(35 ILCS 200/21-260)
Sec. 21-260. Collector's scavenger sale. Upon the county collector's
application under Section 21-145, to be known as the Scavenger Sale
Application, the Court shall enter judgment for the general taxes, special
taxes, special assessments, interest, penalties and costs as are included in
the advertisement and appear to be due thereon after allowing an opportunity to
object and a hearing upon the objections as provided in Section 21-175, and
order those properties sold by the County Collector at public sale, or by electronic automated sale if the collector chooses to conduct an electronic automated sale pursuant to Section 21-261, to the
highest bidder for cash, notwithstanding the bid may be less than the full
amount of taxes, special taxes, special assessments, interest, penalties and
costs for which judgment has been entered.
(a) Conducting the sale; bidding. All properties shall be offered for
sale in consecutive order as they appear in the delinquent list. The minimum
bid for any property shall be $250 or one-half of the tax if the total
liability is less than $500. For in-person scavenger sales, the successful bidder shall pay the
amount of the minimum bid to the County Collector by the end of the business day on which the bid was placed. That amount shall be paid in cash, by certified or
cashier's check, by money order, or, if the
successful bidder is a governmental unit, by a check issued by that
governmental unit. For electronic automated scavenger sales, the successful bidder shall pay the minimum bid amount by the close of the business day on which the bid was placed. That amount shall be paid online via ACH debit or by the electronic payment method required by the county collector. For in-person scavenger sales, if the bid exceeds the minimum bid, the
successful bidder shall pay the balance of the bid to the county collector in
cash, by certified or cashier's check, by money order, or, if the
successful bidder is a governmental unit, by a check issued by that
governmental unit
by the close of the
next business day. For electronic automated scavenger sales, the successful bidder shall pay, by the close of the next business day, the balance of the bid online via ACH debit or by the electronic payment method required by the county collector. If the minimum bid is not paid at the time of sale or if
the balance is not paid by the close of the next business day, then the sale is
void and the minimum bid, if paid, is forfeited to the county general fund. In
that event, the property shall be reoffered for sale within 30 days of the last
offering of property in regular order. The collector shall make available to
the public a list of all properties to be included in any reoffering due to the
voiding of the original sale. The collector is not required to serve or
publish any other notice of the reoffering of those properties. In the event
that any of the properties are not sold upon reoffering, or are sold for less
than the amount of the original voided sale, the original bidder who failed to
pay the bid amount shall remain liable for the unpaid balance of the bid in an
action under Section 21-240. Liability shall not be reduced where the bidder
upon reoffering also fails to pay the bid amount, and in that event both
bidders shall remain liable for the unpaid balance of their respective bids. A
sale of properties under this Section shall not be final until confirmed by the
court.
(b) Confirmation of sales. The county collector shall file his or her
report of sale in the court within 30 days of the date of sale of each
property. No notice of the county collector's application to confirm the sales
shall be required except as prescribed by rule of the court. Upon
confirmation, except in cases where the sale becomes void under Section 22-85,
or in cases where the order of confirmation is vacated by the court, a sale
under this Section shall extinguish the in rem lien of the general taxes,
special taxes and special assessments for which judgment has been entered and a
redemption shall not revive the lien. Confirmation of the sale shall in no
event affect the owner's personal liability to pay the taxes, interest and
penalties as provided in this Code or prevent institution of a proceeding under
Section 21-440 to collect any amount that may remain
due after the sale.
(c) Issuance of tax sale certificates. Upon confirmation of the sale, the
County Clerk and the County Collector shall issue to the purchaser a
certificate of purchase in the form prescribed by Section 21-250 as near as may
be. A certificate of purchase shall not be issued to any person who is
ineligible to bid at the sale or to receive a certificate of purchase under
Section 21-265.
(d) Scavenger Tax Judgment, Sale and Redemption Record; sale of
parcels not sold. The county collector shall prepare a Scavenger Tax Judgment,
Sale and Redemption Record. The county clerk shall write or stamp on the
scavenger tax judgment, sale, forfeiture and redemption record opposite the
description of any property offered for sale and not sold, or not confirmed for
any reason, the words "offered but not sold". The properties which are offered
for sale under this Section and not sold or not confirmed shall be offered for
sale annually thereafter in the manner provided in this Section until sold,
except in the case of mineral rights, which after 10 consecutive years of
being offered for sale under this Section and not sold or confirmed shall
no longer be required to be offered for sale. At
any time between annual sales the County Collector may advertise for sale any
properties subject to sale under judgments for sale previously entered under
this Section and not executed for any reason. The advertisement and sale shall
be regulated by the provisions of this Code as far as applicable.
(e) Proceeding to tax deed. The owner of the certificate of purchase shall
give notice as required by Sections 22-5 through 22-30, and may extend the
period of redemption as provided by Section 21-385. At any time within 6 months
prior to expiration of the period of redemption from a sale under this Code,
the owner of a certificate of purchase may file a petition and may obtain a tax
deed under Sections 22-30 through 22-55. All proceedings for the issuance of
a tax deed and all tax deeds for properties sold under this Section shall be
subject to Sections 22-30 through 22-55. Deeds issued under this Section are
subject to Section 22-70. This Section shall be liberally construed so that the deeds provided for in this Section convey merchantable title.
(f) Redemptions from scavenger sales. Redemptions may be made from sales
under this Section in the same manner and upon the same terms and conditions as
redemptions from sales made under the County Collector's annual application for
judgment and order of sale, except that in lieu of penalty the person redeeming
shall pay interest as follows if the sale occurs before September 9, 1993:
(1) If redeemed within the first 2 months from the |
| date of the sale, 3% per month or portion thereof upon the amount for which the property was sold;
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(2) If redeemed between 2 and 6 months from the date
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| of the sale, 12% of the amount for which the property was sold;
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(3) If redeemed between 6 and 12 months from the date
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| of the sale, 24% of the amount for which the property was sold;
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(4) If redeemed between 12 and 18 months from the
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| date of the sale, 36% of the amount for which the property was sold;
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(5) If redeemed between 18 and 24 months from the
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| date of the sale, 48% of the amount for which the property was sold;
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(6) If redeemed after 24 months from the date of
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| sale, the 48% herein provided together with interest at 6% per year thereafter.
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If the sale occurs on or after September 9,
1993, the person redeeming shall pay interest on that part of the amount for
which the property was sold equal to or less than the full amount of delinquent
taxes, special assessments, penalties, interest, and costs, included in the
judgment and order of sale as follows:
(1) If redeemed within the first 2 months from the
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| date of the sale, 3% per month upon the amount of taxes, special assessments, penalties, interest, and costs due for each of the first 2 months, or fraction thereof.
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(2) If redeemed at any time between 2 and 6 months
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| from the date of the sale, 12% of the amount of taxes, special assessments, penalties, interest, and costs due.
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(3) If redeemed at any time between 6 and 12 months
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| from the date of the sale, 24% of the amount of taxes, special assessments, penalties, interest, and costs due.
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(4) If redeemed at any time between 12 and 18 months
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| from the date of the sale, 36% of the amount of taxes, special assessments, penalties, interest, and costs due.
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(5) If redeemed at any time between 18 and 24 months
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| from the date of the sale, 48% of the amount of taxes, special assessments, penalties, interest, and costs due.
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(6) If redeemed after 24 months from the date of
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| sale, the 48% provided for the 24 months together with interest at 6% per annum thereafter on the amount of taxes, special assessments, penalties, interest, and costs due.
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The person redeeming shall not be required to pay any interest on any part
of the amount for which the property was sold that exceeds the full amount of
delinquent taxes, special assessments, penalties, interest, and costs included
in the judgment and order of sale.
Notwithstanding any other provision of this Section, except for
owner-occupied single family residential units which are condominium units,
cooperative units or dwellings, the amount required to be paid for redemption
shall also include an amount equal to all delinquent taxes on the property
which taxes were delinquent at the time of sale. The delinquent taxes shall be
apportioned by the county collector among the taxing districts in which the
property is situated in accordance with law. In the event that all moneys
received from any sale held under this Section exceed an amount equal to all
delinquent taxes on the property sold, which taxes were delinquent at the time
of sale, together with all publication and other costs associated with the
sale, then, upon redemption, the County Collector and the County Clerk shall
apply the excess amount to the cost of redemption.
(g) Bidding by county or other taxing districts. Any taxing district may
bid at a scavenger sale. The county board of the county in which properties
offered for sale under this Section are located may bid as trustee for all
taxing districts having an interest in the taxes for the nonpayment of which
the parcels are offered. The County shall apply on the bid the unpaid taxes due
upon the property and no cash need be paid. The County or other taxing district
acquiring a tax sale certificate shall take all steps necessary to acquire
title to the property and may manage and operate the property so acquired.
When a county, or other taxing district within the county, is a petitioner
for a tax deed, no filing fee shall be required on the petition. The county as
a tax creditor and as trustee for other tax creditors, or other taxing district
within the county shall not be required to allege and prove that all taxes and
special assessments which become due and payable after the sale to the county
have been paid. The county shall not be required to pay the subsequently
accruing taxes or special assessments at any time. Upon the written request of
the county board or its designee, the county collector shall not offer the
property for sale at any tax sale subsequent to the sale of the property to the
county under this Section. The lien of taxes and special assessments which
become due and payable after a sale to a county shall merge in the fee title of
the county, or other taxing district, on the issuance of a deed. The County may
sell the properties so acquired, or the certificate of purchase thereto, and
the proceeds of the sale shall be distributed to the taxing districts in
proportion to their respective interests therein. The presiding officer of the
county board, with the advice and consent of the County Board, may appoint some
officer or person to attend scavenger sales and bid on its behalf.
(h) Miscellaneous provisions. In the event that the tract of land or lot
sold at any such sale is not redeemed within the time permitted by law and a
tax deed is issued, all moneys that may be received from the sale of
properties in excess of the delinquent taxes, together with all publication
and other costs associated with the sale,
shall, upon petition of any interested party to the court that issued the tax
deed, be distributed by the County Collector pursuant to order of the court
among the persons having legal or equitable interests in the property according
to the fair value of their interests in the tract or lot. Section 21-415 does
not apply to properties sold under this Section.
Appeals may be taken from the orders and judgments entered under this Section
as in other civil cases. The remedy herein provided is in addition to other
remedies for the collection of delinquent taxes.
(i) The changes to this Section made by Public Act 95-477 apply only to matters in which a
petition for tax deed is filed on or after June 1, 2008 (the effective date
of Public Act 95-477).
(j) The changes to this Section made by this amendatory Act of the 102nd General Assembly apply to matters in which a petition for tax deed is filed on or after the effective date of this amendatory Act of the 102nd General Assembly. Failure of any party or any public official to comply with the changes made to this Section by Public Act 102-528 does not invalidate any tax deed issued prior to the effective date of this amendatory Act of the 102nd General Assembly.
(Source: P.A. 102-519, eff. 8-20-21; 102-528, eff. 1-1-22; 102-813, eff. 5-13-22; 102-1003, eff. 5-27-22.)
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(35 ILCS 200/21-290)
Sec. 21-290.
Offense of scavenger sale fraud.
A person commits the offense
of tax sale fraud who knowingly:
(a) enters a bid or authorizes or procures the entry |
| of a bid on any property offered for sale under Section 21-260, when the person in whose behalf the bid is made or authorized or procured has an ownership interest or nonownership interest in the property, or where that person had such an interest on January 1 of any year for which delinquent taxes were included within the judgment for sale under Section 21-260;
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(b) acquires, or attempts to acquire, ownership of
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| any certificate of purchase for property sold under Section 21-260, when the person in whose behalf such certificate of purchase is or would be acquired has an ownership interest or nonownership interest in the property, or where that person had that interest on January 1 of any year for which delinquent taxes were included within the judgment for sale under Section 21-260;
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(c) conveys or assigns any certificate of purchase
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| for property sold under Section 21-260 to any person who has an ownership interest or nonownership interest in the property, or who had that interest on January 1 of any year for which delinquent taxes were included within the judgment for sale under Section 21-260;
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(d) makes a false statement in any application for
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| certificate of purchase or registration form submitted under Sections 21-270 and 21-275; or
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(e) forfeits 2 or more bids at any one sale under
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| Section 21-260 by failing to pay the minimum cash bid timely or by failing to pay the balance of the bid timely as required by Section 21-260.
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Tax sale fraud is a Class A misdemeanor. A subsequent conviction for tax
sale fraud as defined in subsections (a) through (d) of this Section is a Class
4 felony.
(Source: P.A. 86-949; 88-455.)
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(35 ILCS 200/21-305)
Sec. 21-305. Payments from Indemnity Fund.
(a) Any owner of property sold under any provision of this Code who
sustains loss or damage by
reason of the issuance of a tax deed under Section 21-445 or 22-40 and who is
barred or is in any way
precluded from bringing an action for the recovery of the property shall have
the right to indemnity for the
loss or damage sustained, limited as follows:
(1) An owner who resided on property that contained 4 |
| or less dwelling units on the last day of the period of redemption and who is equitably entitled to compensation for the loss or damage sustained has the right to indemnity. An equitable indemnity award shall be limited to the fair cash value of the property as of the date the tax deed was issued less any mortgages or liens on the property, and the award will not exceed $99,000. The Court shall liberally construe this equitable entitlement standard to provide compensation wherever, in the discretion of the Court, the equities warrant the action.
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An owner of a property that contained 4 or less
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| dwelling units who requests an award in excess of $99,000 must prove that the loss of his or her property was not attributable to his or her own fault or negligence before an award in excess of $99,000 will be granted.
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(2) An owner who sustains the loss or damage of any
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| property occasioned by reason of the issuance of a tax deed, without fault or negligence of his or her own, has the right to indemnity limited to the fair cash value of the property less any mortgages or liens on the property. In determining the existence of fault or negligence, the court shall consider whether the owner exercised ordinary reasonable diligence under all of the relevant circumstances.
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(3) In determining the fair cash value of property
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| less any mortgages or liens on the property, the fair cash value shall be reduced by the principal amount of all taxes paid by the tax purchaser or his or her assignee before the issuance of the tax deed.
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(4) If an award made under paragraph (1) or (2) is
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| subject to a reduction by the amount of an outstanding mortgage or lien on the property, other than the principal amount of all taxes paid by the tax purchaser or his or her assignee before the issuance of the tax deed and the petitioner would be personally liable to the mortgagee or lienholder for all or part of that reduction amount, the court shall order an additional indemnity award to be paid directly to the mortgagee or lienholder sufficient to discharge the petitioner's personal liability. The court, in its discretion, may order the joinder of the mortgagee or lienholder as an additional party to the indemnity action.
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(b) Indemnity fund; subrogation.
(1) Any person claiming indemnity hereunder shall
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| petition the Court which ordered the tax deed to issue, shall name the County Treasurer, as Trustee of the indemnity fund, as defendant to the petition, and shall ask that judgment be entered against the County Treasurer, as Trustee, in the amount of the indemnity sought. The provisions of the Civil Practice Law shall apply to proceedings under the petition, except that neither the petitioner nor County Treasurer shall be entitled to trial by jury on the issues presented in the petition. The Court shall liberally construe this Section to provide compensation wherever in the discretion of the Court the equities warrant such action.
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(2) The County Treasurer, as Trustee of the indemnity
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| fund, shall be subrogated to all parties in whose favor judgment may be rendered against him or her, and by third party complaint may bring in as a defendant any person, other than the tax deed grantee and its successors in title, not a party to the action who is or may be liable to him or her, as subrogee, for all or part of the petitioner's claim against him or her.
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(c) Any contract involving the proceeds of a judgment for indemnity under
this Section, between the
tax deed grantee or its successors in title and the indemnity petitioner or his
or her successors, shall be in
writing. In any action brought under Section 21-305, the Collector shall be
entitled to discovery regarding,
but not limited to, the following:
(1) the identity of all persons beneficially
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| interested in the contract, directly or indirectly, including at least the following information: the names and addresses of any natural persons; the place of incorporation of any corporation and the names and addresses of its shareholders unless it is publicly held; the names and addresses of all general and limited partners of any partnership; the names and addresses of all persons having an ownership interest in any entity doing business under an assumed name, and the county in which the assumed business name is registered; and the nature and extent of the interest in the contract of each person identified;
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(2) the time period during which the contract was
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| negotiated and agreed upon, from the date of the first direct or indirect contact between any of the contracting parties to the date of its execution;
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(3) the name and address of each natural person who
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| took part in negotiating the contract, and the identity and relationship of the party that the person represented in the negotiations; and
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(4) the existence of an agreement for payment of
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| attorney's fees by or on behalf of each party.
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Any information disclosed during discovery may be subject to protective order
as deemed appropriate by
the court. The terms of the contract shall not be used as evidence of value.
(d) A petition of indemnity under this Section must be filed within 10 years after the date the tax deed was issued.
(Source: P.A. 97-557, eff. 7-1-12.)
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