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. This is ridiculous. Most JDs not practicing law don't know squat to justify calling themselves a lawyer. Maybe they should try visiting the inside of a courtroom before they go around calling themselves lawyers. This kind of promotional BS just increases the volume of people with JDs that are underqualified thereby dragging all the rest of us down likewise.

  2. I think it is safe to say that those Hoosier's with the most confidence in the Indiana judicial system are those Hoosier's who have never had the displeasure of dealing with the Hoosier court system.

  3. I have an open CHINS case I failed a urine screen I have since got clean completed IOP classes now in after care passed home inspection my x sister in law has my children I still don't even have unsupervised when I have been clean for over 4 months my x sister wants to keep the lids for good n has my case working with her I just discovered n have proof that at one of my hearing dcs case worker stated in court to the judge that a screen was dirty which caused me not to have unsupervised this was at the beginning two weeks after my initial screen I thought the weed could have still been in my system was upset because they were suppose to check levels n see if it was going down since this was only a few weeks after initial instead they said dirty I recently requested all of my screens from redwood because I take prescriptions that will show up n I was having my doctor look at levels to verify that matched what I was prescripted because dcs case worker accused me of abuseing when I got my screens I found out that screen I took that dcs case worker stated in court to judge that caused me to not get granted unsupervised was actually negative what can I do about this this is a serious issue saying a parent failed a screen in court to judge when they didn't please advise

  4. I have a degree at law, recent MS in regulatory studies. Licensed in KS, admitted b4 S& 7th circuit, but not to Indiana bar due to political correctness. Blacklisted, nearly unemployable due to hostile state action. Big Idea: Headwinds can overcome, esp for those not within the contours of the bell curve, the Lego Movie happiness set forth above. That said, even without the blacklisting for holding ideas unacceptable to the Glorious State, I think the idea presented above that a law degree open many vistas other than being a galley slave to elitist lawyers is pretty much laughable. (Did the law professors of Indiana pay for this to be published?)

  5. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.