Representing Sellers and Buyers of Homes and Other Real Estate

Wills, Trusts, Living Trusts, Powers of Attorney and Other Estate Planning

Law Offices of James B. Spina, Ltd.

Experience Counts

Serving the Chicago Metropolitan Area since 1979

 
 

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Attorneys’ Approval Clause

Q & A on Short Sales

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REAL ESTATE TAXES AND YOUR CLOSING

You bought a house in Illinois, and you just received a real estate tax bill.  The bill says it is for last year’s taxes.  You did not own the house all of last year.  Do you have to pay this bill?  Yes.  Why?

 Illinois real estate taxes are billed a year behind.  The real estate tax bills that come this year are actually for last year’s taxes.  The payment for this year’s taxes will not be due until next year. 

 When you buy a house, the seller is responsible for paying the real estate taxes through the date of closing.  However, the bill for those taxes will not be issued until the next year.  Those taxes cannot be paid until the following year when the bills come from the County, long after the closing.

 When a sale is closed, the taxes for the current year have not even been billed.  Those taxes will not be due until next year, and it is too soon to pay them.  Of course you would not rely on the seller to pay them next year after he no longer owns the property.  Instead, your contract provides for you receive money to pay the taxes for the time the seller owned the property.  This comes to the buyer in the form of a credit on the closing statement, reducing the amount of money the buyer must pay at closing.

 This process is used in the vast majority of home closings.  However, it can be varied by the terms of the sale contract.  Before signing a contract, it is important to consult an attorney experienced in real estate matters who can assure that the proper terms are included.

 

 
 

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ALL INFORMATION ON THIS WEBSITE IS EDUCATIONAL IN NATURE.     IT IS NOT LEGAL ADVICE IN ANY RESPECT.  CONTACT YOUR ATTORNEY FOR ADVICE SPECIFIC TO YOUR NEEDS.    

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All material on this website copyright © 1996 – 2010
 

Some Illinois communities served:  Beecher, Berwyn, Blue Island, Bourbonnais, Burr Ridge, Calumet City, Calumet Park, Chicago Heights, Chicago Ridge, Chicago, Country Club Hills, Crete, Dixmoor, Dolton, East Hazel Crest, Elmhurst, Elmwood Park, Evergreen Park, Flossmoor, Ford Heights, Frankfort, Glenwood, Harvey, Homer Glen, Hazel Crest, Homewood, Lansing, Lisle, Lynwood, Manhattan, Manteno, Markham, Matteson, Maywood, Minooka, Mokena, Monee, Oak Lawn, Olympia Fields, Orland Hills, Orland Park, Palos Heights, Palos Park, Park Forest, Peotone,  Phoenix, Rich Township, Richton Park, Robbins, Sauk Village, South Chicago Heights, South Holland, Steger, Thornton, Tinley Park, University Park, West Frankfort, Wheaton, Wilmington,  Worth.