Transfer tax may tighten real estate market

Discouraged by bad news from the housing market due to the subprime mortgage crisis and tough economic times, relatively few people are buying new houses or condominiums at the moment. And Hollar, a 32-year-old lawyer for the Department of Justice, says a proposed increase of $3 per $1,000 in Chicago’s real estate transfer tax may give potential buyers another reason to put off searching for a new place. The tax, currently $7.50 per $1,000, is paid by the buyer of any residential, commercial or industrial property in the city.