Buyers be aware that real estate closings now occurring are within 60 days of the due date for property taxes in all counties around the metropolitan Chicago area. If you are purchasing and taking out a mortgage, most lenders are requiring title companies to hold what is called a tax indemnity. The title company holds the funds and pays the tax bill prior to the due date. Most title companies require that the tax indemnity amount held at closing represent 150% or 200% of the expected tax bill. Once the tax bill is paid any overage is returned by the title company to the buyer within 60 days of the payment being made to the treasurers office. For closing purposes this amount needs to be taken into account when a buyer is budgeting for closing costs that are to be expected at the table. Many times loan officers realtors or even attorneys forget to include this increased cost basis in estimates for amounts that a buyer needs to bring them to closing.
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