A Motion for Turnover has long been used by attorneys seeking to satisfy a judgment for a client. Such a motion allowed an attorney to seek to take personal property, such as jewelry, vehicles, and other valuable items. If approved by a judge, the motion requires that the sheriff sell the property and turnover the proceeds of the sale to satisfy a debt. Real Property – also known as real estate – was previously subject to a different set of laws for being used to satisfy a judgment. The law required that a judgment creditor placed a lien on the property or foreclosed on the property to use the property as an asset to satisfy the debt.

But a seldom-used law was created in 2008 that now allows judgment creditors to file a Motion for Turnover of real property. This allows judgment creditors to seek to have a judgment debtor’s property turned over for sale by the sheriff without the expense or delay of a foreclosure or lien. The statute, 735 ILCS 5/2-1401(c)(5), allows the sheriff to sell real property that has been turned over, and to pay a judgment creditor the proceeds of the sale. This statute law hasn’t been widely used yet in the Chicago area.

But it is good news for parties to litigation and judgment creditors, because it creates a new avenue for recovering judgment amounts. Whereas before Motions for Turnover could only be used to seize personal property and valuables, now real estate is also subject to a turnover proceeding.

There are a few requirements, however, that must be met for a Motion to Turnover of Real Property to be utilized. First, the judgment debt must be greater than the property owner’s equity value. For instance, if the judgment debtor owes the judgment creditor $100,000, the judgment debtor must have equity in the property of no more than $100,000. If the judgment debtor’s equity is greater than the judgement amount, a Court is unlikely to grant a motion for turnover. Also, the judgment creditor must repay the mortgages on the property before keeping any proceeds of the sale. Finally, if the real property being taken is a primary residence, an individual owner may be entitled to a $15,000 exemption. If it is owned by two individuals, they may be entitled to a $30,000 exemption.