I often get asked about the tax credits at closing.
In Cook County when you buy real estate you get a tax credit at closing provided by the seller.
This is because Cook County homeowners pay taxes in arrears.
Sometime after the closing, you will receive a tax bill for a period of time before you owned the home.
The tax credit you receive at the closing is to pay that bill.
The attorneys calculate the credit based on the months/days since the last tax bill was paid. Both parties usually will agree to pad the figure by 5 - 10%. To cover any increase.
Sometimes the credit can go as high as 20-25% in a reassessment year.
