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90_SB0465enr
735 ILCS 5/12-112 from Ch. 110, par. 12-112
765 ILCS 1005/1c from Ch. 76, par. 1c
Amends the Code of Civil Procedure to exclude from the
provision forbidding property held in tenancy by the entirety
to be sold upon judgment against one creditor, property that
was transferred into tenancy by the entirety in violation of
the Uniform Fraudulent Transfer Act. Amends the Joint
Tenancy Act. Provides that it is not the intent of the Joint
Tenancy Act to enable a person to make a devise, conveyance,
assignment, or other transfer of property maintained or
intended for maintenance as a homestead by both husband and
wife together during coverture declaring that the devise is
made to persons, expressly named as husband and wife, as
tenants by the entirety in order to defraud a creditor.
LRB9003092KDks
SB465 Enrolled LRB9003092KDks
1 AN ACT in relation to property, amending named Acts.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Property Tax Code is amended by changing
5 Section 21-260 as follows:
6 (35 ILCS 200/21-260)
7 Sec. 21-260. Collector's scavenger sale. Upon the
8 county collector's application under Section 21-145, to be
9 known as the Scavenger Sale Application, the Court shall
10 enter judgment for the general taxes, special taxes, special
11 assessments, interest, penalties and costs as are included in
12 the advertisement and appear to be due thereon after allowing
13 an opportunity to object and a hearing upon the objections as
14 provided in Section 21-175, and order those properties sold
15 by the County Collector at public sale to the highest bidder
16 for cash, notwithstanding the bid may be less than the full
17 amount of taxes, special taxes, special assessments,
18 interest, penalties and costs for which judgment has been
19 entered.
20 (a) Conducting the sale - Bidding. All properties
21 shall be offered for sale in consecutive order as they appear
22 in the delinquent list. The minimum bid for any property
23 shall be $250 or one-half of the tax if the total liability
24 is less than $500. The successful bidder shall immediately
25 pay the amount of minimum bid to the County Collector in
26 cash, by certified or cashier's check, or by money order. If
27 the bid exceeds the minimum bid, the successful bidder shall
28 pay the balance of the bid to the county collector in cash,
29 by certified or cashier's check, or by money order by the
30 close of the next business day. If the minimum bid is not
31 paid at the time of sale or if the balance is not paid by the
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1 close of the next business day, then the sale is void and the
2 minimum bid, if paid, is forfeited to the county general
3 fund. In that event, the property shall be reoffered for
4 sale within 30 days of the last offering of property in
5 regular order. The collector shall make available to the
6 public a list of all properties to be included in any
7 reoffering due to the voiding of the original sale. The
8 collector is not required to serve or publish any other
9 notice of the reoffering of those properties. In the event
10 that any of the properties are not sold upon reoffering, or
11 are sold for less than the amount of the original voided
12 sale, the original bidder who failed to pay the bid amount
13 shall remain liable for the unpaid balance of the bid in an
14 action under Section 21-240. Liability shall not be reduced
15 where the bidder upon reoffering also fails to pay the bid
16 amount, and in that event both bidders shall remain liable
17 for the unpaid balance of their respective bids. A sale of
18 properties under this Section shall not be final until
19 confirmed by the court.
20 (b) Confirmation of sales. The county collector shall
21 file his or her report of sale in the court within 30 days of
22 the date of sale of each property. No notice of the county
23 collector's application to confirm the sales shall be
24 required except as prescribed by rule of the court. Upon
25 confirmation, except in cases where the sale becomes void
26 under Section 22-85, or in cases where the order of
27 confirmation is vacated by the court, a sale under this
28 Section shall extinguish the in rem lien of the general
29 taxes, special taxes and special assessments for which
30 judgment has been entered and a redemption shall not revive
31 the lien. Confirmation of the sale shall in no event affect
32 the owner's personal liability to pay the taxes, interest and
33 penalties as provided in this Code or prevent institution of
34 a proceeding under Section 21-440 to collect any amount that
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1 may remain due after the sale.
2 (c) Issuance of tax sale certificates. Upon confirmation
3 of the sale the County Clerk and the County Collector shall
4 issue to the purchaser a certificate of purchase in the form
5 prescribed by Section 21-250 as near as may be. A
6 certificate of purchase shall not be issued to any person who
7 is ineligible to bid at the sale or to receive a certificate
8 of purchase under Section 21-265.
9 (d) Scavenger Tax Judgment, Sale and Redemption Record -
10 Sale of parcels not sold. The county collector shall prepare
11 a Scavenger Tax Judgment, Sale and Redemption Record. The
12 county clerk shall write or stamp on the scavenger tax
13 judgment, sale, forfeiture and redemption record opposite the
14 description of any property offered for sale and not sold, or
15 not confirmed for any reason, the words "offered but not
16 sold". The properties which are offered for sale under this
17 Section and not sold or not confirmed shall be offered for
18 sale annually thereafter in the manner provided in this
19 Section until sold, except in the case of mineral rights,
20 which after 10 consecutive years of being offered for sale
21 under this Section and not sold or confirmed shall no longer
22 be required to be offered for sale. At any time between
23 annual sales the County Collector may advertise for sale any
24 properties subject to sale under judgments for sale
25 previously entered under this Section and not executed for
26 any reason. The advertisement and sale shall be regulated by
27 the provisions of this Code as far as applicable.
28 (e) Proceeding to tax deed. The owner of the certificate
29 of purchase shall give notice as required by Sections 22-5
30 through 22-30, and may extend the period of redemption as
31 provided by Section 21-385. At any time within 5 months prior
32 to expiration of the period of redemption from a sale under
33 this Code, the owner of a certificate of purchase may file a
34 petition and may obtain a tax deed under Sections 22-30
SB465 Enrolled -4- LRB9003092KDks
1 through 22-55. All proceedings for the issuance of a tax deed
2 and all tax deeds for properties sold under this Section
3 shall be subject to Sections 22-30 through 22-55. Deeds
4 issued under this Section are subject to Section 22-70. This
5 Section shall be liberally construed to that the deeds
6 provided for in this Section convey merchantable title.
7 (f) Redemptions from scavenger sales. Redemptions may be
8 made from sales under this Section in the same manner and
9 upon the same terms and conditions as redemptions from sales
10 made under the County Collector's annual application for
11 judgment and order of sale, except that in lieu of penalty
12 the person redeeming shall pay interest as follows if the
13 sale occurs before September 9, 1993:
14 (1) If redeemed within the first 2 months from the
15 date of the sale, 3% per month or portion thereof upon
16 the amount for which the property was sold;
17 (2) If redeemed between 2 and 6 months from the
18 date of the sale, 12% of the amount for which the
19 property was sold;
20 (3) If redeemed between 6 and 12 months from the
21 date of the sale, 24% of the amount for which the
22 property was sold;
23 (4) If redeemed between 12 and 18 months from the
24 date of the sale, 36% of the amount for which the
25 property was sold;
26 (5) If redeemed between 18 and 24 months from the
27 date of the sale, 48% of the amount for which the
28 property was sold;
29 (6) If redeemed after 24 months from the date of
30 sale, the 48% herein provided together with interest at
31 6% per year thereafter.
32 If the sale occurs on or after September 9, 1993, the
33 person redeeming shall pay interest on that part of the
34 amount for which the property was sold equal to or less than
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1 the full amount of delinquent taxes, special assessments,
2 penalties, interest, and costs, included in the judgment and
3 order of sale as follows:
4 (1) If redeemed within the first 2 months from the
5 date of the sale, 3% per month upon the amount of taxes,
6 special assessments, penalties, interest, and costs due
7 for each of the first 2 months, or fraction thereof.
8 (2) If redeemed at any time between 2 and 6 months
9 from the date of the sale, 12% of the amount of taxes,
10 special assessments, penalties, interest, and costs due.
11 (3) If redeemed at any time between 6 and 12 months
12 from the date of the sale, 24% of the amount of taxes,
13 special assessments, penalties, interest, and costs due.
14 (4) If redeemed at any time between 12 and 18
15 months from the date of the sale, 36% of the amount of
16 taxes, special assessments, penalties, interest, and
17 costs due.
18 (5) If redeemed at any time between 18 and 24
19 months from the date of the sale, 48% of the amount of
20 taxes, special assessments, penalties, interest, and
21 costs due.
22 (6) If redeemed after 24 months from the date of
23 sale, the 48% provided for the 24 months together with
24 interest at 6% per annum thereafter on the amount of
25 taxes, special assessments, penalties, interest, and
26 costs due.
27 The person redeeming shall not be required to pay any
28 interest on any part of the amount for which the property was
29 sold that exceeds the full amount of delinquent taxes,
30 special assessments, penalties, interest, and costs included
31 in the judgment and order of sale.
32 Notwithstanding any other provision of this Section,
33 except for owner-occupied single family residential units
34 which are condominium units, cooperative units or dwellings,
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1 the amount required to be paid for redemption shall also
2 include an amount equal to all delinquent taxes on the
3 property which taxes were delinquent at the time of sale.
4 The delinquent taxes shall be apportioned by the county
5 collector among the taxing districts in which the property is
6 situated in accordance with law. In the event that all moneys
7 received from any sale held under this Section exceed an
8 amount equal to all delinquent taxes on the property sold,
9 which taxes were delinquent at the time of sale, together
10 with all publication and other costs associated with the
11 sale, then, upon redemption, the County Collector and the
12 County Clerk shall apply the excess amount to the cost of
13 redemption.
14 (g) Bidding by county or other taxing districts. Any
15 taxing district may bid at a scavenger sale. The county
16 board of the county in which properties offered for sale
17 under this Section are located may bid as trustee for all
18 taxing districts having an interest in the taxes for the
19 nonpayment of which the parcels are offered. The County shall
20 apply on the bid the unpaid taxes due upon the property and
21 no cash need be paid. The County or other taxing district
22 acquiring a tax sale certificate shall take all steps
23 necessary to acquire title to the property and may manage and
24 operate the property so acquired.
25 When a county, or other taxing district within the
26 county, is a petitioner for a tax deed, no filing fee shall
27 be required on the petition. The county as a tax creditor and
28 as trustee for other tax creditors, or other taxing district
29 within the county shall not be required to allege and prove
30 that all taxes and special assessments which become due and
31 payable after the sale to the county have been paid. The
32 county shall not be required to pay the subsequently accruing
33 taxes or special assessments at any time. Upon the written
34 request of the county board or its designee, the county
SB465 Enrolled -7- LRB9003092KDks
1 collector shall not offer the property for sale at any tax
2 sale subsequent to the sale of the property to the county
3 under this Section. The lien of taxes and special assessments
4 which become due and payable after a sale to a county shall
5 merge in the fee title of the county, or other taxing
6 district, on the issuance of a deed. The County may sell the
7 properties so acquired, or the certificate of purchase
8 thereto, and the proceeds of the sale shall be distributed to
9 the taxing districts in proportion to their respective
10 interests therein. The presiding officer of the county board,
11 with the advice and consent of the County Board, may appoint
12 some officer or person to attend scavenger sales and bid on
13 its behalf.
14 (h) Miscellaneous provisions. In the event that the
15 tract of land or lot sold at any such sale is not redeemed
16 within the time permitted by law and a tax deed is issued,
17 all moneys that may be received from the sale of properties
18 in excess of the delinquent taxes, together with all
19 publication and other costs associated with the sale, shall,
20 upon petition of any interested party to the court that
21 issued the tax deed, be distributed by the County Collector
22 pursuant to order of the court among the persons having legal
23 or equitable interests in the property according to the fair
24 value of their interests in the tract or lot. Section 21-415
25 does not apply to properties sold under this Section. Appeals
26 may be taken from the orders and judgments entered under this
27 Section as in other civil cases. The remedy herein provided
28 is in addition to other remedies for the collection of
29 delinquent taxes.
30 (Source: P.A. 88-455; incorporates 88-482; 88-670, eff.
31 12-2-94.)
32 Section 10. The Code of Civil Procedure is amended by
33 changing Section 12-112 as follows:
SB465 Enrolled -8- LRB9003092KDks
1 (735 ILCS 5/12-112) (from Ch. 110, par. 12-112)
2 Sec. 12-112. What liable to enforcement. All the lands,
3 tenements, real estate, goods and chattels (except such as is
4 by law declared to be exempt) of every person against whom
5 any judgment has been or shall be hereafter entered in any
6 court, for any debt, damages, costs, or other sum of money,
7 shall be liable to be sold upon such judgment. Any real
8 property, or any beneficial interest in a land trust, held in
9 tenancy by the entirety shall not be liable to be sold upon
10 judgment entered on or after October 1, 1990 against only one
11 of the tenants, except if the property was transferred into
12 tenancy by the entirety with the sole intent to avoid the
13 payment of debts existing at the time of the transfer beyond
14 the transferor's ability to pay those debts as they become
15 due. However, any income from such property shall be subject
16 to garnishment as provided in Part 7 of this Article XII,
17 whether judgment has been entered against one or both of the
18 tenants.
19 This amendatory Act of 1995 is declarative of existing
20 law.
21 This amendatory Act of 1997 is intended as a
22 clarification of existing law and not as a new enactment.
23 (Source: P.A. 89-88, eff. 6-30-95; 89-438, eff. 12-15-95.)
24 Section 99. Effective date. This Act takes effect upon
25 becoming law.