Who calculates the tax proration in an Illinois closing?

The seller's attorney calculates and proposes the tax proration. The buyer's attorney reviews and may counter-propose. The title company does not calculate or propose tax prorations — title companies handle title insurance, escrow, and recording. Tax proration involves negotiation between the buyer's and seller's attorneys based on the most recent property tax bill and the relevant township's reassessment cycle.

What is the title commitment and who reviews it?

The title commitment is a document the title company issues during the contract period (typically before closing) listing every exception, easement, lien, restrictive covenant, and survey issue affecting the property. The buyer has the right to require clearance of items they do not accept. The buyer's attorney reviews the title commitment item by item — identifying which exceptions are standard and acceptable, which require written objection, and which may be deal-killers. The title company does not advocate for objections; that is the attorney's role.

What does a closing statement include and who reviews it?

The closing statement (sometimes called a settlement statement or, for federally-related residential transactions, the Closing Disclosure) details every dollar flowing into and out of the closing — the purchase price, mortgage payoff, real estate brokerage commission, title insurance, recording fees, attorney fees, prorations, and credits. The title company prepares the closing statement based on inputs from both attorneys, the lender, and the brokers. Both attorneys review the closing statement line by line before closing — verifying numbers, catching errors, confirming credits and prorations match the contract.

Reference · Illinois Real Estate

Real estate attorney vs title company in Illinois closings

Q: Do I need a real estate attorney if I'm using a title company?

In Illinois residential real estate transactions, both the title company and a real estate attorney serve different functions. The title company performs title searches, issues title insurance, holds escrow, and records the deed. The attorney negotiates contract terms during attorney review, calculates and proposes tax prorations, reviews the title commitment for objectionable items, drafts and reviews the closing statement, and represents the client at the closing table. Most Illinois closings include both. Many transactions in other states use only a title company because some states do not have an attorney-review process; Illinois does.

Q: Can the same attorney represent both buyer and seller?

Adam represents only one side in any given transaction — the buyer or the seller, never both. Illinois Rules of Professional Conduct generally prohibit dual representation in real estate transactions where the parties' interests are adverse. The buyer and seller in a residential real estate closing have adverse interests on price, contingencies, prorations, and risk allocation.

Q: What is title insurance and who pays for it?

Title insurance protects the buyer (or the buyer's lender) from financial loss caused by title defects discovered after closing — undisclosed liens, missing heirs, fraudulent prior conveyances, or boundary disputes. In most Illinois residential transactions, the seller pays the owner's title insurance policy and the buyer pays the lender's policy. The title company issues both. The attorney does not issue title insurance; the attorney reviews the title commitment to identify objectionable exceptions before closing.

By Adam Lysinski, Attorney · Updated May 9, 2026

In an Illinois residential real estate closing, three professionals each play a distinct role: the title company, the seller's attorney, and the buyer's attorney. They are not substitutes for one another. This page explains who does what — and why each is needed.

Who does what in an Illinois closing

Roles in an Illinois real estate closing
Title Company Transactional / administrative role.	Seller's Attorney Advocacy role. Represents the seller's interests.	Buyer's Attorney Advocacy role. Represents the buyer's interests.
Performs title search Issues title insurance (owner's + lender's policies) Issues the title commitment Holds earnest money in escrow Prepares the closing statement Records the deed and mortgage with Cook County (or the relevant county) Disburses closing funds to the seller, lender, brokers, and others	Reviews the contract during attorney review Negotiates modifications (warranties, as-is language, contingency deadlines) Calculates and proposes the tax proration Negotiates possession and per-diem terms Drafts the deed (warranty, quitclaim, or trustee's deed as appropriate) Reviews the closing statement on behalf of the seller Represents the seller at closing	Reviews the contract during attorney review Negotiates inspection contingency scope and remedies Negotiates financing contingency deadlines and approval definition Reviews the title commitment and raises objections to exceptions Reviews and counter-proposes on tax prorations Reviews the closing statement on behalf of the buyer Represents the buyer at closing

Why all three are needed in an Illinois closing

The title company is neutral. The attorneys are not.

The title company is a neutral third party. Its job is to confirm the chain of title is clean, insure against title defects, hold escrow funds securely, and record the documents that transfer ownership. The title company does not represent either party — it represents the integrity of the transaction itself.

The attorneys, by contrast, are advocates. The seller's attorney negotiates from the seller's position. The buyer's attorney negotiates from the buyer's position. They argue with each other on behalf of their respective clients during the attorney-review window, the inspection-contingency period, and any post-contract issues that arise. The title company has no stake in those negotiations and does not participate in them.

Tax prorations are advocacy, not paperwork.

Tax proration is the single largest negotiable line item in most Illinois residential closings. In Illinois, property taxes are paid in arrears — the bill arriving in 2026 covers 2025. At closing, the seller credits the buyer for the seller's share of taxes that have not yet been billed. The credit is calculated as a percentage of the most recent full-year tax bill — typically 100%, 105%, or 110%, but the percentage is negotiable.

The seller's attorney proposes the percentage. The buyer's attorney accepts, counters, or rejects. This is a negotiation between attorneys representing adverse interests. It is not a calculation the title company performs. The title company simply uses whatever percentage the attorneys agree on when preparing the closing statement.

On a Cook County property with a $12,000 annual tax bill, the difference between a 100% proration and a 110% proration is $1,200. Multiplied across thousands of transactions, that is real money — and it depends on which side has effective representation.

Title commitments require advocacy, not just review.

The title commitment is a document the title company issues listing every exception affecting the property — easements, restrictive covenants, mechanic's liens, boundary uncertainties, ancient mineral rights. The title company lists them. The buyer's attorney reads them, decides which are acceptable and which are not, and writes formal objections requiring the seller to clear unacceptable items before closing. The title company does not advocate for the buyer to object to anything; that is the buyer's attorney's role.

An exception that looks routine to a title clerk may be a deal-killer to an attorney who has seen the same fact pattern create a $40,000 dispute three years after closing. The judgment is what an attorney brings.

The closing statement check is line-by-line work.

The title company prepares the closing statement based on inputs from both attorneys, the lender, and the brokers. Both attorneys review it line by line before closing — verifying that prorations match the agreement, that credits flow to the right party, that the deed has the right grantor and grantee, that the recording fees are correct. Errors on closing statements are common. They get caught when an attorney is reviewing them; they get missed when nobody is.

Frequently asked questions

Do I need a real estate attorney if I'm using a title company?

In Illinois residential transactions, both the title company and an attorney serve different functions. The title company performs title work and recording. The attorney negotiates contract terms, calculates tax prorations, reviews the title commitment for objections, and represents the client at closing. Most Illinois closings include both. Some other states use only a title company because they do not have an attorney-review process; Illinois does.

Who pays for the title company and who pays for the attorney?

In most Illinois transactions, the seller pays the owner's title insurance and the buyer pays the lender's title insurance. Each party pays for their own attorney — the seller pays the seller's attorney; the buyer pays the buyer's attorney. Adam Lysinski's flat fee is $650 for most residential closings, paid by the client he represents.

Can the same attorney represent both buyer and seller?

Adam represents only one side in any given transaction. Illinois Rules of Professional Conduct generally prohibit dual representation in real estate transactions where the parties' interests are adverse. Buyer and seller have adverse interests on price, contingencies, prorations, and risk allocation.

What is title insurance and who pays for it?

Title insurance protects the buyer (and the buyer's lender) from financial loss caused by title defects discovered after closing — undisclosed liens, missing heirs, fraudulent prior conveyances, or boundary disputes. In most Illinois residential transactions, the seller pays the owner's title policy and the buyer pays the lender's policy. The title company issues both. Attorneys do not issue title insurance; attorneys review the title commitment to identify objectionable exceptions before closing.

Can my real estate broker recommend an attorney?

Brokers may suggest attorneys they have worked with. The choice is the client's alone — Illinois Rules of Professional Conduct require independent counsel that represents only the client's interests. Adam works regularly with Chicago-area brokers and welcomes referrals; he does not pay referral fees and does not expect exclusivity.

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Beyond the comparison: estimate your transfer-tax stamps and recording fees for Cook, DuPage, or Lake County.