Now What? The Building Was Sold Through a Tax Sale

What is a tax sale and the timeline? 

• Taxes go delinquent: The property owner fails to pay their property taxes.
• Tax sale: The county collector/treasurer can put a lien on the property for the amount of delinquent taxes. Then, the liens must be sold at an annual sale to recoup any taxes that have not been paid in full for the current tax year. 35 ILCS 200. A tax buyer can pay the unpaid taxes and work with the local county Clerk’s Office for redemption. 

NOTE: The house/building is NOT sold at the tax sale - just the lien certificate for unpaid taxes. 

• 2-3 years after tax sale (Redemption Period): If the homeowner does not redeem (pay off the taxes paid by the tax buyer) in 2 years (vacant property) or 2.5 years (house), then the homeowner can lose ownership of the property to the tax buyer.  
• After Redemption Period expires: Tax buyer obtains the deed to the property. The Circuit Court reviews the evidence and orders the County Clerk to issue a tax deed, transferring ownership of the property to the tax buyer. 

So what happens to a tenant after a tax sale? 

If the property is subject to property tax sale and the tax is not redeemed by the property owner, then the rental agreement is terminated by the court. 

Tenants are not required to be served a summons and complaint in property tax cases and can be evicted without separate process. The only requirement is that the property tax buyer must serve a notice to interested parties that the property is being sold for taxes. At that proceeding, the Judge may order an eviction of all the occupants. All rights to ownership and occupancy are terminated. 

You can search the status of property tax payments on the local county's tax portal. You can search by using the Property Index Number (PIN) or the address that the property that county uses to identify the property.