Legal Question in Real Estate Law in Illinois
We recently sold a lot in a subdivision in Illinois. I had been paying the taxes for this lot on a monthly basis. At the time of closing, we had prepaid $551 (January 2014 - May 2014). At the suggestion of the Title Company, in order to �speed up the closing�, we brought the full amount of taxes due to closing for January 2013 � April 2014 in the amount of $1,733, which was provided as a credit to the buyer (and is CLEARLY indicated on the closing paperwork). I would then contact the county after the closing activities completed to request a refund. Within that time, the $551 was credited to the tax bill. The buyer then paid the remainder of the tax bill, and essentially pocketed the extra $551. I have been working through my REALTOR who has also been working with the buyer�s REALTOR to get the buyer to repay extra. Unsurprisingly, the buyer has been less than receptive to cooperating. At one point, my REALTOR informed me she was aware of what happened, and even agreed to repay the credit. However, she has not followed through. I found her phone number in the closing paperwork, and I will be calling her this evening. I have a feeling my efforts will be fruitless, so I�m trying to be prepared.
So, after the long introduction�.my question is�.what is the next step? Can I place a lien on her property? Should I go ahead and take her to court for this? I appreciate any feedback.
It has been 7 months. I have been very patient and understanding, and I am not the type of person to slap a lawsuit on someone. I just want repayment of the money that rightfully belongs to me. And, lesson learned, I will insist on the Title Company working this all this out AT closing should I be in such a situation again. :)
2 Answers from Attorneys
Discuss the situation with your closing attorney, who I trust covered the details at the time of closing. Your attorney should be able to address this more successfully than you, the real estate agents or the title company staff.
Did you have an attorney representing you at closing? If so, let him or her handle this for you. If you are talking about real estate taxes, I am not sure I understand the problem. Real estate taxes are paid in arrears in Illinois. That means the taxes you are paying this year are for 2013. Generally, you would need to pay all of the 2013 taxes due in 2014 either at or before closing. In addition, you would need to give the buyer a proration of the 2014 taxes which are not payable until 2015. Say, for example, your taxes are $1,200 per year. You would need to pay all of the 2013 taxes payable in 2014. If your closing was on October 31, you also would need to give the buyer a credit of $1,000 for the first ten months of the 2014, which are not payable until 2015. To address your other questions, the only way you would be able to lien the property is to file suit, win, and record a document in the recorder's office.
I have no idea why the title company thought it would speed things up to pay the county and expect a refund later.
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