APPLIES TO: Illinois Advocus Agents

NEW PROCEDURES

The passage of Illinois House Bill 4537 (Public Act 104-0553) radically changes prior Illinois tax deed procedures. (View here: Section 5. Property Tax Code.) This Act represents the most significant rewrite of Illinois tax deed law since enactment of the Property Tax Code, introducing entirely new procedures involving judicial auctions, public auctions, and surplus equity. The legislation was enacted in response to constitutional concerns raised by Tyler v. Hennepin County and related cases. Because these statutory provisions are new, further judicial interpretation, constitutional challenges, and governmental implementation may occur.

Historical Perspective, Compliance

In the past, Advocus agents were prohibited from insuring title derived through a tax deed unless the agent possessed a thorough understanding of the statutes, procedures, and jurisdictional requirements governing Illinois tax sales and tax deed proceedings. Compliance with statutory deadlines, redemption periods, notice requirements, and service procedures is essential. Failure to comply with these requirements may result in a complete failure of title. Certain jurisdictional defects may render a tax deed vulnerable to attack, even long after the deed was issued.

Advocus Underwriters Are Here to Assist

Title derived from a tax deed may be insured only after review and approval by an Advocus Underwriter. Please review the summary of the requirements and process, below. 

When furnished with the complete tax deed file, Advocus underwriters may review titles derived from tax deeds to assist the agent in the preparation of a title commitment. The complete file should include the following:

• tax sale records;
• petition for tax deed;
• statutorily required notices;
• certificates of publication;
• service returns;
• redemption records;
• court orders;
• chain of title; and 
• tax deed.

A comprehensive review of the tax sale and tax deed proceedings is essential because it must be conclusively determined due process requirements were satisfied. The underwriter must review a title search covering the tax sale and tax deed proceedings to confirm that all parties holding record interests, liens, claims, or interests requiring notice were properly identified and served. The underwriter must also evaluate compliance with all applicable statutory requirements.

At the discretion of Advocus, any defects may be raised as an Exception from Coverage and an additional, separate risk premium may be required. Factors considered in the underwriting decision may include the age of the tax deed, subsequent conveyances, and prior title insurance coverage.

Questions?

Please contact the Advocus Underwriting Department; we are happy to assist. As always, we appreciate your support and welcome your feedback.