PROP TX-SURPLUS SALE

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB3146

Introduced 2/18/2025, by Rep. Will Guzzardi

SYNOPSIS AS INTRODUCED:

35 ILCS 200/21-90
35 ILCS 200/21-302 new
35 ILCS 200/22-10
35 ILCS 200/22-40
35 ILCS 200/22-65
765 ILCS 940/5
765 ILCS 940/30

Amends the Property Tax Code. Provides that, when the county, as
trustee, files one petition for more than one delinquent tax lien or
certificate, the county may request that the court issue a tax deed to the
county, as trustee, without holding a judicial tax deed auction. Provides
that the county shall offer the parcel for sale at a public auction within
120 days of recording the tax deed. Sets forth requirements for the county
auction. Provides that any owner of property sold under any provision of
the Code who sustains loss or damage by reason of the issuance of a tax
deed shall have the right to recover surplus equity that was lost in the
property through an award of indemnity. Amends the Mortgage Rescue Fraud
Act. Provides that a distressed property conveyance contract must contain
a statement that the property owner may have the right to obtain money for
any equity lost if a tax deed is issued. Effective immediately.
LRB104 11225 HLH 21307 b

A BILL FOR

HB3146
LRB104 11225 HLH 21307 b
1

AN ACT concerning revenue.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Property Tax Code is amended by changing
5
Sections 21-90, 22-10, 22-40, and 22-65 and by adding Section
6
21-302 as follows:

7

(35 ILCS 200/21-90)
8

Sec. 21-90.
Purchase and sale by county; distribution of
9
proceeds.
10

(a) When any property is offered for sale under any of the
11
provisions of this Code, the county board of the county in
12
which the property is located, in its discretion, may bid, or,
13
in the case of forfeited property, may apply to purchase it or
14
otherwise acquire the tax lien or certificate in the name of
15
the county as trustee for all taxing districts having an
16
interest in the property's taxes or special assessments for
17
the nonpayment of which the property is sold. The presiding
18
officer of the county board, with the advice and consent of the
19
board, may appoint on its behalf some officer, person, or
20
entity to attend such sales, bid on tax liens or certificates,
21
and act on behalf of the county when exercising its authority
22
under this Section
, with reasonable costs and fees for such
23
services paid from redemption interest and sales proceeds

HB3146
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LRB104 11225 HLH 21307 b
1
arising from county certificates
. The county shall apply on
2
the bid or purchase the unpaid taxes and special assessments
3
due upon the property. No cash need be paid.
Under Sections
4
21-110, 21-115, 21-120, and 21-190, a county may bid or
5
purchase tax certificates only in the absence of other
6
bidders.

7

(b) The county, as trustee for all taxing districts having
8
an interest in the property's taxes or special assessments,
9
shall be the designated holder of all tax liens or
10
certificates that are forfeited to the State or county. No
11
cash need be paid for the forfeited tax lien or certificate.
12

(c) For any tax lien or certificate acquired under
13
subsection (a) or (b) of this Section, the county may take
14
steps necessary to acquire title to the property
, including a
15
final right of first refusal or final bid at the close of any
16
public auction or judicial sale conveying title to the
17
property,
and may manage and operate the property, including,
18
but not limited to, mowing of grass, removal of nuisance
19
greenery, removal of garbage, waste, debris or other
20
materials, or the demolition, repair, or remediation of unsafe
21
structures. When a county, or other taxing district within the
22
county, is a petitioner for a tax deed, no filing fee shall be
23
required. When a county or other taxing district within the
24
county is the petitioner for a tax deed, one petition may be
25
filed including all parcels that are tax delinquent within the
26
county or taxing district, and any publication made under

HB3146
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LRB104 11225 HLH 21307 b
1
Section 22-20 of this Code may combine all such parcels within
2
a single notice. The notice may include the
property

street

3
address as listed on the most recent available tax bills, if
4
available, and shall list the Property Index Number of the
5
parcels for informational purposes. The county, as tax
6
creditor and as trustee for other tax creditors, or other
7
taxing district within the county, shall not be required to
8
allege and prove that all taxes and special assessments which
9
become due and payable after the sale or forfeiture to the
10
county have been paid nor shall the county be required to pay
11
the subsequently accruing taxes or special assessments at any
12
time. The county board or its designee may prohibit the county
13
collector from including the property in the tax sale of one or
14
more subsequent years. The lien of taxes and special
15
assessments which become due and payable after a sale to a
16
county shall merge in the fee title of the county, or other
17
taxing district within the county, on the issuance of a deed.
18

The county may sell any property acquired with authority
19
provided in this Section, or assign any tax certificate to any
20
person or entity

party
, including, but not limited to, taxing
21
districts, municipalities, land banks created pursuant to
22
Illinois law, or non-profit developers focused on constructing
23
affordable housing.
24

The assigned tax certificate shall be void with no further
25
rights given to the assignee, including no right to refund or
26
reimbursement, if a tax deed has not been recorded within 4

HB3146
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LRB104 11225 HLH 21307 b
1
years after the date of the assignment unless a court extends
2
the assignment period as provided in this Section. Upon a
3
motion by the assignee, a court may toll the 4-year deadline
4
for a specified period of time if the court finds the assignee
5
is prevented from obtaining or recording a deed by injunction
6
or order of any court, by the refusal or inability of any court
7
to act upon the application for a tax deed, by a municipality's
8
refusal to issue necessary
transfer stamps or
approvals for
9
recording, or by the refusal of the clerk to execute the deed.
10
If an assigned tax certificate is void under this Section, it
11
shall be forfeited to the county and held as a valid
12
certificate of sale in the county's name pursuant to this
13
Section 21-90. The proceeds of any sale or assignment under
14
this Section, less all costs of the county incurred in the
15
acquisition, operation, maintenance, and sale of the property
16
or assignment of the tax certificate, including all costs
17
associated with county staff and overhead used to perform the
18
duties of the trustee set forth in this Section
, and less any
19
surplus payments to owners
, shall be distributed to the taxing
20
districts in proportion to their respective interests therein.
21

(d) When the county, as trustee, files one petition for
22
more than one delinquent tax lien or certificate, the county
23
may request, pursuant to Section 22-40, that the court issue a
24
tax deed to the county, as trustee, without holding a judicial
25
tax deed auction. If the county requests a tax deed without a
26
judicial tax deed auction, the Order for Issuance of Tax Deed

HB3146
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LRB104 11225 HLH 21307 b
1
shall identify the total amount of delinquent taxes and
2
penalties, municipal advancements identified in Section 22-35,
3
pro rata county costs incurred pursuant to subsections (a)
4
through (c) of Section 21-90, and other posted costs for each
5
parcel conveyed, and order the county to offer each parcel for
6
sale at a public auction, as set forth in subsection (e),
7
within 120 days of recording the tax deed.
8

(e) Auctions held by a county pursuant to this Section
9
shall conform with the following requirements.
10

(1) The county or its agent shall give notice of the
11

auction with the following information:
12

(A) the Property Identification Number and Address
13

listed on the latest tax bill;
14

(B) the time and place of the auction;
15

(C) the terms of the auction; and
16

(D) the total amount of delinquent taxes and
17

penalties, municipal advancements identified in
18

Section 22-35, pro rata county costs incurred pursuant
19

to subsections (a) through (c) of Section 21-90, and
20

other posted costs.
21

The notice of auction shall be mailed via first class
22

mail to all parties at the address at which service of
23

process was made. If service of process was made in any
24

manner other than by personal service, substitute service,
25

corporate service, or government service, notice shall be
26

mailed via first class mail to all addresses included in

HB3146
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LRB104 11225 HLH 21307 b
1

the notice served pursuant to Section 22-25. The notice
2

shall include a sworn certificate of service signed by the
3

party sending the notice attesting to the fact that the
4

notice of auction was placed in the mail at least 10
5

calendar days prior to the date of the auction. The notice
6

of auction shall be published at least 3 consecutive
7

calendar weeks (Sunday through Saturday), once in each
8

week, the first such notice to be published not more than
9

45 days prior to the auction, the last such notice to be
10

published not less than 7 days prior to the auction. If the
11

property is located in a municipality in a county with
12

less than 3,000,000 inhabitants, the county or its agent
13

shall also publish a notice in some newspaper published in
14

the municipality. If the petitioner cannot identify a
15

newspaper published in the municipality, or if the
16

property is located in a county with 3,000,000 or more
17

inhabitants, the notice shall be published in a newspaper
18

published within the county. If no newspaper is published
19

in the county, then the notice shall be published in the
20

newspaper that is published nearest the county seat of the
21

county in which the property is located. The publication
22

shall include all information included in the notice sent
23

pursuant to this Section.
24

(2) The county may establish minimum bids at any
25

auction held pursuant to this Section, not to exceed the
26

total amount of delinquent taxes and penalties, municipal

HB3146
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LRB104 11225 HLH 21307 b
1

advancements identified in Section 22-35, pro rata county
2

costs incurred pursuant to subsections (a) through (c) of
3

Section 21-90, and other posted costs, for the auctioned
4

parcel, as identified in the Order for Issuance of Tax
5

Deed. For purposes of this section, "pro rata county costs
6

incurred pursuant to subsections (a) through (c) of
7

Section 21-90" may include costs incurred by the county in
8

filing one petition for more than one delinquent tax lien
9

or certificate and all costs related to the filing of the
10

one petition and obtaining tax deeds for the liens and
11

certificates identified in the one petition, reasonably
12

apportioned and included in the total costs for each
13

individual tax deed issued pursuant to the petition.
14

(3) If an auction is postponed, adjourned, or
15

rescheduled to occur less than 60 days after the last
16

scheduled auction, the county shall announce the date,
17

time, and place upon which the adjourned auction shall be
18

held at the time, date, and location in the notice. The
19

County is not required to send additional notice of any
20

postponed auction as provided in item (1) of subsection
21

(e) of Section 21-90. Notwithstanding any provision of law
22

to the contrary, for auctions that are conducted more than
23

60 days after the date in the required notice, the county
24

shall send notice of the adjourned auction in accordance
25

with Section item (1) of subsection (e) of Section 21-90.
26

(4) In auctions held pursuant to this Section, the

HB3146
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LRB104 11225 HLH 21307 b
1

county, as trustee, shall have a right of first refusal or
2

final bid at the close of any public auction. The county is
3

required to pay the full amount of any county bid that
4

exceeds the credit bid prior to the disbursement of
5

surplus funds in subsection (6) of this Section.
6

(5) Failure to hold a public auction of the parcels
7

received within the 180-day period shall not affect the
8

validity of the recorded deed, the Order for Issuance of
9

Tax Deed, or otherwise affect the marketability of title.
10

(6) To the extent that the winning bid at the auction
11

exceeds the amount of the tax deed judgment as defined in
12

subsection (d) of Section 21-90, the county trustee shall
13

deposit the surplus funds with the treasurer of the county
14

in which the subject property lies within 30 days. Within
15

60 days of the auction sale, the county, as trustee, shall
16

send a notice to interested parties in the underlying
17

case, stating that the owner is entitled to a distribution
18

of surplus proceeds and may file a claim pursuant to
19

subsection (i) of Section 22-40.

20

Under Sections 21-110, 21-115, 21-120, and 21-190, a
21
county may bid or purchase only in the absence of other
22
bidders.
23
(Source: P.A. 102-363, eff. 1-1-22; 103-555, eff. 1-1-24
.)

24

(35 ILCS 200/21-302 new)
25

Sec. 21-302.
Payments of surplus equity.

HB3146
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LRB104 11225 HLH 21307 b
1

(a) Any owner of property sold under any provision of this
2
Code who sustains loss or damage by reason of the issuance of a
3
tax deed shall have the right to recover surplus equity that
4
was lost in the property through an award of indemnity as
5
follows:
6

(1) The claim for indemnity shall be filed not later
7

than 2 years from the date the order directing the
8

issuance of tax deed was entered, or 2 years from the
9

effective date of this amendatory Act of the 104th General
10

Assembly, whichever is earlier.
11

(2) The indemnity award shall be limited to the fair
12

cash value of the property as of the date the tax deed was
13

issued, less any mortgages or liens on the property. The
14

Court shall liberally construe this equitable entitlement
15

standard to provide compensation wherever, in the
16

discretion of the Court, the equities warrant the action.
17

(3) In determining the fair cash value of property
18

less any mortgages or liens on the property, the fair cash
19

value shall be reduced by the principal amount of all
20

taxes paid by the tax purchaser or his or her assignee
21

before the issuance of the tax deed. The court, in its
22

discretion, may order the joinder of the mortgagee or
23

lienholder as an additional party to the indemnity action.
24

(b) The provisions of the Code of Civil Procedure shall
25
apply to proceedings under the petition, except that neither
26
the petitioner nor County Treasurer shall be entitled to trial

HB3146
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LRB104 11225 HLH 21307 b
1
by jury on the issues presented in the petition.
2

(c) Any contract involving the proceeds of a judgment for
3
indemnity under this Section, between the tax deed grantee or
4
its successors in title and the indemnity petitioner or his or
5
her successors, shall be in writing. In any action brought
6
under Section 21-305, the Collector shall be entitled to
7
discovery regarding, but not limited to, the following:
8

(1) the identity of all persons beneficially
9

interested in the contract, directly or indirectly,
10

including at least the following information: the names
11

and addresses of any natural persons; the place of
12

incorporation of any corporation and the names and
13

addresses of its shareholders unless it is publicly held;
14

the names and addresses of all general and limited
15

partners of any partnership; the names and addresses of
16

all persons having an ownership interest in any entity
17

doing business under an assumed name and the county in
18

which the assumed business name is registered; and the
19

nature and extent of the interest in the contract of each
20

person identified;
21

(2) the time period during which the contract was
22

negotiated and agreed upon, from the date of the first
23

direct or indirect contact between any of the contracting
24

parties to the date of its execution;
25

(3) the name and address of each natural person who
26

took part in negotiating the contract, and the identity

HB3146
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LRB104 11225 HLH 21307 b
1

and relationship of the party that the person represented
2

in the negotiations; and
3

(4) the existence of an agreement for payment of
4

attorney's fees by or on behalf of each party. Any
5

information disclosed during discovery may be subject to
6

protective order as deemed appropriate by the court. The
7

terms of the contract shall not be used as evidence of
8

value.

9

(35 ILCS 200/22-10)
10

Sec. 22-10.
Notice of expiration of period of redemption.
11
A purchaser or assignee shall not be entitled to a tax deed to
12
the property sold unless, not less than 3 months nor more than
13
6 months prior to the expiration of the period of redemption,
14
he or she gives notice of the sale and the date of expiration
15
of the period of redemption to the owners, occupants,
the
16
municipality in which the subject property lies, or the county
17
if the property lies outside of municipal corporate
18
boundaries,
and parties interested in the property, including
19
any mortgagee of record, as provided below. For counties or
20
taxing districts holding certificates pursuant to Section
21
21-90, the date of expiration of the period of redemption
22
shall be designated by the county or taxing district in its
23
petition for tax deed and identified in the notice below,
24
which shall be filed with the county clerk.
25

The Notice to be given to the parties shall be in at least

HB3146
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LRB104 11225 HLH 21307 b
1
10-point type in the following form completely filled in:
2
TAX DEED NO. .................... FILED ....................
3
TAKE NOTICE
4

County of
...........................................
5

Date Premises Sold or Forfeited
.....................
6

Certificate No.
.....................................
7

Sold or Forfeited for General Taxes of (year)
.......
8

Sold for Special Assessment of (Municipality)
9

and special assessment number
.......................
10

Warrant No. ................ Inst. No. .................
11
THIS PROPERTY HAS BEEN SOLD FOR
12
DELINQUENT TAXES
13
Property Address (as identified on the most recent tax bill,
14
if available)
....
15
Legal Description or Property Index No.
..........
16
..........
17
..............................
18

This notice is to advise you that the above property has
19
been sold for delinquent taxes and that the period of
20
redemption from the sale will expire on
..........
21
..........
22

Check with the county clerk as to the exact amount you owe
23
before redeeming.
24

This notice is also to advise you that a petition has been
25
filed for a tax deed which will transfer title and the right to
26
possession of this property if redemption is not made on or

HB3146
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LRB104 11225 HLH 21307 b
1
before
..................................................
2

This matter is set for hearing in the Circuit Court of this
3
county in ...., Illinois on .....
4

You may be present at this hearing but your right to redeem
5
will already have expired at that time.
6
YOU ARE URGED TO REDEEM IMMEDIATELY
7
TO PREVENT LOSS OF PROPERTY
8

Redemption can be made at any time on or before .... by
9
applying to the County Clerk of ...., County, Illinois at the
10
Office of the County Clerk in ...., Illinois.
11

For further information contact the County Clerk
12
ADDRESS:....................
13
TELEPHONE AND/OR EMAIL ADDRESS:..................

14
..........................
15
Purchaser or Assignee.
16
Dated (insert date).

17

In counties with 3,000,000 or more inhabitants, the notice
18
shall also state the address, room number, and time at which
19
the matter is set for hearing.
20

The changes to this Section made by Public Act 97-557
21
apply only to matters in which a petition for tax deed is filed
22
on or after July 1, 2012 (the effective date of Public Act
23
97-557).
24

The changes to this Section made by Public Act 102-1003

HB3146
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LRB104 11225 HLH 21307 b
1
apply to matters in which a petition for tax deed is filed on
2
or after May 27, 2022 (the effective date of Public Act
3
102-1003). Failure of any party or any public official to
4
comply with the changes made to this Section by Public Act
5
102-528 does not invalidate any tax deed issued prior to May
6
27, 2022 (the effective date of Public Act 102-1003).
7

The changes made to this Section by this amendatory Act of
8
the 103rd General Assembly apply to matters concerning tax
9
certificates issued on or after the effective date of this
10
amendatory Act of the 103rd General Assembly.
11
(Source: P.A. 102-528, eff. 1-1-22; 102-813, eff. 5-13-22;
12
102-1003, eff. 5-27-22; 103-154, eff. 6-30-23; 103-555, eff.
13
1-1-24
.)

14

(35 ILCS 200/22-40)
15

Sec. 22-40.
Issuance of
order authorizing judicial tax
16
deed auction, confirmation and order for tax
deed; possession.
17

(a) To obtain an order
authorizing a judicial tax deed
18
auction and
for issuance of tax deed, the petitioner must
19
provide sufficient evidence that:
20

(1) the redemption period has expired and the property
21

has not been redeemed;
22

(2) all taxes and special assessments which became due
23

and payable subsequent to the sale have been paid, unless
24

the county or its agent, as trustee pursuant to Section
25

21-90, is the petitioner;

HB3146
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LRB104 11225 HLH 21307 b
1

(3) all forfeitures and sales which occur subsequent
2

to the sale are paid or redeemed, unless the county or its
3

agent, as trustee pursuant to Section 21-90, is the
4

petitioner;
5

(4) the notices required by law have been given, and
6

all advancements of public funds under the police power
7

made by a county, city, village
,
or town under Section
8

22-35 have been paid; and
9

(5) the petitioner has complied with all the
10

provisions of law entitling him or her to a deed.
11

Upon receipt of sufficient evidence of the requirements
12
under this subsection (a), the court shall find that the
13
petitioner complied with those requirements and shall enter an
14
order
authorizing a judicial tax deed auction subject to the
15
requirements of this Section, or subject to the requirements
16
in Section 21-90

directing the county clerk, on the production
17
of the tax certificate and a certified copy of the order, to
18
issue to the purchaser or its assignee a tax deed
. The court
19
shall insist on strict compliance with
Sections

Section
22-10
20
through 22-25. Prior to the entry of an order
under this
21
Section

directing the issuance of a tax deed
, the petitioner
22
shall furnish the court with a report of proceedings of the
23
evidence received on the application for tax deed
. Petitioner
24
shall also furnish to the court an estimate of redemption from
25
the county clerk showing the of the total taxes, penalties,
26
and costs that were required to be paid to redeem the tax sale

HB3146
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LRB104 11225 HLH 21307 b
1
as specified in the notice required under Section 22-10. The
2
petitioner for tax deed may file a statement of (i) all taxes
3
it has paid or redeemed for the property after the expiration
4
of the redemption period, (ii) the costs paid for a court
5
reporter and transcript services, (iii) the fees paid to the
6
clerk for the estimate of redemption, (iv) all payments made
7
for municipal advancements required by Section 22-35, and (v)
8
costs incurred pursuant to subsection (c) of Section 21-90.
9
The total of the amount shown on the estimate of redemption as
10
of the last day to redeem plus (i) through (v) above, or
11
portion thereof, plus a fee of equal to the then-allowable
12
foreclosure attorney fees for Illinois as published by Fannie
13
Mae, plus the cost of publication of the judicial tax deed
14
auction, shall be identified as the tax deed judgment amount.
15
The tax deed judgment amount shall accrue interest at 0.75%
16
per month, or portion thereof, from the date of the judgment
17
until the date of judicial tax deed auction. The order for
18
judicial tax deed auction shall include such terms and
19
conditions of the auction as specified by the court

and the
20
report of proceedings shall be filed and made a part of the
21
court record
.
22

(b) Except as provided in subsection (e)
of this Section
,
23
if taxes for years prior to the year or years sold are or
24
become delinquent subsequent to the date of sale, the court
25
shall find that the lien of those delinquent taxes has been or
26
will be merged into the tax deed grantee's title if the court

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1
determines that the tax deed grantee or any prior holder of the
2
certificate of purchase, or any person or entity under common
3
ownership or control with any such grantee or prior holder of
4
the certificate of purchase, was at no time the holder of any
5
certificate of purchase for the years sought to be merged. If
6
delinquent taxes are merged into the tax deed pursuant to this
7
subsection, the court shall enter an order declaring which
8
specific taxes have been or will be merged into the tax deed
9
title and directing the county treasurer and county clerk to
10
reflect that declaration in the warrant and judgment records;
11
provided, that no such order shall be effective until a tax
12
deed has been issued and timely recorded. Nothing contained in
13
this Section shall relieve any owner liable for delinquent
14
property taxes under this Code from the payment of the taxes
15
that have been merged into the title upon issuance of the tax
16
deed.
17

(c) The county clerk is entitled to a fee of $10 in
18
counties of 3,000,000 or more inhabitants and $5 in counties
19
with less than 3,000,000 inhabitants for the issuance of the
20
tax deed, with the exception of deeds issued to the county
21
pursuant to its authority under Section 21-90.
The fee paid to
22
the county clerk for the issuance of the tax deed shall be
23
accompanied by a $300 indemnity fund fee in counties of
24
3,000,000 or more inhabitants and a $100 indemnity fund fee in
25
counties with less than 3,000,000 inhabitants, with the
26
exception of deeds issued to the county pursuant to its

HB3146
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1
authority under Section 21-90. All fees received under this
2
subsection shall be paid by the county clerk to the county
3
treasurer of the county in which the land is situated for the
4
purpose of funding the county's indemnity fund established
5
under Section 21-295.

The clerk may not include in a tax deed
6
more than one property as listed, assessed and sold in one
7
description, except in cases where several properties are
8
owned by one person.
9

Upon application
,
the court shall
,
enter an order to place
10
the tax deed grantee or the grantee's successor in interest in
11
possession of the property and may enter orders and grant
12
relief as may be necessary or desirable to maintain the
13
grantee or the grantee's successor in interest in possession.
14

(d) The court shall retain jurisdiction to enter orders
15
pursuant to
subsections (b) and (c) of
this Section.
This
16
amendatory Act of the 92nd General Assembly and this
17
amendatory Act of the 95th General Assembly shall be construed
18
as being declarative of existing law and not as a new
19
enactment.
20

(e) Prior to the issuance of any
order for judicial
tax
21
deed
auction
under this Section, the petitioner must redeem
22
all taxes and special assessments on the property that are
23
subsequent to the date of its tax sale

subject to a pending tax
24
petition filed by a county or its assignee pursuant to Section
25
21-90
.
26

(e-5) Following the expiration of the period of

HB3146
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1
redemption, the petitioner's payment of (i) any subsequent tax
2
and special assessment and (ii) any redemption of any sale of
3
subsequent taxes or forfeiture shall be accompanied by an
4
indemnity fund fee of 10% of the principal taxes and interest
5
paid by the petitioner under this Section. All fees received
6
under this subsection shall be paid by the collector and
7
county clerk to the county treasurer of the county in which the
8
land is situated for the purpose of funding the county's
9
indemnity fund established by Section 21-295. No fees incurred
10
under this subsection shall be posted to the subject tax sale
11
pursuant to Section 21-355.

12

(f) If, for any reason, a purchaser fails to obtain an
13
order for tax deed within the required time period and no sale
14
in error was granted or redemption paid, then the certificate
15
shall be forfeited to the county, as trustee, pursuant to
16
Section 21-90.
17

(g) Except as provided in Section 21-90, upon entry of an
18
order requiring a judicial tax deed auction under subsection
19
(a) of this Section, the property shall be offered for sale by
20
public auction and sold to the highest bidder at such an
21
auction in accordance with the following minimum standards and
22
subject to additional requirements set by the court's order:
23

(1) The tax deed petitioner, its assignee, or a duly
24

appointed private selling officer, shall give notice of
25

the auction with the following information:
26

(A) the Property Identification Number and Address

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1

listed on the most recent tax bill;
2

(B) the time and place of the auction;
3

(C) the terms of the auction; and
4

(D) the amount of the tax deed judgment amount
5

provided in Section 22-40.
6

The Notice of Tax Deed Auction shall be mailed via
7

first class mail to all interested parties at the address
8

at which service of the Section 22-10 Take Notice was
9

attempted and to any parties who have appeared in the
10

proceeding. The notice shall include a sworn certificate
11

of service signed by the party sending the notice
12

attesting to the fact that the notice of auction was
13

placed in the mail at least 10 calendar days prior to the
14

date of the auction.
15

The notice of auction shall be published at least 3
16

consecutive calendar weeks (Sunday through Saturday), once
17

in each week, the first such notice to be published not
18

more than 45 days prior to the auction, the last such
19

notice to be published not less than 7 days prior to the
20

auction. If the property is located in a municipality in a
21

county with less than 3,000,000 inhabitants, the purchaser
22

or his or her assignee shall also publish a notice as to
23

the owner or party interested, in some newspaper published
24

in the municipality. If the petitioner cannot identify a
25

newspaper published in the municipality, or if the
26

property is located in a county with 3,000,000 or more

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1

inhabitants, the notice shall be published in a newspaper
2

published within the county. If no newspaper is published
3

in the county, then the notice shall be published in the
4

newspaper that is published nearest the county seat of the
5

county in which the property is located. The publication
6

shall include all information included in the notice sent
7

pursuant to this Section.
8

(2) The selling officer shall start all bidding with a
9

minimum bid equal to (1) the tax deed judgment amount plus
10

interest at the rate of 0.75% per month, or portion
11

thereof, for each month since the date of judgment, (2)
12

the cost for the publication of the judicial sale required
13

in this Section; and (3) the costs of the selling officer.
14

The selling officer shall proceed to a public auction,
15

offer the real estate for sale, and sell the real estate to
16

the highest bidder. If no bidder is willing to pay the
17

minimum bid, the tax certificate holder shall be the
18

winning bidder and entitled to a tax deed, and it shall be
19

conclusively presumed that there is no equity in the
20

property.
21

(3) At the auction under this Section, the person
22

conducting the auction shall enter a bid in favor of the
23

tax certificate holder in the amount of the minimum bid
24

set forth above. Any tax deed Petitioner shall have a
25

final right of first refusal or final bid at the close of
26

the judicial tax deed judicial sale auction.

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1

(4) Upon and at the conclusion of the judicial tax
2

deed auction, the person conducting the auction shall give
3

to the purchaser a receipt of sale. The receipt shall
4

describe the real estate purchased and shall show the
5

amount bid, the total amount paid to date, and the amount
6

still to be paid therefor. An additional receipt shall be
7

given at the time of each subsequent payment. Any
8

purchaser who fails to complete the sale for failure to
9

make full payment shall forfeit to the county indemnity
10

fund any deposit already made, and the court shall order a
11

new auction of the property.
12

(5) Upon payment in full of the amount bid, the person
13

conducting the sale shall issue, in duplicate, and give to
14

the purchaser a certificate of judicial tax deed sale. The
15

certificate of judicial tax deed sale shall be in a
16

recordable form, describe the real estate purchased,
17

indicate the date and place of sale and show the amount
18

paid therefor. The certificate of tax deed sale shall
19

further indicate that it is subject to confirmation by the
20

court. The certificate of sale shall be freely assignable
21

by endorsement thereon.
22

(6) To the extent that the winning bid exceeds the tax
23

deed judgment amount, the selling officer shall deposit
24

the surplus funds with the treasurer of the county in
25

which the subject property lies upon the expiration of 30
26

days following confirmation of the sale. The petitioner

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1

shall send a notice to all parties entitled to the section
2

22-10 Take Notice, stating that the owner is entitled to a
3

distribution of surplus proceeds and may file a claim to
4

recover the surplus.
5

(h) Confirmation of sale; Order for Issuance of Tax Deed.
6

(1) The person conducting the sale shall promptly make
7

a report to the court that issued the order authorizing
8

the judicial tax deed auction, which report shall include
9

a copy of all receipts and, if any, certificate of
10

judicial tax deed sale.
11

(2) Upon motion and notice in accordance with court
12

rules applicable to motions generally, which motion shall
13

not be made prior to sale, the court shall conduct a
14

hearing to confirm the sale. Unless the court finds that a
15

notice required in this Section was not issued or the sale
16

was not conducted in accordance with the order for
17

judicial tax deed auction, the court shall enter an order
18

(a) confirming the judicial tax deed sale, (b) directing
19

the county clerk to issue a tax deed in the name of the
20

holder of the certificate of judicial tax deed sale once
21

presented with a certified copy of the confirmation order
22

and original certificate of judicial tax deed sale, and
23

(c) directing the selling officer to pay to the holder of
24

the tax certificate the amount of the credit bid upon
25

surrender of the tax certificate, and to pay the selling
26

officer its fees. The order for issuance of tax deed shall

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1

contain the name, address, and telephone number of the
2

holder of the certificate of judicial tax sale for the
3

clerk to confirm the identity of the tax deed grantee.
4

(3) If any sale fails to comply with the requirements
5

in this Section, any party may, by motion supported by
6

affidavit made prior to confirmation of such sale, request
7

that the court which entered the judgment set aside the
8

judicial tax deed sale. Any such party shall guarantee or
9

secure by bond a bid equal to the successful bid at the
10

judicial tax deed auction. No guarantee or bond shall be
11

required if the property is residential and the party
12

seeking to set aside the sale is the owner-occupant of the
13

property at the time the motion is filed. If the court
14

denies confirmation of the judicial tax deed sale, it
15

shall order a new judicial tax deed auction. Any
16

subsequent auction is subject to the same notice
17

requirement as the original auction.
18

(4) No sale under this Section shall be held invalid
19

or be set aside because of any defect in the notice thereof
20

or in the publication of the same, or in the proceedings of
21

the officer conducting the sale.
22

(i) Order to Disburse Surplus Proceeds. Upon a filing of
23
motion by any interested party, the court hearing the
24
underlying tax case shall set a hearing to determine whether
25
an interested party is the owner of record entitled to a
26
disbursement of surplus proceeds. All interested parties in

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1
the underlying case shall be notified of the motion for
2
disbursement of proceeds. Any party claiming to have an
3
ownership interest in the parcel at the time of the issuance of
4
tax deed may present evidence of ownership and request a
5
disbursement of any or all surplus proceeds. The court shall
6
issue an order directing the treasurer to disburse a specific
7
amount of surplus proceeds to specific parties, with
8
sufficient personally identifiable information to accurately
9
identify the parties entitled to disbursement.

10
(Source: P.A. 103-555, eff. 1-1-24; revised 8-5-24.)

11

(35 ILCS 200/22-65)
12

Sec. 22-65.
Form of deed.
A tax deed executed by the county
13
clerk under the official seal of the county shall be recorded
14
in the same manner as other conveyances of property, and vests
15
in the grantee, his or her heirs and assigns, the title of the
16
property therein described without further acknowledgment or
17
evidence of the conveyance.
Tax deeds issued under this
18
Section shall not require a municipal transfer stamp or be
19
subject to any municipal real estate transfer taxes,
20
requirements or certifications prior to recording.
The
21
conveyance shall be substantially in the following form:
22
State of Illinois)

23
) ss.

24
County of .......)
25

At a public sale of property for the nonpayment of taxes,

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1
held in the county above stated, on (insert date), the
2
following described property was sold: (here place description
3
of property conveyed). The property not having been redeemed
4
from the sale, and it appearing that the holder of the
5
certificate of purchase of the property has complied with the
6
laws of the State of Illinois necessary to entitle (insert
7
him, her or them) to a deed of the property: I ...., county
8
clerk of the county of ...., in consideration of the property
9
and by virtue of the statutes of the State of Illinois in such
10
cases provided, grant and convey to ...., his or her heirs and
11
assigns forever, the property described above.
12

Dated (insert date).
13
Signature of .................. County Clerk
14
Seal of County of ...., Illinois
15
(Source: P.A. 91-357, eff. 7-29-99.)

16

Section 10.
The Mortgage Rescue Fraud Act is amended by
17
changing Sections 5 and 30 as follows:

18

(765 ILCS 940/5)
19

Sec. 5.
Definitions.
As used in this Act:
20

"Distressed property" means residential real property
21
consisting of one to 6 family dwelling units that is in
22
foreclosure or at risk of loss due to nonpayment of taxes, or
23
whose owner is more than 30 days delinquent on any loan that is
24
secured by the property.

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1

"Distressed property consultant" means any person who,
2
directly or indirectly, for compensation from the owner, makes
3
any solicitation, representation, or offer to perform or who,
4
for compensation from the owner, performs any service that the
5
person represents will in any manner do any of the following:
6

(1) stop or postpone the foreclosure sale or stop or
7

postpone the loss of the home due to nonpayment of taxes;
8

(2) obtain any forbearance from any beneficiary or
9

mortgagee, or relief with respect to a tax sale of the
10

property;
11

(3) assist the owner to exercise any right of
12

reinstatement or right of redemption;
13

(4) obtain any extension of the period within which
14

the owner may reinstate the owner's rights with respect to
15

the property;
16

(5) obtain any waiver of an acceleration clause
17

contained in any promissory note or contract secured by a
18

mortgage on a distressed property or contained in the
19

mortgage;
20

(6) assist the owner in foreclosure, loan default, or
21

post-tax sale redemption period to obtain a loan or
22

advance of funds;
23

(7) avoid or ameliorate the impairment of the owner's
24

credit resulting from the recording of a notice of default
25

or the conduct of a foreclosure sale or tax sale; or
26

(8) save the owner's residence from foreclosure or

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1

save the owner from loss of home due to nonpayment of
2

taxes.
3

A "distressed property consultant" does not include any of
4
the following:
5

(1) a person or the person's authorized agent acting
6

under the express authority or written approval of the
7

Department of Housing and Urban Development;
8

(2) a person who holds or is owed an obligation
9

secured by a lien on any distressed property, or a person
10

acting under the express authorization or written approval
11

of such person, when the person performs services in
12

connection with the obligation or lien, if the obligation
13

or lien did not arise as the result of or as part of a
14

proposed distressed property conveyance;
15

(3) banks, savings banks, savings and loan
16

associations, credit unions, and insurance companies
17

organized, chartered, or holding a certificate of
18

authority to do business under the laws of this State or
19

any other state or under the laws of the United States;
20

(4) attorneys licensed in Illinois engaged in the
21

practice of law;
22

(5) a Department of Housing and Urban Development
23

approved mortgagee and any subsidiary or affiliate of
24

these persons or entities, and any agent or employee of
25

these persons or entities, while engaged in the business
26

of these persons or entities;

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LRB104 11225 HLH 21307 b
1

(6) a 501(c)(3) nonprofit agency or organization,
2

doing business for no less than 5 years, that offers
3

counseling or advice to an owner of a distressed property,
4

if they do not contract for services with for-profit
5

lenders or distressed property purchasers, or any person
6

who structures or plans such a transaction;
7

(7) (blank);
8

(8) licensees of the Consumer Installment Loan Act who
9

are authorized to make loans secured by real property; or
10

(9) licensees of the Real Estate License Act of 2000
11

when providing licensed activities.
12

"Distressed property purchaser" means any person who
13
solicits an owner of distressed property and
acquires any
14
interest in fee in a distressed property or a beneficial
15
interest in a trust holding title to a distressed property
16
while allowing the owner to possess, occupy, or retain any
17
present or future interest in fee in the property
, or any
18
person who participates in a joint venture or joint enterprise
19
involving a distressed property conveyance. "Distressed
20
property purchaser" does not mean any person who acquires
21
distressed property at a short sale or any person acting in
22
participation with any person who acquires distressed property
23
at a short sale, if that person does not promise to convey an
24
interest in fee back to the owner or does not give the owner an
25
option to purchase the property at a later date.
26

"Distressed property conveyance" means a transaction in

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LRB104 11225 HLH 21307 b
1
which an owner of a distressed property transfers an interest
2
in fee in the distressed property or in which the holder of all
3
or some part of the beneficial interest in a trust holding
4
title to a distressed property transfers that interest
; the
5
acquirer of the property allows the owner of the distressed
6
property to occupy the property; and the acquirer of the
7
property or a person acting in participation with the acquirer
8
of the property conveys or promises to convey an interest in
9
fee back to the owner or gives the owner an option to purchase
10
the property at a later date
.
11

"Person" means any individual, partnership, corporation,
12
limited liability company, association, or other group or
13
entity, however organized.
14

"Service" means, without limitation, any of the following:
15

(1) debt, budget, or financial counseling of any type;
16

(2) receiving money for the purpose of distributing it
17

to creditors in payment or partial payment of any
18

obligation secured by a lien on a distressed property;
19

(3) contacting creditors on behalf of an owner of a
20

residence that is distressed property;
21

(4) arranging or attempting to arrange for an
22

extension of the period within which the owner of a
23

distressed property may cure the owner's default and
24

reinstate his or her obligation;
25

(5) arranging or attempting to arrange for any delay
26

or postponement of the time of sale of the distressed

HB3146
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1

property;
2

(6) advising the filing of any document or assisting
3

in any manner in the preparation of any document for
4

filing with any court; or
5

(7) giving any advice, explanation, or instruction to
6

an owner of a distressed property that in any manner
7

relates to the cure of a default or forfeiture or to the
8

postponement or avoidance of sale of the distressed
9

property.
10
(Source: P.A. 94-822, eff. 1-1-07; 95-691, eff. 6-1-08;
11
95-1047, eff. 4-6-09.)

12

(765 ILCS 940/30)
13

Sec. 30.
Distressed property conveyance contract terms.
14
Every contract required by Section 25 must contain the entire
15
agreement of the parties, be fully assignable, and survive
16
delivery of any instrument of conveyance of the distressed
17
property. Every lease entered into pursuant to a contract
18
required by Section 25 is terminable at will by the distressed
19
property owner, without liability. Every contract required by
20
Section 25 must include the following terms:
21

(1) the name, business address, and the telephone
22

number of the distressed property purchaser;
23

(2) the address of the distressed property;
24

(3) the total consideration to be given by the
25

distressed property purchaser or tax lien payor in

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LRB104 11225 HLH 21307 b
1

connection with or incident to the sale;
2

(4) a complete description of the terms of payment or
3

other consideration including, but not limited to, any
4

services of any nature that the distressed property
5

purchaser represents he or she will perform for the owner
6

of the distressed property before or after the sale;
7

(5) a complete description of the terms of any related
8

agreement designed to allow the owner of the distressed
9

property to remain in the home such as a rental agreement,
10

repurchase agreement, contract for deed, or lease with
11

option to buy;
12

(6) a notice of cancellation as provided in this
13

Section;
14

(7) the following notice in at least 12-point boldface
15

type, if the contract is printed, or in capital letters,
16

if the contract is typed, and completed with the name of
17

the distressed property purchaser, immediately above the
18

statement required by this Section:
19
"NOTICE REQUIRED BY ILLINOIS LAW
20

Until your right to cancel this contract has ended,
21

..................(Name) or anyone working for
22

...................(Name) CANNOT ask you to sign or have
23

you sign any deed or any other document. You are urged to
24

have this contract reviewed by an attorney of your choice
25

within 5 business days of signing it."; and
26

(8) if title to the distressed property will be

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LRB104 11225 HLH 21307 b
1

transferred in the conveyance transaction, the following
2

notice in at least 14-point boldface type if the contract
3

is printed, or in capital letters if the contract is
4

typed, and completed with the name of the distressed
5

property purchaser, immediately above the statement
6

required by this Section:
7
"NOTICE REQUIRED BY ILLINOIS LAW
8

As part of this transaction, you are giving up title
9

to your home.".
10

(9) In the case a distressed property is at risk of
11

loss for the non-payment of real estate taxes, a statement
12

that the property owner may have the right to obtain money
13

for any equity lost if a tax deed is issued, either through
14

the right to indemnity or public auction, and will lose
15

the right to claim the surplus equity if they sell the
16

property, and should consult an attorney to discuss their
17

options before selling their property.

18
(Source: P.A. 94-822, eff. 1-1-07.)

19

Section 99.
Effective date.
This Act takes effect upon
20
becoming law.

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