<html><head><meta http-equiv="Content-Type" content="text/html charset=utf-8"></head><body style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space;" class="">Here are some starting points for anyone wanting to go down the whacky road of tax sales:<div class=""><br class=""></div><div class="">Specifically regarding extinguishment and non-extinguishment of easements: </div><div class=""><br class=""></div><div class="">See Senate Bill 6169 from 2016: <a href="http://app.leg.wa.gov/billsummary?BillNumber=6169&Year=2015" class="">http://app.leg.wa.gov/billsummary?BillNumber=6169&Year=2015</a></div><div class=""><br class=""></div><div class="">and see current statute: <b class="">RCW 36.35.290(2)(a) - </b>and note that it was amended in 2016.</div><div class="">also,</div><div class=""><br class=""></div><div class="">Royal Skies v. Schwab. Unpublished Opinion. 1996 WL 509547. - PUD and plat restrictions post tax sale</div><div class="">Lake Arrowhead v. Looney. 112 Wash 2d 288 (1989) - restrictive covenants/easements post tax sale</div><div class=""><br class=""></div><div class="">In general:</div><div class=""><br class=""></div><div class=""><b class="">32 Gonz. L. Rev 123 (1996)</b> Washington State Property Tax Foreclosures - excellent read! But the statutes have changed since the article was written.</div><div class=""><br class=""></div><div class="">Pierce County v. Schwab. 418 P.2d 116 (1987) </div><div class="">Palmar . Tacoma 565 P.2d 1191 (1977) - re: local special assessments post tax foreclosure</div><div class="">Shelton v. Klickitat 152 Wash 193 (1929) re: irrigation liens post tax sale</div><div class="">Olympia v Palmar 107 Wn.2d 225 (1986). Re: restrictive covenants post tax sale</div><div class="">Kofmehl v. Steeman 80 Wash. App (1996) re: real estate contract rights post tax sale</div><div class=""><br class=""></div><div class="">The SAC (Seattle Athletic Club) line of cases:</div><div class="">DAC Downtown LP v. Kahn 123 Wash. 2d 197 (1994)</div><div class="">In Re: King County v. Kahn 117 Wash.2d 77 (1991)</div><div class=""><br class=""></div><div class="">Thanks,</div><div class=""><br class=""></div><div class="">- Mark</div><div class=""><br class=""><div class="">
<div style="color: rgb(0, 0, 0); letter-spacing: normal; orphans: auto; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space;" class=""><div style="color: rgb(0, 0, 0); letter-spacing: normal; orphans: auto; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space;" class=""><div style="color: rgb(0, 0, 0); letter-spacing: normal; orphans: auto; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space;" class=""><div style="color: rgb(0, 0, 0); letter-spacing: normal; orphans: auto; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space;" class=""><div style="color: rgb(0, 0, 0); letter-spacing: normal; orphans: auto; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space;" class=""><div style="color: rgb(0, 0, 0); letter-spacing: normal; orphans: auto; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space;" class=""><div style="color: rgb(0, 0, 0); letter-spacing: normal; orphans: auto; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space;" class=""><div style="color: rgb(0, 0, 0); letter-spacing: normal; orphans: auto; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space;" class=""><div style="color: rgb(0, 0, 0); letter-spacing: normal; orphans: auto; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-stroke-width: 0px; word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space;" class=""><div class=""><div style="orphans: 2; widows: 2;" class=""><div class="">__</div><div class="">Mark K. Funke, Attorney</div><div class="">P.206-632-1535</div><div class=""><div class=""><a href="mailto:mark@funkelaw.com" class="">mark@funkelaw.com</a></div></div><div class=""><a href="http://www.funkelaw.com" class="">www.funkelaw.com</a> </div><div class=""><i class="">Licensed in Oregon & Washington</i></div></div></div><div class=""><br class=""></div></div><br class="Apple-interchange-newline"></div><br class="Apple-interchange-newline"></div><br class="Apple-interchange-newline"></div><br class="Apple-interchange-newline"></div><br class="Apple-interchange-newline"></div><br class="Apple-interchange-newline"></div><br class="Apple-interchange-newline"></div><br class="Apple-interchange-newline"></div><br class="Apple-interchange-newline"><br class="Apple-interchange-newline">
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<br class=""><div><blockquote type="cite" class=""><div class="">On Dec 14, 2016, at 3:03 PM, scott <a href="http://scottgthomaslaw.com" class="">scottgthomaslaw.com</a> <<a href="mailto:scott@scottgthomaslaw.com" class="">scott@scottgthomaslaw.com</a>> wrote:</div><br class="Apple-interchange-newline"><div class="">
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<div class=""><p class="">Is that true, a tax sale wipes out an easement?<br class=""></p><blockquote type="cite" class=""><!-- [if !mso]><style>v\:* {behavior:url(#default#VML);}
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</o:shapelayout></xml><![endif] -->On December 14, 2016 at 2:36 PM Eric Nelsen <<a href="mailto:Eric@sayrelawoffices.com" class="">Eric@sayrelawoffices.com</a>> wrote:<br class=""><br class=""><div class="ox-1c92990972-WordSection1"><p class="ox-1c92990972-MsoNormal"><span style="font-size: 11.0pt; font-family: 'Calibri','sans-serif'; color: #1f497d;" class="">Sounds like a great opportunity to play off the third-party against the bank to try to get a lower sale price, or at least hold them jointly to a single reasonable price allocated between them. I'd start with the title commitment on both parcels.</span></p><div class=""><span style="font-size: 11.0pt; font-family: 'Calibri','sans-serif'; color: #1f497d;" class=""> </span><br class="webkit-block-placeholder"></div><div class=""><p class="ox-1c92990972-MsoNormal"><span style="font-family: 'Calibri','sans-serif'; color: #1f497d;" class="">Sincerely,</span></p><div class=""><span style="font-family: 'Calibri','sans-serif'; color: #1f497d;" class=""> </span><br class="webkit-block-placeholder"></div><p class="ox-1c92990972-MsoNormal"><span style="font-family: 'Calibri','sans-serif'; color: #1f497d;" class="">Eric</span></p><div class=""><span style="font-family: 'Calibri','sans-serif'; color: #1f497d;" class=""> </span><br class="webkit-block-placeholder"></div><p class="ox-1c92990972-MsoNormal"><span style="font-family: 'Calibri','sans-serif'; color: #1f497d;" class="">Eric C. Nelsen</span></p><p class="ox-1c92990972-MsoNormal"><span style="font-family: 'Calibri','sans-serif'; color: #1f497d;" class="">SAYRE LAW OFFICES, PLLC</span></p><p class="ox-1c92990972-MsoNormal"><span style="font-family: 'Calibri','sans-serif'; color: #1f497d;" class="">1417 31st Ave South</span></p><p class="ox-1c92990972-MsoNormal"><span style="font-family: 'Calibri','sans-serif'; color: #1f497d;" class="">Seattle WA 98144-3909</span></p><p class="ox-1c92990972-MsoNormal"><span style="font-family: 'Calibri','sans-serif'; color: #1f497d;" class="">phone 206-625-0092</span></p><p class="ox-1c92990972-MsoNormal"><span style="font-family: 'Calibri','sans-serif'; color: #1f497d;" class="">fax 206-625-9040</span></p><div class=""><span style="font-family: 'Calibri','sans-serif'; color: #1f497d;" class=""> </span><br class="webkit-block-placeholder"></div><p class="ox-1c92990972-MsoNormal"><strong class=""><span style="font-family: 'Calibri','sans-serif'; color: red;" class="">Please Note that We Have Moved.</span></strong> <span style="font-family: 'Calibri','sans-serif'; color: #1f497d;" class="">We have moved our Seattle office to Mount Baker Ridge (a small commercial community just above the I-90 tunnel). <strong class="">Our new address is 1417 31st Avenue South, Seattle WA 98144. </strong>All other contact information remains the same.</span></p></div><div class=""><span style="font-size: 11.0pt; font-family: 'Calibri','sans-serif'; color: #1f497d;" class=""> </span><br class="webkit-block-placeholder"></div><div class=""><div style="border: none; border-top: solid #B5C4DF 1.0pt; padding: 3.0pt 0in 0in 0in;" class=""><p class="ox-1c92990972-MsoNormal"><strong class=""><span style="font-size: 10.0pt; font-family: 'Tahoma','sans-serif';" class="">From:</span></strong><span style="font-size: 10.0pt; font-family: 'Tahoma','sans-serif';" class=""> Eric J. Dooyema [<a href="mailto:Eric@DooyemaLaw.com" class="">mailto:Eric@DooyemaLaw.com</a>] <br class=""> <strong class="">Sent:</strong> Wednesday, December 14, 2016 2:26 PM<br class=""> <strong class="">To:</strong> Eric Nelsen; 'WSBA Real Property Listserv'<br class=""> <strong class="">Subject:</strong> RE: [WSBARP] Tax Deed/Sale Unique Situation</span></p></div></div><div class=""> <br class="webkit-block-placeholder"></div><p class="ox-1c92990972-MsoNormal"><span style="font-size: 10.0pt; font-family: 'Arial','sans-serif'; color: navy;" class="">Thanks so much for the response…what I didn’t make clear is that the two parcels are about 1 acre and about 0.25 acre. The tax sale parcel is the smaller parcel. The house sits almost entirely on the larger parcel with a small portion of the attached garage on the smaller parcel. However, the septic system (tank and field) is entirely on the tax sale parcel. Again, thanks so much.</span></p><div class=""><span style="font-size: 10.0pt; font-family: 'Arial','sans-serif'; color: navy;" class=""> </span><br class="webkit-block-placeholder"></div><div class=""><div class="ox-1c92990972-MsoNormal" style="text-align: center;" align="center"><hr width="100%" size="2" align="center" class=""></div><p class="ox-1c92990972-MsoNormal"><strong class=""><span style="font-size: 10.0pt; font-family: 'Tahoma','sans-serif';" class="">From:</span></strong><span style="font-size: 10.0pt; font-family: 'Tahoma','sans-serif';" class=""> Eric Nelsen [<a href="mailto:Eric@sayrelawoffices.com" class="">mailto:Eric@sayrelawoffices.com</a>] <br class=""> <strong class="">Sent:</strong> Wednesday, December 14, 2016 2:19 PM<br class=""> <strong class="">To:</strong> <a href="mailto:Eric@DooyemaLaw.com" class="">Eric@DooyemaLaw.com</a>; WSBA Real Property Listserv<br class=""> <strong class="">Subject:</strong> RE: [WSBARP] Tax Deed/Sale Unique Situation</span></p></div><div class=""> <br class="webkit-block-placeholder"></div><p class="ox-1c92990972-MsoNormal"><span style="font-size: 11.0pt; font-family: 'Calibri','sans-serif'; color: #1f497d;" class="">If I remember my tax sale research right from five-six years ago, a property tax foreclosure wipes out ALL encumbrances on the land--mortgages, easements, everything. So I think third party owns that parcel. I'm not positive but you might research if the property tax foreclosure has any effect on statute of limitations for adverse possession. The ownership of the house also is in question, I think. If it is truly straddling the line in a fashion where it is ambiguous which tax parcel it should properly "belong" to, then it is a real muddle and I have no clue what to suggest in terms of who has true ownership.</span></p><div class=""><span style="font-size: 11.0pt; font-family: 'Calibri','sans-serif'; color: #1f497d;" class=""> </span><br class="webkit-block-placeholder"></div><p class="ox-1c92990972-MsoNormal"><span style="font-size: 11.0pt; font-family: 'Calibri','sans-serif'; color: #1f497d;" class="">I think the practical solution is for the buyer to order a preliminary commitment and see what the title company is willing to insure. I would bet that the title company is going to vest the foreclosed tax parcel with the third party buyer, and the other tax parcel with the bank, and have another exception about ownership of the house.</span></p><div class=""><span style="font-size: 11.0pt; font-family: 'Calibri','sans-serif'; color: #1f497d;" class=""> </span><br class="webkit-block-placeholder"></div><p class="ox-1c92990972-MsoNormal"><span style="font-size: 11.0pt; font-family: 'Calibri','sans-serif'; color: #1f497d;" class="">If someone wants to buy both parcels, I think the safest route would be to negotiate with the bank, and also contact the third party and offer them something, and use the fact of the third party's claim as leverage against the bank to reduce the purchase price from them. Then get deeds from both the bank and the third party.</span></p><div class=""><span style="font-size: 11.0pt; font-family: 'Calibri','sans-serif'; color: #1f497d;" class=""> </span><br class="webkit-block-placeholder"></div><div class=""><p class="ox-1c92990972-MsoNormal"><span style="font-family: 'Calibri','sans-serif'; color: #1f497d;" class="">Sincerely,</span></p><div class=""><span style="font-family: 'Calibri','sans-serif'; color: #1f497d;" class=""> </span><br class="webkit-block-placeholder"></div><p class="ox-1c92990972-MsoNormal"><span style="font-family: 'Calibri','sans-serif'; color: #1f497d;" class="">Eric</span></p><div class=""><span style="font-family: 'Calibri','sans-serif'; color: #1f497d;" class=""> </span><br class="webkit-block-placeholder"></div><p class="ox-1c92990972-MsoNormal"><span style="font-family: 'Calibri','sans-serif'; color: #1f497d;" class="">Eric C. Nelsen</span></p><p class="ox-1c92990972-MsoNormal"><span style="font-family: 'Calibri','sans-serif'; color: #1f497d;" class="">SAYRE LAW OFFICES, PLLC</span></p><p class="ox-1c92990972-MsoNormal"><span style="font-family: 'Calibri','sans-serif'; color: #1f497d;" class="">1417 31st Ave South</span></p><p class="ox-1c92990972-MsoNormal"><span style="font-family: 'Calibri','sans-serif'; color: #1f497d;" class="">Seattle WA 98144-3909</span></p><p class="ox-1c92990972-MsoNormal"><span style="font-family: 'Calibri','sans-serif'; color: #1f497d;" class="">phone 206-625-0092</span></p><p class="ox-1c92990972-MsoNormal"><span style="font-family: 'Calibri','sans-serif'; color: #1f497d;" class="">fax 206-625-9040</span></p><div class=""><span style="font-family: 'Calibri','sans-serif'; color: #1f497d;" class=""> </span><br class="webkit-block-placeholder"></div><p class="ox-1c92990972-MsoNormal"><strong class=""><span style="font-family: 'Calibri','sans-serif'; color: red;" class="">Please Note that We Have Moved.</span></strong> <span style="font-family: 'Calibri','sans-serif'; color: #1f497d;" class="">We have moved our Seattle office to Mount Baker Ridge (a small commercial community just above the I-90 tunnel). <strong class="">Our new address is 1417 31st Avenue South, Seattle WA 98144. </strong>All other contact information remains the same.</span></p></div><div class=""><span style="font-size: 11.0pt; font-family: 'Calibri','sans-serif'; color: #1f497d;" class=""> </span><br class="webkit-block-placeholder"></div><div class=""><div style="border: none; border-top: solid #B5C4DF 1.0pt; padding: 3.0pt 0in 0in 0in;" class=""><p class="ox-1c92990972-MsoNormal"><strong class=""><span style="font-size: 10.0pt; font-family: 'Tahoma','sans-serif';" class="">From:</span></strong><span style="font-size: 10.0pt; font-family: 'Tahoma','sans-serif';" class=""> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com" class="">wsbarp-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbarp-bounces@lists.wsbarppt.com" class="">mailto:wsbarp-bounces@lists.wsbarppt.com</a>] <strong class="">On Behalf Of </strong>Eric J. Dooyema<br class=""> <strong class="">Sent:</strong> Wednesday, December 14, 2016 1:24 PM<br class=""> <strong class="">To:</strong> <a href="mailto:wsbarp@lists.wsbarppt.com" class="">wsbarp@lists.wsbarppt.com</a><br class=""> <strong class="">Subject:</strong> [WSBARP] Tax Deed/Sale Unique Situation</span></p></div></div><div class=""> <br class="webkit-block-placeholder"></div><p class="ox-1c92990972-MsoNormal"><span style="font-size: 10.0pt; font-family: 'Arial','sans-serif';" class="">This is going to read like an exam question…but any help would be most appreciated…</span></p><div class=""><span style="font-size: 10.0pt; font-family: 'Arial','sans-serif';" class=""> </span><br class="webkit-block-placeholder"></div><p class="ox-1c92990972-MsoNormal"><span style="font-size: 10.0pt; font-family: 'Arial','sans-serif';" class="">A house sits on two parcels; the property line goes through the house. The parcels have been owned in common since the house was built in the 1950s (and probably before). The last owner acquired both parcels in 2005 and took out a loan using both parcels (and the house) as collateral. In 2011, one of the parcels was sold at a tax sale for delinquent property taxes to a third party. In 2016, the bank foreclosed on both parcels and obtained and filed a Trustee Deed listing both parcels. According to the assessor the Bank owns both properties. Let’s assume that all proper notice and other requirements have been met.</span></p><div class=""><span style="font-size: 10.0pt; font-family: 'Arial','sans-serif';" class=""> </span><br class="webkit-block-placeholder"></div><p class="ox-1c92990972-MsoNormal"><span style="font-size: 10.0pt; font-family: 'Arial','sans-serif';" class="">A new party wants to buy both parcels from the bank.</span></p><div class=""><span style="font-size: 10.0pt; font-family: 'Arial','sans-serif';" class=""> </span><br class="webkit-block-placeholder"></div><p class="ox-1c92990972-MsoNormal"><span style="font-size: 10.0pt; font-family: 'Arial','sans-serif';" class="">Last fun fact, the tax sale parcel is landlocked.</span></p><div class=""><span style="font-size: 10.0pt; font-family: 'Arial','sans-serif';" class=""> </span><br class="webkit-block-placeholder"></div><p class="ox-1c92990972-MsoNormal"><span style="font-size: 10.0pt; font-family: 'Arial','sans-serif';" class="">1. Did the bank have a right to foreclose on the tax sale parcel? </span></p><p class="ox-1c92990972-MsoNormal"><span style="font-size: 10.0pt; font-family: 'Arial','sans-serif';" class="">2. Who owns the tax sale parcel now?</span></p><p class="ox-1c92990972-MsoNormal"><span style="font-size: 10.0pt; font-family: 'Arial','sans-serif';" class="">3. Will potential new buyer be able to get title insured on tax sale parcel in a purchase from the bank?</span></p><p class="ox-1c92990972-MsoNormal"><span style="font-size: 10.0pt; font-family: 'Arial','sans-serif';" class="">4. Any other issues or remedies that come to mind?</span></p><div class=""><span style="font-size: 10.0pt; font-family: 'Arial','sans-serif';" class=""> </span><br class="webkit-block-placeholder"></div><p class="ox-1c92990972-MsoNormal"><span style="font-size: 10.0pt; font-family: 'Arial','sans-serif';" class="">The facts that the house sits on both parcels and they were divided by the tax sale, it seems, are very unusual.</span></p><div class=""><span style="font-size: 10.0pt; font-family: 'Arial','sans-serif';" class=""> </span><br class="webkit-block-placeholder"></div><p class="ox-1c92990972-MsoNormal"><span style="font-size: 10.0pt; font-family: 'Arial','sans-serif';" class="">Please feel free to email me directly or call…thanks so much.</span></p><div class=""><span style="font-size: 10.0pt; font-family: 'Arial','sans-serif';" class=""> </span><br class="webkit-block-placeholder"></div><p class="ox-1c92990972-MsoNormal"><span style="font-size: 10.0pt; font-family: 'Arial','sans-serif';" class="">Eric at <a href="http://dooyemalaw.com" class="">dooyemalaw.com</a> </span></p><div class=""> <br class="webkit-block-placeholder"></div><p class="ox-1c92990972-MsoNormal"><strong class=""><em class="">Eric J. Dooyema</em></strong></p><p class="ox-1c92990972-MsoNormal">Dooyema Law Office</p><p class="ox-1c92990972-MsoNormal">624 W Hastings Rd Suite 12</p><p class="ox-1c92990972-MsoNormal">Spokane, WA 99218</p><p class="ox-1c92990972-MsoNormal">509-474-1685 </p><div class="ox-1c92990972-MsoNormal" style="text-align: center;" align="center"><hr width="100%" size="2" align="center" class=""></div><p class="ox-1c92990972-MsoNormal"><em class=""><span style="font-size: 10.0pt; font-family: 'Arial','sans-serif';" class="">The information contained in this message is confidential, protected from disclosure and may be legally privileged. If the reader of this message is not the intended recipient or an employee or agent responsible for delivering this message to the intended recipient, you are hereby notified that any disclosure, distribution, copying, or any action taken or action omitted in reliance on it, is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by replying to this message and destroy the material in its entirety, whether in electronic or hard copy format.</span></em></p><div class=""> <br class="webkit-block-placeholder"></div></div></blockquote><p class=""><br class=""> </p><blockquote type="cite" class="">_______________________________________________<br class="">WSBARP mailing list<br class=""><a href="mailto:WSBARP@lists.wsbarppt.com" class="">WSBARP@lists.wsbarppt.com</a><br class="">http://mailman.fsr.com/mailman/listinfo/wsbarp</blockquote></div>
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