2018 IL App (5th) 170170
Ill. App. Ct.2019Background
- Robert and Ruth Street failed to pay 2012 real estate taxes; county sold their home at tax sale and issued a certificate of purchase to As‑Is Properties in Jan. 2014.
- As‑Is Properties filed a petition for a tax deed on May 20, 2016 and filed the statutory "Take Notice" stating redemption would expire on October 7, 2016 and that a hearing was set for October 21, 2016.
- The Streets did not redeem by October 7; on October 12 Ruth learned the redemption period had expired after a mistaken understanding of the notice dates.
- The Streets filed a petition (Oct. 20, 2016) requesting equitable extension of the redemption period; the circuit court extended redemption to Feb. 9, 2017; the Streets redeemed Feb. 6 by paying $1,316.97.
- As‑Is Properties moved to expunge the redemption and for reconsideration; the circuit court denied relief; As‑Is Properties appealed.
Issues
| Issue | Plaintiff's Argument (As‑Is Properties) | Defendant's Argument (Streets) | Held |
|---|---|---|---|
| Whether the circuit court could equitably extend the statutory redemption period before issuance of a tax deed | Statutory scheme (35 ILCS 200/22‑40(a), 21‑350) mandates issuance of deed when statutory requirements met; court lacked power to override Code absent statutory exception | Equity should allow extension where owner faces forfeiture, even absent clerical misstatement reliance; Streets paid amount and would suffer severe hardship | Court affirmed: trial court did not abuse discretion in granting equitable extension prior to deed issuance |
| Whether owner must show detrimental reliance on government errors to obtain equitable relief | Relief only appropriate when owner relied on erroneous statements by clerk’s office | Reliance is not strictly necessary; courts may apply equitable principles based on hardship and public policy favoring redemption | Court held detrimental reliance not required here; unique equities supported extension |
Key Cases Cited
- In re Application of the County Treasurer & ex officio County Collector, 378 Ill. App. 3d 842 (Ill. App. Ct.) (recognizing courts may exercise equity to extend redemption before deed issues)
- A.P. Properties, Inc. v. Goshinsky, 186 Ill. 2d 524 (Ill. 1999) (explains tax‑sale process and purchaser rights)
- In re Application of the County Treasurer & ex officio County Collector (Dunn), 389 Ill. App. 3d 735 (Ill. App. Ct.) (discusses limits on equitable relief where no clerical error and no reasonable reliance alleged)
- Monreal v. Sciortino, 238 Ill. App. 3d 475 (Ill. App. Ct.) (tax certificate holder’s right to deed is subservient to owner’s redemption right)