate (FPC)

Before the City of Chicago will authorize a title transfer, the seller must request a Full Payment Certificate from the Chicago Department of Finance. This certificate ensures all municipal debts have been paid, including:

• Water and sewer bills

• Garbage collection fees

• Administrative hearing fines or violations

How to Apply for an FPC:

• Submit a request through the City of Chicago Department of Finance.

• Include a copy of the deed and Form 7551.

• Allow 5–10 business days for processing.

• Once approved, you’ll receive the certificate, which must be submitted at closing and deed recording.

Failure to obtain the FPC can delay or invalidate the transaction.

Step 4: Calculate and Pay Transfer Taxes

One of the most important steps in the Chicago title transfer process is calculating and paying transfer taxes.

Chicago Real Property Transfer Tax Rates:

The total transfer tax in Chicago is $5.25 per $500 of the property’s sale price, broken down as follows:

• $3.75 per $500 – Paid by the buyer (goes to the City of Chicago)

• $1.50 per $500 – Paid by the seller (goes to the Chicago Transit Authority)

These rates apply to the full consideration listed on the PTAX-203 form. The payment of transfer tax is verified by purchasing and affixing transfer tax stamps to the deed.

Who Is Responsible for Payment?

The responsibility for paying transfer tax is typically outlined in the purchase contract. However, unless otherwise agreed, the buyer and seller pay their respective portion.

Step 5: Draft and Sign the New Deed

The deed is the legal document that finalizes the property transfer from one owner to another. It must be carefully prepared, signed, and notarized.

Common Deed Types in Chicago:

• Warranty deeds offer the most protection to the buyer. They guarantee that the seller owns the property free and clear of liens.

• Quitclaim Deed: Transfers only the seller’s interest in the property, with no guarantees. It is commonly used for transfers between family members or in divorce cases.

What Must Be Included in the Deed:

• Full legal names of grantor and grantee

• Legal description of the property

• PIN (Property Index Number)

• Date of conveyance

• Signatures and notary acknowledgment

The deed must be signed in the presence of a notary public. Notarization ensures authenticity and prevents fraud.

Step 6: Purchase Transfer Tax Stamps

With all documents and payments ready, the next step is to purchase the transfer tax stamps from the Chicago Department of Finance.

Where to Buy Transfer Stamps:

Transfer stamps can be purchased at:

• City Hall – Room 107 121 N. LaSalle Street, Chicago, IL 60602 Monday–Friday, 8:00 AM to 5:00 PM

Bring with you:

• Completed PTAX-203 and Form 7551

• FPC from the Department of Finance

• Original or certified copy of the deed

• Payment for transfer taxes (cashier’s check or money order)

Step 7: Record the Deed at the Cook County Clerk’s Office

Once the deed is signed, notarized, and stamped, it must be recorded with the Cook County Clerk’s Recording Division. This is the final legal step in the process.

Cook County Clerk’s Office – Recording Division:

• Address: 118 N. Clark Street, Room 120, Chicago, IL 60602

• Phone: (312) 603-5050

• Website: https://www.cookcountyclerkil.gov/recordings

What to Bring:

• The original signed and stamped deed

• PTAX-203 form

• Form 7551

• Payment for recording fees (usually $60–$75)

Once recorded, the deed becomes part of the public record, and the buyer is recognized as the legal owner.

Step 8: Post-Closing Steps

After recording the deed, there are a few follow-up steps for both the buyer and seller.

Buyer Responsibilities:

• Verify Deed Recording: The buyer should confirm receipt of the recorded deed and that their name appears on the Cook County Assessor's records.

• Apply for Property Tax Exemptions: Homeowners may qualify for:

  • General Homestead Exemption

  • Senior Citizens Homestead Exemption

  • Veterans or Disabled Persons Exemptions

• Set Up Utility Accounts: Contact the City of Chicago to open new accounts for water, sanitation, and refuse collection.

Seller Responsibilities:

• Cancel Utility Services: Ensure services are closed as of the date of sale.

• Retain Documents: Keep copies of the deed, FPC, and closing disclosures for tax or legal purposes.

• Report the Sale to the IRS: If applicable, file the correct IRS documents, such as Form 1099-S.

Special Situations in Chicago Title Transfers

Transfers Between Family Members

Transfers involving spouses, children, or siblings are often handled with quitclaim deeds. Although the city may waive transfer tax under certain exemptions, full documentation must be submitted to prove the relationship.

Inherited Property

If you are transferring a property due to the death of the owner:

• File an Affidavit of Heirship if there was no will.

• If the estate went through probate, submit Letters of Office and a certified copy of the court order.

• In many cases, a Transfer on Death Instrument (TODI) can simplify inheritance transfers if executed before the original owner’s death.

Divorce or Separation

In divorce cases, title transfers are commonly performed via quitclaim deed. Include a copy of the divorce decree and be sure to resolve any liens or mortgage obligations beforehand.

Frequently Asked Questions

Do I need an attorney to transfer property in Chicago?

While not legally required, hiring a real estate attorney is highly recommended, especially in complex cases or high-value transactions. Attorneys can draft deeds, resolve title issues, and ensure full legal compliance.

Can I use a title company?

Yes. Title companies are commonly used in real estate transactions and often handle title searches, document preparation, and escrow services.

How long does the process take?

The timeline can vary, but with no complications, the process usually takes 7 to 14 business days from preparation to recording.

Helpful Resources

• City of Chicago Department of Finance – Transfer Tax

• Cook County Recorder of Deeds – Recording Division

• Illinois Department of Revenue – PTAX Forms

• Form 7551 (Chicago Transfer Tax Declaration)

Conclusion

Transferring a real estate title in Chicago involves coordination between buyers, sellers, attorneys, title companies, and multiple government agencies. From securing municipal clearance and paying local taxes to recording the deed with the Cook County Clerk, every step must be handled with accuracy and legal compliance.

By following the guidance provided in this article and working with qualified professionals when necessary, you can ensure a smooth, efficient, and legally valid title transfer in the City of Chicago.