Ace the Illinois Real Estate Exam 2025 – Unlock Your Property Pro Potential!

In a tax sale scenario, if no bids are made on a property, forfeiture sale is the correct answer because it refers to the process where the property is essentially forfeited to the state or local taxing authority due to unpaid taxes. This can occur when a property owner fails to pay property taxes, leading to the property being put up for auction to recover the owed taxes. If the auction does not attract any bids, the property is then forfeited, meaning it is taken by the government.

This process emphasizes the importance of property tax compliance for homeowners and property investors, as failure to pay taxes can ultimately lead to the loss of the property. In the context of a forfeiture sale, the property will not be sold to a private buyer, and instead, it may eventually be owned by the government, which may then choose to sell it later or make it available for rehabilitation or other uses. This outcome illustrates the consequences of failing to fulfill tax obligations on real estate.

The other options do not accurately describe the situation where no bids are made. The annual sale refers to the scheduled opportunity for tax purchasers to bid on properties with delinquent taxes. An equitable lien is a legal claim on property that exists but may not yet be enforced. General real