What New Homebuyers Need to Know About Previous Owner's Property Tax Exemptions

Buying a home in Cook County is an exciting milestone, but it comes with responsibilities that many new homeowners overlook. One area that often causes confusion is property tax exemptions. The home you're buying may have exemptions from the previous owner that temporarily lower the property taxes shown on recent bills. However, these exemptions don't automatically transfer to you. If you assume they'll continue without taking action, you could face a much higher tax bill than expected or miss out on savings you're entitled to.

Understanding how exemptions work and what to check before closing can save you money and prevent surprises. When buying a home, a Cook County Property Tax Attorney can help protect your financial interests.

How Property Tax Exemptions Work in Cook County

Property tax exemptions reduce your home's assessed value, which directly lowers your tax bill. In Cook County, common exemptions include:

Homeowner Exemption - For properties used as a primary residence

Senior Citizen Exemption - For homeowners 65 or older

Senior Freeze Exemption - Freezes the assessed value for seniors who meet income limits (must be renewed annually)

Disabled Persons Exemption - For individuals with qualifying disabilities

Veterans with Disabilities Exemption - For qualifying veterans

Each exemption has specific eligibility requirements tied to personal circumstances like age, income, disability status, or residency. Because exemptions are personal, they don't automatically transfer when a home is sold. The previous owner may have qualified for a senior exemption that you don't qualify for yet. Or they may have had a homeowner exemption that you'll need to apply for yourself.

Assuming exemptions will continue without checking can lead to unexpected costs.

What to Check Before Buying

When reviewing a property during the buying process, take these important steps:

Review Current Exemptions

Request a copy of the most recent property tax bill and look at which exemptions were applied. This shows you what the previous owner qualified for and how much those exemptions reduced their taxes. Remember that your tax bill may look very different once those exemptions expire.

Understand Your Own Eligibility

Compare the previous owner's exemptions with your personal situation. If the seller was 65 or older and receiving a senior exemption, you won't automatically get that same benefit unless you also qualify. Make sure you understand which exemptions you can actually claim based on your age, income, and living situation.

Check Assessor Records

Review the Cook County Assessor's online records for the property. These records show which exemptions were active, when they were applied, and whether they were renewed in prior years. This helps you understand the property's tax history and avoid surprises after closing.

Know Renewal Requirements

Some exemptions are automatically renewed after the initial application, while others like the Senior Freeze Exemption must be reapplied for every year. If you qualify for an exemption but don't file on time, you'll lose those savings and pay higher taxes. Understanding deadlines and filing requirements before you move in helps you stay ahead.

Verify Tax Payment History

In some cases, missing documentation or errors in previous filings could lead to adjustments or back taxes. Make sure the property taxes have been paid correctly and that no issues will carry over to you as the new owner. Your title company should verify this, but it's worth double-checking.

Common Mistakes New Homebuyers Make

Many first-time buyers in Cook County make these mistakes:

• Assuming the tax amount on the seller's disclosure will be their tax amount
• Not applying for the Homeowner Exemption right away after closing
• Missing the deadline to file for exemptions they qualify for
• Forgetting to check if characteristics listed for the property are accurate
• Not budgeting for a higher tax bill once old exemptions expire

These mistakes can cost hundreds or thousands of dollars each year. Taking time to understand exemptions before closing helps you avoid them.

How an Attorney Helps Protect Your Interests

Navigating property tax exemptions can be complicated, especially when multiple exemptions were involved or the previous owner had unique circumstances. A property tax attorney can help you:

• Review past assessment notices and identify which exemptions were active
• Confirm which exemptions you're eligible to claim
• Ensure your applications comply with Cook County Assessor rules
• File exemptions correctly and on time to maximize savings
• Catch assessment errors that could inflate your future tax bills

Professional guidance helps you act promptly and correctly. Some exemptions have strict deadlines, and filing late means lost savings you can't recover.

Steps to Protect Yourself

Here's what you should do when buying a home in Cook County:

1. Request full property tax records during the home inspection period
2. Ask the seller for documentation of any exemptions they received
3. Review the property's assessment and characteristics for accuracy
4. Apply for all exemptions you qualify for as soon as you take ownership
5. Mark your calendar for annual renewal deadlines if needed
6. Consider a legal review with a Cook County Property Tax Attorney

These steps ensure you maximize your property tax savings from day one and avoid unexpected bills down the road.

Take the Next Step

If you're buying a home in Cook County and want to make sure all property tax exemptions are correctly handled, Aaron Fox Law works with buyers throughout Cook County to review tax records, identify potential issues, and file the proper exemptions. 

For more information or to schedule a free consultation, visit Aaron Fox Law's property tax page.

Making sure your property tax exemptions are correct from the start is an important step in protecting your investment and avoiding costly surprises.