Saturday, August 18, 2007

Title Indemnities at Chicago Title

Just an FYI, CT is requiring three times the first installment tax bill to be held as a title indemnity for Chicago closings as we get near property tax time. The explanation we were given was that since our friends down in Springfield have not renewed the 7% tax cap that they're expecting big tax increases for Chicago on the next bill. This can be a decent chunk of change for clients to produce pre-closing.

Learn from me, warn your clients of this right up front about this. Granted, it's just an escrow deposit really, but people get freaked out. I had a closing yesterday where I should have prepared the clients up front on this and didn't and they were a little freaked when they needed another $2,000 for the closing.


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