Property Ownership

In Illinois, what is a tax deed?

AA deed executed by a seller to minimize capital gains taxes
BA deed issued to the purchaser of a property at a county tax sale after the redemption period expires✓ Correct
CA deed used specifically for transferring property to a trust
DA deed recording the assessed value for property tax purposes

Explanation

In Illinois, when a property owner fails to pay property taxes, the county may sell a tax lien. If the lien is not redeemed within the statutory period, the lienholder may petition the court for a tax deed, which conveys title to the purchaser. Tax deeds often have title issues and buyers typically obtain title insurance.

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