Real Estate/Property Tax Redemptions

We can assist parties with property tax redemptions or redeeming under protest. A few important things to keep in mind:

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Time of Redemption:

1. If on the date of sale the property sold was improved with a dwelling structure of six or fewer units, it may be redeemed at any time on or before two years and six months from the date of sale.

2. If on the date of sale the property is vacant, non-farm or improved real estate containing seven or more residential units or real estate that is commercial or industrial property, and the property was delinquent or forfeited for all or a part of general taxes for two or more years at the time of the sale, it may be redeemed at any time before the expiration of six months from the date of sale.

3. In all other cases, the property may be redeemed at any time before the expiration of two years from the date of sale.

4. The holder of the certificate of purchase (not any other party) may extend the redemption period up to three years from the date of sale, in which event the property may be redeemed at any time on or before the expiration of the extended redemption period. After the redemption period has expired, the court may order an extension of the redemption period, but only if a tax deed petition has been filed prior to the expiration of the redemption period and only on the motion of the tax deed petitioner. The redemption period may not be extended, however, to date more than three years from the date of sale.

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Amount of Redemption for Annual and Forfeiture Sales:

1. The amount required to redeem must be deposited with the County Clerk in cash, cashier’s or certified check or money order issued by the post office or by a federally insured financial institution, payable to the County Clerk. Redemption must be actually received in person at the County Clerk’s office by the end of the redemption period or mailed with a post office cancellation mark dated not less than one day prior to the expiration of the redemption period. 35 ILCS 200/21-355.

2. The amount required to redeem includes:

• All taxes, penalties, and costs paid at the time of the tax sale.

• Accrued penalty, computed as provided in 35 ILCS 200/21-355(b) (for annual or forfeiture sales) or 35 ILCS 200/21-260(f) (for scavenger sales.

• All taxes and special assessments (and accrued interest on those taxes and costs paid in connection therewith) paid by the tax purchaser subsequent to the tax sale, together with a penalty in the amount of 12% for each year or portion thereof from the date of payment to the date of redemption.

• Amounts paid by the tax purchaser to redeem the property from a forfeiture occurring for a subsequent year tax together with a penalty in the amount of 12% for each year or portion thereof from the date of payment to the date of redemption.

• Amounts paid by the tax purchaser to redeem a subsequently occurring tax sale.

• Fees paid to the County Clerk for serving the notice required by 35 ILCS 200/22-5 of the Property Tax Code.

• Court costs paid in connection with the filing of a tax deed petition and recording of a lis pendens notice, together with a fee of $35.00 if a tax deed petition has been filed and a fee of $4.00 if the §22-5 notice has been served.

• If a petition for tax deed has been filed, all fees up to $150 per redemption paid to a registered or licensed title insurance company or title insurance agent for a title search to identify all owners, parties interested, and occupants of the property, to be paid to the purchaser or his or her assignee.

• Fees paid for the publication of notice in connection with tax deed proceeding.

• Sums paid to any city, village, or town for reimbursement of municipal advances (e.g., demolition or receivership lien).

• Expenses of receivership authorized or approved by the court which appointed the receiver. 35 ILCS 200/21-355.

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Amount of Redemption for Scavenger Sales:

To redeem from a scavenger sale, the procedure is similar. However, the party redeeming must also pay all delinquent taxes and penalties which were outstanding at the time of the tax sale and which were not included in the amount bid at the sale, unless the property is an owner-occupied single-family dwelling, condominium unit or cooperative unit. A party seeking to redeem the property as owner-occupied must complete and submit an affidavit to the County Clerk. If the party submits a false affidavit, the redemption may be stricken.

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Redemption Under Protest:

1. A person entitled to redeem who desires to preserve his or her right to defend against the tax deed proceeding may redeem under protest by depositing with the County Clerk the amount required to redeem, together with three copies of a written protest signed by the party redeeming in the form prescribed by §21-175.

2. The grounds for redeeming under protest are limited to those defenses which would provide sufficient basis to deny entry of an order for issuance of a tax deed.

3. A redemption under protest must be filed after a tax deed petition has been filed but before the expiration of the redemption period.

4. The court before which the tax deed petition is pending shall hear and determine the protest. If the redemption under protest is sustained, the court may declare the sale to be a sale in error, if appropriate grounds exist, and shall direct the County Clerk to return all or a part of the redemption money to the party redeeming. If the redemption under protest is not sustained, the court shall order the protest stricken and direct the County Clerk to distribute the redemption money to the holder of the certificate of purchase, and shall order the party redeeming to pay to the tax deed petitioner reasonable attorneys’ fees and expenses and the cost of the use of the redemption money.

 

Another option to consider if the circumstances are proper is to acquire the tax certificate from the tax buyer rather than redeeming the tax sale. For more information about the assignment of real estate tax certificates, click here. For a detailed outline of this area of law, please click here. If you need any assistance, please do not hesitate to contact us.

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