Illinois 2025-2026 Regular Session

Illinois House Bill HB3146 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3146 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED: 35 ILCS 200/21-9035 ILCS 200/21-302 new35 ILCS 200/22-1035 ILCS 200/22-4035 ILCS 200/22-65765 ILCS 940/5765 ILCS 940/30 Amends the Property Tax Code. Provides that, when the county, as trustee, files one petition for more than one delinquent tax lien or certificate, the county may request that the court issue a tax deed to the county, as trustee, without holding a judicial tax deed auction. Provides that the county shall offer the parcel for sale at a public auction within 120 days of recording the tax deed. Sets forth requirements for the county auction. Provides that any owner of property sold under any provision of the Code who sustains loss or damage by reason of the issuance of a tax deed shall have the right to recover surplus equity that was lost in the property through an award of indemnity. Amends the Mortgage Rescue Fraud Act. Provides that a distressed property conveyance contract must contain a statement that the property owner may have the right to obtain money for any equity lost if a tax deed is issued. Effective immediately. LRB104 11225 HLH 21307 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3146 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED: 35 ILCS 200/21-9035 ILCS 200/21-302 new35 ILCS 200/22-1035 ILCS 200/22-4035 ILCS 200/22-65765 ILCS 940/5765 ILCS 940/30 35 ILCS 200/21-90 35 ILCS 200/21-302 new 35 ILCS 200/22-10 35 ILCS 200/22-40 35 ILCS 200/22-65 765 ILCS 940/5 765 ILCS 940/30 Amends the Property Tax Code. Provides that, when the county, as trustee, files one petition for more than one delinquent tax lien or certificate, the county may request that the court issue a tax deed to the county, as trustee, without holding a judicial tax deed auction. Provides that the county shall offer the parcel for sale at a public auction within 120 days of recording the tax deed. Sets forth requirements for the county auction. Provides that any owner of property sold under any provision of the Code who sustains loss or damage by reason of the issuance of a tax deed shall have the right to recover surplus equity that was lost in the property through an award of indemnity. Amends the Mortgage Rescue Fraud Act. Provides that a distressed property conveyance contract must contain a statement that the property owner may have the right to obtain money for any equity lost if a tax deed is issued. Effective immediately. LRB104 11225 HLH 21307 b LRB104 11225 HLH 21307 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3146 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 200/21-9035 ILCS 200/21-302 new35 ILCS 200/22-1035 ILCS 200/22-4035 ILCS 200/22-65765 ILCS 940/5765 ILCS 940/30 35 ILCS 200/21-90 35 ILCS 200/21-302 new 35 ILCS 200/22-10 35 ILCS 200/22-40 35 ILCS 200/22-65 765 ILCS 940/5 765 ILCS 940/30
4	4	35 ILCS 200/21-90
5	5	35 ILCS 200/21-302 new
6	6	35 ILCS 200/22-10
7	7	35 ILCS 200/22-40
8	8	35 ILCS 200/22-65
9	9	765 ILCS 940/5
10	10	765 ILCS 940/30
11	11	Amends the Property Tax Code. Provides that, when the county, as trustee, files one petition for more than one delinquent tax lien or certificate, the county may request that the court issue a tax deed to the county, as trustee, without holding a judicial tax deed auction. Provides that the county shall offer the parcel for sale at a public auction within 120 days of recording the tax deed. Sets forth requirements for the county auction. Provides that any owner of property sold under any provision of the Code who sustains loss or damage by reason of the issuance of a tax deed shall have the right to recover surplus equity that was lost in the property through an award of indemnity. Amends the Mortgage Rescue Fraud Act. Provides that a distressed property conveyance contract must contain a statement that the property owner may have the right to obtain money for any equity lost if a tax deed is issued. Effective immediately.
12	12	LRB104 11225 HLH 21307 b LRB104 11225 HLH 21307 b
13	13	LRB104 11225 HLH 21307 b
14	14	A BILL FOR
15	15	HB3146LRB104 11225 HLH 21307 b HB3146 LRB104 11225 HLH 21307 b
16	16	HB3146 LRB104 11225 HLH 21307 b
17	17	1 AN ACT concerning revenue.
18	18	2 Be it enacted by the People of the State of Illinois,
19	19	3 represented in the General Assembly:
20	20	4 Section 5. The Property Tax Code is amended by changing
21	21	5 Sections 21-90, 22-10, 22-40, and 22-65 and by adding Section
22	22	6 21-302 as follows:
23	23	7 (35 ILCS 200/21-90)
24	24	8 Sec. 21-90. Purchase and sale by county; distribution of
25	25	9 proceeds.
26	26	10 (a) When any property is offered for sale under any of the
27	27	11 provisions of this Code, the county board of the county in
28	28	12 which the property is located, in its discretion, may bid, or,
29	29	13 in the case of forfeited property, may apply to purchase it or
30	30	14 otherwise acquire the tax lien or certificate in the name of
31	31	15 the county as trustee for all taxing districts having an
32	32	16 interest in the property's taxes or special assessments for
33	33	17 the nonpayment of which the property is sold. The presiding
34	34	18 officer of the county board, with the advice and consent of the
35	35	19 board, may appoint on its behalf some officer, person, or
36	36	20 entity to attend such sales, bid on tax liens or certificates,
37	37	21 and act on behalf of the county when exercising its authority
38	38	22 under this Section, with reasonable costs and fees for such
39	39	23 services paid from redemption interest and sales proceeds
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43	43	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3146 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED:
44	44	35 ILCS 200/21-9035 ILCS 200/21-302 new35 ILCS 200/22-1035 ILCS 200/22-4035 ILCS 200/22-65765 ILCS 940/5765 ILCS 940/30 35 ILCS 200/21-90 35 ILCS 200/21-302 new 35 ILCS 200/22-10 35 ILCS 200/22-40 35 ILCS 200/22-65 765 ILCS 940/5 765 ILCS 940/30
45	45	35 ILCS 200/21-90
46	46	35 ILCS 200/21-302 new
47	47	35 ILCS 200/22-10
48	48	35 ILCS 200/22-40
49	49	35 ILCS 200/22-65
50	50	765 ILCS 940/5
51	51	765 ILCS 940/30
52	52	Amends the Property Tax Code. Provides that, when the county, as trustee, files one petition for more than one delinquent tax lien or certificate, the county may request that the court issue a tax deed to the county, as trustee, without holding a judicial tax deed auction. Provides that the county shall offer the parcel for sale at a public auction within 120 days of recording the tax deed. Sets forth requirements for the county auction. Provides that any owner of property sold under any provision of the Code who sustains loss or damage by reason of the issuance of a tax deed shall have the right to recover surplus equity that was lost in the property through an award of indemnity. Amends the Mortgage Rescue Fraud Act. Provides that a distressed property conveyance contract must contain a statement that the property owner may have the right to obtain money for any equity lost if a tax deed is issued. Effective immediately.
53	53	LRB104 11225 HLH 21307 b LRB104 11225 HLH 21307 b
54	54	LRB104 11225 HLH 21307 b
55	55	A BILL FOR
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61	61	35 ILCS 200/21-90
62	62	35 ILCS 200/21-302 new
63	63	35 ILCS 200/22-10
64	64	35 ILCS 200/22-40
65	65	35 ILCS 200/22-65
66	66	765 ILCS 940/5
67	67	765 ILCS 940/30
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86	86	1 arising from county certificates. The county shall apply on
87	87	2 the bid or purchase the unpaid taxes and special assessments
88	88	3 due upon the property. No cash need be paid. Under Sections
89	89	4 21-110, 21-115, 21-120, and 21-190, a county may bid or
90	90	5 purchase tax certificates only in the absence of other
91	91	6 bidders.
92	92	7 (b) The county, as trustee for all taxing districts having
93	93	8 an interest in the property's taxes or special assessments,
94	94	9 shall be the designated holder of all tax liens or
95	95	10 certificates that are forfeited to the State or county. No
96	96	11 cash need be paid for the forfeited tax lien or certificate.
97	97	12 (c) For any tax lien or certificate acquired under
98	98	13 subsection (a) or (b) of this Section, the county may take
99	99	14 steps necessary to acquire title to the property, including a
100	100	15 final right of first refusal or final bid at the close of any
101	101	16 public auction or judicial sale conveying title to the
102	102	17 property, and may manage and operate the property, including,
103	103	18 but not limited to, mowing of grass, removal of nuisance
104	104	19 greenery, removal of garbage, waste, debris or other
105	105	20 materials, or the demolition, repair, or remediation of unsafe
106	106	21 structures. When a county, or other taxing district within the
107	107	22 county, is a petitioner for a tax deed, no filing fee shall be
108	108	23 required. When a county or other taxing district within the
109	109	24 county is the petitioner for a tax deed, one petition may be
110	110	25 filed including all parcels that are tax delinquent within the
111	111	26 county or taxing district, and any publication made under
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122	122	1 Section 22-20 of this Code may combine all such parcels within
123	123	2 a single notice. The notice may include the property street
124	124	3 address as listed on the most recent available tax bills, if
125	125	4 available, and shall list the Property Index Number of the
126	126	5 parcels for informational purposes. The county, as tax
127	127	6 creditor and as trustee for other tax creditors, or other
128	128	7 taxing district within the county, shall not be required to
129	129	8 allege and prove that all taxes and special assessments which
130	130	9 become due and payable after the sale or forfeiture to the
131	131	10 county have been paid nor shall the county be required to pay
132	132	11 the subsequently accruing taxes or special assessments at any
133	133	12 time. The county board or its designee may prohibit the county
134	134	13 collector from including the property in the tax sale of one or
135	135	14 more subsequent years. The lien of taxes and special
136	136	15 assessments which become due and payable after a sale to a
137	137	16 county shall merge in the fee title of the county, or other
138	138	17 taxing district within the county, on the issuance of a deed.
139	139	18 The county may sell any property acquired with authority
140	140	19 provided in this Section, or assign any tax certificate to any
141	141	20 person or entity party, including, but not limited to, taxing
142	142	21 districts, municipalities, land banks created pursuant to
143	143	22 Illinois law, or non-profit developers focused on constructing
144	144	23 affordable housing.
145	145	24 The assigned tax certificate shall be void with no further
146	146	25 rights given to the assignee, including no right to refund or
147	147	26 reimbursement, if a tax deed has not been recorded within 4
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158	158	1 years after the date of the assignment unless a court extends
159	159	2 the assignment period as provided in this Section. Upon a
160	160	3 motion by the assignee, a court may toll the 4-year deadline
161	161	4 for a specified period of time if the court finds the assignee
162	162	5 is prevented from obtaining or recording a deed by injunction
163	163	6 or order of any court, by the refusal or inability of any court
164	164	7 to act upon the application for a tax deed, by a municipality's
165	165	8 refusal to issue necessary transfer stamps or approvals for
166	166	9 recording, or by the refusal of the clerk to execute the deed.
167	167	10 If an assigned tax certificate is void under this Section, it
168	168	11 shall be forfeited to the county and held as a valid
169	169	12 certificate of sale in the county's name pursuant to this
170	170	13 Section 21-90. The proceeds of any sale or assignment under
171	171	14 this Section, less all costs of the county incurred in the
172	172	15 acquisition, operation, maintenance, and sale of the property
173	173	16 or assignment of the tax certificate, including all costs
174	174	17 associated with county staff and overhead used to perform the
175	175	18 duties of the trustee set forth in this Section, and less any
176	176	19 surplus payments to owners, shall be distributed to the taxing
177	177	20 districts in proportion to their respective interests therein.
178	178	21 (d) When the county, as trustee, files one petition for
179	179	22 more than one delinquent tax lien or certificate, the county
180	180	23 may request, pursuant to Section 22-40, that the court issue a
181	181	24 tax deed to the county, as trustee, without holding a judicial
182	182	25 tax deed auction. If the county requests a tax deed without a
183	183	26 judicial tax deed auction, the Order for Issuance of Tax Deed
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194	194	1 shall identify the total amount of delinquent taxes and
195	195	2 penalties, municipal advancements identified in Section 22-35,
196	196	3 pro rata county costs incurred pursuant to subsections (a)
197	197	4 through (c) of Section 21-90, and other posted costs for each
198	198	5 parcel conveyed, and order the county to offer each parcel for
199	199	6 sale at a public auction, as set forth in subsection (e),
200	200	7 within 120 days of recording the tax deed.
201	201	8 (e) Auctions held by a county pursuant to this Section
202	202	9 shall conform with the following requirements.
203	203	10 (1) The county or its agent shall give notice of the
204	204	11 auction with the following information:
205	205	12 (A) the Property Identification Number and Address
206	206	13 listed on the latest tax bill;
207	207	14 (B) the time and place of the auction;
208	208	15 (C) the terms of the auction; and
209	209	16 (D) the total amount of delinquent taxes and
210	210	17 penalties, municipal advancements identified in
211	211	18 Section 22-35, pro rata county costs incurred pursuant
212	212	19 to subsections (a) through (c) of Section 21-90, and
213	213	20 other posted costs.
214	214	21 The notice of auction shall be mailed via first class
215	215	22 mail to all parties at the address at which service of
216	216	23 process was made. If service of process was made in any
217	217	24 manner other than by personal service, substitute service,
218	218	25 corporate service, or government service, notice shall be
219	219	26 mailed via first class mail to all addresses included in
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230	230	1 the notice served pursuant to Section 22-25. The notice
231	231	2 shall include a sworn certificate of service signed by the
232	232	3 party sending the notice attesting to the fact that the
233	233	4 notice of auction was placed in the mail at least 10
234	234	5 calendar days prior to the date of the auction. The notice
235	235	6 of auction shall be published at least 3 consecutive
236	236	7 calendar weeks (Sunday through Saturday), once in each
237	237	8 week, the first such notice to be published not more than
238	238	9 45 days prior to the auction, the last such notice to be
239	239	10 published not less than 7 days prior to the auction. If the
240	240	11 property is located in a municipality in a county with
241	241	12 less than 3,000,000 inhabitants, the county or its agent
242	242	13 shall also publish a notice in some newspaper published in
243	243	14 the municipality. If the petitioner cannot identify a
244	244	15 newspaper published in the municipality, or if the
245	245	16 property is located in a county with 3,000,000 or more
246	246	17 inhabitants, the notice shall be published in a newspaper
247	247	18 published within the county. If no newspaper is published
248	248	19 in the county, then the notice shall be published in the
249	249	20 newspaper that is published nearest the county seat of the
250	250	21 county in which the property is located. The publication
251	251	22 shall include all information included in the notice sent
252	252	23 pursuant to this Section.
253	253	24 (2) The county may establish minimum bids at any
254	254	25 auction held pursuant to this Section, not to exceed the
255	255	26 total amount of delinquent taxes and penalties, municipal
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266	266	1 advancements identified in Section 22-35, pro rata county
267	267	2 costs incurred pursuant to subsections (a) through (c) of
268	268	3 Section 21-90, and other posted costs, for the auctioned
269	269	4 parcel, as identified in the Order for Issuance of Tax
270	270	5 Deed. For purposes of this section, "pro rata county costs
271	271	6 incurred pursuant to subsections (a) through (c) of
272	272	7 Section 21-90" may include costs incurred by the county in
273	273	8 filing one petition for more than one delinquent tax lien
274	274	9 or certificate and all costs related to the filing of the
275	275	10 one petition and obtaining tax deeds for the liens and
276	276	11 certificates identified in the one petition, reasonably
277	277	12 apportioned and included in the total costs for each
278	278	13 individual tax deed issued pursuant to the petition.
279	279	14 (3) If an auction is postponed, adjourned, or
280	280	15 rescheduled to occur less than 60 days after the last
281	281	16 scheduled auction, the county shall announce the date,
282	282	17 time, and place upon which the adjourned auction shall be
283	283	18 held at the time, date, and location in the notice. The
284	284	19 County is not required to send additional notice of any
285	285	20 postponed auction as provided in item (1) of subsection
286	286	21 (e) of Section 21-90. Notwithstanding any provision of law
287	287	22 to the contrary, for auctions that are conducted more than
288	288	23 60 days after the date in the required notice, the county
289	289	24 shall send notice of the adjourned auction in accordance
290	290	25 with Section item (1) of subsection (e) of Section 21-90.
291	291	26 (4) In auctions held pursuant to this Section, the
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302	302	1 county, as trustee, shall have a right of first refusal or
303	303	2 final bid at the close of any public auction. The county is
304	304	3 required to pay the full amount of any county bid that
305	305	4 exceeds the credit bid prior to the disbursement of
306	306	5 surplus funds in subsection (6) of this Section.
307	307	6 (5) Failure to hold a public auction of the parcels
308	308	7 received within the 180-day period shall not affect the
309	309	8 validity of the recorded deed, the Order for Issuance of
310	310	9 Tax Deed, or otherwise affect the marketability of title.
311	311	10 (6) To the extent that the winning bid at the auction
312	312	11 exceeds the amount of the tax deed judgment as defined in
313	313	12 subsection (d) of Section 21-90, the county trustee shall
314	314	13 deposit the surplus funds with the treasurer of the county
315	315	14 in which the subject property lies within 30 days. Within
316	316	15 60 days of the auction sale, the county, as trustee, shall
317	317	16 send a notice to interested parties in the underlying
318	318	17 case, stating that the owner is entitled to a distribution
319	319	18 of surplus proceeds and may file a claim pursuant to
320	320	19 subsection (i) of Section 22-40.
321	321	20 Under Sections 21-110, 21-115, 21-120, and 21-190, a
322	322	21 county may bid or purchase only in the absence of other
323	323	22 bidders.
324	324	23 (Source: P.A. 102-363, eff. 1-1-22; 103-555, eff. 1-1-24.)
325	325	24 (35 ILCS 200/21-302 new)
326	326	25 Sec. 21-302. Payments of surplus equity.
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337	337	1 (a) Any owner of property sold under any provision of this
338	338	2 Code who sustains loss or damage by reason of the issuance of a
339	339	3 tax deed shall have the right to recover surplus equity that
340	340	4 was lost in the property through an award of indemnity as
341	341	5 follows:
342	342	6 (1) The claim for indemnity shall be filed not later
343	343	7 than 2 years from the date the order directing the
344	344	8 issuance of tax deed was entered, or 2 years from the
345	345	9 effective date of this amendatory Act of the 104th General
346	346	10 Assembly, whichever is earlier.
347	347	11 (2) The indemnity award shall be limited to the fair
348	348	12 cash value of the property as of the date the tax deed was
349	349	13 issued, less any mortgages or liens on the property. The
350	350	14 Court shall liberally construe this equitable entitlement
351	351	15 standard to provide compensation wherever, in the
352	352	16 discretion of the Court, the equities warrant the action.
353	353	17 (3) In determining the fair cash value of property
354	354	18 less any mortgages or liens on the property, the fair cash
355	355	19 value shall be reduced by the principal amount of all
356	356	20 taxes paid by the tax purchaser or his or her assignee
357	357	21 before the issuance of the tax deed. The court, in its
358	358	22 discretion, may order the joinder of the mortgagee or
359	359	23 lienholder as an additional party to the indemnity action.
360	360	24 (b) The provisions of the Code of Civil Procedure shall
361	361	25 apply to proceedings under the petition, except that neither
362	362	26 the petitioner nor County Treasurer shall be entitled to trial
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373	373	1 by jury on the issues presented in the petition.
374	374	2 (c) Any contract involving the proceeds of a judgment for
375	375	3 indemnity under this Section, between the tax deed grantee or
376	376	4 its successors in title and the indemnity petitioner or his or
377	377	5 her successors, shall be in writing. In any action brought
378	378	6 under Section 21-305, the Collector shall be entitled to
379	379	7 discovery regarding, but not limited to, the following:
380	380	8 (1) the identity of all persons beneficially
381	381	9 interested in the contract, directly or indirectly,
382	382	10 including at least the following information: the names
383	383	11 and addresses of any natural persons; the place of
384	384	12 incorporation of any corporation and the names and
385	385	13 addresses of its shareholders unless it is publicly held;
386	386	14 the names and addresses of all general and limited
387	387	15 partners of any partnership; the names and addresses of
388	388	16 all persons having an ownership interest in any entity
389	389	17 doing business under an assumed name and the county in
390	390	18 which the assumed business name is registered; and the
391	391	19 nature and extent of the interest in the contract of each
392	392	20 person identified;
393	393	21 (2) the time period during which the contract was
394	394	22 negotiated and agreed upon, from the date of the first
395	395	23 direct or indirect contact between any of the contracting
396	396	24 parties to the date of its execution;
397	397	25 (3) the name and address of each natural person who
398	398	26 took part in negotiating the contract, and the identity
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409	409	1 and relationship of the party that the person represented
410	410	2 in the negotiations; and
411	411	3 (4) the existence of an agreement for payment of
412	412	4 attorney's fees by or on behalf of each party. Any
413	413	5 information disclosed during discovery may be subject to
414	414	6 protective order as deemed appropriate by the court. The
415	415	7 terms of the contract shall not be used as evidence of
416	416	8 value.
417	417	9 (35 ILCS 200/22-10)
418	418	10 Sec. 22-10. Notice of expiration of period of redemption.
419	419	11 A purchaser or assignee shall not be entitled to a tax deed to
420	420	12 the property sold unless, not less than 3 months nor more than
421	421	13 6 months prior to the expiration of the period of redemption,
422	422	14 he or she gives notice of the sale and the date of expiration
423	423	15 of the period of redemption to the owners, occupants, the
424	424	16 municipality in which the subject property lies, or the county
425	425	17 if the property lies outside of municipal corporate
426	426	18 boundaries, and parties interested in the property, including
427	427	19 any mortgagee of record, as provided below. For counties or
428	428	20 taxing districts holding certificates pursuant to Section
429	429	21 21-90, the date of expiration of the period of redemption
430	430	22 shall be designated by the county or taxing district in its
431	431	23 petition for tax deed and identified in the notice below,
432	432	24 which shall be filed with the county clerk.
433	433	25 The Notice to be given to the parties shall be in at least
434	434
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444	444	1 10-point type in the following form completely filled in:
445	445	2 TAX DEED NO. .................... FILED ....................
446	446	3 TAKE NOTICE
447	447	4 County of ...........................................
448	448	5 Date Premises Sold or Forfeited .....................
449	449	6 Certificate No. .....................................
450	450	7 Sold or Forfeited for General Taxes of (year) .......
451	451	8 Sold for Special Assessment of (Municipality)
452	452	9 and special assessment number .......................
453	453	10 Warrant No. ................ Inst. No. .................
454	454	11 THIS PROPERTY HAS BEEN SOLD FOR
455	455	12 DELINQUENT TAXES
456	456	13 Property Address (as identified on the most recent tax bill,
457	457	14 if available) ....
458	458	15 Legal Description or Property Index No. ..........
459	459	16 ..........
460	460	17 ..............................
461	461	18 This notice is to advise you that the above property has
462	462	19 been sold for delinquent taxes and that the period of
463	463	20 redemption from the sale will expire on ..........
464	464	21 ..........
465	465	22 Check with the county clerk as to the exact amount you owe
466	466	23 before redeeming.
467	467	24 This notice is also to advise you that a petition has been
468	468	25 filed for a tax deed which will transfer title and the right to
469	469	26 possession of this property if redemption is not made on or
470	470
471	471
472	472
473	473
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480	480	1 before ..................................................
481	481	2 This matter is set for hearing in the Circuit Court of this
482	482	3 county in ...., Illinois on .....
483	483	4 You may be present at this hearing but your right to redeem
484	484	5 will already have expired at that time.
485	485	6 YOU ARE URGED TO REDEEM IMMEDIATELY
486	486	7 TO PREVENT LOSS OF PROPERTY
487	487	8 Redemption can be made at any time on or before .... by
488	488	9 applying to the County Clerk of ...., County, Illinois at the
489	489	10 Office of the County Clerk in ...., Illinois.
490	490	11 For further information contact the County Clerk
491	491	12 ADDRESS:....................
492	492	13 TELEPHONE AND/OR EMAIL ADDRESS:..................
493	493	14 ..........................
494	494	15 Purchaser or Assignee.
495	495	16 Dated (insert date).
496	496	17 In counties with 3,000,000 or more inhabitants, the notice
497	497	18 shall also state the address, room number, and time at which
498	498	19 the matter is set for hearing.
499	499	20 The changes to this Section made by Public Act 97-557
500	500	21 apply only to matters in which a petition for tax deed is filed
501	501	22 on or after July 1, 2012 (the effective date of Public Act
502	502	23 97-557).
503	503	24 The changes to this Section made by Public Act 102-1003
504	504
505	505
506	506
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510	510
511	511	..........................
512	512
513	513	Purchaser or Assignee.
514	514
515	515	Dated (insert date).
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520	520	1 apply to matters in which a petition for tax deed is filed on
521	521	2 or after May 27, 2022 (the effective date of Public Act
522	522	3 102-1003). Failure of any party or any public official to
523	523	4 comply with the changes made to this Section by Public Act
524	524	5 102-528 does not invalidate any tax deed issued prior to May
525	525	6 27, 2022 (the effective date of Public Act 102-1003).
526	526	7 The changes made to this Section by this amendatory Act of
527	527	8 the 103rd General Assembly apply to matters concerning tax
528	528	9 certificates issued on or after the effective date of this
529	529	10 amendatory Act of the 103rd General Assembly.
530	530	11 (Source: P.A. 102-528, eff. 1-1-22; 102-813, eff. 5-13-22;
531	531	12 102-1003, eff. 5-27-22; 103-154, eff. 6-30-23; 103-555, eff.
532	532	13 1-1-24.)
533	533	14 (35 ILCS 200/22-40)
534	534	15 Sec. 22-40. Issuance of order authorizing judicial tax
535	535	16 deed auction, confirmation and order for tax deed; possession.
536	536	17 (a) To obtain an order authorizing a judicial tax deed
537	537	18 auction and for issuance of tax deed, the petitioner must
538	538	19 provide sufficient evidence that:
539	539	20 (1) the redemption period has expired and the property
540	540	21 has not been redeemed;
541	541	22 (2) all taxes and special assessments which became due
542	542	23 and payable subsequent to the sale have been paid, unless
543	543	24 the county or its agent, as trustee pursuant to Section
544	544	25 21-90, is the petitioner;
545	545
546	546
547	547
548	548
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555	555	1 (3) all forfeitures and sales which occur subsequent
556	556	2 to the sale are paid or redeemed, unless the county or its
557	557	3 agent, as trustee pursuant to Section 21-90, is the
558	558	4 petitioner;
559	559	5 (4) the notices required by law have been given, and
560	560	6 all advancements of public funds under the police power
561	561	7 made by a county, city, village, or town under Section
562	562	8 22-35 have been paid; and
563	563	9 (5) the petitioner has complied with all the
564	564	10 provisions of law entitling him or her to a deed.
565	565	11 Upon receipt of sufficient evidence of the requirements
566	566	12 under this subsection (a), the court shall find that the
567	567	13 petitioner complied with those requirements and shall enter an
568	568	14 order authorizing a judicial tax deed auction subject to the
569	569	15 requirements of this Section, or subject to the requirements
570	570	16 in Section 21-90 directing the county clerk, on the production
571	571	17 of the tax certificate and a certified copy of the order, to
572	572	18 issue to the purchaser or its assignee a tax deed. The court
573	573	19 shall insist on strict compliance with Sections Section 22-10
574	574	20 through 22-25. Prior to the entry of an order under this
575	575	21 Section directing the issuance of a tax deed, the petitioner
576	576	22 shall furnish the court with a report of proceedings of the
577	577	23 evidence received on the application for tax deed. Petitioner
578	578	24 shall also furnish to the court an estimate of redemption from
579	579	25 the county clerk showing the of the total taxes, penalties,
580	580	26 and costs that were required to be paid to redeem the tax sale
581	581
582	582
583	583
584	584
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591	591	1 as specified in the notice required under Section 22-10. The
592	592	2 petitioner for tax deed may file a statement of (i) all taxes
593	593	3 it has paid or redeemed for the property after the expiration
594	594	4 of the redemption period, (ii) the costs paid for a court
595	595	5 reporter and transcript services, (iii) the fees paid to the
596	596	6 clerk for the estimate of redemption, (iv) all payments made
597	597	7 for municipal advancements required by Section 22-35, and (v)
598	598	8 costs incurred pursuant to subsection (c) of Section 21-90.
599	599	9 The total of the amount shown on the estimate of redemption as
600	600	10 of the last day to redeem plus (i) through (v) above, or
601	601	11 portion thereof, plus a fee of equal to the then-allowable
602	602	12 foreclosure attorney fees for Illinois as published by Fannie
603	603	13 Mae, plus the cost of publication of the judicial tax deed
604	604	14 auction, shall be identified as the tax deed judgment amount.
605	605	15 The tax deed judgment amount shall accrue interest at 0.75%
606	606	16 per month, or portion thereof, from the date of the judgment
607	607	17 until the date of judicial tax deed auction. The order for
608	608	18 judicial tax deed auction shall include such terms and
609	609	19 conditions of the auction as specified by the court and the
610	610	20 report of proceedings shall be filed and made a part of the
611	611	21 court record.
612	612	22 (b) Except as provided in subsection (e) of this Section,
613	613	23 if taxes for years prior to the year or years sold are or
614	614	24 become delinquent subsequent to the date of sale, the court
615	615	25 shall find that the lien of those delinquent taxes has been or
616	616	26 will be merged into the tax deed grantee's title if the court
617	617
618	618
619	619
620	620
621	621
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627	627	1 determines that the tax deed grantee or any prior holder of the
628	628	2 certificate of purchase, or any person or entity under common
629	629	3 ownership or control with any such grantee or prior holder of
630	630	4 the certificate of purchase, was at no time the holder of any
631	631	5 certificate of purchase for the years sought to be merged. If
632	632	6 delinquent taxes are merged into the tax deed pursuant to this
633	633	7 subsection, the court shall enter an order declaring which
634	634	8 specific taxes have been or will be merged into the tax deed
635	635	9 title and directing the county treasurer and county clerk to
636	636	10 reflect that declaration in the warrant and judgment records;
637	637	11 provided, that no such order shall be effective until a tax
638	638	12 deed has been issued and timely recorded. Nothing contained in
639	639	13 this Section shall relieve any owner liable for delinquent
640	640	14 property taxes under this Code from the payment of the taxes
641	641	15 that have been merged into the title upon issuance of the tax
642	642	16 deed.
643	643	17 (c) The county clerk is entitled to a fee of $10 in
644	644	18 counties of 3,000,000 or more inhabitants and $5 in counties
645	645	19 with less than 3,000,000 inhabitants for the issuance of the
646	646	20 tax deed, with the exception of deeds issued to the county
647	647	21 pursuant to its authority under Section 21-90. The fee paid to
648	648	22 the county clerk for the issuance of the tax deed shall be
649	649	23 accompanied by a $300 indemnity fund fee in counties of
650	650	24 3,000,000 or more inhabitants and a $100 indemnity fund fee in
651	651	25 counties with less than 3,000,000 inhabitants, with the
652	652	26 exception of deeds issued to the county pursuant to its
653	653
654	654
655	655
656	656
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663	663	1 authority under Section 21-90. All fees received under this
664	664	2 subsection shall be paid by the county clerk to the county
665	665	3 treasurer of the county in which the land is situated for the
666	666	4 purpose of funding the county's indemnity fund established
667	667	5 under Section 21-295. The clerk may not include in a tax deed
668	668	6 more than one property as listed, assessed and sold in one
669	669	7 description, except in cases where several properties are
670	670	8 owned by one person.
671	671	9 Upon application, the court shall, enter an order to place
672	672	10 the tax deed grantee or the grantee's successor in interest in
673	673	11 possession of the property and may enter orders and grant
674	674	12 relief as may be necessary or desirable to maintain the
675	675	13 grantee or the grantee's successor in interest in possession.
676	676	14 (d) The court shall retain jurisdiction to enter orders
677	677	15 pursuant to subsections (b) and (c) of this Section. This
678	678	16 amendatory Act of the 92nd General Assembly and this
679	679	17 amendatory Act of the 95th General Assembly shall be construed
680	680	18 as being declarative of existing law and not as a new
681	681	19 enactment.
682	682	20 (e) Prior to the issuance of any order for judicial tax
683	683	21 deed auction under this Section, the petitioner must redeem
684	684	22 all taxes and special assessments on the property that are
685	685	23 subsequent to the date of its tax sale subject to a pending tax
686	686	24 petition filed by a county or its assignee pursuant to Section
687	687	25 21-90.
688	688	26 (e-5) Following the expiration of the period of
689	689
690	690
691	691
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699	699	1 redemption, the petitioner's payment of (i) any subsequent tax
700	700	2 and special assessment and (ii) any redemption of any sale of
701	701	3 subsequent taxes or forfeiture shall be accompanied by an
702	702	4 indemnity fund fee of 10% of the principal taxes and interest
703	703	5 paid by the petitioner under this Section. All fees received
704	704	6 under this subsection shall be paid by the collector and
705	705	7 county clerk to the county treasurer of the county in which the
706	706	8 land is situated for the purpose of funding the county's
707	707	9 indemnity fund established by Section 21-295. No fees incurred
708	708	10 under this subsection shall be posted to the subject tax sale
709	709	11 pursuant to Section 21-355.
710	710	12 (f) If, for any reason, a purchaser fails to obtain an
711	711	13 order for tax deed within the required time period and no sale
712	712	14 in error was granted or redemption paid, then the certificate
713	713	15 shall be forfeited to the county, as trustee, pursuant to
714	714	16 Section 21-90.
715	715	17 (g) Except as provided in Section 21-90, upon entry of an
716	716	18 order requiring a judicial tax deed auction under subsection
717	717	19 (a) of this Section, the property shall be offered for sale by
718	718	20 public auction and sold to the highest bidder at such an
719	719	21 auction in accordance with the following minimum standards and
720	720	22 subject to additional requirements set by the court's order:
721	721	23 (1) The tax deed petitioner, its assignee, or a duly
722	722	24 appointed private selling officer, shall give notice of
723	723	25 the auction with the following information:
724	724	26 (A) the Property Identification Number and Address
725	725
726	726
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735	735	1 listed on the most recent tax bill;
736	736	2 (B) the time and place of the auction;
737	737	3 (C) the terms of the auction; and
738	738	4 (D) the amount of the tax deed judgment amount
739	739	5 provided in Section 22-40.
740	740	6 The Notice of Tax Deed Auction shall be mailed via
741	741	7 first class mail to all interested parties at the address
742	742	8 at which service of the Section 22-10 Take Notice was
743	743	9 attempted and to any parties who have appeared in the
744	744	10 proceeding. The notice shall include a sworn certificate
745	745	11 of service signed by the party sending the notice
746	746	12 attesting to the fact that the notice of auction was
747	747	13 placed in the mail at least 10 calendar days prior to the
748	748	14 date of the auction.
749	749	15 The notice of auction shall be published at least 3
750	750	16 consecutive calendar weeks (Sunday through Saturday), once
751	751	17 in each week, the first such notice to be published not
752	752	18 more than 45 days prior to the auction, the last such
753	753	19 notice to be published not less than 7 days prior to the
754	754	20 auction. If the property is located in a municipality in a
755	755	21 county with less than 3,000,000 inhabitants, the purchaser
756	756	22 or his or her assignee shall also publish a notice as to
757	757	23 the owner or party interested, in some newspaper published
758	758	24 in the municipality. If the petitioner cannot identify a
759	759	25 newspaper published in the municipality, or if the
760	760	26 property is located in a county with 3,000,000 or more
761	761
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764	764
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771	771	1 inhabitants, the notice shall be published in a newspaper
772	772	2 published within the county. If no newspaper is published
773	773	3 in the county, then the notice shall be published in the
774	774	4 newspaper that is published nearest the county seat of the
775	775	5 county in which the property is located. The publication
776	776	6 shall include all information included in the notice sent
777	777	7 pursuant to this Section.
778	778	8 (2) The selling officer shall start all bidding with a
779	779	9 minimum bid equal to (1) the tax deed judgment amount plus
780	780	10 interest at the rate of 0.75% per month, or portion
781	781	11 thereof, for each month since the date of judgment, (2)
782	782	12 the cost for the publication of the judicial sale required
783	783	13 in this Section; and (3) the costs of the selling officer.
784	784	14 The selling officer shall proceed to a public auction,
785	785	15 offer the real estate for sale, and sell the real estate to
786	786	16 the highest bidder. If no bidder is willing to pay the
787	787	17 minimum bid, the tax certificate holder shall be the
788	788	18 winning bidder and entitled to a tax deed, and it shall be
789	789	19 conclusively presumed that there is no equity in the
790	790	20 property.
791	791	21 (3) At the auction under this Section, the person
792	792	22 conducting the auction shall enter a bid in favor of the
793	793	23 tax certificate holder in the amount of the minimum bid
794	794	24 set forth above. Any tax deed Petitioner shall have a
795	795	25 final right of first refusal or final bid at the close of
796	796	26 the judicial tax deed judicial sale auction.
797	797
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807	807	1 (4) Upon and at the conclusion of the judicial tax
808	808	2 deed auction, the person conducting the auction shall give
809	809	3 to the purchaser a receipt of sale. The receipt shall
810	810	4 describe the real estate purchased and shall show the
811	811	5 amount bid, the total amount paid to date, and the amount
812	812	6 still to be paid therefor. An additional receipt shall be
813	813	7 given at the time of each subsequent payment. Any
814	814	8 purchaser who fails to complete the sale for failure to
815	815	9 make full payment shall forfeit to the county indemnity
816	816	10 fund any deposit already made, and the court shall order a
817	817	11 new auction of the property.
818	818	12 (5) Upon payment in full of the amount bid, the person
819	819	13 conducting the sale shall issue, in duplicate, and give to
820	820	14 the purchaser a certificate of judicial tax deed sale. The
821	821	15 certificate of judicial tax deed sale shall be in a
822	822	16 recordable form, describe the real estate purchased,
823	823	17 indicate the date and place of sale and show the amount
824	824	18 paid therefor. The certificate of tax deed sale shall
825	825	19 further indicate that it is subject to confirmation by the
826	826	20 court. The certificate of sale shall be freely assignable
827	827	21 by endorsement thereon.
828	828	22 (6) To the extent that the winning bid exceeds the tax
829	829	23 deed judgment amount, the selling officer shall deposit
830	830	24 the surplus funds with the treasurer of the county in
831	831	25 which the subject property lies upon the expiration of 30
832	832	26 days following confirmation of the sale. The petitioner
833	833
834	834
835	835
836	836
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843	843	1 shall send a notice to all parties entitled to the section
844	844	2 22-10 Take Notice, stating that the owner is entitled to a
845	845	3 distribution of surplus proceeds and may file a claim to
846	846	4 recover the surplus.
847	847	5 (h) Confirmation of sale; Order for Issuance of Tax Deed.
848	848	6 (1) The person conducting the sale shall promptly make
849	849	7 a report to the court that issued the order authorizing
850	850	8 the judicial tax deed auction, which report shall include
851	851	9 a copy of all receipts and, if any, certificate of
852	852	10 judicial tax deed sale.
853	853	11 (2) Upon motion and notice in accordance with court
854	854	12 rules applicable to motions generally, which motion shall
855	855	13 not be made prior to sale, the court shall conduct a
856	856	14 hearing to confirm the sale. Unless the court finds that a
857	857	15 notice required in this Section was not issued or the sale
858	858	16 was not conducted in accordance with the order for
859	859	17 judicial tax deed auction, the court shall enter an order
860	860	18 (a) confirming the judicial tax deed sale, (b) directing
861	861	19 the county clerk to issue a tax deed in the name of the
862	862	20 holder of the certificate of judicial tax deed sale once
863	863	21 presented with a certified copy of the confirmation order
864	864	22 and original certificate of judicial tax deed sale, and
865	865	23 (c) directing the selling officer to pay to the holder of
866	866	24 the tax certificate the amount of the credit bid upon
867	867	25 surrender of the tax certificate, and to pay the selling
868	868	26 officer its fees. The order for issuance of tax deed shall
869	869
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879	879	1 contain the name, address, and telephone number of the
880	880	2 holder of the certificate of judicial tax sale for the
881	881	3 clerk to confirm the identity of the tax deed grantee.
882	882	4 (3) If any sale fails to comply with the requirements
883	883	5 in this Section, any party may, by motion supported by
884	884	6 affidavit made prior to confirmation of such sale, request
885	885	7 that the court which entered the judgment set aside the
886	886	8 judicial tax deed sale. Any such party shall guarantee or
887	887	9 secure by bond a bid equal to the successful bid at the
888	888	10 judicial tax deed auction. No guarantee or bond shall be
889	889	11 required if the property is residential and the party
890	890	12 seeking to set aside the sale is the owner-occupant of the
891	891	13 property at the time the motion is filed. If the court
892	892	14 denies confirmation of the judicial tax deed sale, it
893	893	15 shall order a new judicial tax deed auction. Any
894	894	16 subsequent auction is subject to the same notice
895	895	17 requirement as the original auction.
896	896	18 (4) No sale under this Section shall be held invalid
897	897	19 or be set aside because of any defect in the notice thereof
898	898	20 or in the publication of the same, or in the proceedings of
899	899	21 the officer conducting the sale.
900	900	22 (i) Order to Disburse Surplus Proceeds. Upon a filing of
901	901	23 motion by any interested party, the court hearing the
902	902	24 underlying tax case shall set a hearing to determine whether
903	903	25 an interested party is the owner of record entitled to a
904	904	26 disbursement of surplus proceeds. All interested parties in
905	905
906	906
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915	915	1 the underlying case shall be notified of the motion for
916	916	2 disbursement of proceeds. Any party claiming to have an
917	917	3 ownership interest in the parcel at the time of the issuance of
918	918	4 tax deed may present evidence of ownership and request a
919	919	5 disbursement of any or all surplus proceeds. The court shall
920	920	6 issue an order directing the treasurer to disburse a specific
921	921	7 amount of surplus proceeds to specific parties, with
922	922	8 sufficient personally identifiable information to accurately
923	923	9 identify the parties entitled to disbursement.
924	924	10 (Source: P.A. 103-555, eff. 1-1-24; revised 8-5-24.)
925	925	11 (35 ILCS 200/22-65)
926	926	12 Sec. 22-65. Form of deed. A tax deed executed by the county
927	927	13 clerk under the official seal of the county shall be recorded
928	928	14 in the same manner as other conveyances of property, and vests
929	929	15 in the grantee, his or her heirs and assigns, the title of the
930	930	16 property therein described without further acknowledgment or
931	931	17 evidence of the conveyance. Tax deeds issued under this
932	932	18 Section shall not require a municipal transfer stamp or be
933	933	19 subject to any municipal real estate transfer taxes,
934	934	20 requirements or certifications prior to recording. The
935	935	21 conveyance shall be substantially in the following form:
936	936	22 State of Illinois)
937	937	23 ) ss.
938	938	24 County of .......)
939	939	25 At a public sale of property for the nonpayment of taxes,
940	940
941	941
942	942
943	943
944	944
945	945	HB3146 - 25 - LRB104 11225 HLH 21307 b
946	946
947	947
948	948	HB3146- 26 -LRB104 11225 HLH 21307 b HB3146 - 26 - LRB104 11225 HLH 21307 b
949	949	HB3146 - 26 - LRB104 11225 HLH 21307 b
950	950	1 held in the county above stated, on (insert date), the
951	951	2 following described property was sold: (here place description
952	952	3 of property conveyed). The property not having been redeemed
953	953	4 from the sale, and it appearing that the holder of the
954	954	5 certificate of purchase of the property has complied with the
955	955	6 laws of the State of Illinois necessary to entitle (insert
956	956	7 him, her or them) to a deed of the property: I ...., county
957	957	8 clerk of the county of ...., in consideration of the property
958	958	9 and by virtue of the statutes of the State of Illinois in such
959	959	10 cases provided, grant and convey to ...., his or her heirs and
960	960	11 assigns forever, the property described above.
961	961	12 Dated (insert date).
962	962	13 Signature of .................. County Clerk
963	963	14 Seal of County of ...., Illinois
964	964	15 (Source: P.A. 91-357, eff. 7-29-99.)
965	965	16 Section 10. The Mortgage Rescue Fraud Act is amended by
966	966	17 changing Sections 5 and 30 as follows:
967	967	18 (765 ILCS 940/5)
968	968	19 Sec. 5. Definitions. As used in this Act:
969	969	20 "Distressed property" means residential real property
970	970	21 consisting of one to 6 family dwelling units that is in
971	971	22 foreclosure or at risk of loss due to nonpayment of taxes, or
972	972	23 whose owner is more than 30 days delinquent on any loan that is
973	973	24 secured by the property.
974	974
975	975
976	976
977	977
978	978
979	979	HB3146 - 26 - LRB104 11225 HLH 21307 b
980	980
981	981	Signature of .................. County Clerk
982	982
983	983	Seal of County of ...., Illinois
984	984
985	985
986	986	HB3146- 27 -LRB104 11225 HLH 21307 b HB3146 - 27 - LRB104 11225 HLH 21307 b
987	987	HB3146 - 27 - LRB104 11225 HLH 21307 b
988	988	1 "Distressed property consultant" means any person who,
989	989	2 directly or indirectly, for compensation from the owner, makes
990	990	3 any solicitation, representation, or offer to perform or who,
991	991	4 for compensation from the owner, performs any service that the
992	992	5 person represents will in any manner do any of the following:
993	993	6 (1) stop or postpone the foreclosure sale or stop or
994	994	7 postpone the loss of the home due to nonpayment of taxes;
995	995	8 (2) obtain any forbearance from any beneficiary or
996	996	9 mortgagee, or relief with respect to a tax sale of the
997	997	10 property;
998	998	11 (3) assist the owner to exercise any right of
999	999	12 reinstatement or right of redemption;
1000	1000	13 (4) obtain any extension of the period within which
1001	1001	14 the owner may reinstate the owner's rights with respect to
1002	1002	15 the property;
1003	1003	16 (5) obtain any waiver of an acceleration clause
1004	1004	17 contained in any promissory note or contract secured by a
1005	1005	18 mortgage on a distressed property or contained in the
1006	1006	19 mortgage;
1007	1007	20 (6) assist the owner in foreclosure, loan default, or
1008	1008	21 post-tax sale redemption period to obtain a loan or
1009	1009	22 advance of funds;
1010	1010	23 (7) avoid or ameliorate the impairment of the owner's
1011	1011	24 credit resulting from the recording of a notice of default
1012	1012	25 or the conduct of a foreclosure sale or tax sale; or
1013	1013	26 (8) save the owner's residence from foreclosure or
1014	1014
1015	1015
1016	1016
1017	1017
1018	1018
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1020	1020
1021	1021
1022	1022	HB3146- 28 -LRB104 11225 HLH 21307 b HB3146 - 28 - LRB104 11225 HLH 21307 b
1023	1023	HB3146 - 28 - LRB104 11225 HLH 21307 b
1024	1024	1 save the owner from loss of home due to nonpayment of
1025	1025	2 taxes.
1026	1026	3 A "distressed property consultant" does not include any of
1027	1027	4 the following:
1028	1028	5 (1) a person or the person's authorized agent acting
1029	1029	6 under the express authority or written approval of the
1030	1030	7 Department of Housing and Urban Development;
1031	1031	8 (2) a person who holds or is owed an obligation
1032	1032	9 secured by a lien on any distressed property, or a person
1033	1033	10 acting under the express authorization or written approval
1034	1034	11 of such person, when the person performs services in
1035	1035	12 connection with the obligation or lien, if the obligation
1036	1036	13 or lien did not arise as the result of or as part of a
1037	1037	14 proposed distressed property conveyance;
1038	1038	15 (3) banks, savings banks, savings and loan
1039	1039	16 associations, credit unions, and insurance companies
1040	1040	17 organized, chartered, or holding a certificate of
1041	1041	18 authority to do business under the laws of this State or
1042	1042	19 any other state or under the laws of the United States;
1043	1043	20 (4) attorneys licensed in Illinois engaged in the
1044	1044	21 practice of law;
1045	1045	22 (5) a Department of Housing and Urban Development
1046	1046	23 approved mortgagee and any subsidiary or affiliate of
1047	1047	24 these persons or entities, and any agent or employee of
1048	1048	25 these persons or entities, while engaged in the business
1049	1049	26 of these persons or entities;
1050	1050
1051	1051
1052	1052
1053	1053
1054	1054
1055	1055	HB3146 - 28 - LRB104 11225 HLH 21307 b
1056	1056
1057	1057
1058	1058	HB3146- 29 -LRB104 11225 HLH 21307 b HB3146 - 29 - LRB104 11225 HLH 21307 b
1059	1059	HB3146 - 29 - LRB104 11225 HLH 21307 b
1060	1060	1 (6) a 501(c)(3) nonprofit agency or organization,
1061	1061	2 doing business for no less than 5 years, that offers
1062	1062	3 counseling or advice to an owner of a distressed property,
1063	1063	4 if they do not contract for services with for-profit
1064	1064	5 lenders or distressed property purchasers, or any person
1065	1065	6 who structures or plans such a transaction;
1066	1066	7 (7) (blank);
1067	1067	8 (8) licensees of the Consumer Installment Loan Act who
1068	1068	9 are authorized to make loans secured by real property; or
1069	1069	10 (9) licensees of the Real Estate License Act of 2000
1070	1070	11 when providing licensed activities.
1071	1071	12 "Distressed property purchaser" means any person who
1072	1072	13 solicits an owner of distressed property and acquires any
1073	1073	14 interest in fee in a distressed property or a beneficial
1074	1074	15 interest in a trust holding title to a distressed property
1075	1075	16 while allowing the owner to possess, occupy, or retain any
1076	1076	17 present or future interest in fee in the property, or any
1077	1077	18 person who participates in a joint venture or joint enterprise
1078	1078	19 involving a distressed property conveyance. "Distressed
1079	1079	20 property purchaser" does not mean any person who acquires
1080	1080	21 distressed property at a short sale or any person acting in
1081	1081	22 participation with any person who acquires distressed property
1082	1082	23 at a short sale, if that person does not promise to convey an
1083	1083	24 interest in fee back to the owner or does not give the owner an
1084	1084	25 option to purchase the property at a later date.
1085	1085	26 "Distressed property conveyance" means a transaction in
1086	1086
1087	1087
1088	1088
1089	1089
1090	1090
1091	1091	HB3146 - 29 - LRB104 11225 HLH 21307 b
1092	1092
1093	1093
1094	1094	HB3146- 30 -LRB104 11225 HLH 21307 b HB3146 - 30 - LRB104 11225 HLH 21307 b
1095	1095	HB3146 - 30 - LRB104 11225 HLH 21307 b
1096	1096	1 which an owner of a distressed property transfers an interest
1097	1097	2 in fee in the distressed property or in which the holder of all
1098	1098	3 or some part of the beneficial interest in a trust holding
1099	1099	4 title to a distressed property transfers that interest; the
1100	1100	5 acquirer of the property allows the owner of the distressed
1101	1101	6 property to occupy the property; and the acquirer of the
1102	1102	7 property or a person acting in participation with the acquirer
1103	1103	8 of the property conveys or promises to convey an interest in
1104	1104	9 fee back to the owner or gives the owner an option to purchase
1105	1105	10 the property at a later date.
1106	1106	11 "Person" means any individual, partnership, corporation,
1107	1107	12 limited liability company, association, or other group or
1108	1108	13 entity, however organized.
1109	1109	14 "Service" means, without limitation, any of the following:
1110	1110	15 (1) debt, budget, or financial counseling of any type;
1111	1111	16 (2) receiving money for the purpose of distributing it
1112	1112	17 to creditors in payment or partial payment of any
1113	1113	18 obligation secured by a lien on a distressed property;
1114	1114	19 (3) contacting creditors on behalf of an owner of a
1115	1115	20 residence that is distressed property;
1116	1116	21 (4) arranging or attempting to arrange for an
1117	1117	22 extension of the period within which the owner of a
1118	1118	23 distressed property may cure the owner's default and
1119	1119	24 reinstate his or her obligation;
1120	1120	25 (5) arranging or attempting to arrange for any delay
1121	1121	26 or postponement of the time of sale of the distressed
1122	1122
1123	1123
1124	1124
1125	1125
1126	1126
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1128	1128
1129	1129
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1131	1131	HB3146 - 31 - LRB104 11225 HLH 21307 b
1132	1132	1 property;
1133	1133	2 (6) advising the filing of any document or assisting
1134	1134	3 in any manner in the preparation of any document for
1135	1135	4 filing with any court; or
1136	1136	5 (7) giving any advice, explanation, or instruction to
1137	1137	6 an owner of a distressed property that in any manner
1138	1138	7 relates to the cure of a default or forfeiture or to the
1139	1139	8 postponement or avoidance of sale of the distressed
1140	1140	9 property.
1141	1141	10 (Source: P.A. 94-822, eff. 1-1-07; 95-691, eff. 6-1-08;
1142	1142	11 95-1047, eff. 4-6-09.)
1143	1143	12 (765 ILCS 940/30)
1144	1144	13 Sec. 30. Distressed property conveyance contract terms.
1145	1145	14 Every contract required by Section 25 must contain the entire
1146	1146	15 agreement of the parties, be fully assignable, and survive
1147	1147	16 delivery of any instrument of conveyance of the distressed
1148	1148	17 property. Every lease entered into pursuant to a contract
1149	1149	18 required by Section 25 is terminable at will by the distressed
1150	1150	19 property owner, without liability. Every contract required by
1151	1151	20 Section 25 must include the following terms:
1152	1152	21 (1) the name, business address, and the telephone
1153	1153	22 number of the distressed property purchaser;
1154	1154	23 (2) the address of the distressed property;
1155	1155	24 (3) the total consideration to be given by the
1156	1156	25 distressed property purchaser or tax lien payor in
1157	1157
1158	1158
1159	1159
1160	1160
1161	1161
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1163	1163
1164	1164
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1166	1166	HB3146 - 32 - LRB104 11225 HLH 21307 b
1167	1167	1 connection with or incident to the sale;
1168	1168	2 (4) a complete description of the terms of payment or
1169	1169	3 other consideration including, but not limited to, any
1170	1170	4 services of any nature that the distressed property
1171	1171	5 purchaser represents he or she will perform for the owner
1172	1172	6 of the distressed property before or after the sale;
1173	1173	7 (5) a complete description of the terms of any related
1174	1174	8 agreement designed to allow the owner of the distressed
1175	1175	9 property to remain in the home such as a rental agreement,
1176	1176	10 repurchase agreement, contract for deed, or lease with
1177	1177	11 option to buy;
1178	1178	12 (6) a notice of cancellation as provided in this
1179	1179	13 Section;
1180	1180	14 (7) the following notice in at least 12-point boldface
1181	1181	15 type, if the contract is printed, or in capital letters,
1182	1182	16 if the contract is typed, and completed with the name of
1183	1183	17 the distressed property purchaser, immediately above the
1184	1184	18 statement required by this Section:
1185	1185	19 "NOTICE REQUIRED BY ILLINOIS LAW
1186	1186	20 Until your right to cancel this contract has ended,
1187	1187	21 ..................(Name) or anyone working for
1188	1188	22 ...................(Name) CANNOT ask you to sign or have
1189	1189	23 you sign any deed or any other document. You are urged to
1190	1190	24 have this contract reviewed by an attorney of your choice
1191	1191	25 within 5 business days of signing it."; and
1192	1192	26 (8) if title to the distressed property will be
1193	1193
1194	1194
1195	1195
1196	1196
1197	1197
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1199	1199
1200	1200
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1202	1202	HB3146 - 33 - LRB104 11225 HLH 21307 b
1203	1203	1 transferred in the conveyance transaction, the following
1204	1204	2 notice in at least 14-point boldface type if the contract
1205	1205	3 is printed, or in capital letters if the contract is
1206	1206	4 typed, and completed with the name of the distressed
1207	1207	5 property purchaser, immediately above the statement
1208	1208	6 required by this Section:
1209	1209	7 "NOTICE REQUIRED BY ILLINOIS LAW
1210	1210	8 As part of this transaction, you are giving up title
1211	1211	9 to your home.".
1212	1212	10 (9) In the case a distressed property is at risk of
1213	1213	11 loss for the non-payment of real estate taxes, a statement
1214	1214	12 that the property owner may have the right to obtain money
1215	1215	13 for any equity lost if a tax deed is issued, either through
1216	1216	14 the right to indemnity or public auction, and will lose
1217	1217	15 the right to claim the surplus equity if they sell the
1218	1218	16 property, and should consult an attorney to discuss their
1219	1219	17 options before selling their property.
1220	1220	18 (Source: P.A. 94-822, eff. 1-1-07.)
1221	1221
1222	1222
1223	1223
1224	1224
1225	1225
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