In the Dirt: A Real Estate Legal Update

It’s May in Indiana, which means flowers are blooming, the Indianapolis 500 is here, and the spring installment of Indiana property taxes are due. Property taxes in Indiana are paid twice a year, with payments generally due on May 10 and November 10. However, the spring installment is most significant as it relates to the sale of land for unpaid taxes. This makes May the perfect time for a refresher on Indiana tax sales.

Can improvements to real estate, such as buildings, be owned separately from the land beneath them? This is not usual, although permissible, such as in a ground lease situation; however, a recent decision from the Indiana Court of Appeals has gone a step farther by recognizing separate real estate tax parcel numbers to improvements sold separately from the underlying real estate. The following case presents a cautionary tale for Indiana landowners in a ground lease scenario, and for any lender secured by land subject to a ground lease.