To sell a house in Chicago, you need a Full Payment Certificate showing the water and sewer account is paid, and if the building has five or fewer units and isn’t a condo or co-op, you also need a zoning certification. The city won’t issue transfer stamps without them, and without stamps the deed can’t be recorded. Both are simple to get, but both take time, so start early.
The short answer
The Full Payment Certificate (FPC) comes from the Chicago Department of Finance. It costs $50 per account, may need a final meter reading, and the city suggests allowing at least 10 business days. Any unpaid water and sewer balance has to be paid before it is issued. The zoning certification comes from the Department of Planning and Development, costs $120, and the city makes an initial decision within five business days. Order both as soon as you have a signed contract.
What is a Full Payment Certificate in Chicago?
An FPC is a certificate from the Department of Finance stating that all utility charges and penalties on the account are paid in full. The city requires one in all transfers of real property in Chicago, taxable or exempt. It is not required for property outside the city limits, though many suburbs have their own water certificate or final reading rule.
The requirement is written into the transfer tax ordinance. Chicago Municipal Code section 3-33-040 says the city may not issue transfer stamps unless the water and sewer charges on the parcel have been paid in full. That is why a missing FPC stops a closing cold.
How do you request a Full Payment Certificate?
Most of the time, your attorney or the title company orders it. If you do it yourself, here is what the city asks for:
- Where: Online through the city’s FPC application, or in person at City Hall, 121 N. LaSalle St., Room 107.
- Who: The buyer, the seller or the attorney for the transaction. Anyone else is treated as an agent, and agents should expect up to 10 business days.
- Proof of the sale: The legal description plus one of these: a signed and notarized deed, the title commitment Schedule A listing buyer and seller, or the signed sales contract.
- Account number: Have your utility account number handy.
- Fee: $50 per account, waived if the transfer is exempt from the city transfer tax.
Incomplete applications aren’t processed, so double check the paperwork before you submit. The city’s Full Payment Certificate page has the current application and contact information.
Do you need a final water meter reading?
Often, yes. A metered account needs a final reading if the meter hasn’t had an actual reading within 60 days of the application. A final reading is also required for meters that are read remotely. The Department of Water Management contacts you to schedule it, and someone has to be available to let the crew in on the reading date between 7 a.m. and 3:30 p.m.
Non-metered accounts work differently. The Department of Finance reviews the account and sets the final bill, which has to be paid before the certificate is issued.
Watch the clock. On a metered account, the certificate expires 60 days after the last actual meter reading. For non-metered accounts, condo units and vacant lots, it expires 60 days after the FPC was completed. If the closing date moves, you may need a new reading.
How long does a Full Payment Certificate take?
Residential FPCs can sometimes be done the same day, but the city says it can’t promise that and recommends allowing at least 10 business days. Applications that need a field review, a final reading, a bankruptcy review or a receivership review take longer. Once it is ready, the city emails the applicant a link to the certificate.
What happens if there are unpaid water bills?
The balance has to be paid to complete the certificate. The city won’t certify the account while money is still owed on it. Your attorney or title company will tell you whether the balance is paid ahead of time or handled at closing.
Skipping the certificate doesn’t make the debt disappear. If an FPC was required and not obtained, the city says the seller and buyer are jointly and severally liable for the outstanding charges, penalties and fees. Charges that build up after the FPC date are prorated by the attorneys to the closing date and then move to the buyer.
If the bill is large or looks wrong, raise it with the Department of Finance right away. A dispute that starts the week of closing is how closings get pushed.
What is Chicago’s zoning certification for a sale?
When residential property with five or fewer dwelling units is sold in Chicago, the city requires a zoning certification. It doesn’t apply to condominiums or cooperative buildings. The certificate states how many dwelling units at the property are legal under the Chicago Zoning Ordinance.
- Fee: $120, paid when the application is filed.
- Timing: The Department of Planning and Development makes an initial decision within five business days. If records can’t confirm the legal unit count, the city inspects first.
- Denials: The contact on the application is notified, and you can ask the Zoning Administrator to reconsider. That decision also comes within five business days.
- What it doesn’t cover: It doesn’t certify that the units meet the building code or have permits.
Like the FPC, it is tied to the stamps. Section 3-33-040 requires a valid certificate, or a waiver if the city misses its deadlines, before stamps are issued for these buildings. The Department of Planning and Development posts the current form and filing instructions.
How do these certificates delay closings, and how do you avoid it?
Common causes of delay include:
- Ordering late. Apply as soon as the contract is signed, not the week before closing.
- No access for the meter reading. This is common with a vacant house or a building where a tenant controls the basement. Line up a key holder ahead of time.
- A surprise balance. Look at your last few water bills now. Estates sometimes find unpaid charges that built up while the house sat, so check early if you sell an inherited house.
- Extra units. If a garden or attic unit was added without approval, the zoning certification may show fewer legal units than the building has. That can change the buyer’s plans or their loan. It can come up when you sell a rental property.
- An expired certificate. If closing slips past 60 days from the reading, ask early whether a new reading is needed.
How selling to us handles the FPC and zoning certification
When you sell to us, we close at a local title company, and the FPC, final reading and zoning certification get started as soon as the contract is signed. We pay the normal closing costs and all transfer taxes, and there are no commissions or fees. Any unpaid water balance is paid from the sale at closing, and we walk you through the numbers before you sign.
We buy as-is, including buildings with code violations or units the city doesn’t recognize. You get a fair cash offer within 24 hours, with the math shown, and we can close in as little as 2–3 weeks or on your date at a local title company. Read more on how it works or see where we buy in Chicago.
If your house is in good shape, the paperwork is clean and you aren’t in a hurry, listing with an agent may get you a higher price. These certificates are routine either way.
Want a number to compare? Get your free cash offer or call or text (773) 825-9855.
This is general information, not legal or tax advice. City procedures and fees change, so confirm the current requirements with your attorney, the title company or the city.