Frequently Asked Questions About Property Taxes
1. Weren't my real estate property taxes paid at closing?
No, probably not.
In most cases, you were given credit from the Seller at closing to pay the property taxes when due. Please look at your RESPA (the document you took to your accountant for your end of year income taxes). This credit will be on the front page and marked "property taxes".
2. When are the real estate taxes due?
Cook County taxes come out twice a year, in February and August, and are due about 30 days after the bills are issued.
3. I just received a real estate tax bill for last year. If I did not own the property last year why should I pay this bill?
- Real Estate taxes are always paid in arrears (1 year behind).
- If you purchased property this year, your attorney should have made sure you received a credit at closing from the Seller to pay for the upcoming taxes due in the following year.
- If you purchased new construction and feel now that taxes are due, or are confused, an attorney can offer services to straighten out the confusion for you and the Condominium Association because there are several ways that taxes are handled for new construction.
- VERY IMPORTANT: Taxes come out twice a year and follow the property not the owner. That means even if you did not own the property in previous year of owning the property, you are responsible for the taxes. The County Collector will sell your property to pay that tax bill no matter what year is not being paid.
4. I just purchased a newly constructed condominium and I'm confused about how much property tax I owe.
There are several ways that property taxes are handled for new construction. If you purchased new construction and are confused, an attorney at our firm can help straighten out the confusion for you and your condominium association and make sure you pay only your fair share.
5. I just purchased a condo unit and a parking space. Do I pay taxes on both separately?
If you purchased a condo unit and a parking space, some parking spaces have a tax number that is separate and different from your unit number. Make sure that both bills are being paid. If your mortgage is paying your taxes, check with the county by logging on to www.cookcountytreasurer.com and your mortgage company to see if both PIN numbers have been paid. This step is very important to ensure all real estate taxes are being paid.
6. I am paying a portion of my property taxes every month to my mortgage company and my mortgage company is supposed to pay the property taxes when the county issues them. The bank missed the payment. Am I responsible for the late fees?
If you are paying 1/12 of your taxes every month to your mortgage company to pay the taxes when they are issued by the county, and the bank misses the payment for any reason, while you are responsible to pay the original amount of the tax, your mortgage company must pay all penalties and/or interest tacked on to the original bill because of a late payment. Please keep in mind that this is your property and you need to be proactive about checking for tax payments.
Contact Chicago Real Estate Law Attorneys
To schedule an appointment with a real estate attorney, call 773-878-4480 or contact us by e-mail.
