Bill Amendment: IL HB0613 | 2023-2024 | 103rd General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: REVENUE-TECH

Status: 2024-05-31 - House Floor Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee [HB0613 Detail]

Download: Illinois-2023-HB0613-House_Amendment_001.html

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Rep. Kelly M. Burke

Filed: 5/21/2024

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AMENDMENT TO HOUSE BILL 613
AMENDMENT NO. ______. Amend House Bill 613 by replacing
everything after the enacting clause with the following:
"Section 5. The Property Tax Code is amended by changing
Sections 21-305 22-10, 22-30, 22-35, 22-40, 22-45, 22-55,
22-60, 22-75, 22-80, and 22-85 and by adding Sections 22-100,
22-105, 22-110, 22-115, and 22-120 as follows:
(35 ILCS 200/21-305)
Sec. 21-305. Payments from Indemnity Fund.
(a) Any owner of property sold under any provision of this
Code who sustains loss or damage by reason of the issuance of a
tax deed under Section 21-445 or 22-40 and who is barred or is
in any way precluded from bringing an action for the recovery
of the property shall have the right to indemnity for the loss
or damage sustained, limited as follows:
(1) An owner who resided on property that contained 4

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or less dwelling units on the last day of the period of
redemption and who is equitably entitled to compensation
for the loss or damage sustained has the right to
indemnity. An equitable indemnity award shall be limited
to the fair cash value of the property as of the date the
tax deed was issued less any mortgages or liens on the
property, and the award will not exceed $99,000. The Court
shall liberally construe this equitable entitlement
standard to provide compensation wherever, in the
discretion of the Court, the equities warrant the action.
An owner of a property that contained 4 or less
dwelling units who requests an award in excess of $99,000
must prove that the loss of his or her property was not
attributable to his or her own fault or negligence before
an award in excess of $99,000 will be granted.
(2) An owner who sustains the loss or damage of any
property occasioned by reason of the issuance of a tax
deed, without fault or negligence of his or her own, has
the right to indemnity limited to the fair cash value of
the property less any mortgages or liens on the property.
In determining the existence of fault or negligence, the
court shall consider whether the owner exercised ordinary
reasonable diligence under all of the relevant
circumstances.
(3) In determining the fair cash value of property
less any mortgages or liens on the property, the fair cash

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value shall be reduced by the principal amount of all
taxes paid by the tax purchaser or his or her assignee
before the issuance of the tax deed.
(4) If an award made under paragraph (1) or (2) is
subject to a reduction by the amount of an outstanding
mortgage or lien on the property, other than the principal
amount of all taxes paid by the tax purchaser or his or her
assignee before the issuance of the tax deed and the
petitioner would be personally liable to the mortgagee or
lienholder for all or part of that reduction amount, the
court shall order an additional indemnity award to be paid
directly to the mortgagee or lienholder sufficient to
discharge the petitioner's personal liability. The court,
in its discretion, may order the joinder of the mortgagee
or lienholder as an additional party to the indemnity
action.
(b) Indemnity fund; subrogation.
(1) Any person claiming indemnity hereunder shall
petition the Court which ordered the tax deed to issue,
shall name the County Treasurer, as Trustee of the
indemnity fund, as defendant to the petition, and shall
ask that judgment be entered against the County Treasurer,
as Trustee, in the amount of the indemnity sought. The
provisions of the Civil Practice Law shall apply to
proceedings under the petition, except that neither the
petitioner nor County Treasurer shall be entitled to trial

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by jury on the issues presented in the petition. The Court
shall liberally construe this Section to provide
compensation wherever in the discretion of the Court the
equities warrant such action.
(2) The County Treasurer, as Trustee of the indemnity
fund, shall be subrogated to all parties in whose favor
judgment may be rendered against him or her, and by
third-party third party complaint may bring in as a
defendant any person, other than the tax deed grantee and
its successors in title, not a party to the action who is
or may be liable to him or her, as subrogee, for all or
part of the petitioner's claim against him or her.
(c) Any contract involving the proceeds of a judgment for
indemnity under this Section, between the tax deed grantee or
its successors in title and the indemnity petitioner or his or
her successors, shall be in writing. In any action brought
under Section 21-305, the Collector shall be entitled to
discovery regarding, but not limited to, the following:
(1) the identity of all persons beneficially
interested in the contract, directly or indirectly,
including at least the following information: the names
and addresses of any natural persons; the place of
incorporation of any corporation and the names and
addresses of its shareholders unless it is publicly held;
the names and addresses of all general and limited
partners of any partnership; the names and addresses of

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all persons having an ownership interest in any entity
doing business under an assumed name, and the county in
which the assumed business name is registered; and the
nature and extent of the interest in the contract of each
person identified;
(2) the time period during which the contract was
negotiated and agreed upon, from the date of the first
direct or indirect contact between any of the contracting
parties to the date of its execution;
(3) the name and address of each natural person who
took part in negotiating the contract, and the identity
and relationship of the party that the person represented
in the negotiations; and
(4) the existence of an agreement for payment of
attorney's fees by or on behalf of each party.
Any information disclosed during discovery may be subject
to protective order as deemed appropriate by the court. The
terms of the contract shall not be used as evidence of value.
(d) A petition of indemnity under this Section must be
filed within 10 years after the date the tax deed was issued.
(e) Any owner who requests an excess proceeds sale
pursuant to Section 22-100 that results in a sale pursuant to
Section 22-105 shall not be entitled to any award under this
Section, regardless of whether any surplus was generated.
(Source: P.A. 97-557, eff. 7-1-12.)

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(35 ILCS 200/22-10)
Sec. 22-10. Notice of expiration of period of redemption.
A purchaser or assignee shall not be entitled to a tax deed to
the property sold unless, not less than 3 months nor more than
6 months prior to the expiration of the period of redemption,
he or she gives notice of the sale and the date of expiration
of the period of redemption to the owners, occupants, and
parties interested in the property, including any mortgagee of
record, as provided below. For counties or taxing districts
holding certificates pursuant to Section 21-90, the date of
expiration of the period of redemption shall be designated by
the county or taxing district in its petition for tax deed and
identified in the notice below, which shall be filed with the
county clerk.
The Notice to be given to the parties shall be in at least
10-point type in the following form completely filled in:
TAX DEED NO. .................... FILED ....................
TAKE NOTICE
County of ...........................................
Date Premises Sold or Forfeited .....................
Certificate No. .....................................
Sold or Forfeited for General Taxes of (year) .......
Sold for Special Assessment of (Municipality)
and special assessment number .......................
Warrant No. ................ Inst. No. .................
THIS PROPERTY HAS BEEN SOLD FOR

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DELINQUENT TAXES
Property Address (as identified on the most recent tax bill,
if available) ....
Legal Description or Property Index No. ..........
..........
..............................
This notice is to advise you that the above property has
been sold for delinquent taxes and that the period of
redemption from the sale will expire on ..........
..........
Check with the county clerk as to the exact amount you owe
before redeeming.
This notice is also to advise you that a petition has been
filed for a tax deed which will transfer title and the right to
possession of this property if redemption is not made on or
before ..................................................
This matter is set for hearing in the Circuit Court of this
county in ...., Illinois on .....
You may be present at this hearing but your right to redeem
will already have expired at that time.
YOU ARE URGED TO REDEEM IMMEDIATELY
TO PREVENT LOSS OF PROPERTY
Redemption can be made at any time on or before .... by
applying to the County Clerk of ...., County, Illinois at the
Office of the County Clerk in ...., Illinois.
For further information contact the County Clerk

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IF YOU BELIEVE THAT YOUR PROPERTY HAS VALUE THAT EXCEEDS
THE TAX BURDEN ON THE PROPERTY, AND YOU DO NOT WANT TO LOSE
EQUITY YOU MAY HAVE IN THE PROPERTY, YOU MAY REQUEST AN EXCESS
PROCEEDS SALE BY NOTIFYING THE COUNTY CLERK OF YOUR REQUEST IN
WRITING. THE COUNTY CLERK SHALL PROVIDE THE FORM.
ADDRESS:....................
TELEPHONE AND/OR EMAIL ADDRESS:..................
..........................
Purchaser or Assignee.
Dated (insert date).
In counties with 3,000,000 or more inhabitants, the notice
shall also state the address, room number, and time at which
the matter is set for hearing.
The changes to this Section made by Public Act 97-557
apply only to matters in which a petition for tax deed is filed
on or after July 1, 2012 (the effective date of Public Act
97-557).
The changes to this Section made by Public Act 102-1003
apply to matters in which a petition for tax deed is filed on
or after May 27, 2022 (the effective date of Public Act
102-1003). Failure of any party or any public official to
comply with the changes made to this Section by Public Act
102-528 does not invalidate any tax deed issued prior to May
27, 2022 (the effective date of Public Act 102-1003).

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The changes made to this Section by this amendatory Act of
the 103rd General Assembly apply to matters concerning tax
certificates issued on or after the effective date of this
amendatory Act of the 103rd General Assembly.
(Source: P.A. 102-528, eff. 1-1-22; 102-813, eff. 5-13-22;
102-1003, eff. 5-27-22; 103-154, eff. 6-30-23; 103-555, eff.
1-1-24.)
(35 ILCS 200/22-30)
Sec. 22-30. Petition for deed. At any time within 6 months
but not less than 3 months prior to the expiration of the
redemption period for property sold pursuant to judgment and
order of sale under Sections 21-110 through 21-120 or 21-260
or otherwise acquired by the county pursuant to Section 21-90,
the purchaser, or the agent pursuant to Section 21-90, may
file a petition in the circuit court in the same proceeding in
which the judgment and order of sale were entered, asking that
the court direct the county clerk to issue a tax deed if the
property is not redeemed from the sale. The petition shall be
accompanied by the statutory filing fee.
Notice of filing the petition and a date for redemption,
after which the petitioner intends to apply for an order to
issue a tax deed if the taxes are not redeemed, shall be given
to occupants, owners and persons interested in the property as
part of the notice provided in Sections 22-10 through 22-25,
except that only one publication is required. The county clerk

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shall be notified of the filing of the petition and any person
owning or interested in the property may, if he or she desires,
appear in the proceeding.
Any owner may appear and object to the tax deed
petitioner's request for an order directing the county clerk
to issue the tax deed notwithstanding that a request for an
excess proceeds sale was made by any owner pursuant to Section
22-100.
The changes to this Section made by this amendatory Act of
the 95th General Assembly apply only to matters in which a
petition for tax deed is filed on or after the effective date
of this amendatory Act of the 95th General Assembly.
(Source: P.A. 103-555, eff. 1-1-24.)
(35 ILCS 200/22-40)
Sec. 22-40. Issuance of deed; possession.
(a) To obtain an order for issuance of tax deed, the
petitioner must provide sufficient evidence that:
(1) the redemption period has expired and the property
has not been redeemed;
(2) all taxes and special assessments which became due
and payable subsequent to the sale have been paid, unless
the county or its agent, as trustee pursuant to Section
21-90, is the petitioner;
(3) all forfeitures and sales which occur subsequent
to the sale are paid or redeemed, unless the county or its

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agent, as trustee pursuant to Section 21-90, is the
petitioner;
(4) the notices required by law have been given, and
all advancements of public funds under the police power
made by a county, city, village or town under Section
22-35 have been paid; and
(5) the petitioner has complied with all the
provisions of law entitling him or her to a deed.
Upon receipt of sufficient evidence of the requirements
under this subsection (a), the court shall find that the
petitioner complied with those requirements and shall enter an
order directing the county clerk, on the production of the tax
certificate and a certified copy of the order, to issue to the
purchaser or its assignee a tax deed. The court shall insist on
strict compliance with Section 22-10 through 22-25. Prior to
the entry of an order directing the issuance of a tax deed, the
petitioner shall furnish the court with a report of
proceedings of the evidence received on the application for
tax deed and the report of proceedings shall be filed and made
a part of the court record.
(a-5) If, at the time the order directing issuance of tax
deed is entered, no request for an excess proceeds sale has
been made pursuant to subsections (a) or (b) of Section
22-100, the order shall require the tax deed petitioner to
send via first-class mail to all parties that were named in the
tax deed proceeding and to any party entitled to receive

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notice pursuant to Section 22-5, a copy of the order along with
a request for an excess proceeds sale form as set forth in
Section 22-100. The order and the request for excess proceeds
sale form shall be sent within 14 days after the order
directing issuance of tax deed is entered. The form shall list
the final date upon which a person may request an excess
proceeds sale under subsection (c) of Section 22-100. The tax
deed petitioner must file a notice of filing and certificate
of mailing in the tax deed proceeding that verifies that the
mailing occurred. The county clerk shall not issue any tax
deed prior to the 91st day after the entry of the order unless
proof is presented to the county clerk that the notice
required by this Section was timely mailed, except in cases
where a request for an excess proceeds sale was made pursuant
to subsection (a) or (b) of Section 22-100. If the notice set
forth in this Section is not mailed within 14 days after the
order is entered, the county clerk shall not issue a tax deed
until proof is presented to the clerk that the mailing
occurred. In that case, the county clerk shall issue a tax deed
only after 90 days have passed from the date the notice was
mailed. A copy of the file stamped notice of filing and
certificate of mailing filed in the tax deed proceeding is
satisfactory proof that the mailing occurred on the date
listed in the notice.
(a-10) Every order directing issuance of tax deed shall
list the total amount owed to the holder of the certificate of

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purchase at the time the order is entered, which shall be paid
to the holder of the certificate of purchase if an excess
proceeds sale is held pursuant to Section 22-105. The total
amount due to the holder of the certificate of purchase shall
include the following amounts:
(1) the amount necessary to redeem the property from
the sale as of the last day of the period of redemption
plus interest of 16%;
(2) all taxes and special assessments paid or redeemed
by the tax purchaser or the purchaser's assignee that are
not included in the redemption amount, plus any indemnity
fund fees paid as required by subsection (e-5);
(3) court reporter fees for the hearing on the
application for tax deed and transcript of the hearing;
(4) amounts in satisfaction of municipal liens paid by
the tax purchaser or the tax purchaser's assignee; and
(5) reasonable attorney's fees.
(b) Except as provided in subsection (e), if taxes for
years prior to the year or years sold are or become delinquent
subsequent to the date of sale, the court shall find that the
lien of those delinquent taxes has been or will be merged into
the tax deed grantee's title if the court determines that the
tax deed grantee or any prior holder of the certificate of
purchase, or any person or entity under common ownership or
control with any such grantee or prior holder of the
certificate of purchase, was at no time the holder of any

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certificate of purchase for the years sought to be merged. If
delinquent taxes are merged into the tax deed pursuant to this
subsection, the court shall enter an order declaring which
specific taxes have been or will be merged into the tax deed
title and directing the county treasurer and county clerk to
reflect that declaration in the warrant and judgment records;
provided, that no such order shall be effective until a tax
deed has been issued and timely recorded. Nothing contained in
this Section shall relieve any owner liable for delinquent
property taxes under this Code from the payment of the taxes
that have been merged into the title upon issuance of the tax
deed.
(c) The county clerk is entitled to a fee of $10 in
counties of 3,000,000 or more inhabitants and $5 in counties
with less than 3,000,000 inhabitants for the issuance of the
tax deed, with the exception of deeds issued to the county
pursuant to its authority under Section 21-90. The clerk may
not include in a tax deed more than one property as listed,
assessed and sold in one description, except in cases where
several properties are owned by one person. The fee paid to the
county clerk for the issuance of the tax deed shall be
accompanied by a $300 indemnity fund fee in counties of
3,000,000 or more inhabitants and a $100 indemnity fund fee in
counties with less than 3,000,000 inhabitants, with the
exception of deeds issued to the county pursuant to its
authority under Section 21-90. All fees received under this

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subsection shall be paid by the county clerk to the county
treasurer of the county in which the land is situated for the
purpose of funding the county's indemnity fund established
under Section 21-295.
Upon application, the court shall, enter an order to place
the tax deed grantee or the grantee's successor in interest in
possession of the property and may enter orders and grant
relief as may be necessary or desirable to maintain the
grantee or the grantee's successor in interest in possession.
(d) The court shall retain jurisdiction to enter orders
pursuant to subsections (b) and (c) of this Section. This
amendatory Act of the 92nd General Assembly and this
amendatory Act of the 95th General Assembly shall be construed
as being declarative of existing law and not as a new
enactment.
(e) Prior to the issuance of any tax deed under this
Section, the petitioner must redeem all taxes and special
assessments on the property that are subject to a pending tax
petition filed by a county or its assignee pursuant to Section
21-90.
(e-5) Following the expiration of the period of
redemption, the petitioner's payment of (i) any subsequent tax
and special assessment and (ii) any redemption of any sale of
subsequent taxes or forfeiture shall be accompanied by a 10%
indemnity fund fee to be paid by the petitioner. All fees
received under this subsection shall be paid by the collector

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and county clerk to the county treasurer of the county in which
the land is situated for the purpose of funding the county's
indemnity fund established by Section 21-295. No fees incurred
under this subsection shall be posted to the subject tax sale
pursuant to Section 21-355.
(f) If, for any reason, a purchaser fails to obtain an
order for tax deed within the required time period and no sale
in error was granted or redemption paid, then the certificate
shall be forfeited to the county, as trustee, pursuant to
Section 21-90.
(Source: P.A. 103-555, eff. 1-1-24.)
(35 ILCS 200/22-45)
Sec. 22-45. Tax deed incontestable unless order appealed
or relief petitioned.
(a) Tax deeds issued under Section 22-40 are incontestable
except by appeal from the order of the court directing the
county clerk to issue the tax deed. However, relief from such
order may be had under Sections 2-1203 or 2-1401 of the Code of
Civil Procedure in the same manner and to the same extent as
may be had under those Sections with respect to final orders
and judgments in other proceedings. The grounds for relief
under Section 2-1401 shall be limited to:
(1) proof that the taxes were paid prior to sale;
(2) proof that the property was exempt from taxation;
(3) proof by clear and convincing evidence that the

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tax deed had been procured by fraud or deception by the tax
purchaser or his or her assignee; or
(4) proof by a person or party holding a recorded
ownership or other recorded interest in the property that
he or she was not named as a party in the publication
notice as set forth in Section 22-20, and that the tax
purchaser or his or her assignee did not make a diligent
inquiry and effort to serve that person or party with the
notices required by Sections 22-10 through 22-30.
(b) In cases of the sale of homestead property in counties
with 3,000,000 or more inhabitants, a tax deed may also be
voided by the court upon petition, filed not more than 3 months
after an order for tax deed was entered, if the court finds
that the property was owner occupied on the expiration date of
the period of redemption and that the order for deed was
effectuated pursuant to a negligent or willful error made by
an employee of the county clerk or county collector during the
period of redemption from the sale that was reasonably relied
upon to the detriment of any person having a redeemable
interest. In such a case, the tax purchaser shall be entitled
to the original amount required to redeem the property plus
interest from the sale as of the last date of redemption
together with costs actually expended subsequent to the
expiration of the period of redemption and reasonable
attorney's fees, all of which shall be dispensed from the fund
created by Section 21-295. If an excess proceeds sale has

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occurred pursuant to Section 22-105, the successful purchaser
shall be entitled to the following amounts, all of which shall
be dispensed from the fund created by Section 21-295:
(1) the amount owed to the holder of the certificate
listed in the order directing issuance of tax deed, with
interest at the rate of 1% per month from the date the
successful purchaser paid his or her winning excess
proceeds sale bid until the date of payment pursuant to
this Section;
(2) all taxes and special assessments paid or redeemed
by the successful purchaser, the tax deed grantee, or or
the tax deed grantee's successors and assigns, after the
excess proceeds sale, with interest at the rate of 1% per
month from the date any such payment was made until the
date of payment pursuant to this Section;
(3) the cost of certification of tax deed order, the
cost of issuance of the tax deed, and the cost of recording
of the tax deed, which shall include any indemnity fund
fees as required by subsection (c) of Section 22-40;
(4) the total amount of any excess surplus paid by the
winning bidder at any excess proceeds sale, provided that
the amount bid was in excess of the total amount owed to
the holder of the certificate as listed in the order
directing issuance of tax deed; and
(5) reasonable attorney's fees and court costs
actually expended.

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(c) The treasurer, as trustee of the county indemnity
fund, may file a motion with the court for the release of any
surplus funds held by the clerk of the circuit court as
provided in Section 22-120, and the court shall enter an order
requiring the clerk of the circuit court to release any
surplus funds from the excess proceeds sale to the treasurer
as trustee of the county indemnity fund.
(d) In those cases of error where the court vacates the tax
deed, it may award the petitioner reasonable attorney's fees
and court costs actually expended, payable from that fund. The
court hearing a petition filed under this Section or Section
2-1401 of the Code of Civil Procedure may concurrently hear a
petition filed under Section 21-295 and may grant relief under
any Section.
(e) Any owner who requests an excess proceeds sale
pursuant to Section 22-100 shall not be limited to any relief
from the order directing the county clerk to issue the tax deed
as provided in this Section and under and any motion filed
under Sections 2-1203 or 2-1401 of the Code of Civil Procedure
unless an excess proceeds sale occurs. Once the excess
proceeds sale occurs, any owner who made such a request shall
be limited to the results of any excess proceeds sale
regardless if any surplus funds exist. Any surplus funds shall
be recovered only pursuant to the requirements of Section
22-120.
This amendatory Act of the 95th General Assembly shall be

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construed as being declarative of existing law and not as a new
enactment.
(Source: P.A. 95-477, eff. 6-1-08.)
(35 ILCS 200/22-55)
Sec. 22-55. Tax deeds to convey merchantable title.
(a) This Section shall be liberally construed so that tax
deeds shall convey merchantable title. In the event the
property has been taken by eminent domain under the Eminent
Domain Act, the tax purchaser shall be entitled to the award
which is the substitute for the property. Tax deeds issued
pursuant to this Section are subject to Section 22-70.
(b) Any conveyance from any tax deed grantee, including
any deed issued to the county, a specific county agency, or a
municipality, to a bona fide purchaser shall include a county
indemnity fund charge in the amount of 2.5% of the purchase
price, which shall be paid by the tax deed grantee. The
indemnity fund charge shall be collected by the Illinois
licensed title insurance company that issues an owner's policy
of title insurance from the tax deed grantee to the purchaser
and shall thereafter be paid by the title insurance company to
the county treasurer of the county in which the property is
located, as trustee of the indemnity fund established by
Section 21-295. The title insurance company may charge a
reasonable fee for the collection and turnover of those
charges. This subsection applies to conveyances that occur on

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or after the effective date of this amendatory Act of the 103rd
General Assembly.
(c) In counties of 3,000,000 or more inhabitants, any
conveyance from any tax deed grantee, including any deed that
is issued to the county, to a specific county agency, or to a
municipality, that is not covered in subsection (b) shall
include an indemnity fund fee of $500 upon recording of the
deed from the tax deed grantee to any grantee. The $500
indemnity fee received under this subsection shall be paid by
the county recorder or the county clerk to the county
treasurer of the county in which the land is situated and shall
be used for the purpose of funding the county's indemnity fund
established by Section 21-295.
(Source: P.A. 94-1055, eff. 1-1-07.)
(35 ILCS 200/22-60)
Sec. 22-60. Contents of deed; recording.
(a) Every tax deed shall contain the full names and the
true post office address and residence of the grantee. A
county receiving a tax deed pursuant to Section 21-90 may
designate a specific county agency to be named as the deed
grantee. It shall not be of any force or effect, and the
recipient shall not take title to the property, until after
the deed has been recorded in the office of the recorder.
(b) The cost of recording a tax deed, including, but not
limited to, a tax deed issued to a county, a specific county

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agency, or a municipality, shall include a $200 indemnity fund
surcharge fee. All surcharge fees received under this
subsection shall be paid by the county recorder or the county
clerk to the county treasurer of the county in which the land
is situated and shall be used for the purpose of funding the
county's indemnity fund established by Section 21-295.
(Source: P.A. 103-555, eff. 1-1-24.)
(35 ILCS 200/22-75)
Sec. 22-75. Deed; prima facie evidence of regularity of
sale.
(a) As to the property conveyed therein, tax deeds
executed by the county clerk are prima facie evidence of the
following facts in all controversies and suits in relation to
the rights of the tax deed grantee and his or her heirs or
assigns:
(1) the property conveyed was subject to taxation at
the time it was assessed, and was listed and assessed in
the time and manner required by law;
(2) the taxes or special assessments were not paid at
any time before the sale;
(3) the property was advertised for sale in the manner
and for the length of time required by law;
(4) the property was sold for taxes or special
assessments as stated in the deed;
(5) the sale was conducted in the manner required by

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law;
(6) the property conveyed was not redeemed from the
sale within the time permitted by law;
(7) the grantee in the deed was the purchaser or
assignee of the purchaser.
(a-5) No conveyance from a tax deed grantee to a bona fide
purchaser may be challenged on the basis that the former owner
may have suffered a loss of equity. Any such claim must be
adjudicated pursuant to the provisions of Sections 22-100
through 22-120 or 21-305, which provisions shall be the
exclusive remedy for any alleged loss of equity.
(b) Any order for the sale of property for delinquent
taxes, except as otherwise provided in this Section, shall
estop all parties from raising any objections to the order or
to a tax title based thereon, which existed at or before the
rendition of the order, and which could have been presented as
a defense to the application for the order. The order itself is
conclusive evidence of its regularity and validity in all
collateral proceedings, except in cases where the tax or
special assessments were paid prior to the sale or the
property was exempt from general taxes or was not subject to
special assessment.
(Source: P.A. 88-455; 89-342, eff. 1-1-96.)
(35 ILCS 200/22-80)
Sec. 22-80. Order of court setting aside tax deed;

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payments to holder of deed.
(a) Any order of court vacating an order directing the
county clerk to issue a tax deed based upon a finding that the
property was not subject to taxation or special assessment, or
that the taxes or special assessments had been paid prior to
the sale of the property, or that the tax sale was otherwise
void, shall declare the tax sale to be a sale in error pursuant
to Section 21-310 of this Act. The order shall direct the
county collector to refund to the tax deed grantee or his or
her successors and assigns (or, if a tax deed has not yet
issued, the holder of the certificate) the following amounts:
(1) all taxes and special assessments purchased, paid,
or redeemed by the tax purchaser or his or her assignee, or
by the tax deed grantee or his or her successors and
assigns, whether before or after entry of the order for
tax deed, with interest at the rate of 1% per month from
the date each amount was paid until the date of payment
pursuant to this Section;
(2) all costs paid and posted to the judgment record
and not included in paragraph (1) of this subsection (a);
and
(3) court reporter fees for the hearing on the
application for tax deed and transcript thereof, the cost
of certification of tax deed order, the cost of issuance
of tax deed, and the cost of recording of tax deed, and any
indemnity fund fees as required by subsection (c) of

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Section 22-40, subsection (e-5) of Section 22-40,
subsection (b) of 22-50, and subsection (b) of Section
22-60.
(a-5) If an excess proceeds sale has occurred pursuant to
Section 22-105, the county collector shall refund to the tax
deed grantee, or to the grantee's successors and assigns, or,
if a tax deed has not yet issued, to the holder of the
certificate of purchase, the following amounts:
(1) the amount owed to the holder of the certificate,
which is listed in the order directing issuance of tax
deed, with interest at the rate of 1% per month from the
date the order directing issuance of tax deed was entered
until the date of payment under this Section;
(2) all taxes and special assessments paid or redeemed
by the tax purchaser or the tax purchaser's assignee, or
by the tax deed grantee or the grantee's successors and
assigns, after the excess proceeds sale, with interest at
the rate of 1% per month from the date each amount was paid
until the date of payment pursuant to this Section;
(3) the cost of certification of tax deed order, the
cost of issuance of tax deed, the cost of recording of tax
deed, and any indemnity fund fees as required by
subsection (d) of Section 22-40, subsection (e-5) of
Section 22-40, subsection (b) of 22-50, subsection (b) of
and 22-60; and
(4) the total amount of any excess surplus paid by the

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winning bidder at any excess proceeds sale, provided that
the amount bid was in excess of the total amount owed to
the holder of the certificate as listed in the order
directing issuance of tax deed with interest at the rate
of 1% per month from the date the winning bidder paid the
amount due at the excess surplus sale until the date of
payment pursuant to this Section. The collector may file a
motion with the court for release of any surplus funds
held by the clerk of the circuit court as provided in
Section 22-120, and the court shall enter an order
requiring the clerk of the circuit court to release any
remaining surplus funds to the collector from that excess
proceeds sale.
(b) Except in those cases described in subsection (a) and
(a-5) of this Section, and unless the court on motion of the
tax deed petitioner extends the redemption period to a date
not later than 3 years from the date of sale, any order of
court finding that an order directing the county clerk to
issue a tax deed should be vacated shall direct the party who
successfully contested the entry of the order to pay to the tax
deed grantee or his or her successors and assigns (or, if a tax
deed has not yet issued, the holder of the certificate) within
90 days after the date of the finding:
(1) the amount necessary to redeem the property from
the sale as of the last day of the period of redemption,
except that, if the sale is a scavenger sale pursuant to

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Section 21-260 of this Act, the redemption amount shall
not include an amount equal to all delinquent taxes on
such property which taxes were delinquent at the time of
sale; and
(2) amounts in satisfaction of municipal liens paid by
the tax purchaser or his or her assignee, and the amounts
specified in paragraphs (1) and (3) of subsection (a) of
this Section, to the extent the amounts are not included
in paragraph (1) of this subsection (b).
If the payment is not made within the 90-day period, the
petition to vacate the order directing the county clerk to
issue a tax deed shall be denied with prejudice, and the order
directing the county clerk to issue a tax deed shall remain in
full force and effect. No final order vacating any order
directing the county clerk to issue a tax deed shall be entered
pursuant to this subsection (b) until the payment has been
made.
(c) Except as described in subsection (a), (a-5), or (b),
any order of the court finding that an order directing the
county clerk to issue a tax deed shall be vacated when an
excess proceeds sale has occurred shall direct the party who
successfully contested the entry of the order to pay to the tax
deed grantee or the grantee's successors and assigns (or, if a
tax deed has not yet issued, to the holder of the certificate)
within 90 days after the date of the finding the following
amounts:

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(1) the amount owed to the holder of the certificate
that is listed in the order directing issuance of tax
deed, with interest at the rate of 1% per month from the
date the order directing issuance of tax deed was entered
until the date of payment pursuant to this Section;
(2) all taxes and special assessments paid or redeemed
by the tax purchaser or his or her assignee, or by the tax
deed grantee or his or her successors and assigns, after
the excess proceeds sale, with interest at the rate of 1%
per month from the date each amount was paid until the date
of payment pursuant to this Section; and
(3) the cost of certification of tax deed order, the
cost of issuance of tax deed, the cost of recording of tax
deed, and any indemnity fund surcharge fees as required by
subsection (c) of Sections 22-40, subsection (e-5) of
Section 22-40, subsection (b) of Section 22-50, and
subsection (b) of Section 22-60.
If the payment is not made within the 90-day period, the
petition to vacate the order directing the county clerk to
issue a tax deed shall be denied with prejudice, and the order
directing the county clerk to issue a tax deed shall remain in
full force and effect. No final order vacating any order
directing the county clerk to issue a tax deed shall be entered
pursuant to this subsection (c) until the payment has been
made.
(d) If the total amount from any excess proceeds sale

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exceeds the total amount owed to the holder of the certificate
as listed in the order directing issuance of tax deed. The tax
deed grantee or his or her successors and assigns (or, if a tax
deed has not yet issued, the holder of the certificate) may
file a motion with the court for release of any surplus funds
held by the clerk of the circuit court as provided in Section
22-120 and the court shall order the clerk of the circuit court
to release any remaining surplus funds from said sale to the
movant.
(Source: P.A. 91-357, eff. 7-29-99.)
(35 ILCS 200/22-85)
Sec. 22-85. Failure to timely take out and record deed;
deed is void. Unless the holder of the certificate purchased
at any tax sale under this Code takes out the deed in the time
provided by law, and records the same within one year from and
after the time for redemption expires, the certificate or
deed, and the sale on which it is based, shall, after the
expiration of the one-year period one year period, be
absolutely void with no right to reimbursement. If the holder
of the certificate is prevented from obtaining or recording a
deed by injunction or order of any court, or by the refusal or
inability of any court to act upon the application for a tax
deed, or by the refusal of the clerk to execute the same deed,
or by the refusal, inability, or delay of any county, city,
village, or incorporated town to issue transfer stamps, the

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time he or she is so prevented shall be excluded from
computation of the one-year period one year period.
Certificates of purchase and deeds executed by the clerk shall
recite the qualifications required in this Section. The court
shall retain jurisdiction to enter orders pursuant to this
Section.
If any owner of the property sold requests an excess
proceeds sale, the time for recording any tax deed shall be
extended pursuant to the requirement of subsection (g) of
Section 22-105.
(Source: P.A. 87-669; 88-455.)
(35 ILCS 200/22-100 new)
Sec. 22-100. Request for excess proceeds sale. Any owner
who has an interest in the property on the date a tax deed
petition is filed with the clerk of the circuit court may
request an excess proceeds sale by:
(1) filing a request for an excess proceeds sale with
the county clerk before the final date of redemption; the
clerk shall provide the request form to the person making
the request and, upon completion of the form, shall
immediately mark the request on the tax judgment, sale,
redemption, and forfeiture record; the county clerk may
charge a reasonable fee for such a request and shall
provide a receipt to the person making such request;
(2) filing a request for an excess proceeds sale with

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the clerk of the circuit court for which the tax deed
proceeding is pending before the entry of any tax deed
order; or
(3) filing a request for an excess proceeds sale with
the clerk of the circuit court for which the tax deed
proceeding is pending within 90 days after date the tax
deed order is entered or the date the notice required
under Section 22-40 is mailed, whichever is later.
An owner's failure to request an excess proceeds sale
shall not affect any rights the owner may have for
indemnification pursuant to Section 21-305.
The request for an excess proceeds sale shall be completed
in its entirety by the owner in the following form:
REQUEST FOR AN EXCESS PROCEEDS SALE
Name of Owner:...........................................
Property Address:........................................
Property Index Number:...................................
Sold or Forfeited for General Taxes of (year) Tax Deed
Case Number:.................................................
I, [insert name], am an owner of the above property. If I
cannot redeem my property from the above tax sale, I hereby
request that the court order an excess proceeds sale, and that
I be given an opportunity to claim any surplus funds that may
be collected in excess of the amounts due for taxes,
penalties, costs, and other encumbrances on the property.
Date:....................................................

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Owner:...................................................
If no request for an excess proceeds sale has been made by
any owner prior to the entry of the tax deed order, the holder
of the certificate of purchase as listed in the tax deed order
shall mail the form for a request for an excess proceeds sale
as set forth in this Section to the persons listed in
subsection (a-5) of Section 22-40 as required by that Section.
The form shall include the date on which the excess proceeds
sale is to be held.
(35 ILCS 200/22-105 new)
Sec. 22-105. Excess proceeds sale.
(a) If an owner makes a written request for an excess
proceeds sale, as set forth in Section 22-100, upon entry of an
order directing the county clerk to issue a tax deed (tax deed
order), the certificate of purchase that is the subject of the
tax deed order shall be sold at an excess proceeds sale in
accordance with this Section.
(b) The certificate of purchase shall be sold as provided
in this Section, on such terms and conditions as shall be
specified by the court in the tax deed order. The sale may be
conducted by any licensed title insurance company in the State
of Illinois or by the law firm or attorney who obtained the tax
deed order.
(c) The title insurance company, law firm, attorney, or
such other party as is designated by the court shall give

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public notice of the sale as follows:
(1) The notice of sale shall include at least the
following information, but an immaterial error in the
information shall not invalidate the legal effect of the
notice:
(A) the name, address, and telephone number of the
person to contact for information regarding the
certificate of purchase and the real estate to which
it pertains;
(B) the property address (as identified on the
most recent tax bill, if available); the Property
Index Number listed on the certificate of purchase,
and any other common description, if any, of the real
estate;
(C) a legal description of the real estate
sufficient to identify it with reasonable certainty;
(D) a description of the improvements on the real
estate;
(E) the time and place of the sale;
(F) the terms of the sale;
(G) the case title, case number, and court in
which the tax deed order was entered;
(H) such other information as is ordered by the
court.
(2) The notice of sale shall be published once each
week for at least 3 consecutive calendar weeks (Sunday

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through Saturday). The first such notice shall be
published not more than 45 days before the sale, and the
last such notice shall be published not less than 7 days
before the sale. Notice shall be in the following manner:
(A) by advertisement in a newspaper circulated to
the general public in the county in which the real
estate is located, in the section of that newspaper
where legal notices are commonly placed;
(B) by separate advertisements in the section of
such a newspaper, which (except in counties with a
population in excess of 3,000,000) may be the same
newspaper, in which real estate other than real estate
being sold as part of legal proceedings is commonly
advertised to the general public; provided that the
separate advertisements in the real estate section
need not include a legal description and that, if both
advertisements could be published in the same
newspaper and that newspaper does not have separate
legal notices and real estate advertisement sections,
a single advertisement with the legal description
shall be sufficient; and
(C) by such other publications as may be further
ordered by the court.
(3) The party who gives notice of public sale in
accordance with this subsection (c) shall also give notice
to all interested parties who were named in the tax deed

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proceeding via first-class mail at the addresses used in
the tax deed proceeding and to any attorney or person who
appeared in the proceeding to receive notice. After notice
is given as required in this Section, a copy of the notice
shall be filed in the office of the clerk of the court
entering the tax deed order, together with a certificate
of counsel or other proof that notice has been served in
compliance with this Section.
(4) The party who gives notice of public sale in
accordance with this subsection (c) shall again give
notice in accordance with this Section of any canceled
sale; provided, however, that, if the canceled sale is to
occur less than 30 days after the last scheduled sale,
notice of any canceled sale need not be given pursuant to
this Section. In the event of cancellation, the person
conducting the sale shall, upon cancellation, announce the
date, time, and place upon which the adjourned sale shall
be held. Notwithstanding any language to the contrary, for
any canceled sale that is to be conducted more than 60 days
after the date on which it was to first be held, the party
giving notice of the sale shall again give notice in
accordance with this Section.
(5) No other notice by publication or posting is
necessary unless required by order or rule of the court.
(d) Upon and at the sale of the certificate of purchase,
the person conducting the sale shall give to the purchaser a

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receipt of sale. The receipt shall describe the real estate
purchased and shall show the amount bid, the amount paid, the
total amount paid to date and the amount still to be paid for
it. An additional receipt shall be given at the time of each
subsequent payment. The holder of the certificate of purchase
identified in the tax deed order may place a credit bid equal
to the total amount as listed in the tax deed order.
(e) Upon payment in full of the amount bid, the person
conducting the sale shall assign and deliver the original
certificate of purchase to the winning bidder who shall become
the holder of the certificate of purchase. The sale amount of
the certificate of purchase is prima facia evidence of the
fair market value of the real estate as of the date of the
excess proceeds sale. Any certificate of purchase following a
sale under this Section shall be freely assignable by
endorsement as set forth in Section 21-250.
(f) Following a sale as set forth in this Section, the
holder of the certificate of purchase, or the holder's
assignee, shall present the certificate of purchase to the
county clerk in order to obtain a tax deed for the property.
(g) Notwithstanding the provisions of Section 22-85, if a
sale occurs under this Section, the winning bidder or the
bidder's assignee shall have one year from the date of the sale
under this Section to take out and record the tax deed. If the
bidder or the bidder's assignee fails to record the tax deed
within one year after the sale under this Section, the

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certificate or deed, and the sale on which it is based, shall
be absolutely void with no right to reimbursement. If the
holder of the certificate is prevented from obtaining or
recording a deed by injunction or order of any court, by the
refusal or inability of any court to act upon the application
for a tax deed, by the refusal of the clerk to execute the same
deed, or by the refusal, inability, or delay of any county,
city, village, or incorporated town to issue transfer stamps,
then the time during which the holder is so prevented shall be
excluded from computation of the one-year period. The court
shall retain jurisdiction to enter orders pursuant to this
Section.
(35 ILCS 200/22-110 new)
Sec. 22-110. Excess Proceeds Sale; Indemnity Fund.
(a) Upon and at the excess proceeds sale under Section
22-105, the purchaser shall pay to the person conducting the
sale a fee for deposit into the county indemnity fund
established by Section 21-295. The fee shall be $500 and shall
be paid by the purchaser to the person conducting the sale, as
reflected in the receipt of sale issued to the purchaser. This
fee shall also be paid by the holder of the certificate of
purchase pursuant to any credit bid at the sale. Upon the
completion of the sale, the person conducting the sale shall
remit the fee to the county treasurer as trustee of the county
indemnity fund for the county in which the sale occurred.

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(b) All fees paid by purchasers under this Section shall
be disbursed within 60 days after receipt by the person
conducting the sale as follows: (i) 95% to the county
treasurer, as trustee of the county indemnity fund for deposit
into the indemnity fund; and (ii) 5% to be retained by the
person conducting the sale to defray administrative expenses
related to implementation of this Section.
(c) Not later than March 1 of each year, the county
treasurer, as trustee of the indemnity fund, shall submit to
the county clerk a report of the funds collected and remitted
during the preceding year.
(35 ILCS 200/22-115 new)
Sec. 22-115. Application of proceeds of sale. The proceeds
resulting from a sale of a certificate of purchase under
Section 22-105 shall be applied in the following order:
(1) an amount equal to the cost of facilitating the
excess proceeds sale, including the costs of providing all
notices required by Section 22-105, to the person
appointed by the court to conduct the sale;
(2) a reasonable fee for conducting the sale, which
shall not exceed $1,500, to the person appointed by the
court to conduct the sale; and
(3) the amount set forth in the tax deed order to be
paid to the holder of the certificate of purchase at the
time the order was entered.

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(35 ILCS 200/22-120 new)
Sec. 22-120. Surplus distribution.
(a) Within 30 days after the completion of the sale, if
there is a surplus following the distributions made pursuant
to Section 22-115, the person conducting the sale shall
deposit all surplus proceeds with the clerk of the circuit
court in the county in which the sale was held until further
order of the court. The surplus shall be held until a person
obtains a court order for its distribution or until, in the
absence of an order, the surplus is forfeited to the State.
(b) Within 14 days after any surplus deposit is made to the
clerk of the circuit court, the person appointed by the court
to conduct the sale shall file a notice of deposit of surplus
with the clerk of the circuit court in the same case in which
the tax deed order was entered. The notice shall list the
amount of the surplus and the date on which the surplus was
deposited with the clerk of the circuit court, together with a
certificate of counsel or other proof that notice has been
mailed to the person who made the written request for an excess
proceeds sale and to all persons named in the tax deed
proceeding, via first-class mail at the addresses used in the
tax deed proceeding, and to any attorney or person who
appeared in the proceeding. In addition to the notice of
surplus, a form motion and petition for turnover of surplus
funds must be included.

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(c) Any owner desiring to make a claim for any surplus
proceeds must file a motion and petition for turnover of
surplus funds in the circuit court and obtain a court order
requiring the circuit court to release any surplus funds. The
circuit court shall retain jurisdiction over the matter and
enter any surplus order requiring the circuit court to release
funds to satisfy all claims in the order of priority.
(d) Any owner who requested an Excess Proceeds Sale need
not pay an appearance fee in order to make a motion to claim
any surplus.
(e) The county treasurer, as trustee of the county
indemnity fund, may file a motion and petition for turnover of
surplus funds in the circuit court and obtain a court order
requiring the circuit court to release any surplus funds as
authorized by subsection (c) of Section 22-45.
(f) The county collector may file a motion and petition
for turnover of surplus funds in the circuit court and obtain a
court order requiring the circuit court to release any surplus
funds as authorized by Section subsection (a-5) of Section
22-80.
(g) The tax deed grantee or the grantee's successors and
assigns (or, if a tax deed has not yet issued, the holder of
the certificate) may file a motion and petition for turnover
of surplus funds in the circuit court and obtain a court order
requiring the circuit court to release any surplus funds as
authorized by subsection (d) of Section 22-80.

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