Chicagoland

Chicago, IL

Chicago combines a contract-based attorney review, a city transfer tax that falls mostly on the buyer, and Cook County's notoriously complex property tax system. A citywide coach-house (ADU) ordinance took effect in April 2026, but 14 wards opted out.

💡 Upside tip

Before paying for coach-house or garden-unit potential, confirm the parcel's ward opted in under the April 2026 ADU ordinance; 14 alderpersons kept their wards ADU-free, so two similar lots a few blocks apart can have very different upside.

Offers & competition

Deals use the Multi-Board Residential Real Estate Contract (version 8.0), which sets an attorney review period of about 5 business days from acceptance; this is a contract term, not a statute. The inspection period reportedly runs at the same time, so line up an inspector before you sign.

Closing & who pays

Before city transfer stamps issue, all water and sewer bills must be paid, the building must comply with the registration ordinance, and non-condo residential resales need a certificate of zoning compliance. Each side's attorney uses the review period to approve or modify the contract.

Transfer taxes

Chicago charges $3.75 per $500 (0.75%) to the buyer and $1.50 per $500 (0.30%) to the seller, plus seller-paid Cook County (0.05%) and Illinois (0.10%) taxes; on a $500,000 home that is about $3,750 for the buyer and $2,250 for the seller. The 2024 Bring Chicago Home mansion-tax referendum failed, and the flat rates were still in place as of July 1, 2026.

Seller disclosures

The Residential Real Property Disclosure Act (765 ILCS 77) requires sellers of 1 to 4 unit homes to give a statutory disclosure report before the contract. If it isn't delivered before closing the buyer may terminate, and knowingly false disclosures expose the seller to damages and possible attorney fees.

What you can build

The citywide ADU ordinance (passed fall 2025, effective April 2026) expanded eligibility from about 116,000 pilot parcels to 320,000+ parcels, removed the size cap on new units and lets applicants waive the parking requirement. Fourteen wards opted out, and a union apprenticeship requirement raises construction costs.

Permits & records

The Chicago Data Portal reportedly publishes a building permits dataset; check permits and violations before closing, since the zoning compliance certificate is required for the sale anyway. Check the city's permit portal for current review timelines, especially for ADUs.

Property tax

Cook County reassesses on a three-year cycle, and appeals run from the Assessor to the Board of Review and then to the state PTAB or Circuit Court; the Board handled a record 290,533 appeals for tax year 2025. Second-installment bills have been chronically late, so budget for surprises and recompute the bill at your price.

Rent rules

Illinois has preempted local rent control since 1997, and repeal bills (SB 1260, HB 3687, SB 2884) were still pending without passage as of mid-2026. A Chicago rent cap would require a state law change first.

Key risks

The biggest financial risk is property tax volatility, as assessment fights between the Assessor and Board of Review have shifted burden onto homeowners. Our research did not cover Chicago-specific physical hazards, so check FEMA flood maps and get a full inspection for every address.

⚠ Still verifying

Not re-verified: whether the inspection period runs concurrently with attorney review, ADU ordinance details beyond news reports (size, parking, apprenticeship rule), the ward opt-in map, the Cook County reassessment rotation by area, Chicago permit portal URLs, 2025 to 2026 budget proposals to change the transfer tax, and the Illinois radon disclosure rules.

Official sources

Updated: 2026-10 · Summaries of public rules as of the date shown. Not legal or tax advice. Always confirm with the official source.