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Appellate court rules on bona fide purchaser dispute

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The Indiana Court of Appeals has upheld a ruling by a Marion Superior judge in a land title case, finding that a bona fide property purchaser can not be held responsible for deficiencies in the court record that led to the underlying dispute.

In Calvin Hair v. Mike Schellenberger and Lawyers Title Ins. Corp., Wells Fargo Bank, N.A., Felix Adejare, and Sharon Adejare, No. 49A02-1107-PL-685, the court affirmed the judgment by Judge Ted Sosin concerning who owned a superior title to a piece of property on Talbott Street in Indianapolis.

When Mike Schellenberger bought the Talbott Street property at a foreclosure sale in 2008, the title search did not show a money judgment that Calvin Hair had obtained against former owners Felix and Sharon Adejare. The judgment had never been indexed in the county records, and Schellenberger was unaware of it until a year later when Hair sent him a letter claiming that he had a judgment lien on the property. Schellenberger later tried to remove the cloud on the title, arguing that he was a bona fide purchaser as a matter of law. The trial court ruled against Hair’s argument that the Adejares fraudulently conveyed the property and he had a valid judicial lien that should be enforced.

Examining the issue, the Court of Appeals found that Hair’s judgment was outside the chain of title and that Schellenberger was a bona fide purchaser as a matter of law. Schellenberger can only be responsible for what he knew about, and it was up to Hair to take steps to cure any deficiencies in county records that might be important. For example, Hair could have checked the records to ensure his judgment was on record and perfected, giving rise a lien, or he could have acted within the statute of limitations and raised the alleged fraudulent conveyance during other court proceedings.

The court pointed out that Hair was in a better position to prevent the dispute at hand, and as a result the trial court did not err in granting full summary judgment to the appellees.

 

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  1. I just wanted to point out that Congressman Jim Sensenbrenner, Senator Feinstein, former Senate majority leader Bill Frist, and former attorney general John Ashcroft are responsible for this rubbish. We need to keep a eye on these corrupt, arrogant, and incompetent fools.

  2. Well I guess our politicians have decided to give these idiot federal prosecutors unlimited power. Now if I guy bounces a fifty-dollar check, the U.S. attorney can intentionally wait for twenty-five years or so and have the check swabbed for DNA and file charges. These power hungry federal prosecutors now have unlimited power to mess with people. we can thank Wisconsin's Jim Sensenbrenner and Diane Feinstein, John Achcroft and Bill Frist for this one. Way to go, idiots.

  3. I wonder if the USSR had electronic voting machines that changed the ballot after it was cast? Oh well, at least we have a free media serving as vicious watchdog and exposing all of the rot in the system! (Insert rimshot)

  4. Jose, you are assuming those in power do not wish to be totalitarian. My experience has convinced me otherwise. Constitutionalists are nearly as rare as hens teeth among the powerbrokers "managing" us for The Glorious State. Oh, and your point is dead on, el correcta mundo. Keep the Founders’ (1791 & 1851) vision alive, my friend, even if most all others, and especially the ruling junta, chase only power and money (i.e. mammon)

  5. Hypocrisy in high places, absolute immunity handed out like Halloween treats (it is the stuff of which tyranny is made) and the belief that government agents are above the constitutions and cannot be held responsible for mere citizen is killing, perhaps has killed, The Republic. And yet those same power drunk statists just reel on down the hallway toward bureaucratic fascism.

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