Description
Post #1: Review the checklists for the closing documents and the closing costs (specifically in Illinois). What might have been the hardest part of the checklist for Tina to complete in a timely fashion? Did Tina make the right decision, in your opinion? In your post, please find ONE article on this topic and cite that article in APA format at the end of your post.
Post #2:
- Post #2a: Here is a website which discusses transfer taxes in the state of Illinois: https://listwithclever.com/real-estate-blog/illinois-real-estate-transfer-taxes-an-in-depth-guide/. What is the purpose of these taxes? Keep in mind that Tina may wish to sell her home at some point in the near future.
- Post #2b: Reflect upon the past discussion boards and Tina’s final decision. Comment on another student’s post (Post #2a). What role should taxes play in real estate finance? In your post, please find ONE article on this topic and cite that article in APA format at the end of your post.
What is proper netiquette for the discussion board?
- Try to post early to provide time for student responses. Make it a goal to post by Thursday, the latest.
- Be professional. When responding to a student, say something like: “Hi Jerry! I really enjoyed your post and read the article you found. What I liked about your article was the following quote: “state quote here.” I agree with what you said because….. Then sign your post with your name. If you disagreed with a student, you could say something like: “Hi Jerry! I really enjoyed your post and read the article you found. What I liked about your article was the following quote: “state quote here.” I can really see your point about “state topic here” but I took a little different direction in my research. Then, talk about your findings.
* There is a video to watch coming later *
Explanation & Answer
Attached. Please let me know if you have any questions or need revisions.
Running head: FINANCE DISCUSSION
1
Finance Discussion
Name of Student
Name of Institution
Date
FINANCE DISCUSSION
2
Post 1:
Yes, Tina made the right choice purchasing this house. From the checklist, Tina
should have found it hard to pay the additional closing costs. She should have only prepared
for paying the down payments to the property's seller, not knowing that there were additional
funds needed to facilitate the transaction. Furthermore, the applicable tax rates in Illinois
should have made the payment process for the property timely. Not unless the attorney or the
seller had informed Tina in advance of the requirements for state transfer tax rates which
accumulated to an approximate percentage of 0.1% of the property value (Krisnan Team,
2020). It should be noted that county transfer rates also matter. Prorating of the taxes could
impact a significant force onto the financing of the purchase by Tina. Unless the two parties
agree to share the prorated taxes, Tina faces some difficulties paying for them.
Post 2.
a. Real estate transfers taxes: This is taxes imposed on the title transfer or ownership
transfer of real estate property. This transfer tax is related to the cumulative value of
the property being transferred. The tax can be shared between the parties in the trade
agreement because the state doesn't stipulate who should be responsible for the
settlement of the transfer taxes for real estate properties.
b. The primary role that taxes need to play in real estate financing is to form a stable
base for revenue provision to the state government and the local government. For this
real estate property taxes, the state and local government finds the finances to run
government institutions like hospitals and schools (Salles & Rocha, 2013). In the
United States, targeted property taxes are responsible for financing an approximate of
one-third of the local education, according to usnews.com. However, this is
dependent on the tax collected across the variable jurisdictions and the time of
collection.
3
FINANCE DISCUSSION
References
KrisnanTeam. (2020, March 3). Case study. Ruth
Krishnan. https://ruthkrishnan.com/residential-real-estate-case-study-examples/
Salles, L., & Rocha, K. (2013). Real Estate and Real Options – A Case Study∗. Instituto
Superior Técnico: Serviço de páginas
pessoais. https://web.ist.utl.pt/ist25149/Publications_files/Real_Estate_EMR.pdf
Attached. Please let me know if you have any questions or need revisions.
Running head: FINANCE DISCUSSION
1
Finance Discussion
Name of Student
Name of Institution
Date
FINANCE DISCUSSION
2
Post 1:
Yes, Tina made the right choice purchasing this house. From the checklist, Tina
should have found it hard to pay the additional closing costs. She should have only prepared
for paying the down payments to the property's seller, not knowing that there were additional
funds needed to facilitate the transaction. Furthermore, the applicable tax rates in Illinois
should have made the...
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