Equity and Clarity: The Impact of Tyler v. Hennepin County on Property Taxation and Homeowners’ Rights

Authors

Analy Feigel, Benjamin N. Cardozo School of Law

Abstract

This Note explores the implications ofthe U.S. Supreme Court's ruling in Tyler v. Hennepin County, which significantly impacts property taxation and foreclosure laws. The Court ruled that property owners are entitled to surplus proceeds following a tax foreclosure, setting a new precedent by deeming it unconstitutional for governments to retain surplus proceeds without just compensation. Tyler clarified property rights under the Fifth Amendment, affirming that owners have a constitutional right to the surplus value of their foreclosed properties, even if local statutes do not explicitly allow it.

Further, this Note also addresses unresolved issues following Tyler's ruling, including how the ruling affects the privatization of tax lien sales and whether just compensation should be based on fair market value or surplus proceeds. Moreover, it highlights that private third parties purchasing tax liens may now be held accountable under the Takings Clause, adding a layer of complexity to foreclosure procedures. Ultimately, Tyler reshapes the landscape of property tax foreclosures, ensuring stronger protections for homeowners while raising questions about the future of related legal practices.

Keywords

Banking and Finance Law, Foreclosure, Bankruptcy Law, Bankruptcy, Condominiums, Construction of Buildings, Housing Law, Liens, Property--Personal and Real, Statutes, Legislation, Mechanics' Liens

Disciplines

Banking and Finance Law | Bankruptcy Law | Housing Law | Law | Legislation

Recommended Citation

Analy Feigel, Equity and Clarity: The Impact of Tyler v. Hennepin County on Property Taxation and Homeowners’ Rights, 46 Cardozo L. Rev. 1521 (2025).
Available at: https://larc.cardozo.yu.edu/clr/vol46/iss4/7