Bulletin: IL2024002

Dear Associates:

This bulletin updates and replaces IL2024001

Due to the recent cases of Tyler v. Hennepin (MN) and Bell v. Pappas (Cook County, IL), we are providing this reminder that when insuring a tax deed or title acquired by tax deed the transaction must be approved by a Stewart Title Guaranty Company underwriter.

This bulletin provides guidelines on submitting your file for underwriter approval and introduces a new exception that must be raised on all tax deed files in Illinois.

When submitting your file for approval, you must include the following documents in an email to the underwriter:

• A copy of the deed to the prior owner.
• Confirmation that the prior owner has not filed for bankruptcy. (See Stewart Bulletin IL2016001.)
• A copy of the tax deed case file, including but not limited to, the initial complaint, proof of service, and all orders of the court.
• A copy of the recorded tax deed.

In addition to securing underwriter approval, the following two exceptions must be raised on all files to exclude coverage for loss or damage resulting from title having been acquired by tax deed. These exceptions shall not be removed from the commitment or policy without approval from a Stewart Title Guaranty Company underwriter.

1. Consequences of the Title being derived through a tax deed issued under Case No.__________________ in ________________County, including but not limited to, any loss or damage resulting from a claim against Title related to any orders, collateral actions, or appeal thereto.
2. Consequences of any attack on the estate or interest insured herein under any federal or state law dealing with bankruptcy, insolvency, or creditors' rights.

For residential transactions, the following “Note” should be included under the first (“1”) exception on the title commitment. This “Note” may be removed from the final policy.

NOTE: Purchasing property subject to a prior tax sale proceeding is a risk to the purchaser that may result in loss or challenge to your ownership of the property. Please seek legal advice from a licensed attorney to advise you on the risks of this transaction.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.