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Judges hold option to buy real estate valid

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The purchaser of real estate through an option executed years earlier didn’t make the option unenforceable against the owner’s estate by not tendering the purchase price when exercising his option to buy the land, the Indiana Court of Appeals concluded today.

The issue arose in Estate of Jane H. Collins v. T. William McKinney, No. 02A05-1004-EU-286, in which T. William McKinney had an option from 1990 with Jane and Robert Collins to purchase real estate from them on which there was a car dealership. McKinney had to deliver written notice of his intent to exercise the option to the personal representative of the estate within 90 days of the death of the last to die of Robert and Jane.

Jane died last, and upon learning this, McKinney sought to exercise the option by sending a letter to Ray Collins, the personal representative of Jane’s estate. The option didn’t include the purchase price. Ray never responded to McKinney and later claimed after McKinney filed suit that the lack of offering the purchase price made the option unenforceable.

McKinney filed a verified petition for specific performance to require the estate to sell the property. The trial court granted him summary judgment, ordered the estate to close the sale, and later awarded damages and attorney’s fees to McKinney.

The estate correctly argued on appeal that no rule has been mentioned in Indiana directly on the question of whether an option is binding only upon tender of performance, wrote Judge L. Mark Bailey. But Indiana law doesn’t require a tender of performance before an optionor is in default and specific cases in Indiana undercut the estate’s reliance on cases from other jurisdictions.

The judges citied Wolvos v. Meyer, 668 N.E.2d 671 (Ind. 1996), to affirm that proper notice is all that was required to exercise the option and McKinney gave proper notice to Ray.

The Court of Appeals also affirmed that McKinney could be awarded damages even though the court awarded specific performance, but they remanded for a recalculation of the amount McKinney is entitled to. The court also vacated the amount of attorney’s fees awarded to McKinney and remanded for the trial court to determine the amount of fees related to McKinney’s efforts to close on the property.

The judges affirmed the trial court in all other respects.

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  1. From his recent appearance on WRTV to this story here, Frank is everywhere. Couldn't happen to a nicer guy, although he should stop using Eric Schnauffer for his 7th Circuit briefs. They're not THAT hard.

  2. They learn our language prior to coming here. My grandparents who came over on the boat, had to learn English and become familiarize with Americas customs and culture. They are in our land now, speak ENGLISH!!

  3. @ Rebecca D Fell, I am very sorry for your loss. I think it gives the family solace and a bit of closure to go to a road side memorial. Those that oppose them probably did not experience the loss of a child or a loved one.

  4. If it were your child that died maybe you'd be more understanding. Most of us don't have graves to visit. My son was killed on a state road and I will be putting up a memorial where he died. It gives us a sense of peace to be at the location he took his last breath. Some people should be more understanding of that.

  5. Can we please take notice of the connection between the declining state of families across the United States and the RISE OF CPS INVOLVEMENT??? They call themselves "advocates" for "children's rights", however, statistics show those children whom are taken from, even NEGLIGENT homes are LESS likely to become successful, independent adults!!! Not to mention the undeniable lack of respect and lack of responsibility of the children being raised today vs the way we were raised 20 years ago, when families still existed. I was born in 1981 and I didn't even ever hear the term "CPS", in fact, I didn't even know they existed until about ten years ago... Now our children have disagreements between friends and they actually THREATEN EACH OTHER WITH, "I'll call CPS" or "I'll have [my parent] (usually singular) call CPS"!!!! And the truth is, no parent is perfect and we all have flaws and make mistakes, but it is RIGHTFULLY OURS - BY THE CONSTITUTION OF THIS GREAT NATION - to be imperfect. Let's take a good look at what kind of parenting those that are stealing our children are doing, what kind of adults are they producing? WHAT ACTUALLY HAPPENS TO THE CHILDREN THAT HAVE BEEN RIPPED FROM THEIR FAMILY AND THAT CHILD'S SUCCESS - or otherwise - AS AN ADULT.....

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