Illinois
IL
The investor buys a lien on the property. The owner keeps title and can redeem by paying the lien plus interest or penalty.
Sale type
Tax lien
Redemption
30 mo
Interest / penalty
Penalty · 9%
Sale timing
Varies
Rules in plain English
Sale type
Tax lien
The investor buys a lien on the property. The owner keeps title and can redeem by paying the lien plus interest or penalty.
35 ILCS 200/21-355 (certificate amount / tax purchaser)
“the certificate amount, which shall include all tax principal, special assessments, interest and penalties paid by the tax purchaser together with costs and fees of sale”official source ↗
Redemption period
30 mo
30 months from the sale date
35 ILCS 200/21-350
“Property sold under this Code may be redeemed at any time before the expiration of 2.5 years from the date of sale”official source ↗
Interest / penalty
Penalty · 9%
A penalty applies per period, amount not documented.
35 ILCS 200/21-215
“No bid shall be accepted for a penalty exceeding 9% of the amount of the tax or special assessment on property.”official source ↗
Bid method
Bid down the interest rate
Bidders compete by offering the lowest interest rate rather than the highest price.
35 ILCS 200/21-215
“The person at the sale offering to pay the amount due on each property for the least penalty percentage shall be the purchaser of that property.”official source ↗
Sale schedule
Varies
Sale timing varies by county.
35 ILCS 200/21-150 (application for judgment within 90 days after second installment due date)
“in any county with fewer than 3,000,000 inhabitants, all applications for judgment and order of sale for taxes and special assessments on delinquent properties shall be made within 90 days after the second installment due date”official source ↗
Redemption detail
- Base period
- 30 months
- Starts from
- the sale date
- Notice days
- Not documented
- Exceptions
- 3
| Property class | Redemption |
|---|---|
| vacant | 12 months (1 year) |
| commercial | 12 months (1 year) |
| multi_unit | 12 months (1 year) |
Bidder process
- 01Watch the county collector's notice of tax sale and the judgment for sale; the collector offers the listed property for sale at the day and place stated in the notice, between 9:00 a.m. and 4:00 p.m., or later at the collector's discretion (21-205(a))
- 02In a county with fewer than 3,000,000 inhabitants, register with the county collector at least 10 business days before the first day of sale, unless the county board provides otherwise (21-220)
- 03Bring the deposit that must accompany the registration, set by the county collector at not more than $250 in counties with fewer than 50,000 inhabitants or $500 in all other counties (21-220)
- 04In a county with 3,000,000 or more inhabitants, deposit an irrevocable and unconditional letter of credit or other unconditional bond, payable to the collector, of not less than 1.5 times the tax or special assessment due and never less than $1,000, at least 10 days before making any offer (21-220)
- 05Attend the sale in person; all bidders are required to personally attend the tax sale (21-205(b))
- 06Bid down the penalty: the property is sold to the person offering to pay the amount due for the least penalty percentage, and no bid is accepted for a penalty exceeding 9 percent (21-215(a))
- 07Where the county does not digitally record its sales, bid through the automated bidding system, which is programmed to accept the lowest redemption price bid by an eligible tax purchaser (21-205(b))
- 08In a county with 275,000 or more inhabitants, observe the county's single bidder rule and deliver the representation and warranty form in the registration package (21-205(b-5))
- 09Pay the amount charged on the property forthwith to the county collector, and pay general taxes not included in the advertisement within 10 days after the sale (21-240)
- 10Pay the county collector an automation fee of not more than $10 for each item purchased, prior to issuance of any tax certificate (21-245)
- 11Obtain the tax certificate (certificate of purchase) countersigned by the collector (21-250)
- Registration
- Yes
- Registration mode
- Not documented
- Registration deadline
- at least 10 business days prior to the first day of sale in counties with fewer than 3,000,000 inhabitants, unless the county board provides otherwise (21-220)
- Registration fee
- Not documented
- Deposit required
- Yes
- Deposit amount
- Not documented
- Deposit percent
- Not documented
- Deposit refundable
- Yes
- Sale format
- in_person
- Payment deadline
- the amount charged on the property must be paid forthwith to the county collector; general taxes not included in the advertisement must be paid within 10 days after the sale (21-240)
- Payment methods
- unknown
- Residency required
- Not documented
- Representation and warranty form attesting compliance with the single bidder rule, included in each registration package in a county that has adopted a single bidder rule (21-205(b-5))
- A tax purchaser may not register more than one related bidding entity at the tax sale in a county with 275,000 or more inhabitants (single bidder rule, 21-205(b-5))
- County collectors may eject tax bidders who disrupt the tax sale or use illegal bid practices (21-205(c))
35 ILCS 200/21-205(a)
“The collector, in person or by deputy, shall attend, on the day and in the place specified in the notice for the tax sale, and shall, between 9:00 a.m. and 4:00 p.m., or later at the collector's discretion, proceed to offer for sale, separately and in consecutive order, all property in the list on which the taxes, special assessments, interest or costs have not been paid. However, in any county with 3,000,000 or more inhabitants, the offer for sale shall be made between 8:00 a.m. and 8:00 p.m.”official source ↗
35 ILCS 200/21-205(b)
“Beginning on January 1, 2013, either (i) the collector shall employ an automated bidding system that is programmed to accept the lowest redemption price bid by an eligible tax purchaser, subject to the penalty percentage limitation set forth in Section 21-215, or (ii) all tax sales shall be digitally recorded with video and audio. All bidders are required to personally attend the tax sale”official source ↗
35 ILCS 200/21-205(b-5)
“For any annual tax sale conducted on or after the effective date of this amendatory Act of the 102nd General Assembly, each county collector in a county with 275,000 or more inhabitants shall adopt a single bidder rule sufficient to prohibit a tax purchaser from registering more than one related bidding entity at the tax sale. The corporate authorities in any county with less than 275,000 inhabitants may, by ordinance, allow the county collector of that county to adopt such a single bidder rule. In any county that has adopted a single bidder rule under this subsection (b-5), the county treasurer shall include a representation and warranty form in each registration package attesting to compliance with the single bidder rule”official source ↗
35 ILCS 200/21-215(a)
“Subject to subsection (b) of this Section, the person at the sale offering to pay the amount due on each property for the least penalty percentage shall be the purchaser of that property. No bid shall be accepted for a penalty exceeding 9% of the amount of the tax or special assessment on property.”official source ↗
35 ILCS 200/21-220 (registration and deposit)
“In counties with less than 3,000,000 inhabitants, unless the county board provides otherwise, no person shall be eligible to bid who did not register with the county collector at least 10 business days prior to the first day of sale authorized under Section 21-115. The registration must be accompanied by a deposit in an amount determined by the county collector, but not to exceed $250 in counties of less than 50,000 inhabitants or $500 in all other counties, which must be applied to the amount due on the properties that the registrant has purchased.”official source ↗
35 ILCS 200/21-220 (counties of 3,000,000 or more)
“In counties with 3,000,000 or more inhabitants, no person shall make an offer to pay the amount due on any property and the collector shall not accept or acknowledge an offer from any person who has not deposited with the collector, not less than 10 days prior to making such offer, an irrevocable and unconditional letter of credit or such other unconditional bond payable to the order of the collector in an amount not less than 1.5 times the amount of any tax or special assessment due upon the property, provided that in no event shall the irrevocable and unconditional letter of credit or such other unconditional bond be in an amount less than $1,000.”official source ↗
35 ILCS 200/21-220 (deposit refund and forfeiture)
“If the registrant does not attend the sale, then the deposit is forfeited to the Tax Sale Automation Fund established under Section 21-245. If the registrant does attend the sale and attempts, but fails, to purchase any parcels offered for sale, then the deposit must be refunded to the registrant.”official source ↗
35 ILCS 200/21-240
“Except as otherwise provided below, the person purchasing any property, or any part thereof, shall be liable to the county for the amount due and shall forthwith pay to the county collector the amount charged on the property.”official source ↗
35 ILCS 200/21-245
“In all counties, each person purchasing any property at a sale under this Code shall pay to the county collector, prior to the issuance of any tax certificate, an automation fee set by the county collector of not more than $10 for each item purchased.”official source ↗
Notes
Tax certificate/lien sale; see 35 ILCS 200/21-350. | Prose: lien | penalty bid, capped at 9% per penalty period | 2.5 years generally; 1 year for vacant/commercial/industrial or 7+ unit property | penalty bid-down (lowest penalty percentage wins) | varies by county