Property Forfeiture Settlement– Thousands of Minnesota homeowners could soon receive a piece of a historic $109 million settlement following a major property tax forfeiture case. The Minnesota property forfeiture settlement stems from a lawsuit challenging the practice of counties keeping excess profits from the sale of tax-forfeited properties — a practice the U.S. Supreme Court ruled unconstitutional in 2023.
If you or someone you know lost property in Minnesota due to unpaid property taxes between 2012 and 2023, you may be eligible for a refund — and some could receive tens of thousands of dollars.
Property Forfeiture Settlement
| Details | Information |
|---|---|
| Settlement Amount | $109 million |
| Case Name | Tyler v. Hennepin County |
| Eligibility Period (Hennepin County) | August 16, 2012 – December 31, 2023 |
| Eligibility Period (Others) | June 23, 2016 – December 31, 2023 (differs slightly for St. Louis County) |
| Claim Deadline | June 6, 2025 |
| Average Refund | Varies — some may get over $100,000 |
| How to Apply | Visit mntaxforfeituresettlement.com |
The Minnesota property forfeiture settlement is a rare opportunity for former property owners to reclaim what was taken from them unfairly. Whether you lost a family home, inherited land, or held a lien on a property sold by the county, this settlement ensures you are compensated for the excess equity that was kept illegally.
With millions in refunds available and a simple online claim process, eligible individuals should act now and file before the June 6, 2025 deadline. This is your chance to finally get back what’s rightfully yours.
What Is the Minnesota Property Forfeiture Settlement?
The $109 million class-action settlement is a direct result of the Supreme Court’s 2023 decision in Tyler v. Hennepin County. Geraldine Tyler, a 94-year-old Minneapolis resident, lost her home after falling behind on $15,000 in property taxes. Hennepin County sold her condo for $40,000 and kept the full amount — even though the extra $25,000 should have rightfully gone back to her.
The Court unanimously ruled that this violated the Fifth Amendment’s “Takings Clause”, which protects against government seizure of private property without just compensation.
Following this ruling, Minnesota counties that engaged in similar practices between 2012 and 2023 are now required to return the surplus proceeds to former owners — or their heirs, lienholders, or mineral rights holders.
How Did This Become a Nationwide Legal Precedent?
The Tyler v. Hennepin County ruling set a powerful precedent not just for Minnesota but for the entire country. Legal experts consider this a rare unanimous decision reinforcing individual property rights. States such as Michigan and Arizona are also facing scrutiny for similar tax forfeiture practices.
According to the Pacific Legal Foundation, more than a dozen states had similar laws, but this ruling signaled a clear shift: surplus equity belongs to the property owner — not the government.
Who Is Eligible to Receive a Refund?
You may be eligible for a refund from this settlement if:
- You owned property in Minnesota that was forfeited to the state due to unpaid property taxes
- The forfeiture and sale occurred between:
- August 16, 2012 and December 31, 2023 in Hennepin County
- June 2, 2016 and December 31, 2023 in St. Louis County
- June 23, 2016 and December 31, 2023 in all other counties
Eligible parties include:
- Former property owners
- Heirs or successors of deceased owners
- Lienholders (including banks, tax authorities, etc.)
- Owners of severed mineral rights
For mineral rights owners, a flat payout of $300 per parcel (plus interest) may apply.
How Much Can You Get?
The amount you may receive depends on the surplus from the property’s sale. Here’s a simplified breakdown:
Refund = Sale Price – Unpaid Taxes – Reasonable Fees + Interest
For example:
- If your property was sold for $100,000
- You owed $20,000 in taxes and fees
- You may receive up to $80,000 + interest as compensation
Some property owners could receive more than $100,000, depending on their property’s value and tax history.
How to File a Claim For Property Forfeiture Settlement?
Filing a claim is straightforward, and you do not need a lawyer to do it. Here’s a step-by-step guide:
Step 1: Visit the Official Settlement Website
Visit mntaxforfeituresettlement.com.
Step 2: Register or Log In
If you received a Class Member ID in the mail, use it to log in. If not, click “Register” and enter your details.
Step 3: Fill Out the Claim Form
Provide documentation showing your ownership interest in the property. This may include deeds, tax bills, mortgage or lien documents, or probate paperwork (if claiming on behalf of a deceased person).
Step 4: Submit Before the Deadline
You must file your claim by June 6, 2025.
What If You Didn’t Receive a Notice?
Even if you didn’t get a postcard or email, you might still qualify. Use the search function on the official website to check if your name or property is listed. If your property meets the criteria, you can still file a claim.
Why This Settlement Matters?
This is more than just a financial win. The case has become a landmark example of how property rights, especially for vulnerable citizens like seniors, can be protected through the legal system.
As Pacific Legal Foundation attorney Christina Martin said, “This decision affirms that home equity is property, and the government cannot take more than what is owed.”
It also raises awareness about the importance of property tax compliance and the potentially severe consequences of missing payments — including the risk of losing not just your home, but also its equity.
What to Do If You’re Unsure About Eligibility?
If you’re uncertain about your eligibility, here are practical tips:
- Contact the settlement administrator via phone or online form.
- Review county property records to verify if your property was forfeited.
- Consult a real estate attorney or legal aid group if the situation is complex (such as disputes among heirs).
Important Dates to Remember
- Settlement Approved: December 2024
- Claim Deadline: June 6, 2025
- Payouts Expected: Later in 2025 (exact dates TBD)
Where to Get Help?
If you need assistance filing your claim, contact the Claims Administrator:
- Phone: (833) 522-3374
- Website: mntaxforfeituresettlement.com
- Mail: PO Box 301172, Los Angeles, CA 90030-1172
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FAQs About Property Forfeiture Settlement
Who is behind the lawsuit?
The class action is based on the Tyler v. Hennepin County case, backed by the Pacific Legal Foundation, a public interest law firm.
What if my property was forfeited before 2012?
Only properties forfeited within the eligibility windows qualify. Earlier forfeitures are not covered.
Do I need a lawyer to file?
No, most claimants can file independently. However, for complex cases or deceased owners, you may want legal help.
How will I be paid?
You’ll receive payment either via check or direct deposit, depending on the method selected during your claim filing.
Can I claim on behalf of a deceased family member?
Yes, heirs and legal representatives can file. Be ready to submit documents like death certificates, wills, or probate papers.
Can this impact my future taxes or benefits?
Settlement refunds are generally not taxable as income, but it’s wise to consult a tax advisor, especially for large sums.
