Who Pays Closing Costs in Illinois? Buyers vs. Sellers

Buying or selling a home in Kane or DuPage County usually means more money changing hands at the closing table than the purchase price alone. Those extras are called closing costs, and who pays which line is one of the first questions clients ask.

This guide walks through the usual buyer and seller items in plain English: lender and title charges, transfer taxes, property-tax prorations, and how to read the statements that arrive before closing. For related pieces of the deal, see our earnest-money guide, our seller-disclosure guide, and our Kane and DuPage closing costs and transfer taxes.

This post is general information, not legal advice.

What Are Closing Costs in an Illinois Home Sale?

Closing costs are the fees, taxes, prepaid items, and credits that settle when the deed and money transfer. They are not one fixed package. The purchase contract and any later written agreements control who pays what. Local custom fills in the blanks when the contract is silent.

In Kane and DuPage deals that use the Multi-Board Residential Real Estate Contract, many of those defaults are already written into the form: who buys the owner's title policy, who pays transfer stamps, and how property taxes are prorated. Your deal can still change those defaults in attorney review or by addendum.

What Buyers Usually Pay

Buyers who finance the purchase typically cover lender-driven costs: the appraisal, credit report, origination or underwriting fees, and prepaid items such as homeowners insurance and the first months of tax and insurance escrow. Exact line items and amounts come from the lender's Loan Estimate and Closing Disclosure.

Buyers also usually pay for the lender's title insurance policy and related lender endorsements, plus recording of the mortgage and their own attorney fee.

The owner's title policy is different. Under the Multi-Board form, the seller is generally responsible for delivering and paying for the owner's policy.

What Sellers Usually Pay

Sellers usually pay the real estate brokerage commissions. Commission is negotiated and is not set by law.

Sellers usually pay the Illinois state transfer tax unless the contract says otherwise.

Some towns also charge their own transfer tax and set who pays it. In Naperville and Wheaton, the buyer pays; in Aurora, Carol Stream, and Glen Ellyn, the seller pays. Many Kane County towns have no city transfer tax, so check the town where the home sits.

Other common seller-side items include the payoff of any existing mortgage and liens, the owner's title policy (as noted above), the seller's attorney fee, and any repair credits or closing-cost credits agreed after inspection. See our seller-disclosure guide.

Property Taxes, Prorations and Credits at the Closing Table

Illinois property taxes are billed roughly a year behind. When you close, the most recent tax bill on the table usually covers a prior year, not the current one. The closing statement therefore uses a proration: the seller credits the buyer for the seller's share of taxes up through the closing date, based on a percentage of last year's tax bill, normally 105%.

That credit is not an extra tax. It is a way to split the bill that has not yet been issued for the period each party owned the home. Special assessments, association dues, and rents (if any) can also be prorated.

Reading the Closing Disclosure and Settlement Statement

Financed buyers receive a Closing Disclosure from the lender before closing. It lists the loan terms, cash to close, and many of the buyer-side fees. Both buyers and sellers also review a settlement statement (often an ALTA combined statement) from the title company that shows every debit and credit for both sides.

Read both early. Ask your attorney about any line you do not recognize, any figure that looks off, and any wire instructions that arrive by email. Numbers can still change slightly before the final figures are locked, but surprises are easier to fix days ahead than an hour before signing.

Can Closing Costs Be Negotiated or Covered by the Seller?

Yes, within limits. Buyers often ask for a seller credit toward closing costs, prepaid items, or both. Closing-cost credits negotiated during the attorney review period have to be added to the contract by written amendment. Certain loans also cap how much closing-cost credit a seller can give.

Inspection negotiations can also produce a credit instead of repairs. Credits are negotiated; they are not automatic.

Final Walkthrough, What to Bring and Day-of Tips

• Bring a government-issued photo ID that matches the name on the deed and loan documents.
• Bring certified funds or follow only wire instructions you confirmed by calling the title company or your attorney on a phone number you already know. Do not trust wire details that arrive only by email.
• Expect keys, garage remotes, and access codes to be handled as the contract and local custom provide, usually at or right after closing.
• Do the final walkthrough before you sign so the home matches what you agreed to buy.

Wire fraud targeting real estate closings is real. If anything about payment instructions feels rushed or different from prior messages, stop and call the office on a known number before you send money.

How a Real Estate Attorney Helps at Closing

A residential real estate attorney reviews the contract during the attorney review period, checks the title commitment and survey issues, confirms prorations and transfer-tax lines, and represents you at the closing table so you are not sorting unfamiliar fees alone.

For sellers, that often includes confirming payoff figures, water clearances, and that disclosure and repair credits match the deal file. For buyers, it includes confirming cash-to-close, lender conditions, and that the deed and title policy protect what you are buying. See also our seller's guide and our Kane County and DuPage County residential real estate pages.

If you are buying or selling a home in Kane or DuPage County and want a clear picture of your closing costs before you sign, contact Angelillo Law for a free consultation.

Call (630) 688-7511  Schedule a free consultation

Frequently Asked Questions

Who pays closing costs in Illinois, the buyer or the seller?

Both. Buyers usually pay lender fees, the lender's title policy, and their attorney. Sellers usually pay commissions, the Illinois state transfer tax (unless the contract says otherwise), the owner's title policy, and their attorney. Your contract can shift many of these items by agreement.

How much are closing costs in Illinois?

There is no single number. The total depends on the price, the loan, title charges, and any credits. Financed buyers should rely on the lender's Loan Estimate and Closing Disclosure rather than online averages.

Do I need an attorney at an Illinois closing, and what does the attorney do?

Illinois residential closings commonly involve attorneys for both sides. Your attorney reviews the contract, title, prorations, and closing figures, and attends closing so issues can be fixed before funds and the deed move.

Can I ask the seller to pay my closing costs?

Yes. Seller credits toward buyer closing costs are common negotiation points, subject to the lender's rules on your loan and to whatever the parties put in writing. Ask early, ideally in the offer or during attorney review.

Call (630) 688-7511  Schedule a free consultation

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