Legal Question in Real Estate Law in Illinois
Unlicensed atty & ''Mistake'' made at closing
I closed on my condo (new subdivision in Winnebago County)in March '07. At the closing, $1300 in R.E. taxes was credited to me. A few weeks later, I received a full yrs tax bill for '06 in the amount of $4046! When asked, my atty said a mistake was made at closing; the builder failed to notify him that the most recent ascertainable tax bill of 2005 didn't include a change in assessment made in Aug '06. He then said he would ''see if there was anything he could do to get the builder to reimburse me''. Builder said it's atty's responsibility to check everything for accuracy prior to closing, so they wouldn't reimburse all of the money, but did agree to split the bill with me! Why would I be responsible for this mistake?! I thought that's why attys are employed! Here's the other issue: I have since learned that my R.E. atty's license was revoked in Oct '06 for a period of 3 years. If my atty was not licensed to practice, are the closing docs even valid? Could the whole transaction be null & void? No one seems to have any answers. I'm paying over $3000 in taxes that aren't mine & a shortfall in my escrow acct will cause a $500 mortgage payment increase. On a fixed income, that's huge!Can't afford an atty to help. I value your comments.
5 Answers from Attorneys
Re: Unlicensed atty & ''Mistake'' made at closing
Although you may have a claim against the attorney involved for not checking and/or apprising you of what your tax responsibility would become AFTER the closing in light of the reassessment of your property, the other question is, what if anything can be done to LOWER your property taxes.
As a new subdivision, the Assessor should value the building improvement portion of your assessment only once the home is able to be occupied. If an occupancy permit was not granted until February or March of 2007 when you moved in, there may be a basis for challenge of the Assessor's 2006 assessment by what is called a Certificate of Error. The Assessor should pro-rate, or somehow grant a temporary reduction in the building improvement portion of the assessment for 2006 as the property may have been unable to be occupied due to its construction.
Also, the 2007 assessement, with taxes payable in 2008 may also be incorrect if the home was not able to be occupied until after January 1st, 2007. An inquiry into whether or not that information was taken into consideration in establishing the 2007 assessment should be looked into with the Assessor as well.
If incorrectly assessed, you should note, that there is a very limited window of opportunity to file a complaint with the local Assessor. Usually 30 days after the Assessor publishes his assessments in the local paper. Being in a new subdivision, there is no guarantee that the letter of reassessment will be correctly mailed to your home. Make sure to check often to see when your assessment is established and how it was created.
Re: Unlicensed atty & ''Mistake'' made at closing
An unlicensed attorney probably does not have malpractice insurance. Practicing law without a license is a very serious offense. He could be sued for the unauthorized practice of law, or maybe even indicted. It's a felony to impersonate a lawyer. At any rate, follow the advice of the lawyers who preceeded me in answering this question.
Re: Unlicensed atty & ''Mistake'' made at closing
What you're describing is not unusual, i.e. an extreme tax increase following a reassessment. From what you've mentioned if there was any error it was by the lawyer. I'd suggest your options are to file a complaint with the Attorneys Registration and Disciplinary Commission against the lawyer or to sue the lawyer.
Sometimes a separate agreement is made post-closing to "reassess" the taxes after the closing once the tax bill comes out...was anything signed like this?
Re: Unlicensed atty & ''Mistake'' made at closing
First of all, did you close at a title company? If so, they usually will not close without insuring over taxes. You should check with them. Secondly, if an attorney was practising without a license, you should contact the ARDC and report that. The closing is valid. Your beef is with the attorney. If he will not pay for his negligence, then maybe the ARDC can help you.
Re: Unlicensed atty & ''Mistake'' made at closing
You may be able to find someone that will help you with this based on a contigent fee arrangement. Call your local bar association to see if they can refer you to someone.
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