Legal Question in Real Estate Law in Illinois

I have lived in a new development since October of 2008. The issue of property taxes has recently come up. The individual units have not been asessed yet. The developer, who is still in control of the association, has sent me a letter saying I owe them 2.25% of my purchase price. That equates to just over $2,200 for the 85 days I owned the unit in 2008. Is this something they can legally do? I am not opposed to paying taxes, but this is excessive even for Chicago standards.


Asked on 11/05/09, 11:01 pm

1 Answer from Attorneys
Stephen Messutta

If this is a condominium and the units have not been separately assessed, usually the units pay based on percentage of ownership. But what you need to do is look at your contract and closing documents... there should be a tax proration agreement, and it should give you some kind of formula so that if in fact the taxes for the year are $2,200 (and that may be based on the fact the unit was vacant until you occupied it and next year it will be more like 2.5% of the purchase price) it should be prorated to your closing date. Alternatively, it could be the formula prorates only the land portion of the tax and makes you liable for 100% of the "improvement component" even if it's not divided. There may be other solutions but first look at the contract and closing documents. And if you had a closing attorney, go back to him or her!!!

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Answered on 11/10/09, 11:26 pm


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