Real Estate Law

(Court opinion corrected 9/1/11.) Homeowner failed to pay her real estate taxes in amount of $1383 on two-flat apartment building. Court properly denied tax deed pursuant to Property Tax Code, as attempted purchaser failed to give proper notice of redemption period, per Section 22-5 of Code, and failed to exercise due diligence in serving notice per Section 22-10 of Code. Servicer for noteholder's successor was entitled to notice, as purchaser could have learned of servicer's existence by calling MERS, and Code reqires only that a party have an interest in property to be entitled to notice. (PUCINSKI and SALONE, concurring.)

Liquidated damages provision in condominium purchase agreement (with purchase price of $2.188 million), which allowed seller to retain an amount equal to earnest money deposit (which was 15% of purchase price) is an enforceable penalty. Seller sent buyers a letter terminating the contract after sale did not close by agreed extended date for closing, and seller sold the unit to a third party. Liquidated damages in amount of 15% of purchase price is a reasonable amount, considering the potential loss each party faced at time of contracting, and both parties agreed to accept the inherent risk that the set amount could exceed actual damages. (CUNNINGHAM and CONNORS, concurring.)