NAR supports property owners in continued fight against equity theft with new amicus brief

Building on its successful amicus effort in Tyler v. Hennepin County, the National Association of REALTORS® (NAR) is continuing the fight to defend property owners from government overreach. NAR, joined by the American Property Owners Alliance, Michigan REALTORS®, and the Wisconsin REALTORS® Association, filed an amicus brief with the Supreme Court of the United States in Pung v. Isabella County, supporting a Michigan family's fight to protect and retain equity from the tax foreclosure sale of their home.

Pung builds on the Supreme Court’s 2023 decision in Tyler, which affirmed that while governments may collect unpaid taxes, they cannot retain any surplus (or "equity") from the property, recognizing equity as protected property under the 5th Amendment of the Constitution. After Tyler, many states updated their laws to comply with the ruling, but questions remained, including the question at the center of the Pung case: How should a property owner’s equity be calculated – based on the property’s fair market value or the much lower price often seen at tax foreclosure auctions?

The estate of Timothy Pung is challenging Isabella County’s decision to foreclose on the family home over a disputed $2,241.93 tax bill. After the county foreclosed on the property, the property was sold at a tax auction for $76,008, even though the county itself had valued the property at $194,400, more than double the auction price. Pung’s estate argues that the county violated the Constitution by depriving the estate of valuable equity and that compensation should be based on the property’s fair market value, not the depressed auction price. They also claim the county’s actions amounted to an excessive fine under the 8th amendment of the Constitution. After a series of wins and losses in the lower courts, the U.S. Supreme Court agreed to review the case.

NAR’s amicus brief centers on how equity should be valued under the 5th Amendment’s Takings Clause, aligning with the property owners in Pung that fair market value is the long‑established and proper standard. Tax foreclosure systems like the one in Isabella County, Michigan allow governments to seize private property without providing just compensation. NAR has long opposed equity theft and uncompensated takings, emphasizing that property owners have a constitutional right to equity in their property. When governments sell property at below‑market auction prices and retain the surplus, they deprive owners of significant equity and financial security. These systems offer limited due process, enable governments to profit from minor or disputed tax debts, and disproportionately impact vulnerable communities. Nationally, the typical homeowner has gained about $143,000 in equity over the past five years and nearly $238,000 over the past decade; in Michigan, those gains are approximately $124,000 and $202,000, respectively.

NAR’s legal advocacy efforts to support private property rights remain a priority. NAR will continue to monitor any developments in this case and provide updates accordingly.

To learn more about the case, visit the docket here: Pung v. Isabella County