When a property owner fails to pay their property taxes for a certain period of time, the local government may place a lien on the property. This lien enables local government to collect the unpaid taxes. A public auction of the real estate property with the delinquent taxes may also be held, and this auction is known as a tax sale. The purchaser of the property at a tax sale is known as a tax deed.
Property owners who wish to challenge a tax sale or tax deed should consult with legal counsel who has experience in this area of law. It can be a challenging time, and so someone with specific knowledge can help make sure the proper process is followed to reduce additional delays or challenges. Contact us today at (312) 698-3595.
Tax Sale
If the property owner still fails to pay the taxes and the lien remains unpaid, the local government may sell the property at a tax sale to recover the delinquent taxes. The sale is typically conducted through a public auction where interested buyers bid on the property. The property is sold to the highest bidder, and the proceeds from the sale are used to pay off the delinquent taxes and any other costs associated with the sale.
Tax sales can provide opportunities for investors to purchase real estate at a lower cost than the market value. However, it is important to note that tax sales can also be risky and complicated, as the properties may have liens, encumbrances, or other issues that can make them difficult to sell or develop.
It is recommended that potential buyers thoroughly research the properties before bidding on them and consult with legal and financial professionals.
Tax Deeds and Grounds for Legal Challenges
A tax deed is a legal document issued by a government agency, usually a county or municipality, that grants ownership of a property to the purchaser of the property at a tax sale. The tax deed serves as proof of ownership of the property and is recorded in the local land records.
Tax deed legal matters typically arise when a property owner challenges the validity of the tax sale or the issuance of the tax deed. Property owners may challenge a tax sale or tax deed on a number of grounds, including:
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Lack of proper notice: Property owners have a right to receive notice of a tax sale and the opportunity to pay their delinquent taxes before the sale. If proper notice was not given, the tax sale may be invalid.
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Failure to follow legal procedures: The government agency conducting the tax sale must follow legal procedures for conducting the sale and issuing the tax deed. If these procedures were not followed, the sale may be invalid.
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Errors or omissions in the tax sale process: Errors or omissions in the tax sale process, such as incorrect tax assessments, may invalidate the sale.
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Fraud or misconduct: Property owners may challenge a tax sale or tax deed if they can prove that fraud or misconduct occurred in the sale process.
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Redemption: Property owners may challenge a tax sale if they can prove that they paid their delinquent taxes before the sale or if they can redeem the property by paying the delinquent taxes and any other costs associated with the sale.
Contact a Real Estate Litigation Attorney in Cook County Today
Whether you are the new owner of property via a Tax Deed or a former property owner challenging a Tax Sale, a real estate litigation attorney will inform you of the process and your rights. Contact us today at (312) 698-3595 today to get smart, competent legal representation.