What this means is that when property is sold, they are taking the property subject to real estate taxes from the previous year through the date of closing. As documented by Ilyce R. Glink in her book 100 Questions Every First-Time Home Buyer Should Ask documents that in 1930, because so many people were having trouble paying their taxes, Cook County gave people a year off. But, what about taxes for a year like 2015 where we have lots of unanswered questions and lots of worries? Well, a buyer could just negotiate for a higher proration amount (maybe 125%?) In fact, here’s a secret, we representing purchasers and sellers in Lake and DuPage County too! x 92 days in 2016 that seller owned the real estate In such a scenario, a proration is made at some reasonable amount at the closing table (maybe 100%, maybe 110%). Most of the common real estate forms call for a proration of the real estate taxes based on the best information available to the parties. $550 credit to buyer for real estate taxes for 2015. Does anyone know of a state that really needs money and might be looking for a way to collect? 773-399-1122. There is. So, practically, how does this work? The municipality doesn't receive your tax payment early when you use this method; it is offered as a convenience by …
So, the seller pays the real estate buyer, by way of a credit against the sale price, $550 for 2015 taxes and the tax bill now belongs to the buyer. They delayed the payment (but not the obligation to eventually pay). Reda|Ciprian|Magnone, LLC The unknown tax bill to be exact. Paying in arrears means that each year the tax bill for the previous year comes out in May (may vary: check your local county assessors website), and the two payments are due for the previous year. 2015 is where the most risk lies. So, it seems that in 1933 and thereafter, the State decided to leave real estate taxation to the local authorities. So, when you purchase your first home in, let’s say, May of 2016. Since 1933, the state has not collected ad valorem real estate taxes.
Please enable JavaScript on your browser to best view this site. The parties don’t have to pay their attorney’s more money for getting involved in a post-closing issue (boo!). Real estate taxes for Illinois purchase and sale transactions can be confusing. A blog by lawyers about real estate closings in Chicago and the Chicagoland area. it is always 55% of last year’s bill and doesn’t take into account any new tax rate, exemption, reassessments or other factors that might impact a tax bill.