A tax deed is a document that often gets distributed when a property owner fails to pay taxes on their home, business, or piece of land. This transfers ownership of the property to the government so that they can collect the taxes that they expect.
It can be frustrating for a property owner to not be able to pay their bills and to have something like a tax deed drawn up for their house or place or business. Here are some purposes of a tax deed in Illinois.
To collect property taxes
A tax deed helps ensure that the local government receives the monetary resources that they expect to do things such as fund public schools, police services, road construction, and other public utilities that operate via sales and property taxes. Tax deeds are somewhat similar to tax liens, but there are some key differences depending on your state.
To transfer ownership
A tax deed is a legal document that enables the government to not only collect taxes from a property but to purchase the property outright. In addition to the government, individual entities can also elect to purchase a home or piece of land through its deed. One advantage of purchasing property this way is that you may pay much less than you would under more typical circumstances.
The more you know about tax deeds, the more steps you can take to prevent the government from acquiring ownership of your property and another individual from purchasing the property for less than market value.