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COA affirms judgment in property-tax dispute

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The Indiana Court of Appeals released an opinion today dealing with a topic that gives many homeowners headaches - property taxes. The appellate court held as a matter of law regardless of when the assessment of the real property was actually completed and the tax statements issued, the March 1 statutory assessment date controls the operation and effect of a tax provision in a real-estate purchase agreement.

In Van Prooyen Builders Inc. v. Earl L. Lambert Jr. and Mildred Lambert, No. 45A04-0811-CV-662, Van Prooyen Builders appealed the trial court's monetary judgment in favor of the Lamberts for real-property taxes owed under their real-estate purchase agreement, in which the Lamberts closed on their home July 6, 2006. The tax provision of the agreement specified who would be responsible for what taxes and stated all real-estate taxes assessed against the property after closing shall be paid by the buyer, regardless of any reassessment.

The parties disputed whether, because of the "late" assessment of real property in Lake County, their agreement required the proration of 2006 taxes payable in 2007. At the time of the closing, the county hadn't assessed the property for 2006 taxes, and the Lamberts didn't receive credit for any part of those taxes.

They sought more than $1,500 from Van Prooyen or the property's tax liability prorated from Jan. 1 to July 5, 2006. The trial judge ruled in favor of the Lamberts, finding the tax provision in the agreement was contrary to public policy and void.

The Court of Appeals noted that many counties have experienced delays in the implementation of the new trending assessment system, which has caused uncertainty and inconveniences in the payment of their real estate taxes. Based on Indiana statute, March 1 of each year the state acquires a lien against taxable real property, even if the tax amount is unknown, wrote Judge Edward Najam.

But the fact the lien amount is unknown on the date of closing doesn't abrogate the statute and doesn't preclude the parties from contracting to allocate responsibility for the unknown tax liability between the buyer and seller, he wrote.

Even though Van Prooyen was personally liable for the 2006 taxes payable in 2007, the statute also allows for agreement to other terms in a contract, which is what the parties attempted to do within the tax provision.

The first two sentences of the tax provision are unambiguous; however, the last portion dealing with all real-estate taxes assessed after closing shall be paid by the buyer disregards the statutory definition of "assessment date" and conflicts with the two previous statements in the provision, wrote the judge. Because the parties didn't define "assessment date" in the agreement to mean the actual assessment date, the only date of relevance is the date provided in statute.

The tax provision's last sentence means the Lamberts would be responsible for satisfying any tax liens against the property that attached after they acquired the title, Judge Najam wrote in affirming the trial court judgment.

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  1. Indianapolis employers harassment among minorities AFRICAN Americans needs to be discussed the metro Indianapolis area is horrible when it comes to harassing African American employees especially in the local healthcare facilities. Racially profiling in the workplace is an major issue. Please make it better because I'm many civil rights leaders would come here and justify that Indiana is a state the WORKS only applies to Caucasian Americans especially in Hamilton county. Indiana targets African Americans in the workplace so when governor pence is trying to convince people to vote for him this would be awesome publicity for the Presidency Elections.

  2. Wishing Mary Willis only God's best, and superhuman strength, as she attempts to right a ship that too often strays far off course. May she never suffer this personal affect, as some do who attempt to change a broken system: https://www.youtube.com/watch?v=QojajMsd2nE

  3. Indiana's seatbelt law is not punishable as a crime. It is an infraction. Apparently some of our Circuit judges have deemed settled law inapplicable if it fails to fit their litmus test of political correctness. Extrapolating to redefine terms of behavior in a violation of immigration law to the entire body of criminal law leaves a smorgasbord of opportunity for judicial mischief.

  4. I wonder if $10 diversions for failure to wear seat belts are considered moral turpitude in federal immigration law like they are under Indiana law? Anyone know?

  5. What a fine article, thank you! I can testify firsthand and by detailed legal reports (at end of this note) as to the dire consequences of rejecting this truth from the fine article above: "The inclusion and expansion of this right [to jury] in Indiana’s Constitution is a clear reflection of our state’s intention to emphasize the importance of every Hoosier’s right to make their case in front of a jury of their peers." Over $20? Every Hoosier? Well then how about when your very vocation is on the line? How about instead of a jury of peers, one faces a bevy of political appointees, mini-czars, who care less about due process of the law than the real czars did? Instead of trial by jury, trial by ideological ordeal run by Orwellian agents? Well that is built into more than a few administrative law committees of the Ind S.Ct., and it is now being weaponized, as is revealed in articles posted at this ezine, to root out post moderns heresies like refusal to stand and pledge allegiance to all things politically correct. My career was burned at the stake for not so saluting, but I think I was just one of the early logs. Due, at least in part, to the removal of the jury from bar admission and bar discipline cases, many more fires will soon be lit. Perhaps one awaits you, dear heretic? Oh, at that Ind. article 12 plank about a remedy at law for every damage done ... ah, well, the founders evidently meant only for those damages done not by the government itself, rabid statists that they were. (Yes, that was sarcasm.) My written reports available here: Denied petition for cert (this time around): http://tinyurl.com/zdmawmw Denied petition for cert (from the 2009 denial and five year banishment): http://tinyurl.com/zcypybh Related, not written by me: Amicus brief: http://tinyurl.com/hvh7qgp

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