[WSBARP] Tax Sale Question

[John McCrady]

Just a couple quick thoughts:

A properly conducted tax sale "initiates a new and complete title", with certain exceptions. (Messett vs. Cowell, 1914 Wash 6146; City of Walla Walla v. State of Wn., 197 Wash 357; Anderson v. Grays Harbor, 149 Wn 2d 89; Eagles v. Gen. Elec. Co., 5 Wn 2d 20).

A tax sale will not eliminate pre-existing public and private easements and common CCR's.  City of Olympia v. Palzer,  Nor will it eliminate certain covenants to pay assessments.  42 Wn. App. 751 Lake Arrowhead Club v. Lunv, 112 Wn.2d 288

The IRS considers that property taxes and assessments are superior to its tax liens.  IRC § 6323(b)(6) IRC § 6323(b)(6)

The tax sale does not eliminate certain assessment liens levied by municipalities. Pierce County v. Schwab, 48 Wn. App. 418.)

I am not aware of any priority that homeowner's assessments have over property taxes.  I would welcome enlightenment on that.

John McCrady
Counsel
Puget Sound Title Company
5350 Orchard Street West
University Place WA 98467
253-476-5721
j.mccrady at pstitle.com

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Scott Hildebrand
Sent: Thursday, November 02, 2017 8:35 PM
To: 'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Tax Sale Question

Title Gurus
I have a few clients interested in bidding on properties at tax sales. I am assuming that a tax sale will wipe out all encumbrances with the exception of IRS liens and super-priority HOA type liens. Anything else that I should be cautioning about??

Thanks,
Scott Hildebrand
Attorney at Law
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