Hi Edpark,
I think the issue is not really whether he owned another property, but instead, whether he misrepresented the property you purchased as an owner occupied property, when it was in fact a rental property. If he did not file a C of E, it probably was not his primary residence. If your taxes are escrowed, your Lender will pay it anyway, then send you a letter giving you the option to either pay it in full or have it spread out over your bill for the next 12 months.
One thing is sure, it will be an all out battle, and you are unfortunately at a disadvantage since the property has closed and you have lived in it all this time.
One thing, make sure to apply for the next year's exemptions. At least you will get that automatically as an owner occupant. When you get that exemption. make sure to send the certificate to your Lender so you can have it applied to your escrows.
Good luck to you.

The responsibility then falls on your attorney that handled your closing, period.

Due diligence.

You will go in circles trying to handle this matter yourself.

OH and it wasn't a short sale or foreclosure. I also used a real estate agent.

Thanks everyone. I did have an attorney. I also have been given the run around from the cook county assessor. I was originally told that I could submit the C of E as long as the seller signed it. This afternoon I stopped over there and they told me I would need a copy the seller's ID to prove that he lived there, and I would also need him to sign a form allowing me to submit information on his behalf. After further discussion, they told me I could fill out the form myself as long as I provided a copy of my closing statement, tax bill, and state ID (old address on the ID was fine-I haven't changed my driver's license yet).

When I got back to my office I called to confirm this (since I'd already heard a few different stories from them), and was told that I was misinformed and I could not file the paperwork at all for the seller for 2008 property taxes because I am the current owner of the property and am responsible for the taxes now (even though I did not own the property in 2008). I will have to provide the closing statement, tax bill, and ID (now they're saying my address on the ID has to match the closing statement or I can provide an Occupancy Affidavit or something that is signed by a notary proving I live there).

What a pain huh? :)

I agree, he must not had enough information provided to him which falls upon the attorney - IF he used one.

If he did not, then there really is no one to blame except himself...

Christine, I cannot answer your question because nobody but Edpark knows that conversation between he, his attorney (if he used one) and his real estate agent (if he used one). Was a practicing real estate attorney, whose main practice is real estate, was one used? That's another question.

Flip side Christine, how many agents have taken listings for short sales and didn't know what they were doing but learned at the owners/seller's expense? How much have some weak real estate agents cost their clients, the neighbors by not understanding short sales? Should their be some form of reprocussion on that?

Same thing for doctors. A doctor made some mistakes with my Mom's medical and Mom died. Mom was close to 80. He wasn't given all the information because I wasn't allowed to speak with her doctors. So, how much accountability did that doctor have?

What I am reading in Edpark's questions is that he made assumptions or didn't have enough information provided to him for him to ask good questions and nobody knows if he used an attorney or a real estate agent. He doesn't state that. Never make assumptions.

Barb Van Stensel
Keller Williams Lincoln Square
2156 W. Montrose
Chicago, IL 60625
773.746.5395

Barb do you think he has any legal recourse as to the attorney's due diligence in this matter? It is the attorney's responsibility to provide this information and verify - I don't believe it was an oversight. EdPark - was this a short sale or foreclosure?

Edpark, the seller should have disclosed or your attorney should have confirmed that the Homeowner Exemption was applicable or if it wasn't. The contract or attorney approval letter should have stiuplated qualification, clarification of the ownership - allbeit investor or homeowner. That being said, two things come into place: (a) the new tax bills have increased and that anticipation should have been based again on the pro-rata of real estate taxes within your contract or again, in the attorney approval period. What was agreed upon within the contract and during the approval period is going to stand. Bottom.

Your questions are: "Am I responsible for this extra tax amount?" - YES, you are, based upon the contract and the attorney approval period and what was agreed upon during that specific time.

"Can he (the seller) get a C of E on the condo if he owned another condo?" The answer is "NO".

If you closed in June of 2009, either the monies were escrowed for the September 2009 real estate tax payment or you received a credit as per the contract and attorney approval agreement. That pro-rata of real estate taxes is what can "hang" some new homebuyers if they are not aware of all the pit-falls in purchasing real estate. Kind of helps to have advocates on your side and it appears that you didn't understand the legal obligations under your part as a direct result.

Also, you need to know that selling prices are put into the the Cook County Treasurer's System for real estate based taxes. Those taxes may reflect your selling price along with the new increase in real estate taxes for the City and County.

This is exactly why the Bank puts in two to three months of reserves of real estate taxes for instances such as this. I would strongly suggest that you get a hold of your bank and make arrangements to have them include the differential over the course of this next year unless you have the monies available now and can afford to pay the differential in real estate taxes. ALSO, I STONGLY suggest that you let your lender know that your real estate taxes need to be adjusted accordingly so you are not short in the next payment.

I am sorry this has happened to you, but this is where it is important to have strong advocates on your side, that being a good real estate agent along with an attorney that has your best interests at heart.

Barb Van Stensel
Keller Williams LIncoln Square
2156 W. Montrose
Chicago, IL 60625
(773) 746-5395

Ask your attorney that handled your closing. He will be best to answer all your questions.

After all, you hired him to do your closing - that is his duty to you, his client.

Ed,

Call the attorney that handled the transaction. The attorney I refer tries to get the seller agree to file for the exemption for the tax years in question then if he doesn't the buyer has grounds to go back and collect from the seller. Or if the seller did not live in the unit in question, we negotiate a higher %.

You definitely have to pay your tax bill (or risk losing your home in a tax sale). The question is whether or not you will be able to collect anything from the seller.

Best of luck to you.

Eric Marcus ABR, CRS, CNE, CPA
ESM Realty
Your Real Friend in Chicago Real Estate
esmarcus@sbcglobal.net
773-244-1110