IL Cook County improper Exemption

4 Replies

Seller has a tenant in property 3 or 4 years. Tax bill in public records indicates seller is improperly taking owner occupied homested exemption. 

What potential liabilities if any does a potential buyer have for county potential demand for taxes and penalties? 

Account Closed, I don't think you have to worry about back taxes or penalties, that's the sellers problem.  If you are not going to be an owner occupied investor then you will just miss out on the home exemption.  Now if there is a senior freeze, then you might see a bump in your taxes.  

Peter my concern is as a purchaser in a county where taxes are paid in arrears, I would be the one paying the 2018 tax bill improperly assesed after closing not the seller. If  county becomes aware unit was non owner occupied all of 2018, they may decide to go after someone. And the current property owner might be a better target, than the prior property owner. 

Originally posted by @Peter S. :

@Robert R., I don't think you have to worry about back taxes or penalties, that's the sellers problem.  If you are not going to be an owner occupied investor then you will just miss out on the home exemption.  Now if there is a senior freeze, then you might see a bump in your taxes.  

Peter, property taxes go up roughly 20% without exemption. 

Additionally there are huge potential fines for taking improper exemption, even if its the county's fault.