[WSBARP] Tax Sale Question

[Rob Wilson-Hoss]

HOA liens are not prior. Not only that, if the property doesn't sell then
the County owns it and the County doesn't have to pay HOA assessments while
it owns it. Makes for some interesting calculations and decisions with a
number of variables when an association is faced with a tax sale of one of
its parcels. 

 

But as John says, the restrictive covenants are ongoing and not eliminated
and apply after the tax lien. The restrictive covenants that required
assessments after tax sale used to mean the County had to pay when it owned,
but legislation changed that. 

 

Rob

 

Robert D. Wilson-Hoss 
Hoss & Wilson-Hoss, LLP 
236 West Birch Street 
Shelton, WA 98584 
360 426-2999

www.hossandwilson-hoss.com
 <mailto:rob at hctc.com> rob at hctc.com

 

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collect a debt, Any information obtained will be used for that purpose.  To
the extent the Federal Fair Debt Collection Practices Act (15 U.S.C. § 1692)
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the right to seek advice of legal counsel.

 

From: wsbarp-bounces at lists.wsbarppt.com
[mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of John McCrady
Sent: Friday, November 03, 2017 9:46 AM
To: WSBA Real Property Listserv
Subject: Re: [WSBARP] Tax Sale Question

 

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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