{"id":3077,"date":"2023-06-28T07:14:43","date_gmt":"2023-06-28T11:14:43","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=3077"},"modified":"2024-04-25T23:17:36","modified_gmt":"2024-04-26T03:17:36","slug":"latest-from-scotus-a-tale-of-two-property-rights-cases","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/latest-from-scotus-a-tale-of-two-property-rights-cases\/","title":{"rendered":"Latest From SCOTUS: A Tale of Two Property Rights Cases"},"content":{"rendered":"\n
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The National Association of Realtors\u00ae (NAR) lauded wins for property rights in two recent Supreme Court cases. But the two cases dealt with starkly different questions.<\/p>\n\n\n\n\n\n\n\n

The Court Called Out a County for \u201cHome Equity Theft\u201d in the Tyler <\/em>Case.<\/em><\/h2>\n\n\n\n

In Tyler v. Hennepin County, 93-year-old Geraldine Tyler\u2019s tax foreclosure struggles in Minneapolis reached the Supreme Court.<\/p>\n\n\n\n

Tyler had moved out of a condo, and let liens<\/a> for overdue taxes pile up on the title. After years of nonpayment, she owed Hennepin County a hefty pile of back taxes plus penalties and interest: about $15K.<\/p>\n\n\n\n

Hennepin County began foreclosure proceedings. The county then sold off Tyler\u2019s condo for $40K without returning the overage. The state\u2019s law allowed this. Significantly, as NAR has pointed out, quite a few U.S. states have enabled tax agencies to keep profits after foreclosure sales without compensating the debtors.<\/p>\n\n\n\n

The National Association of Realtors\u00ae Defended Private Property Rights Against Government Intrusions.<\/h2>\n\n\n\n

But there\u2019s more! It\u2019s not just county governments who\u2019ve been snatching unearned real estate value. Sometimes, private real estate investment companies have pocketed the profits. The Pacific Legal Foundation notes that Arizona, Colorado, Illinois, Montana, Nebraska, and New Jersey have all been allowing private investors to keep profits after resolving tax bills! <\/p>\n\n\n\n

Tyler sued Hennepin County. In late 2020, the district court issued a decision. It sided with the county, not Geraldine Tyler. And the Eighth Circuit Court of Appeals upheld the holding for the county.<\/p>\n\n\n\n

Both courts said the state law gives homeowners plenty of time, after all, to sort out their tax bills and avert foreclosure.<\/p>\n\n\n\n

A Ninety-Three-Year-Old Stood Her Ground.<\/h2>\n\n\n\n

Rather than back down, Tyler became part of a class-action suit which the Supremes ultimately agreed to hear in early 2023. The Tyler <\/em>decision came out on May 25, 2023.<\/p>\n\n\n\n

The National Association of Realtors\u00ae along with its Minnesota chapter and quite a few other groups filed briefs as friends of the court in Tyler v. Hennepin County<\/em>. They wanted the Supreme Court to weigh in on the tax seizures of homes, like Tyler\u2019s, worth more than the debt the government was going after.<\/p>\n\n\n\n

The Supreme Court, in a 9-0 holding, agreed with the elderly homeowner. The Supremes reasoned as follows:<\/p>\n\n\n\n