Tax Sale Redemptions Can Occur at the Last Minute!

A recent case, A.P. Properties v. Rattner , 2011 IL App (2d) 110061 (October 27, 2011) Lake Co. demonstrates how cutthroat the tax deed business can be.  On the one hand, you have companies that buy taxes at real estate tax sales, with the hope that they will end up owning the property for a fraction of its actual value.  On the other hand, you have homeowners and lenders, trying to redeem the taxes to save the property before the redemption period expires.  And then occasionally, you have companies that reap their profits from buying properties just before the redemption period expires, when homeowners are desparate to salvage some of the value of their home.   The defendants in this case fall in the latter category.

The plaintiff, A. P. Properties, was in the business of buying taxes at tax sales, and they sued the defendants because in two instances, the defendants bought real estate A.P. Properties was hoping to acquire shortly before the expiration of the redemption period.  The plantiff had already petitioned for a tax deed in both cases.  In the first case, in fact, the defendant purchased the property less than 48 hours before the redemption period expired, and then immediately redeemed the taxes.

The court, however, found in favor of the defendant.  The plaintiffs appealed on various technicalities, but at the end of the day, they still lost.  The court stated that the owner or an interested party may absolutely redeem the property during the redemption period.  Since the defendant bought the property, albeit at a bargain price, they had the right to redeem the taxes.  Sure, the defendants profited from their actions, but their actions were allowed, and not legislatively banned.  Moreover, in this way, the people who owned the property were able to sell the property to the defendants for something, even if it was a small sum.  The tax sale buyer, on the other hand, would not have paid the homeowners anything.  The court concluded that public policy supports the sale of properties prior to the expiration of the tax sale redemption period.

So if you are about to lose your home to a tax deed, consider selling it.  And if you are close to obtaining a tax deed, remember, someone can swoop in and buy the property from under your nose!  

Condominium Owners Can't Take Common Areas!

A recent case, Picerno v. 1400 Museum Park Condominium Association, 2011 IL App (1st) 103505 (October 28, 2011) Cook Co., 5th Div., caught by interest:  In 2008, related family members purchased neighboring units at the end of the hall in a condominium building.  Their doors faced each other, and they shared a common wall.  They decided that they would like to install a new door in the hallway, separating off their two units from all of the other units.  The association objected. 

Eventually, the association set forth a proposal which delineated the requirements that the unit owners must agree to in order to install the door and separate their portion of the hallway.  Because of the costs involved, the unit owners did not agree, and the matter ended up in court. 

While the trial court agreed with the plaintiff unit owners, the appellate court sided with the condominium association, stating that 1) the hallway that the plaintiffs sought to incorporate into their unit was a common element; 2) the association had sought payment for allowing the plaintiffs to use the space privately, but the plaintiffs appeared unwilling to pay it; 3) the vast majority of the conditions the association imposed were reasonable, especially in light of the fact that the plaintiffs would be receiving additional space for private usage -- thereby taking that space away from the association; and 4) the court felt that the plaintiff's interpretation of the Illinois Condominium Property Act was incorrect. 

The appellate court decided that if the unit owners followed the rules set forth by the association, they could install their new door.  It remains to see what happens!

Did You Claim Your Senior Exemption?

If you live in Cook County, your second installment 2010 property taxes were due earlier this week (on Tuesday, November 1).  Hopefully you've already paid the bill.  As a senior, you might have assumed that your senior exemption showed up automatically on your tax bill, as it has in the past.  But beware -- the legislation made some changes last year, and senior exemptions are no longer automatic!  If you are over 65, you should make sure you get the benefit of the senior exemption if you're a homeowner!

The Cook County Assessor's office states that 55,000 seniors did not apply for their exemption this year.  That's a windfall for the county, but a lot of extra money out of each senior citizen's pocket!  If you are eligible for a senior exemption or a senior freeze exemption, you can still apply!  You will have to complete a Certificate of Error and wait for the county to refund you, but it may be well worth your time!

If you qualify for a senior exemption, you automatically receive the homeowner's exemption, so you don't have to apply for it separately.  You should also check to see if you are eligible for any other exemptions, such as the senior freeze, longtime homeowner, veteran, or disability-related exemptions.  Wouldn't it be nice to keep more of your money in your pocket?