PROP TX-TAX SALE

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SB3940 - 104th General Assembly

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3940

Introduced 2/6/2026, by Sen. Celina Villanueva

SYNOPSIS AS INTRODUCED:

35 ILCS 200/1-21 new
35 ILCS 200/1-22 new
35 ILCS 200/21-90
35 ILCS 200/21-110
35 ILCS 200/21-115
35 ILCS 200/21-160
35 ILCS 200/21-190
35 ILCS 200/21-205
35 ILCS 200/21-215
35 ILCS 200/21-225
35 ILCS 200/21-302 new
35 ILCS 200/21-305
35 ILCS 200/21-350
35 ILCS 200/22-5
35 ILCS 200/22-10
35 ILCS 200/22-40
35 ILCS 200/22-42 new
35 ILCS 200/22-65
765 ILCS 940/5
765 ILCS 940/30

Amends the Property Tax Code. Provides that a county, as trustee, may
elect to acquire or sell tax delinquent property. Provides that the owner
of property who sustains loss or damage by reason of the issuance of a deed
at a tax deed auction shall have the right to recover surplus equity which
was lost in the property through an award of indemnity. Provides that, in
counties with 3,000,000 or more inhabitants, the period of redemption is 3
years from the date of sale.
LRB104 17732 HLH 31163 b

A BILL FOR

SB3940
LRB104 17732 HLH 31163 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, 21-110, 21-115, 21-160, 21-190, 21-205,
6
21-215, 21-225, 21-305, 21-350, 22-5, 22-10, 22-40, and 22-65
7
and by adding Sections 1-21, 1-22, 21-302, and 22-42 as
8
follows:

9

(35 ILCS 200/1-21 new)
10

Sec. 1-21.
Interested party.
"Interested party" means any
11
party having an interest in the property as revealed by a title
12
examination of public records. "Interested party" does not
13
include the holder of the benefit or burden of any easement
14
whose interest is properly recorded, which interest shall
15
remain unaffected by property tax enforcement proceedings.

16

(35 ILCS 200/1-22 new)
17

Sec. 1-22.
Tax Sale and Tax Deed Auction.
18

(a) "Tax sale" means the transfer of a property tax lien or
19
tax certificate in accordance with Sections 21-90, 21-145,
20
21-205, 21- 225, 21-250, or 21-260 of this Code.
21

(b) "Tax deed auction" means the transfer of property by
22
an auction conducted in accordance with Sections 21-90, 22-10,

SB3940
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LRB104 17732 HLH 31163 b
1
22-40, or 22-42 of this Code.

2

(35 ILCS 200/21-90)
3

Sec. 21-90.
Purchase and sale by county; distribution of
4
proceeds.
5

(a) When any property is offered
at a

for
sale under any of
6
the provisions of this Code, the county board of the county in
7
which the property is located, in its discretion, may bid, or,
8
in the case of forfeited property, may apply to purchase it or
9
otherwise acquire the tax lien or certificate in the name of
10
the county as trustee for all taxing districts having an
11
interest in the property's taxes or special assessments for
12
the nonpayment of which the property is sold. The presiding
13
officer of the county board, with the advice and consent of the
14
board, may appoint on its behalf some officer, person, or
15
entity to attend such sales, bid on tax liens or certificates,
16
and act on behalf of the county when exercising its authority
17
under this Section. The county shall apply on the bid or
18
purchase the unpaid taxes and special assessments due upon the
19
property. No cash need be paid.
20

(b) The county, as trustee for all taxing districts having
21
an interest in the property's taxes or special assessments,
22
shall be the designated holder of all tax liens or
23
certificates that are forfeited to the State or county
or
24
otherwise acquired by the county pursuant to subsection (a) of
25
this Section or Sections 21-190 to 21-255 of this Code
. No cash

SB3940
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LRB104 17732 HLH 31163 b
1
need be paid for
any tax lien or certificate acquired by the
2
county pursuant to subsection (a) of this Section or Section
3
21-190 through 21-255 of this Code

the forfeited tax lien or
4
certificate
.
5

(c) For any tax lien or certificate acquired under
6
subsection (a) or (b) of this Section,
or for any property
7
otherwise purchased or acquired by the county pursuant to
8
Sections 190 to 255 of this Code,
the county may take steps
9
necessary to acquire
or sell
title to the property and may
10
manage and operate the property, including, but not limited
11
to, mowing of grass, removal of nuisance greenery, removal of
12
garbage, waste, debris or other materials, or the demolition,
13
repair, or remediation of unsafe structures. When a county, or
14
other taxing district within the county, is a petitioner for a
15
tax deed, no filing fee shall be required. When a county or
16
other taxing district within the county is the petitioner for
17
a tax deed, one petition may be filed including all parcels
18
that are tax delinquent within the county or taxing district,
19
and any publication made under Section 22-20 of this Code may
20
combine all such parcels within a single notice. The notice
21
may include the
property

street
address as listed on the most
22
recent available tax bills, if available, and shall list the
23
Property Index Number of the parcels for informational
24
purposes. The county, as tax creditor and as trustee for other
25
tax creditors, or other taxing district within the county,
26
shall not be required to allege and prove that all taxes and

SB3940
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LRB104 17732 HLH 31163 b
1
special assessments which become due and payable after the
2
sale or forfeiture to the county have been paid nor shall the
3
county be required to pay the subsequently accruing taxes or
4
special assessments at any time. The county board or its
5
designee may prohibit the county collector from including the
6
property in the tax sale of one or more subsequent years. The
7
lien of taxes and special assessments which become due and
8
payable after a
tax
sale to a county shall merge in the fee
9
title of the county, or other taxing district within the
10
county, on the issuance of a deed.
11

The county may sell any property acquired with authority
12
provided in this Section, or assign any tax certificate to any
13
party, including, but not limited to, taxing districts,
14
municipalities, land banks created pursuant to Illinois law,
15
or non-profit developers focused on constructing affordable
16
housing.
17

The assigned tax certificate shall be void with no further
18
rights given to the assignee, including no right to refund or
19
reimbursement, if a tax deed
resulting from a tax deed auction

20
has not been recorded within 4 years after the date of the
21
assignment unless a court extends the assignment period as
22
provided in this Section. Upon a motion by the assignee, a
23
court may toll the 4-year deadline for a specified period of
24
time if the court finds the assignee is prevented from
25
obtaining or recording a deed by injunction or order of any
26
court, by the refusal or inability of any court to act upon the

SB3940
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LRB104 17732 HLH 31163 b
1
application for a tax deed, by a municipality's refusal to
2
issue necessary
transfer stamps or
approvals for recording, or
3
by the refusal of the clerk to execute the deed. If an assigned
4
tax certificate is void under this Section, it shall be
5
forfeited to the county and held as a valid certificate of sale
6
in the county's name pursuant to this Section 21-90. The
7
proceeds of any sale or assignment under this Section, less
8
all costs of the county incurred in the acquisition,
9
operation, maintenance, and sale of the property or assignment
10
of the tax certificate, including all costs associated with
11
county staff and overhead used to perform the duties of the
12
trustee set forth in this Section,
and less any surplus
13
payments to owners,
shall be distributed to the taxing
14
districts in proportion to their respective interests therein.
15

Under Sections 21-110, 21-115, 21-120, and 21-190, a
16
county may bid or purchase only in the absence of other
17
bidders.
18

(d) The county, as trustee, may elect to acquire or sell
19
tax delinquent property under either the provisions of this
20
Section, or under Sections 22-10, 22-40, and 22-42 of this
21
Code.
22

(e) When the county, as trustee, files a petition for one
23
or more delinquent tax liens or certificates, the county may
24
request, pursuant to Section 22-40, that the court issue a tax
25
deed to the county, as trustee, without holding a judicial tax
26
deed auction. If the county requests a tax deed without a tax

SB3940
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LRB104 17732 HLH 31163 b
1
deed auction pursuant to Section 22- 40 and 22-42 of this Code,
2
the Order for Issuance of Tax Deed shall identify the total
3
amount of delinquent taxes and penalties, municipal
4
advancements identified in Section 22-35, pro rata county
5
costs incurred pursuant to subsections (a) through (c) of
6
Section 21-90, and other posted costs for each parcel
7
conveyed. This judgment amount shall be considered the amount
8
for which the county, as trustee, has purchased the property.
9
The Order for Issuance of Tax Deed shall also include an order
10
for the county to offer each parcel purchased by the county in
11
this manner for sale at a public tax deed auction, as set forth
12
in subsection (f) of this Section, within 120 days of
13
recording the tax deed. The purpose of the public tax deed
14
auction as set forth in subsection (f) of this Section is to
15
determine whether and to what extent there are surplus funds
16
owed by the county, as trustee, to the former owner that exceed
17
the judgment amount indicated in the Order for Issuance of Tax
18
Deed. If no party bids more than this amount at the public tax
19
deed auction described in subsection (f) of Section 21-90,
20
then the purchase price will be recorded as the amount the
21
county, as trustee, paid for the property as reflected in the
22
Order for Issuance of Tax Deed, and there are no surplus funds
23
owed to the former owner.
24

(f) County Tax Deed Auctions. Tax deed auctions held by
25
the county pursuant to this Section shall conform with the
26
following requirements.

SB3940
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LRB104 17732 HLH 31163 b
1

(1) Notice. The county or its agent shall give notice
2

of the tax deed auction with the following information:
3

(i) the Property Identification Number and
4

property address listed on the latest tax bill;
5

(ii) the time and place of the auction;
6

(iii) the terms of the auction; and
7

(iv) the total amount of delinquent taxes and
8

penalties, municipal advancements identified in
9

Section 22-35, pro rata county costs incurred pursuant
10

to subsections (a) through (c) of Section 21-90, and
11

other posted costs.
12

In counties with 3,000,000 or more inhabitants, the
13

notice of tax deed auction shall be in clear and concise
14

language, together with a notice in Spanish, Polish, and
15

Mandarin Chinese, stating that the notice of tax deed
16

auction affects important legal rights and should be
17

translated immediately. The notice of tax deed auction
18

shall be mailed via first class mail to all interested
19

parties, and via first class mail and certified mail to
20

the owner of the property at the time the tax deed was
21

issued, at the address(es) at which service of process was
22

made. If service of process was made in any manner other
23

than personal service, substitute service, corporate
24

service, or government service, notice shall be mailed via
25

first class mail to all addresses included in the notice
26

served pursuant to Section 22-25. The notice shall include

SB3940
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LRB104 17732 HLH 31163 b
1

a sworn certificate of service signed by the party sending
2

the notice attesting to the fact that the notice of tax
3

deed auction was placed in the mail at least 21 calendar
4

days prior to the date of the auction. The notice of tax
5

deed auction shall be published at least 3 consecutive
6

calendar weeks (Sunday through Saturday), once in each
7

week, the first such notice to be published not more than
8

45 days prior to the tax deed auction, the last such notice
9

to be published not less than 7 days prior to the auction.
10

If the property is located in a municipality in a county
11

with less than 3,000,000 inhabitants, all parcels may be
12

contained within a single notice, or if the property is
13

located in a county with 3,000,000 or more inhabitants,
14

the notice shall be published in a newspaper published
15

within the county. The publication shall include all
16

information included in the notice sent pursuant to this
17

Section. At least 21 days prior to the date of the auction,
18

the county or its agent must post on its website a list of
19

all properties that are to be offered for sale at the tax
20

deed auction and the other information contained in the
21

notice of tax deed auction. The person conducting the
22

auction may engage in activities to promote and market the
23

sale to encourage and facilitate bidding, including
24

listing the property on the county's or its agent's
25

website, other real estate websites, and conducting email
26

campaigns.

SB3940
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LRB104 17732 HLH 31163 b
1

(2) Minimum Bid. The county shall establish minimum
2

bids at any tax deed auction held pursuant to this
3

Section, that shall equal the total amount of delinquent
4

taxes and penalties, municipal advancements identified in
5

Section 22-35, pro rata county costs incurred pursuant to
6

subsections (a) through (c) of Section 21-90(a)-(c), and
7

other posted costs, for the auctioned parcel, as
8

identified in the Order for Issuance of Tax Deed. In
9

counties with less than 3,000,000 inhabitants, the county
10

may establish minimum bids at any tax deed auction held
11

pursuant to this Section, that may equal the total amount
12

of delinquent taxes and penalties, municipal advancements
13

identified in Section 22-35, pro rata county costs
14

incurred pursuant to subsections (a) through (c) of
15

Section 21-90, and other posted costs, for the auctioned
16

parcel, as identified in the Order for Issuance of Tax
17

Deed. As used in this Section, "pro rata county costs" may
18

include costs incurred by the county in filing one
19

petition for more than one delinquent tax lien or
20

certificate, and all costs related to the filing of the
21

one petition and obtaining tax deeds for the liens and
22

certificates identified in the one petition, reasonably
23

apportioned and included in the total costs for each
24

individual tax deed issued pursuant to the petition.
25

(3) Adjournment. If a tax deed auction is postponed,
26

adjourned, or re-scheduled to occur less than 60 days

SB3940
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LRB104 17732 HLH 31163 b
1

after the last scheduled auction, the county shall
2

announce the date, time and place upon which the adjourned
3

tax deed auction shall be held at the time, date, and
4

location in the notice. At a minimum, this announcement
5

shall be posted on the website of the county, as trustee,
6

or the county treasurer in the same location where the
7

county posted the list of all properties that are to be
8

sold at the auction as required in paragraph (1) of
9

subsection (f) of Section 21-90. The County is not
10

required to send additional notice of any postponed tax
11

deed auction as provided in paragraph (1) of subsection
12

(f) of Section 21-90. Notwithstanding any language to the
13

contrary, for tax deed auctions that are conducted more
14

than 60 days after the date in the required notice, the
15

county shall send notice of the adjourned tax deed auction
16

in accordance with paragraph (1) of subsection (f) of
17

Section 21-90.
18

(4) Payment for Winning Bid. The county shall
19

participate in a public tax deed auction in the same
20

manner as any other bidder. No matter the terms of the tax
21

deed auction prescribed by the county, if the county is
22

the winning bidder it is required to pay the full amount of
23

any county bid that exceeds the credit bid prior to the
24

deposit of surplus funds with the treasurer of the county
25

as set forth in paragraph (6) of this Section.
26

(5) Marketability of Title. Failure to hold a public

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LRB104 17732 HLH 31163 b
1

tax deed auction of the parcels received within the
2

180-day period shall not affect the validity of the
3

recorded deed, the Order for Issuance of Tax Deed, or
4

otherwise affect the marketability of title, but the
5

county is prohibited from transferring such parcels or
6

assigning the recorded deed without holding a public tax
7

deed auction pursuant to Section 21-90(f) or a judicial
8

tax deed auction pursuant to Section 22-40.
9

(6) Disbursement of Surplus Funds. To the extent that
10

the winning bid at the tax deed auction exceeds the amount
11

of the tax deed judgment as defined in subsection (e) of
12

Section 21-90, within 30 days of the auction sale the
13

county trustee shall deposit the surplus funds with the
14

treasurer of the county in which the subject property
15

lies. Within 60 days of the tax deed auction at which the
16

property was purchased, the county, as trustee, shall send
17

a notice to interested parties in the underlying case,
18

stating that the owner is entitled to a distribution of
19

surplus proceeds and may file a claim pursuant to
20

subsection (i) of Section 22-40 of the Property Tax Code.
21

In counties with 3,000,000 or more inhabitants, the notice
22

shall be in clear and concise language, together with a
23

notice in Spanish, Polish, and Mandarin Chinese, stating
24

that the notice affects important legal rights and should
25

be translated immediately.

26
(Source: P.A. 102-363, eff. 1-1-22; 103-555, eff. 1-1-24
.)

SB3940
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LRB104 17732 HLH 31163 b
1

(35 ILCS 200/21-110)
2

Sec. 21-110.
Published notice of annual application for
3
judgment and sale; delinquent taxes. At any time after all
4
taxes have become delinquent in any year, the Collector shall
5
publish an advertisement, giving notice of the intended
6
application for judgment and
tax
sale of the delinquent
7
properties. The advertisement may include the
street
address
8
on file with the county collector, if available, and shall
9
include the PIN number of each delinquent property.
If the
10
county has provided notice to the Collector of its intent to
11
acquire property offered at an annual tax sale in the manner
12
described in subsection (b) of Section 21-190, the
13
advertisement shall indicate which properties the county
14
intends to acquire next to the PIN number and address, if any,
15
listed in the advertisement. If the county has indicated its
16
intent or is required to acquire all properties offered at
17
such a tax sale in accordance with subsection (b) or (c) of
18
Section 21-190, a sentence indicating such shall precede the
19
list of PIN numbers and addresses in the advertisement in
20
clear, bolded language.
Except as provided below, the
21
advertisement shall be in a newspaper published in the
22
township or road district in which the properties are located.
23
If there is no newspaper published in the township or road
24
district, then the notice shall be published in some newspaper
25
in the same county as the township or road district, to be

SB3940
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LRB104 17732 HLH 31163 b
1
selected by the county collector. When the property is in a
2
city with more than 1,000,000 inhabitants, the advertisement
3
may be in any newspaper published in the same county. When the
4
property is in an incorporated town which has superseded a
5
civil township, the advertisement shall be in a newspaper
6
published in the incorporated town or if there is no such
7
newspaper, then in a newspaper published in the county.
8

The provisions of this Section relating to the time when
9
the Collector shall advertise intended application for
10
judgment for sale are subject to modification by the governing
11
authority of a county in accordance with the provisions of
12
subsection (c) of Section 21-40.
13
(Source: P.A. 97-557, eff. 7-1-12
.)

14

(35 ILCS 200/21-115)
15

Sec. 21-115.
Times of publication of notice.
The
16
advertisement shall be published once at least 10 days before
17
the day on which judgment is to be applied for, and shall
18
contain a list of the delinquent properties upon which the
19
taxes or any part thereof remain due and unpaid, the names of
20
owners, if known, the total amount due,
and
the year or years
21
for which they are due
, and whether the county intends to
22
purchase the property in accordance with subsections (b) or
23
(c) of Section 21-190 if a judgment is entered against the
24
property
. In counties of less than 3,000,000 inhabitants,
25
advertisement shall include notice of the registration

SB3940
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LRB104 17732 HLH 31163 b
1
requirement for persons bidding at the sale. Properties upon
2
which taxes have been paid in full under protest shall not be
3
included in the list.
4

The collector shall give notice that he or she will apply
5
to the circuit court on a specified day for judgment against
6
the properties for the taxes, and costs, and for an order
for a
7
tax sale of

to sell
the properties for the satisfaction of the
8
amount due.
9

The collector shall also give notice of a date within the
10
next 5 business days after the date of application on which all
11
the properties for the
tax
sale of which an order is made will
12
either sold to the county in accordance with subsections (b)
13
or (c) of Section 21-190, or
be exposed to public
tax
sale at a
14
location within the county designated by the county collector,
15
for the amount of taxes, and cost due. The advertisement
16
published according to the provisions of this Section shall be
17
deemed to be sufficient notice of the intended application for
18
judgment and of
a tax sale

the sale of properties
under the
19
order of the court. A county with fewer than 3,000,000
20
inhabitants may, by joint agreement, combine its tax sale with
21
the tax sale of one or more other contiguous counties; such a
22
joint tax sale shall be held at a location in one of the
23
participating counties. Notwithstanding the provisions of this
24
Section and Section 21-110, in the 10 years following the
25
completion of a general reassessment of property in any county
26
with 3,000,000 or more inhabitants, made under an order of the

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LRB104 17732 HLH 31163 b
1
Department, the publication shall be made not sooner than 10
2
days nor more than 90 days after the date when all unpaid taxes
3
on property have become delinquent.
4
(Source: P.A. 101-379, eff. 1-1-20
.)

5

(35 ILCS 200/21-160)
6

Sec. 21-160.
Annual tax judgment, sale, redemption, and
7
forfeiture record.
The collector shall transcribe into a
8
record prepared for that purpose, and known as the annual tax
9
judgment,
tax
sale, redemption and forfeiture record, the list
10
of delinquent properties. On or before the day on which
11
application for judgment is to be made, the record shall be
12
made out in numerical order and contain all the information
13
necessary to be recorded.
14

The record shall set forth the name of the owner, if known;
15
the description of the property; the year or years for which
16
the tax or, in counties with 3,000,000 or more inhabitants,
17
the tax or special assessments
is
due; the valuation on which
18
the tax is extended; the amount of the consolidated and other
19
taxes or in counties with 3,000,000 or more inhabitants, the
20
consolidated and other taxes and special assessments; the
21
costs; and the total amount of charges against the property.
22

The final record shall also be ruled in columns, to show in
23
counties with 3,000,000 or more inhabitants the withdrawal of
24
any special assessments from collection and in all counties to
25
show the amount paid before entry of judgment; the amount of

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judgment and a column for remarks; the amount paid before sale
2
and after entry of judgment; the amount of the sale; amount of
3
interest or penalty; amount of cost; amount forfeited to the
4
State; date of sale; acres or part sold; name of purchaser;
5
amount of sale and penalty; taxes of succeeding years;
6
interest and when paid, interest and cost; total amount of
7
redemption; date of redemption; when deed executed; by whom
8
redeemed; and a column for remarks or receipt of redemption
9
money.
10

The final record shall be kept in the office of the county
11
clerk.
12
(Source: P.A. 95-269, eff. 8-17-07.)

13

(35 ILCS 200/21-190)
14

Sec. 21-190.
Entry of judgment for
tax
sale.

15

(a)
If judgment is rendered against any property for any
16
tax or, in counties with 3,000,000 or more inhabitants, for
17
any tax or special assessment, the county collector shall,
18
after publishing a notice for sale in compliance with the
19
requirements of Sections 21-110
,

and
21-115
,
or 21-120,
20
proceed to
conduct a tax sale

offer the property for sale

21
pursuant to the judgment. However, in the case of an appeal
22
from the judgment, if the party, when filing notice of appeal
23
deposits with the county collector the amount of the judgment
24
and costs, the collector shall not
conduct a tax sale

sell the
25
property
until the appeal is disposed of.

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1

(b) In counties with fewer than 3,000,000 inhabitants, a
2
county board may, in its discretion, submit to the Collector a
3
list of any properties for which an application for judgment
4
has been made pursuant to Section 21-155 of this Code. The
5
county's submission of this list shall be considered its offer
6
to purchase the property or properties included on this list
7
at the tax sale, pursuant to the County's authority in Section
8
21-90(a) of this Code, so long as a judgment and order for tax
9
sale is entered for the property in accordance with Sections
10
21-175 and 21-180 of this Code. Such list shall be submitted to
11
the county collector at least 10 days prior to the publication
12
of any notice for tax sale required in subsection (a) of this
13
Section and in compliance with Sections 21-110 and 21-115 and
14
21-120 of this Code.
15

(c) In counties with 3,000,000 or more inhabitants, for
16
the first three tax sales conducted after the effective date
17
of this Act, the county may exercise its authority in Section
18
21-90(a) of this Code and offer to purchase or otherwise
19
acquire for the total amount due all properties offered at a
20
tax sale conducted pursuant to a judgment and order for tax
21
sale issued in accordance with Sections 21-175 and 21-180 of
22
this Code. For the fourth tax sale and all subsequent tax sales
23
conducted after the effective date of this Act, the county
24
shall exercise its authority in Section subsection (a) of
25
Section 21-90 of this Code and offer to purchase or otherwise
26
acquire for the total amount due all properties offered at a

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1
tax sale conducted pursuant to a judgment and order for tax
2
sale issued in accordance with Sections 21-175 and 21-180 of
3
this Code.

4
(Source: P.A. 79-451; 88-455.)

5

(35 ILCS 200/21-205)
6

Sec. 21-205.
Tax sale procedures.

7

(a) The collector, in person or by deputy, shall attend,
8
on the day and in the place specified in the notice for the
tax
9
sale

sale of property for taxes
, and shall, between 9:00 a.m.
10
and 4:00 p.m., or later at the collector's discretion, proceed
11
to offer for sale, separately and in consecutive order, all
12
property in the list on which the taxes, special assessments,
13
interest or costs have not been paid. However, in any county
14
with 3,000,000 or more inhabitants, the offer for sale shall
15
be made between 8:00 a.m. and 8:00 p.m. The collector's office
16
shall be kept open during all hours in which the sale is in
17
progress. The
tax
sale shall be continued from day to day,
18
until all property in the delinquent list has been offered for
19
sale. However, any city, village or incorporated town
20
interested in the collection of any tax or special assessment,
21
may, in default of bidders, withdraw from collection the
22
special assessment levied against any property by the
23
corporate authorities of the city, village or incorporated
24
town. In case of a withdrawal, there shall be no sale of that
25
property on account of the delinquent special assessment

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1
thereon.
2

(b) Until January 1, 2013, in every
tax
sale of property
3
pursuant to the provisions of this Code, the collector may
4
employ any automated means that the collector deems
5
appropriate. Beginning on January 1, 2013, either (i) the
6
collector shall employ an automated bidding system that is
7
programmed to accept the lowest redemption price bid by an
8
eligible tax purchaser, subject to the penalty percentage
9
limitation set forth in Section 21-215, or (ii) all tax sales
10
shall be digitally recorded with video and audio. All bidders
11
are required to personally attend the
tax
sale and, if
12
automated means are used, all hardware and software used with
13
respect to those automated means must be certified by the
14
Department and re-certified by the Department every 5 years.
15
If the tax sales are digitally recorded and no automated
16
bidding system is used, then the recordings shall be
17
maintained by the collector for a period of at least 3 years
18
from the date of the tax sale. The changes made by this
19
amendatory Act of the 94th General Assembly are declarative of
20
existing law.
21

(b-5) For any annual tax sale conducted on or after the
22
effective date of this amendatory Act of the 102nd General
23
Assembly, each county collector in a county with 275,000 or
24
more inhabitants shall adopt a single bidder rule sufficient
25
to prohibit a tax purchaser from registering more than one
26
related bidding entity at the tax sale. The corporate

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1
authorities in any county with less than 275,000 inhabitants
2
may, by ordinance, allow the county collector of that county
3
to adopt such a single bidder rule. In any county that has
4
adopted a single bidder rule under this subsection (b-5), the
5
county treasurer shall include a representation and warranty
6
form in each registration package attesting to compliance with
7
the single bidder rule, except that the county may, by
8
ordinance, opt out of this representation and warranty form
9
requirement. A single bidder rule under this subsection may be
10
in the following form:
11

(1) A registered tax buying entity (principal) may
12

only have one registered buyer at the tax sale and may not
13

have a related bidding entity directly or indirectly
14

register as a buyer or participate in the tax sale. A
15

registered tax buying entity may not engage in any
16

multiple bidding strategy for the purpose of having more
17

than one related bidding entity submit bids at the tax
18

sale.
19

(2) A related bidding entity is defined as any
20

individual, corporation, partnership, joint venture,
21

limited liability company, business organization, or other
22

entity that has a shareholder, partner, principal,
23

officer, general partner, or other person or entity having
24

(i) an ownership interest in a bidding entity in common
25

with any other registered participant in the tax sale or
26

(ii) a common guarantor in connection with a source of

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1

financing with any other registered participant in the tax
2

sale. The determination of whether registered entities are
3

related so as to prohibit those entities from submitting
4

duplicate bids in violation of the single bidder rule is
5

at the sole and exclusive discretion of the county
6

treasurer or his or her designated representatives.
7

(c) County collectors may, when applicable, eject tax
8
bidders who disrupt the tax sale or use illegal bid practices.
9

(d) Any property to be acquired by a county in the manner
10
described in subsections (b) or (c) of Section 21-190 shall
11
not be offered for sale in the manner detailed in subsections
12
(a) through (c) of this Section. Instead, all such property
13
shall be sold to the county for the total amount due on the day
14
of the scheduled tax sale in whatever manner is deemed most
15
expedient and efficient by the collector's office. For any
16
properties acquired by the county as described in subsections
17
(b) or (c) of Section 21- 190 that are subsequently sold at a
18
tax deed auction in accordance with this Code, any amounts
19
generated in cash from such tax deed auction shall be
20
distributed to taxing districts in the manner described in
21
Sections 21-90(c) and 22-42(3).

22
(Source: P.A. 102-519, eff. 8-20-21.)

23

(35 ILCS 200/21-215)
24

Sec. 21-215.
Penalty bids.

25

(a) Subject to subsection (b) of this Section, the

The

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1
person at the sale offering to pay the amount due on each
2
property for the least penalty percentage shall be the
3
purchaser of that property. No bid shall be accepted for a
4
penalty exceeding 9% of the amount of the tax or special
5
assessment on property.
6

(b) Where the county offers to purchase property for the
7
amount due in accordance with subsections (b) and (c) of
8
Section 21-190, the county shall be the purchaser of the
9
property notwithstanding any other offer. Subject to a payment
10
plan implemented by the county clerk in accordance with
11
subsection (d) of Section 21-385, the penalty for any property
12
purchased by the county in this manner shall be 9% of the
13
amount of the tax or special assessment on property.

14
(Source: P.A. 102-363, eff. 1-1-22
.)

15

(35 ILCS 200/21-225)
16

Sec. 21-225.
Forfeited tax liens and certificates.
Every
17
tax lien or certificate for property offered at public
tax

18
sale, and not sold for want of bidders, unless it is released
19
from
tax
sale by the withdrawal from collection of a special
20
assessment levied thereon, shall be forfeited to the county,
21
as trustee for the taxing districts, and managed pursuant to
22
Section 21-90. Tax certificates are also forfeited to the
23
county in those circumstances described in subsection (d) of
24
Section 21-310 and subsection (f) of Section 22-40 of this
25
Code.

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1
(Source: P.A. 103-555, eff. 1-1-24
.)

2

(35 ILCS 200/21-302 new)
3

Sec. 21-302.
Payments of surplus equity.
4

(a) Any owner of property sold under any provision of this
5
Code who sustains loss or damage by reason of the issuance of a
6
deed at a tax deed auction shall have the right to recover
7
surplus equity which was lost in the property through an award
8
of indemnity as follows:
9

(1) For tax deeds ordered by the court prior to the
10

effective date of this Act, the claim for an indemnity
11

award shall be filed not later than two years from the date
12

the order directing the issuance of tax deed was entered,
13

or two years from the effective date of this Act,
14

whichever is earlier.
15

(2) For outstanding tax certificates issued prior to
16

the effective date of this Act, the claim for an indemnity
17

award shall be filed not later than two years from the date
18

the order directing the issuance of tax deed was entered.
19

(3) The indemnity award shall be limited to the fair
20

cash value of the property as of the date the tax deed was
21

issued less any mortgages or liens on the property. The
22

Court shall liberally construe this equitable entitlement
23

standard to provide compensation wherever, in the
24

discretion of the Court, the equities warrant the action.
25

(4) In determining the fair cash value of property

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1

less any mortgages or liens on the property, the fair cash
2

value shall be reduced by the principal amount of all
3

taxes paid by the tax purchaser or his or her assignee
4

before the issuance of the tax deed, or if the tax
5

certificate was acquired pursuant to Section 21-90, the
6

fair market value shall be reduced by the principal amount
7

of all taxes for the tax years included in the
8

certificate, plus the principal amount of subsequent,
9

forfeited, or sold taxes excluded from payment or
10

redemption under Section 20-40(a)(2)-(3) when the county
11

or its agent, as trustee pursuant to Section 21-90, is the
12

tax deed petitioner. The court, in its discretion, may
13

order the joinder of the mortgagee or lienholder as an
14

additional party to the indemnity action.
15

(b) The provisions of the Code of Civil Procedure shall
16
apply to proceedings under the petition, except that neither
17
the petitioner nor County Treasurer shall be entitled to trial
18
by jury on the issues presented in the petition.
19

(1) Any person claiming indemnity hereunder shall
20

petition the Court which ordered the tax deed to issue,
21

shall name the County Treasurer, as Trustee of the
22

indemnity fund, as defendant to the petition, and shall
23

ask that judgment be entered against the County Treasurer,
24

as Trustee, in the amount of the indemnity sought.
25

(2) The County Treasurer, as Trustee of the indemnity
26

fund, shall be subrogated to all parties in whose favor

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1

judgment may be rendered against him or her, and by third
2

party complaint may bring in as a defendant any person,
3

other than the tax deed grantee and its successors in
4

title, not a party to the action who is or may be liable to
5

him or her, as subrogee, for all or part of the
6

petitioner's claim against him or her.
7

(c) Any contract involving the proceeds of a judgment for
8
indemnity under this Section, between the tax deed grantee or
9
its successors in title and the indemnity petitioner or his or
10
her successors, shall be in writing. In any action brought
11
under Section 21-302, the Collector shall be entitled to
12
discovery regarding, but not limited to, the following:
13

(1) the identity of all persons beneficially
14

interested in the contract, directly or indirectly,
15

including at least the following information: the names
16

and addresses of any natural persons; the place of
17

incorporation of any corporation and the names and
18

addresses of its shareholders unless it is publicly held;
19

the names and addresses of all general and limited
20

partners of any partnership; the names and addresses of
21

all persons having an ownership interest in any entity
22

doing business under an assumed name, and the county in
23

which the assumed business name is registered; and the
24

nature and extent of the interest in the contract of each
25

person identified;
26

(2) the time period during which the contract was

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1

negotiated and agreed upon, from the date of the first
2

direct or indirect contact between any of the contracting
3

parties to the date of its execution;
4

(3) the name and address of each natural person who
5

took part in negotiating the contract, and the identity
6

and relationship of the party that the person represented
7

in the negotiations; and
8

(4) the existence of an agreement for payment of
9

attorney's fees by or on behalf of each party. Any
10

information disclosed during discovery may be subject to
11

protective order as deemed appropriate by the court. The
12

terms of the contract shall not be used as evidence of
13

value.

14

(35 ILCS 200/21-305)
15

Sec. 21-305.
Payments from Indemnity Fund.
16

(a) Any owner of property sold under any provision of this
17
Code who sustains loss or damage by reason of the issuance of a
18
tax deed under Section 21-445 or 22-40 and who is barred or is
19
in any way precluded from bringing an action for the recovery
20
of the property shall have the right to indemnity for the loss
21
or damage sustained, limited as follows:

22

(1) An owner who resided on property that contained 4
23

or less dwelling units on the last day of the period of
24

redemption and who is equitably entitled to compensation
25

for the loss or damage sustained has the right to

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1

indemnity. An equitable indemnity award shall be limited
2

to the fair cash value of the property as of the date the
3

tax deed was issued less any mortgages or liens on the
4

property, and the award will not exceed $99,000. The Court
5

shall liberally construe this equitable entitlement
6

standard to provide compensation wherever, in the
7

discretion of the Court, the equities warrant the action.

8

An owner of a property that contained 4 or less
9

dwelling units who requests an award in excess of $99,000
10

must prove that the loss of his or her property was not
11

attributable to his or her own fault or negligence before
12

an award in excess of $99,000 will be granted.

13

(2) An owner who sustains the loss or damage of any
14

property occasioned by reason of the issuance of a tax
15

deed, without fault or negligence of his or her own, has
16

the right to indemnity limited to the fair cash value of
17

the property less any mortgages or liens on the property.
18

In determining the existence of fault or negligence, the
19

court shall consider whether the owner exercised ordinary
20

reasonable diligence under all of the relevant
21

circumstances.

22

(3) In determining the fair cash value of property
23

less any mortgages or liens on the property, the fair cash
24

value shall be reduced by the principal amount of all
25

taxes paid by the tax purchaser or his or her assignee
26

before the issuance of the tax deed
, or if the tax

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1

certificate was acquired pursuant to Section 21-90, the
2

fair cash value shall be reduced by the principal amount
3

of all taxes for the tax years included in the
4

certificate, plus the principal amount of subsequent,
5

forfeited, or sold taxes excluded from the payment or
6

redemption requirement of Section 22-40(a) when the county
7

or its agent is the tax deed petitioner
.

8

(4) If an award made under paragraph (1) or (2) is
9

subject to a reduction by the amount of an outstanding
10

mortgage or lien on the property, other than the principal
11

amount of all taxes paid by the tax purchaser or his or her
12

assignee before the issuance of the tax deed and the
13

petitioner would be personally liable to the mortgagee or
14

lienholder for all or part of that reduction amount, the
15

court shall order an additional indemnity award to be paid
16

directly to the mortgagee or lienholder sufficient to
17

discharge the petitioner's personal liability. The court,
18

in its discretion, may order the joinder of the mortgagee
19

or lienholder as an additional party to the indemnity
20

action.
21

(b) Indemnity fund; subrogation.

22

(1) Any person claiming indemnity hereunder shall
23

petition the Court which ordered the tax deed to issue,
24

shall name the County Treasurer, as Trustee of the
25

indemnity fund, as defendant to the petition, and shall
26

ask that judgment be entered against the County Treasurer,

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1

as Trustee, in the amount of the indemnity sought. The
2

provisions of the Civil Practice Law shall apply to
3

proceedings under the petition, except that neither the
4

petitioner nor County Treasurer shall be entitled to trial
5

by jury on the issues presented in the petition. The Court
6

shall liberally construe this Section to provide
7

compensation wherever in the discretion of the Court the
8

equities warrant such action.

9

(2) The County Treasurer, as Trustee of the indemnity
10

fund, shall be subrogated to all parties in whose favor
11

judgment may be rendered against him or her, and by third
12

party complaint may bring in as a defendant any person,
13

other than the tax deed grantee and its successors in
14

title, not a party to the action who is or may be liable to
15

him or her, as subrogee, for all or part of the
16

petitioner's claim against him or her.
17

(c) Any contract involving the proceeds of a judgment for
18
indemnity under this Section, between the tax deed grantee or
19
its successors in title and the indemnity petitioner or his or
20
her successors, shall be in writing. In any action brought
21
under Section 21-305, the Collector shall be entitled to
22
discovery regarding, but not limited to, the following:

23

(1) the identity of all persons beneficially
24

interested in the contract, directly or indirectly,
25

including at least the following information: the names
26

and addresses of any natural persons; the place of

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1

incorporation of any corporation and the names and
2

addresses of its shareholders unless it is publicly held;
3

the names and addresses of all general and limited
4

partners of any partnership; the names and addresses of
5

all persons having an ownership interest in any entity
6

doing business under an assumed name, and the county in
7

which the assumed business name is registered; and the
8

nature and extent of the interest in the contract of each
9

person identified;

10

(2) the time period during which the contract was
11

negotiated and agreed upon, from the date of the first
12

direct or indirect contact between any of the contracting
13

parties to the date of its execution;

14

(3) the name and address of each natural person who
15

took part in negotiating the contract, and the identity
16

and relationship of the party that the person represented
17

in the negotiations; and

18

(4) the existence of an agreement for payment of
19

attorney's fees by or on behalf of each party.
20

Any information disclosed during discovery may be subject
21
to protective order as deemed appropriate by the court. The
22
terms of the contract shall not be used as evidence of value.
23

(d) A petition of indemnity under this Section must be
24
filed within 10 years after the date the tax deed was issued.
25
(Source: P.A. 97-557, eff. 7-1-12
.)

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1

(35 ILCS 200/21-350)
2

Sec. 21-350.
Period of redemption.
Property sold
at a tax
3
sale
under this Code may be redeemed at any time before the
4
expiration of 2.5 years from the date of sale,
and in counties
5
with 3,000,000 or more inhabitants before the expiration of 3
6
years from the date of sale,
except that:

7

(a) If on the date of sale the property is vacant
8

non-farm property or property containing an improvement
9

consisting of a structure or structures with 7 or more
10

residential units or that is commercial or industrial
11

property, it may be redeemed at any time before the
12

expiration of 1 year from the date of
the tax
sale.
13

(a-5) If on the date of the tax sale the property sold
14

is occupied residential property containing a structure or
15

structures with 6 or fewer residential units, the property
16

may be redeemed after 3 years but before the court orders
17

the property sold at a judicial tax deed auction.

18

(b) (Blank).

19

(c)
If the period of redemption has been extended by
20

the certificate holder as provided in Section 21-385 or
21

Section 22-5, the property may be redeemed on or before
22

the extended redemption date.
The changes made to this
23

Section by this amendatory Act of the 103rd General
24

Assembly apply to matters concerning tax certificates
25

issued on or after January 1, 2024.
26
(Source: P.A. 103-555, eff. 1-1-24
.)

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1

(35 ILCS 200/22-5)
2

Sec. 22-5.
Notice of sale and redemption rights.
In order
3
to be entitled to
an order for a judicial tax deed auction and

4
a
tax deed, within 4 months and 15 days after any
tax
sale held
5
under this Code, the purchaser or his or her assignee, and the
6
county for all
tax liens or certificates it acquires pursuant
7
to Section 21-90 of this Code

forfeited certificates from the
8
annual sale
, shall deliver to the county clerk a notice to be
9
given to the party in whose name the taxes are last assessed as
10
shown by the most recent tax collector's warrant books, in at
11
least 10 point type in the following form completely filled
12
in:
13
TAKE NOTICE
14

County of
...........................................
15

Date Premises Sold or Forfeited
.....................
16

Certificate No.
.....................................
17

Sold for General Taxes of (year)
....................
18

Sold for Special Assessment of (Municipality)
19

and special assessment number
.......................
20

Warrant No. ............... Inst. No. .................
21
THIS PROPERTY HAS BEEN SOLD

AT A TAX SALE

FOR
22
DELINQUENT TAXES
23
Property Address (as identified on the most recent tax bill,
24
if available)
....
25
Legal Description or Property Index No.
..........

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1
..........
2
..............................
3

This notice is to advise you that
if you do not redeem by
4
paying your tax debt before the deadline,
a petition may be
5
filed
in court

for a tax deed which
will transfer title and the
6
right to possession of the above-referenced property
7
("Property")
. If you are a homeowner, this may eventually
8
result in eviction from your home

if redemption is not made on
9
or before the redemption deadline
.
10
Your right to redeem will expire on ..........

11

To
request

determine the redemption deadline and
the total
12
amount you must pay to redeem the sold taxes, you must
13
immediately contact the County Clerk at the address, phone
14
number, or email address below. Check with the County Clerk
15
for the exact amount you owe before redeeming. Payment must be
16
made by certified check, cashier's check, money order, or in
17
cash to the County Clerk.
18
YOU ARE URGED TO REDEEM IMMEDIATELY TO
19
PREVENT LOSS OF PROPERTY

AND ADDITIONAL COSTS

20

The longer you wait, the more expensive it will be to
21
redeem and prevent the loss of your property. Interest will
22
continue to accrue on the total amount owed until the property
23
is redeemed, and you may owe additional attorney or filing
24
fees if the certificate holder chooses to pursue an order for a
25
tax deed auction to compel the sale or transfer of the deed to
26
the property.

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1

Property sold under the Property Tax Code may be redeemed
2
by any owner or person holding an interest in the Property at
3
any time before the following deadlines (based on property
4
classification as of the Date of Sale):

5

You must redeem your taxes within one year of the Date of
6
Sale for the following classifications:

7

(1) vacant non-farm property;
8

(2) property containing an improvement consisting of a
9

structure or structures with 7 or more residential units;
10

and
11

(3) commercial or industrial property.

12

You must redeem your taxes within 2 1/2 years of the Date
13
of Sale for the following classifications:

14

(1) all residential property with less than 6 units;
15

and
16

(2) all other property not covered by the 1-year
17

redemption period outlined above.

18

Redemption deadlines may have been extended by the
19
certificate holder or pursuant to Illinois law.

20

To confirm the
amount you will need to redeem

redemption
21
deadline
, you must contact the County Clerk at the address,
22
telephone number, or email address below. Redemption can be
23
made at any time on or before .... by applying to the County
24
Clerk of .... County, Illinois at the Office of the County
25
Clerk in ...., Illinois. The address, telephone number, and
26
email address for the County Clerk is as follows:

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1
ADDRESS:............................
2
TELEPHONE AND/OR EMAIL ADDRESS:..........................
3

For further information about the redemption deadline,
4
redemption amount, or payment process, please contact the
5
County Clerk.
6

Housing Counselor Information: If you would like housing
7
counseling or assistance, you can contact the U.S. Department
8
of Housing and Urban Development (HUD) for a list of
9
homeownership counselors or counseling organizations in your
10
area.

11

In counties with 3,000,000 or more inhabitants, the
12
redemption notice shall contain a provision in Spanish,
13
Polish, and Mandarin Chinese, stating that the redemption
14
notice affects important legal rights and should be translated
15
immediately.

16

Within 10 days after receipt of said notice, the county
17
clerk shall mail to the addresses supplied by the purchaser or
18
assignee, by registered or certified mail, copies of said
19
notice to the party in whose name the taxes are last assessed
20
as shown by the most recent tax collector's warrant books.
21
With the exception of a county or taxing district acquiring
22
certificates pursuant to Section 21-90 and 21-260, all
23
purchasers or assignees shall pay to the clerk postage plus
24
the sum of $10. The clerk shall write or stamp the date of

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1
receiving the notices upon the copies of the notices, and
2
retain one copy.
3

All

With the exception of forfeited tax liens or
4
certificates held by the county pursuant to Section 21-90, all

5
redemption periods shall begin on the date of
the tax
sale. For
6
forfeited tax liens or certificates held by the county
7
pursuant to Section 21-90, the county may cure any defect in a
8
notice, or failure to send a notice as required by this
9
Section, by delivering to the county clerk a notice to be given
10
to the party in whose name the taxes are last assessed as shown
11
by the most recent tax collector's warrant books. The
12
redemption period begins on the date the county delivered the
13
corrected notice to the clerk, if such extension is otherwise
14
permitted by law.
15

The changes to this Section made by this amendatory Act of
16
the 97th General Assembly apply only to tax sales that occur on
17
or after the effective date of this amendatory Act of the 97th
18
General Assembly.
19

The changes made to this Section by this amendatory Act of
20
the 103rd General Assembly apply to matters concerning tax
21
certificates issued on or after the effective date of this
22
amendatory Act of the 103rd General Assembly.
23
(Source: P.A. 102-815, eff. 5-13-22; 103-555, eff. 1-1-24
.)

24

(35 ILCS 200/22-10)
25

Sec. 22-10.
Notice of expiration of period of redemption.

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1
A purchaser or assignee shall not be entitled to
request an
2
order for a judicial tax deed auction and
a tax deed to the
3
property sold
at an annual tax sale
unless, not less than 3
4
months nor more than 6 months prior to the expiration of the
5
period of redemption, he or she gives notice of the sale and
6
the date of expiration of the period of redemption to the
7
owners, occupants,
the municipality in which the subject
8
property lies or county if the property lies outside municipal
9
corporate boundaries,
and
interested
parties
interested in the
10
property
, including any mortgagee of record, as provided
11
below. For counties or taxing districts holding certificates
12
pursuant to Section 21-90, the date of expiration of the
13
period of redemption shall be designated by the county or
14
taxing district in its petition for tax deed and identified in
15
the notice below, which shall be filed with the county clerk.
16

The Notice to be given to the parties shall be in at least
17
10-point type in the following form completely filled in:
18
TAX DEED NO. .................... FILED ....................
19
TAKE NOTICE
20

County of
...........................................
21

Date Premises Sold or Forfeited
.....................
22

Certificate No.
.....................................
23

Sold or Forfeited for General Taxes of (year)
.......
24

Sold for Special Assessment of (Municipality)
25

and special assessment number
.......................
26

Warrant No. ................ Inst. No. .................

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1
THIS PROPERTY HAS BEEN SOLD

AT A TAX SALE

FOR
2
DELINQUENT TAXES
3
Property Address (as identified on the most recent tax bill,
4
if available)
....
5
Legal Description or Property Index No.
..........
6
..........
7
..............................
8

This notice is to advise you that the above property has
9
been sold for delinquent taxes
at a tax sale
and that the
10
period of redemption from the sale will expire on
......
11
......
12

Check with the county clerk as to the exact amount you owe
13
before redeeming.
14

This notice is also to advise you that a petition has been
15
filed
in the Circuit Court seeking an order for judicial tax
16
deed auction and

for
a tax deed which will transfer title and
17
the right to possession of this property if redemption is not
18
made on or before
.......................................
19

If you are a homeowner, this may eventually result in
20
eviction from your home.
This matter is set for hearing in the
21
Circuit Court of this county in ...., Illinois on .....
22

You may be present at this hearing but your right to redeem
23
will already have expired at that time.
24

You may file a response to the petition or attend the
25
hearing and present your case to the court. However, if you do
26
not redeem at or before the hearing, and if the court finds

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1
that the petitioner has complied with all notice and other
2
proper steps required to seek an order for judicial tax deed
3
auction, the court will still enter an order that your right to
4
redeem has expired, all other interested parties have been
5
provided proper notice and their interests have been resolved
6
or extinguished, and the deed to the property is to be offered
7
for sale at a public auction. If you are the current owner of
8
the property, you may be entitled to receive any surplus from
9
the public tax deed auction after the delinquent taxes and
10
other costs are paid. If there is a surplus, you will receive
11
notice about how to claim the funds.

12
YOU ARE URGED TO REDEEM IMMEDIATELY
13
TO PREVENT LOSS OF PROPERTY

AND ADDITIONAL COSTS

14

Redemption can be made at any time on or before .... by
15
applying to the County Clerk of ...., County, Illinois at the
16
Office of the County Clerk in ...., Illinois.
17

For further information contact the County Clerk
18
ADDRESS:....................
19
TELEPHONE AND/OR EMAIL ADDRESS:..................

20
..........................
21
Purchaser or Assignee.
22
Dated (insert date).
23

Housing Counselor Information: If you would like housing
24
counseling or assistance, you can contact the U.S. Department
25
of Housing and Urban Development (HUD) for a list of

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1
homeownership counselors or counseling organizations in your
2
area.

3

In counties with 3,000,000 or more inhabitants, the notice
4
shall contain a provision in the Spanish, Polish, and Mandarin
5
Chinese, stating that the notice affects important legal
6
rights and should be translated immediately.
In counties with
7
3,000,000 or more inhabitants, the notice shall also state the
8
address, room number, and time at which the matter is set for
9
hearing.
10

The changes to this Section made by Public Act 97-557
11
apply only to matters in which a petition for tax deed is filed
12
on or after July 1, 2012 (the effective date of Public Act
13
97-557).
14

The changes to this Section made by Public Act 102-1003
15
apply to matters in which a petition for tax deed is filed on
16
or after May 27, 2022 (the effective date of Public Act
17
102-1003). Failure of any party or any public official to
18
comply with the changes made to this Section by Public Act
19
102-528 does not invalidate any tax deed issued prior to May
20
27, 2022 (the effective date of Public Act 102-1003).
21

The changes made to this Section by this amendatory Act of
22
the 103rd General Assembly apply to matters concerning tax
23
certificates issued on or after the effective date of this
24
amendatory Act of the 103rd General Assembly.
25
(Source: P.A. 102-528, eff. 1-1-22; 102-813, eff. 5-13-22;

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1
102-1003, eff. 5-27-22; 103-154, eff. 6-30-23; 103-555, eff.
2
1-1-24
.)

3

(35 ILCS 200/22-40)
4

Sec. 22-40.
Issuance of
order authorizing judicial tax
5
deed auction, confirmation and order for tax
deed; possession.
6

(a) To obtain an order
authorizing a judicial tax deed
7
auction and
for issuance of tax deed, the petitioner must
8
provide sufficient evidence that:
9

(1) the redemption period has expired and the property
10

has not been redeemed;
11

(2) all taxes and special assessments which became due
12

and payable subsequent to the sale have been paid, unless
13

the county or its agent, as trustee pursuant to Section
14

21-90, is the petitioner;
15

(3) all forfeitures and sales which occur subsequent
16

to the sale are paid or redeemed, unless the county or its
17

agent, as trustee pursuant to Section 21-90, is the
18

petitioner;
19

(4) the notices required by law have been given, and
20

all advancements of public funds under the police power
21

made by a county, city, village, or town under Section
22

22-35 have been paid; and
23

(5) the petitioner has complied with all the
24

provisions of law entitling him or her to a deed.
25

Upon receipt of sufficient evidence of the requirements

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1
under this subsection (a), the court shall find that the
2
petitioner complied with those requirements and shall enter an
3
order
authorizing a judicial tax deed auction or an order
4
authorizing issuance of a tax deed to a county trustee
5
pursuant to Section 21-90, subject to the requirements of this
6
Section, or subject to the requirements in Section 21-90

7
directing the county clerk, on the production of the tax
8
certificate and a certified copy of the order, to issue to the
9
purchaser or its assignee a tax deed
. The court shall insist on
10
strict compliance with
Sections

Section
22-10 through 22-25.
11
Prior to the entry of an order
under this Section

directing the
12
issuance of a tax deed
, the petitioner shall furnish the court
13
with a report of proceedings of the evidence received on the
14
application for tax deed
. Petitioner shall also furnish to the
15
court a statement of redemption from the county clerk showing
16
the total taxes, penalties, and costs that were required to be
17
paid to redeem the tax sale as specified in the notice required
18
under Section 22-10. The petitioner for tax deed must file a
19
statement of, if applicable, (a) all taxes it has paid or
20
redeemed for the property, (b) the costs paid for court
21
reporter and transcript services in counties of 3,000,000 or
22
more inhabitants, or in counties with less than 3,000,000
23
inhabitants, a submission of a report of proceedings to the
24
court, (c) the fees paid to the clerk for the estimate of
25
redemption, (d) all payments made for municipal advancements
26
required by Section 22-35, and (e) costs incurred pursuant to

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1
Section 21-90(c). The total of the amount shown on the
2
statement of redemption plus (a) through (e) above, or portion
3
thereof, plus a fee not to exceed 50 percent of the then-
4
allowable foreclosure attorney fees for Illinois as published
5
by Fannie Mae, plus the cost of publication of the judicial tax
6
deed auction, shall be identified as the tax deed judgment
7
amount. The tax deed judgment amount shall accrue interest at
8
0.75% per month, or portion thereof, from the date of the
9
judgment until the date of judicial tax deed auction. If the
10
judicial tax deed auction is not concluded within 120 days
11
after date of the judgment, the judgment shall accrue interest
12
after the 120-day period only if any delay in concluding the
13
auction is the result of legal action taken by the owner or
14
other interested party before issuance of the tax deed. The
15
order for judicial tax deed auction shall include such terms
16
and conditions of the auction as specified by the court

and the
17
report of proceedings shall be filed and made a part of the
18
court record
.
19

(b) Except as provided in subsection (e)
of this Section
,
20
if taxes for years prior to the year or years sold are or
21
become delinquent subsequent to the date of sale, the court
22
shall find that the lien of those delinquent taxes has been or
23
will be merged into the tax deed grantee's title if the court
24
determines that the tax deed grantee or any prior holder of the
25
certificate of purchase, or any person or entity under common
26
ownership or control with any such grantee or prior holder of

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

(c) The county clerk is entitled to a fee of $10 in
15
counties of 3,000,000 or more inhabitants and $5 in counties
16
with less than 3,000,000 inhabitants for the issuance of the
17
tax deed, with the exception of deeds issued to the county
18
pursuant to its authority under Section 21-90. The clerk may
19
not include in a tax deed more than one property as listed,
20
assessed and sold in one description, except in cases where
21
several properties are owned by one person.
The fee paid to the
22
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

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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.

6

Upon application, the court shall enter an order to place
7
the tax deed grantee or the grantee's successor in interest in
8
possession of the property and may enter orders and grant
9
relief as may be necessary or desirable to maintain the
10
grantee or the grantee's successor in interest in possession.
11

(d) The court shall retain jurisdiction to enter orders
12
pursuant to
subsections (b) and (c) of
this Section.
Public
13
Act 92-223 and Public Act 95-477 shall be construed as being
14
declarative of existing law and not as a new enactment.
15

(e) Prior to the issuance of any
order for judicial
tax
16
deed
auction
under this Section, the petitioner must redeem
17
all taxes and special assessments on the property that are
18
delinquent after the date of its tax sale

subject to a pending
19
tax petition filed by a county or its assignee pursuant to
20
Section 21-90
.
21

(e-5) Following the expiration of the period of
22
redemption, the petitioner's payment of (i) any subsequent tax
23
and special assessment and (ii) any redemption of any sale of
24
subsequent taxes or forfeiture shall be accompanied by an
25
indemnity fund fee of 10% of the principal taxes and interest
26
paid by the petitioner under this Section. All fees received

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1
under this subsection shall be paid by the collector and
2
county clerk to the county treasurer of the county in which the
3
land is situated for the purpose of funding the county's
4
indemnity fund established by Section 21-295. No fees incurred
5
under this subsection shall be posted to the subject tax sale
6
pursuant to Section 21-355.

7

(f) If, for any reason, a purchaser fails to obtain an
8
order
for judicial tax deed auction or
for tax deed within the
9
required time period and no sale in error was granted or
10
redemption paid, then the certificate shall be forfeited to
11
the county, as trustee, pursuant to Section 21-90.
12

(g) Judicial Tax Deed Auction. Except as provided in
13
Section 21-90, upon entry of an order requiring a judicial tax
14
deed auction under subsection (a) of this Section, the
15
property shall be offered for sale by public auction within
16
120 days after date of the order and sold to the highest bidder
17
at such an auction in accordance with the Section 22-42 and
18
subject to additional requirements set by the court's order.

19
(Source: P.A. 103-555, eff. 1-1-24; 104-417, eff. 8-15-25.)

20

(35 ILCS 200/22-42 new)
21

Sec. 22-42.
Judicial tax deed auction and procedures.
22

(a) Notice of Tax Deed Auction. The sheriff, or duly
23
appointed private selling officer, shall give notice of the
24
auction with the following information:
25

(1) the Property Identification Number and Address

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1

listed on the most recent tax bill;
2

(2) the time and place of the auction including:
3

whether the auction will take place online, in person, or
4

both; and the website where the online bidding may take
5

place, if applicable;
6

(3) the terms of the auction; and
7

(4) the amount of the tax deed judgment amount
8

provided in Section 22-40.
9

The Notice of Tax Deed Auction shall be in clear and
10
concise language, together with a notice in Spanish, Polish,
11
and Mandarin Chinese, stating that the notice affects
12
important legal rights and should be translated immediately.
13
The Notice of Tax Deed Auction shall be mailed via first class
14
mail to all interested parties, and via first class mail and
15
certified mail to the owner of the property, at the address at
16
which service of the Section 22-10 Take Notice was attempted
17
and to any parties who have appeared in the proceeding. The
18
notice shall include a sworn certificate of service signed by
19
the party sending the notice attesting to the fact that the
20
notice of auction was placed in the mail at least 10 calendar
21
days prior to the date of the auction.
22

The Notice of Tax Deed Auction shall be published at least
23
3 consecutive calendar weeks (Sunday through Saturday), once
24
in each week, the first such notice to be published not more
25
than 45 days prior to the auction, the last such notice to be
26
published not less than 7 days prior to the auction. If the

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1
property is located in a municipality in a county with less
2
than 3,000,000 inhabitants, the purchaser or his or her
3
assignee shall also publish a notice as to the owner or
4
interested party, in some newspaper published in the
5
municipality, and such other publications as may be further
6
ordered by the court. If the petitioner cannot identify a
7
newspaper published in the municipality, or if the property is
8
located in a county with 3,000,000 or more inhabitants, the
9
notice shall be published in a newspaper published within the
10
county, and such other publications as may be further ordered
11
by the court. If no newspaper is published in the county, then
12
the notice shall be published in the newspaper that is
13
published nearest the county seat of the county in which the
14
property is located and such other publications as may be
15
further ordered by the court. The publication shall include
16
all information included in the notice sent pursuant to this
17
Section.
18

(b) Minimum Bid. The selling officer shall start all
19
bidding with a minimum bid equal to (1) the tax deed judgment
20
amount plus interest at the rate of 0.75% per month, or portion
21
thereof, for each month since the date of judgment, except as
22
provided in Section 22-40, (2) the cost for the publication of
23
the judicial sale required in this Section, and (3) the costs
24
of the selling officer. The selling officer shall proceed to a
25
public tax deed auction, offer the real estate for sale, and
26
sell the real estate to the highest bidder. If no bidder is

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1
willing to pay the minimum bid, the petitioner shall be the
2
winning bidder and entitled to a tax deed, and it shall be
3
conclusively presumed that there is no surplus equity in the
4
property.
5

(c) Credit Bid for Petitioner. At the auction under this
6
Section, the person conducting the auction shall enter a bid
7
in favor of the petitioner in the amount of the minimum bid set
8
forth above. Nothing in this Section shall be construed to
9
prevent the petitioner from bidding at the public auction.
10
However, if the petitioner is the winning bidder, the holder
11
must pay cash for the difference between the winning bid and
12
the minimum bid, plus any applicable costs or fees that may be
13
attached to the winning bid.
14

(d) Receipt upon Judicial Tax Deed Auction. Upon and at
15
the conclusion of the judicial tax deed auction, the person
16
conducting the auction shall give to the purchaser a receipt
17
of sale. The receipt shall describe the real estate purchased
18
and shall show the amount bid, the total amount paid to date,
19
and the amount still to be paid therefor. An additional
20
receipt shall be given at the time of each subsequent payment.
21
Any purchaser who fails to complete the sale for failure to
22
make full payment shall forfeit to the county indemnity fund
23
any deposit already made, and the court shall order a new
24
auction of the property.
25

(e) Certificate of Tax Deed Auction. Upon payment in full
26
of the amount bid, the sheriff or duly appointed selling

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1
officer conducting the sale shall issue, in duplicate, and
2
give to the purchaser a certificate of judicial tax deed
3
auction. The certificate of judicial tax deed auction shall be
4
in a recordable form, describe the real estate purchased,
5
indicate the date and place of sale and show the amount paid
6
therefor. The certificate of tax deed sale shall further
7
indicate that it is subject to confirmation by the court. The
8
certificate of sale shall be freely assignable by endorsement
9
thereon.
10

(f) To the extent that the winning bid exceeds the minimum
11
bid, upon the expiration of 30 days following confirmation of
12
the sale the selling officer shall deposit the surplus funds
13
with the treasurer of the county in which the subject property
14
lies and provide the treasurer with the parties and mailing
15
addresses to which all Take Notices were sent pursuant to
16
Section 22-10. The treasurer shall send a notice to all
17
parties sent the Section 22-10 Take Notice, stating that the
18
owner at the time of the sale is entitled to a distribution of
19
surplus proceeds and may file a claim to recover the surplus
20
with the treasurer of the county.
21

(g) Confirmation of sale; Order for Issuance of Tax Deed.
22

(1) The sheriff or selling officer conducting the sale
23

shall promptly make a report to the court that issued the
24

order authorizing the judicial tax deed auction, which
25

report shall include a copy of all receipts and, if any,
26

certificate of judicial tax deed sale.

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1

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

rules applicable to motions generally, which motion shall
3

not be made prior to sale, the court shall conduct a
4

hearing to confirm the sale. Unless the court finds that a
5

notice required in this Section was not issued or the sale
6

was not conducted in accordance with the order for
7

judicial tax deed auction, the court shall enter an order
8

(a) confirming the judicial tax deed auction sale, (b)
9

directing the county clerk to issue a tax deed in the name
10

of the holder of the certificate of judicial tax deed
11

auction sale once presented with a certified copy of the
12

confirmation order and original certificate of judicial
13

tax deed auction sale, and (c) directing the selling
14

officer to pay to the holder of the tax certificate the
15

amount of the credit bid upon surrender of the tax
16

certificate, and to pay the selling officer its fees. The
17

order for issuance of tax deed shall contain the name,
18

address, and telephone number of the holder of the
19

certificate of judicial tax deed auction sale for the
20

clerk to confirm the identity of the tax deed grantee.
21

(3) Unless the tax certificate was forfeited to the
22

county in the manner described in Section 21-225 of this
23

Code, if the county is the holder of the tax certificate
24

for property sold at a judicial tax deed auction in
25

accordance with this Section, any proceeds of any such
26

sale shall be distributed to the taxing districts in

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proportion to their respective interests therein.
2

Notwithstanding the preceding, any distribution to the
3

taxing districts shall be reduced by the following: all
4

costs incurred by either the county, the court, or the
5

selling officer associated with the sale of the property.
6

Any surplus amount to be held by the county treasurer and
7

distributed to former owners in accordance with paragraph
8

(5) of this Section shall be excluded from distributions
9

to taxing districts.
10

(4) If any tax deed auction sale fails to comply with
11

the requirements in this Section, any party may, by motion
12

supported by affidavit made prior to confirmation of such
13

sale, request that the court which entered the judgment
14

set aside the judicial tax deed auction sale. Any such
15

party shall guarantee or secure by bond a bid equal to the
16

successful bid at the judicial tax deed auction. No
17

guarantee or bond shall be required if the property is
18

residential and the party seeking to set aside the sale is
19

the owner-occupant of the property at the time the motion
20

is filed. If the court denies confirmation of the judicial
21

tax deed auction sale, it shall order a new judicial tax
22

deed auction. Any subsequent auction is subject to the
23

same notice requirement as the original auction.
24

(5) No sale under this Section shall be held invalid
25

or be set aside because of any immaterial or insignificant
26

defect in the notice thereof or in the publication of the

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1

same, or in the proceedings of the officer conducting the
2

sale.
3

(h) Notice of Surplus Proceeds. Within 60 days following
4
the deposit of surplus funds with the treasurer of the county,
5
the treasurer shall send notice to all parties to which the
6
Section 22-10 Take Notice was sent, stating that the owner or
7
owners of the property at the time of the sale may submit a
8
claim for the surplus funds to the county treasurer or the
9
circuit court within two years of the date on the notice.
10

(i) Upon receipt of a claim for surplus proceeds, the
11
county treasurer, being satisfied of the facts in the case,
12
shall distribute the surplus proceeds to the proper claimant.
13
When the county treasurer is unable to determine the proper
14
claimant, the county treasurer shall file a motion with the
15
circuit court hearing the underlying tax case, requesting that
16
the court determine whether an interested party is the owner
17
of record entitled to a disbursement of surplus proceeds.
18
Within 30 days following the filing of the motion, the court
19
hearing the underlying tax case shall set a hearing to
20
determine whether an interested party is the owner of record
21
entitled to a disbursement of surplus proceeds. All interested
22
parties in the underlying case shall be notified by the county
23
treasurer. Any party claiming to have an ownership interest in
24
the parcel at the time of the issuance of tax deed may present
25
evidence of ownership and request a disbursement of any or all
26
surplus proceeds. The court shall issue an order directing the

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treasurer to disburse a specific amount of surplus proceeds to
2
specific parties, with sufficient personally identifiable
3
information to accurately identify the parties entitled to
4
disbursement.
5

(j) Upon filing of a motion by a party claiming to be the
6
owner of the property at the time of sale, within 30 days
7
following the filing of the motion, the court hearing the
8
underlying tax case shall set a hearing to determine whether
9
an interested party is the owner entitled to a disbursement of
10
surplus proceeds. All interested parties in the underlying
11
case shall be notified by the movant. Any party claiming to be
12
the owner of the property at the time of sale may present
13
evidence of ownership and request a disbursement of any or all
14
surplus proceeds. The court shall issue an order directing the
15
treasurer to disburse a specific amount of surplus proceeds to
16
specific parties, with sufficient personally identifiable
17
information to accurately identify the parties entitled to
18
disbursement.
19

(k) Surplus funds that have not been claimed within 3
20
years following the date on the county treasurer's notice in
21
accordance with subsection (h) of Section 22-42(h) shall be
22
disposed of pursuant to the Revised Uniform Unclaimed Property
23
Act.

24

(35 ILCS 200/22-65)
25

Sec. 22-65.
Form of deed.
A tax deed executed by the county

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1
clerk under the official seal of the county shall be recorded
2
in the same manner as other conveyances of property, and vests
3
in the grantee, his or her heirs and assigns, the title of the
4
property therein described without further acknowledgment or
5
evidence of the conveyance.
Tax Deeds issued under this
6
Section shall not require a municipal transfer stamp, or be
7
subject to any municipal real estate transfer taxes,
8
requirements, or certifications prior to recording.
The
9
conveyance shall be substantially in the following form:
10
State of Illinois)

11
) ss.

12
County of .......)
13

At a
tax deed auction

public sale
of property for the
14
nonpayment of taxes, held in the county above stated, on
15
(insert date), the following described property was sold:
16
(here place description of property conveyed). The property
17
not having been redeemed from the sale, and it appearing that
18
the holder of the certificate of purchase of the property has
19
complied with the laws of the State of Illinois necessary to
20
entitle (insert him, her or them) to a deed of the property: I
21
...., county clerk of the county of ...., in consideration of
22
the property and by virtue of the statutes of the State of
23
Illinois in such cases provided, grant and convey to ...., his
24
or her heirs and assigns forever, the property described
25
above.
26

Dated (insert date).

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1
Signature of .................. County Clerk
2
Seal of County of ...., Illinois
3
(Source: P.A. 91-357, eff. 7-29-99.)

4

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

6

(765 ILCS 940/5)
7

Sec. 5.
Definitions.
As used in this Act:
8

"Distressed property" means residential real property
9
consisting of one to 6 family dwelling units that is in
10
foreclosure or at risk of loss due to nonpayment of taxes, or
11
whose owner is more than 30 days delinquent on any loan that is
12
secured by the property.
13

"Distressed property consultant" means any person who,
14
directly or indirectly, for compensation from the owner, makes
15
any solicitation, representation, or offer to perform or who,
16
for compensation from the owner, performs any service that the
17
person represents will in any manner do any of the following:
18

(1) stop or postpone the foreclosure sale or stop or
19

postpone the loss of the home due to nonpayment of taxes;
20

(2) obtain any forbearance from any beneficiary or
21

mortgagee, or relief with respect to a tax sale of the
22

property;
23

(3) assist the owner to exercise any right of
24

reinstatement or right of redemption;

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(4) obtain any extension of the period within which
2

the owner may reinstate the owner's rights with respect to
3

the property;
4

(5) obtain any waiver of an acceleration clause
5

contained in any promissory note or contract secured by a
6

mortgage on a distressed property or contained in the
7

mortgage;
8

(6) assist the owner in foreclosure, loan default, or
9

post-tax sale redemption period to obtain a loan or
10

advance of funds;
11

(7) avoid or ameliorate the impairment of the owner's
12

credit resulting from the recording of a notice of default
13

or the conduct of a foreclosure sale or tax sale; or
14

(8) save the owner's residence from foreclosure or
15

save the owner from loss of home due to nonpayment of
16

taxes.
17

A "distressed property consultant" does not include any of
18
the following:
19

(1) a person or the person's authorized agent acting
20

under the express authority or written approval of the
21

Department of Housing and Urban Development;
22

(2) a person who holds or is owed an obligation
23

secured by a lien on any distressed property, or a person
24

acting under the express authorization or written approval
25

of such person, when the person performs services in
26

connection with the obligation or lien, if the obligation

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1

or lien did not arise as the result of or as part of a
2

proposed distressed property conveyance;
3

(3) banks, savings banks, savings and loan
4

associations, credit unions, and insurance companies
5

organized, chartered, or holding a certificate of
6

authority to do business under the laws of this State or
7

any other state or under the laws of the United States;
8

(4) attorneys licensed in Illinois engaged in the
9

practice of law;
10

(5) a Department of Housing and Urban Development
11

approved mortgagee and any subsidiary or affiliate of
12

these persons or entities, and any agent or employee of
13

these persons or entities, while engaged in the business
14

of these persons or entities;
15

(6) a 501(c)(3) nonprofit agency or organization,
16

doing business for no less than 5 years, that offers
17

counseling or advice to an owner of a distressed property,
18

if they do not contract for services with for-profit
19

lenders or distressed property purchasers, or any person
20

who structures or plans such a transaction;
21

(7) (blank);
22

(8) licensees of the Consumer Installment Loan Act who
23

are authorized to make loans secured by real property; or
24

(9) licensees of the Real Estate License Act of 2000
25

when providing licensed activities.
26

"Distressed property purchaser" means any person who

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solicits an owner of distressed property and
acquires any
2
interest in fee in a distressed property or a beneficial
3
interest in a trust holding title to a distressed property
4
while allowing the owner to possess, occupy, or retain any
5
present or future interest in fee in the property
, or any
6
person who participates in a joint venture or joint enterprise
7
involving a distressed property conveyance. "Distressed
8
property purchaser" does not mean any person who acquires
9
distressed property at a short sale or any person acting in
10
participation with any person who acquires distressed property
11
at a short sale, if that person does not promise to convey an
12
interest in fee back to the owner or does not give the owner an
13
option to purchase the property at a later date.
14

"Distressed property conveyance" means a transaction in
15
which an owner of a distressed property transfers an interest
16
in fee in the distressed property or in which the holder of all
17
or some part of the beneficial interest in a trust holding
18
title to a distressed property transfers that interest
; the
19
acquirer of the property allows the owner of the distressed
20
property to occupy the property; and the acquirer of the
21
property or a person acting in participation with the acquirer
22
of the property conveys or promises to convey an interest in
23
fee back to the owner or gives the owner an option to purchase
24
the property at a later date
.
25

"Person" means any individual, partnership, corporation,
26
limited liability company, association, or other group or

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1
entity, however organized.
2

"Service" means, without limitation, any of the following:
3

(1) debt, budget, or financial counseling of any type;
4

(2) receiving money for the purpose of distributing it
5

to creditors in payment or partial payment of any
6

obligation secured by a lien on a distressed property;
7

(3) contacting creditors on behalf of an owner of a
8

residence that is distressed property;
9

(4) arranging or attempting to arrange for an
10

extension of the period within which the owner of a
11

distressed property may cure the owner's default and
12

reinstate his or her obligation;
13

(5) arranging or attempting to arrange for any delay
14

or postponement of the time of sale of the distressed
15

property;
16

(6) advising the filing of any document or assisting
17

in any manner in the preparation of any document for
18

filing with any court; or
19

(7) giving any advice, explanation, or instruction to
20

an owner of a distressed property that in any manner
21

relates to the cure of a default or forfeiture or to the
22

postponement or avoidance of sale of the distressed
23

property.
24
(Source: P.A. 94-822, eff. 1-1-07; 95-691, eff. 6-1-08;
25
95-1047, eff. 4-6-09.)

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1

(765 ILCS 940/30)
2

Sec. 30.
Distressed property conveyance contract terms.
3
Every contract required by Section 25 must contain the entire
4
agreement of the parties, be fully assignable, and survive
5
delivery of any instrument of conveyance of the distressed
6
property. Every lease entered into pursuant to a contract
7
required by Section 25 is terminable at will by the distressed
8
property owner, without liability. Every contract required by
9
Section 25 must include the following terms:
10

(1) the name, business address, and the telephone
11

number of the distressed property purchaser;
12

(2) the address of the distressed property;
13

(3) the total consideration to be given by the
14

distressed property purchaser or tax lien payor in
15

connection with or incident to the sale;
16

(4) a complete description of the terms of payment or
17

other consideration including, but not limited to, any
18

services of any nature that the distressed property
19

purchaser represents he or she will perform for the owner
20

of the distressed property before or after the sale;
21

(5) a complete description of the terms of any related
22

agreement designed to allow the owner of the distressed
23

property to remain in the home such as a rental agreement,
24

repurchase agreement, contract for deed, or lease with
25

option to buy;
26

(6) a notice of cancellation as provided in this

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Section;
2

(7) the following notice in at least 12-point boldface
3

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

if the contract is typed, and completed with the name of
5

the distressed property purchaser, immediately above the
6

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

Until your right to cancel this contract has ended,
9

..................(Name) or anyone working for
10

...................(Name) CANNOT ask you to sign or have
11

you sign any deed or any other document. You are urged to
12

have this contract reviewed by an attorney of your choice
13

within 5 business days of signing it."; and
14

(8) if title to the distressed property will be
15

transferred in the conveyance transaction, the following
16

notice in at least 14-point boldface type if the contract
17

is printed, or in capital letters if the contract is
18

typed, and completed with the name of the distressed
19

property purchaser, immediately above the statement
20

required by this Section:
21
"NOTICE REQUIRED BY ILLINOIS LAW
22

As part of this transaction, you are giving up title
23

to your home.".
24

(9) in the case a distressed property is at risk of
25

loss for the non-payment of real estate taxes, a statement
26

that the property owner may have the right to obtain money

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1

for any equity lost if a tax deed is issued, either through
2

the right to indemnity or public auction, and will lose
3

the right to claim the surplus equity if they sell the
4

property, and should consult an attorney to discuss their
5

options before selling their property.

6
(Source: P.A. 94-822, eff. 1-1-07.)

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