Sold Property Taxes in Montgomery, IL: Can You Close?

Can you still close if your property taxes were sold in Montgomery, IL?

Yes. Sold property taxes put a lien on the home, not a new owner in it, so a Montgomery sale can still close as long as the taxes are redeemed through the county clerk, usually from the seller’s proceeds at closing. The clerk issues an Estimate of Redemption with the exact amount, and the title company pays it with certified funds. The cost rises every six months, so the sooner the redemption is on the closing statement, the less it costs.

By Kealan O’Neil, Designated Managing Broker, O’Neil Property Group

Kane County held its annual tax sale on October 26, 2026, and the county treasurer’s office says owners whose taxes were sold should contact the Kane County Clerk starting November 16 to redeem. Montgomery sits in both Kane and Kendall Counties in Chicago’s Western Suburbs, so some homes changing hands this winter will show sold property taxes on the title work.

If you’re the buyer, that line on the title commitment can look like a deal killer. If you’re the seller, it can feel like you’re about to lose the house. Neither is usually true, but the details decide how smoothly the closing goes.

What sold property taxes actually mean in Kane and Kendall County

Illinois sells unpaid taxes, not houses. At the annual sale, a tax buyer pays the county the delinquent amount and gets a certificate of purchase. Kane County’s guide, If Your Property Taxes Were Sold, puts it plainly: the purchase of a delinquent tax by a tax buyer does not cause the immediate loss of the property.

What sold property taxes do create is a lien and a clock. The owner, or anyone with an interest in the property, can buy back the sold property taxes by paying the county clerk. That’s called redemption.

The redemption deadline changed in 2026

Under 35 ILCS 200/21-350, as amended by Public Act 104-553 (effective July 10, 2026), most homes sold at a tax sale can be redeemed any time before 3 years from the date of sale. Vacant non-farm land, buildings with 7 or more units, and commercial property get only 1 year.

That 3-year rule applies to certificates issued on or after July 10, 2026, which covers this fall’s sales. Older certificates can carry a different deadline, and the Kane County Clerk describes the window as 2 1/2 to 3 years, so get the exact date in writing instead of assuming.

Why the cost climbs every six months

Tax buyers bid on the penalty rate, and state law caps bids at 9%. Kane County reports that its 2025-payable-2026 taxes sold at rates between 0% and 9%.

Under 35 ILCS 200/21-355, the penalty is the certificate amount times the bid rate within the first 6 months, then 2 times the rate after 6 months, 3 times after 12 months, and so on up to 6 times. If the tax buyer also pays later years’ taxes, those amounts carry a 12% penalty per year.

Translation: redeeming sold property taxes can be a modest add-on this winter, but it can become a much bigger number if the sale drags into next spring or the following year.

The take notice letter

To keep the right to pursue a tax deed, the tax buyer has to deliver a “Take Notice” to the county clerk within 4 months and 15 days after the sale, and the clerk mails it to the taxpayer of record.

The statutory form warns that if you don’t redeem, a petition may be filed to transfer title. It reads like an eviction notice, and sellers often call their agent in a panic after it arrives. It’s a deadline reminder, not a done deal, but it’s the moment to act.

If you’re buying a Montgomery home with sold property taxes

You’ll usually learn about sold property taxes from the title commitment, or from a county tax website that flags the taxes as sold. One buyer on Reddit’s r/RealEstate described exactly this: the county site said the taxes were sold, and they assumed the house was headed to auction. The reply from other commenters was the standard Illinois answer: the title company gets an Estimate of Redemption and the seller pays it at closing.

Here’s what protects you:

• The seller pays, not you. Redemption is the seller’s debt. Your attorney should make sure it’s paid from the seller’s proceeds, the same way a mortgage payoff is.
• Current taxes still get prorated separately. Redeeming last year’s sold taxes doesn’t settle the current year. Illinois taxes are paid in arrears, so you’ll still need the usual property tax proration credit at closing.
• Title insurance needs the exception cleared. A sold tax will show as an exception on the commitment. Ask your attorney to confirm it’s removed before you close, which is exactly the kind of risk an owner’s title insurance policy is meant to address.
• Check the next bill, too. If the seller fell behind once, the following installment may also be late. Ask the title company to confirm every open tax year for the PIN.

If you’re selling with sold property taxes

You can list and sell a home with sold property taxes. What matters is telling your agent and attorney early so the redemption is part of the plan, not a surprise two days before closing.

First, make sure the sale wasn’t a mistake

Sometimes taxes are sold even though the owner did everything right. 35 ILCS 200/21-310 lists grounds for a “sale in error,” including taxes that were paid before the sale, a double assessment, a material county error, and a homeowner’s timely, full payment that the collector didn’t apply to the property.

If your mortgage company escrows for taxes, federal rules at 12 CFR 1024.34 require the servicer to pay from escrow on time, before the penalty deadline. If it didn’t, get proof of payment and the PIN it used in writing. That’s a question for your attorney and the servicer, and it’s worth asking before you write a redemption check.

Then get the real number and build it into your net

Request an Estimate of Redemption from the clerk in the county where the parcel sits. In Kane County that’s the County Clerk’s Tax Extension office in Geneva, with locations in Aurora and Elgin. Kendall County parcels redeem through the Kendall County Clerk in Yorkville.

Kane County’s guide says redemption must be paid in full with certified funds or cash, and partial payments aren’t accepted. Because the penalty steps up every six months, ask for an estimate that runs through your closing date, and plan your net sheet around it the same way you plan for seller closing costs in Illinois.

A Montgomery note on the property tax rebate

The Village of Montgomery’s Property Tax Rebate Program for tax year 2025 is open November 2 through December 31, 2026. Applicants must certify they held title continuously from January 1 to December 31 of that tax year, and payments go out on or after May 1, 2027. Utility-only customers, such as Boulder Hill, aren’t eligible.

If you’re selling now, check whether you qualify before your closing date passes, and don’t count the rebate in your net.

5 steps to clear sold property taxes before closing

1. Confirm the county and PIN. Montgomery parcels can be in Kane or Kendall County, and a wrong PIN means a wrong estimate.
2. Request an Estimate of Redemption. Ask the county clerk for the amount good through your closing date, plus the redemption deadline.
3. Loop in your attorney and title company. They’ll add the redemption to the closing statement and confirm the title exception will come off.
4. Pay from proceeds with certified funds. The title company typically pays the clerk out of the seller’s side at closing.
5. Keep the receipt and watch the next bill. The clerk issues a receipt once redemption is satisfied. Make sure the next installment is paid, by the seller or through proration, so the problem doesn’t repeat.

This is where the right agent matters. A good listing agent asks about tax status before the home goes live, and a good buyer’s agent spots the line on the title commitment the day it arrives, not the week of closing.

Sold property taxes questions Montgomery buyers and sellers ask

Sold property taxes are fixable, but only if someone catches them early and builds the redemption into the deal. If you’re buying or selling in Montgomery, Oswego, or Yorkville and the tax status looks off, I’ll help you get the right numbers from the county, work with your attorney and title company, and keep your closing date on track. Call or text Kealan at 630-425-8815.

About Kealan O’Neil
Kealan O’Neil is the Designated Managing Broker and founder of O’Neil Property Group, an independent real estate brokerage based in Yorkville, Illinois. He and his team help buyers and sellers in Yorkville, Oswego, Montgomery, and the surrounding Kendall and Kane County communities, and he owns and manages a local rental portfolio, so he approaches every decision as both a broker and an investor. Call or text Kealan at 630-425-8815.

This post is general information about real estate in the Fox Valley, not legal, tax, or financial advice. Real estate laws, tax rules, and municipal ordinances change, and how they apply depends on your specific situation. Talk with a licensed attorney, CPA, or lender before making decisions about a purchase, sale, or tax matter. O’Neil Property Group is a licensed Illinois real estate brokerage.