MyDec – Real Property Transfer Tax Declaration:
During any real estate transaction, a tax is imposed to transfer the title of real estate (35 ILCS 200/31-10). In order to facilitate this transaction, a real property transfer tax declaration must be completed by the sellers. The transfer declaration must be presented when the deed or trust document is presented for recording, or within 3 business days after the transfer takes place.
The Illinois Department of Revenue recommends the use of the online filing program called MyDec (MyDec – Online Real Property Transfer Tax Declarations – Property tax (illinois.gov)) to calculate these taxes and to make the declaration.
Through MyDec, the transfer taxes for both the state and the county are automatically generated based on the purchase price of the property. You can review and verify declarations as well as authorize and print real estate transfer tax stamps. You will also be able to run reports on the declarations in your jurisdiction. However, each county has their own requirements for transfer taxes, so always confirm with the county what must be done prior to the closing. Regardless of individual county requirements, MyDec can be used for any county in Illinois.
Title companies, lawyers, individuals and settlement agencies are able to use MyDec too. Title companies use this to calculate the taxes when closing on a property. Title companies can submit, approve, or reject declarations. However, the MyDec tax calculations are paid at the closing. Once the sale is complete, the title company approves the MyDec filing. Attorneys can file the MyDec on behalf of their clients, the sellers.
Information included in the transfer declaration includes:
(a) value of the property
(b) parcel number (PIN),
(c) legal description of the property,
(d) the date of the deed, the date the transfer was affected, or the date of the trust document
(e) the type of deed, transfer, or trust document
(f) the address of the property
(g) the type of improvement if applicable
(h) information as to whom the transfer is between
(i) the lot size or acreage
(j) the value of the personal property sold with the real estate
(k) the year the contract was initiated if any installment sale
(l) any homestead exemptions
(m) the name, address, and telephone number of the person preparing the declaration
(n) whether the transfer is pursuant to compulsory sale
If you need assistance with a real estate transaction, local attorney Andrew Szocka provides thorough and speedy real estate transaction assistance in the Chicagoland area. To schedule a free initial consultation, visit the Law Office of Andrew Szocka, P.C. online or call the office at (815) 455 – 8430.