Legal Question in Landlord & Tenant Law in Illinois

i just found out that the sellers is behind on the property taxes and they told me that the taxes was current and we signed a contract for deed is this a legal contract


Asked on 2/06/13, 1:18 pm

1 Answer from Attorneys

The legali of the contract and the issue of taxes are totally separate UNLESS you believe you were defrauded, have (hard written) evidence of the fraud and your goal is to void the contract somehow. The fact that a title report (normally required for the first closing when the recordable installment sale agreement is signed and prorations are made) may disclose unpaid taxes by itself is not usually considered such evidence. Normally the issue of handling of property taxes in an installment sale is handled in the contract itself and usually at the "first closing". There are a number of ways of dealing with the issue including the following: the contract could require the sellers to pay all unpaid taxes by using monies payable at the first closing (down payment, etc., or with seller funds), by using the first monthly payments, by setting up a tax escrow into which the parties both contribute and then buyer contributes on a going forward basis, etc. So ultimately it will depend on your goal, where you are in the process, whether you've already had the "first closing", and what not. Once you decide on your goal you should get an attorney involved to help plan the best resolution.

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Answered on 2/07/13, 6:55 am


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