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<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>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.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
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<p class=MsoNormal><b><font size=2 face=Tahoma><span style='font-size:10.0pt;
font-family:Tahoma;font-weight:bold'>From:</span></font></b><font size=2
face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma'> Eric Nelsen
[mailto:Eric@sayrelawoffices.com] <br>
<b><span style='font-weight:bold'>Sent:</span></b> Wednesday, December 14, 2016
2:19 PM<br>
<b><span style='font-weight:bold'>To:</span></b> Eric@DooyemaLaw.com; WSBA Real
Property Listserv<br>
<b><span style='font-weight:bold'>Subject:</span></b> RE: [WSBARP] Tax
Deed/Sale Unique Situation</span></font><o:p></o:p></p>
</div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>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.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>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.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>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.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'><o:p> </o:p></span></font></p>
<div>
<p class=MsoNormal><font size=3 color="#1f497d" face=Calibri><span
style='font-size:12.0pt;font-family:Calibri;color:#1F497D'>Sincerely,<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color="#1f497d" face=Calibri><span
style='font-size:12.0pt;font-family:Calibri;color:#1F497D'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color="#1f497d" face=Calibri><span
style='font-size:12.0pt;font-family:Calibri;color:#1F497D'>Eric<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color="#1f497d" face=Calibri><span
style='font-size:12.0pt;font-family:Calibri;color:#1F497D'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color="#1f497d" face=Calibri><span
style='font-size:12.0pt;font-family:Calibri;color:#1F497D'>Eric C. Nelsen<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color="#1f497d" face=Calibri><span
style='font-size:12.0pt;font-family:Calibri;color:#1F497D'>SAYRE LAW OFFICES,
PLLC<o:p></o:p></span></font></p>
<p class=MsoNormal><st1:Street w:st="on"><st1:address w:st="on"><font size=3
color="#1f497d" face=Calibri><span style='font-size:12.0pt;font-family:Calibri;
color:#1F497D'>1417 31st Ave South</span></font></st1:address></st1:Street><font
color="#1f497d" face=Calibri><span style='font-family:Calibri;color:#1F497D'><o:p></o:p></span></font></p>
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color="#1f497d" face=Calibri><span style='font-size:12.0pt;font-family:Calibri;
color:#1F497D'>Seattle</span></font></st1:City><font color="#1f497d"
face=Calibri><span style='font-family:Calibri;color:#1F497D'> <st1:State
w:st="on">WA</st1:State> <st1:PostalCode w:st="on">98144-3909</st1:PostalCode></span></font></st1:place><font
color="#1f497d" face=Calibri><span style='font-family:Calibri;color:#1F497D'><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color="#1f497d" face=Calibri><span
style='font-size:12.0pt;font-family:Calibri;color:#1F497D'>phone 206-625-0092<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color="#1f497d" face=Calibri><span
style='font-size:12.0pt;font-family:Calibri;color:#1F497D'>fax 206-625-9040<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color="#1f497d" face=Calibri><span
style='font-size:12.0pt;font-family:Calibri;color:#1F497D'><o:p> </o:p></span></font></p>
<p class=MsoNormal><b><font size=3 color=red face=Calibri><span
style='font-size:12.0pt;font-family:Calibri;color:red;font-weight:bold'>Please
Note that We Have Moved.</span></font></b><b><font color="#1f497d"
face=Calibri><span style='font-family:Calibri;color:#1F497D;font-weight:bold'> </span></font></b><font
color="#1f497d" face=Calibri><span style='font-family:Calibri;color:#1F497D'>We
have moved our <st1:City w:st="on"><st1:place w:st="on">Seattle</st1:place></st1:City>
office to Mount Baker Ridge (a small commercial community just above the I-90
tunnel). <b><span style='font-weight:bold'>Our new address is <st1:address
w:st="on"><st1:Street w:st="on">1417 31st Avenue South</st1:Street>, <st1:City
w:st="on">Seattle</st1:City> <st1:State w:st="on">WA</st1:State> <st1:PostalCode
w:st="on">98144</st1:PostalCode></st1:address>. </span></b>All other contact
information remains the same.<o:p></o:p></span></font></p>
</div>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'><o:p> </o:p></span></font></p>
<div>
<div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'>
<p class=MsoNormal><b><font size=2 face=Tahoma><span style='font-size:10.0pt;
font-family:Tahoma;font-weight:bold'>From:</span></font></b><font size=2
face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma'>
wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com] <b><span
style='font-weight:bold'>On Behalf Of </span></b>Eric J. Dooyema<br>
<b><span style='font-weight:bold'>Sent:</span></b> Wednesday, December 14, 2016
1:24 PM<br>
<b><span style='font-weight:bold'>To:</span></b> wsbarp@lists.wsbarppt.com<br>
<b><span style='font-weight:bold'>Subject:</span></b> [WSBARP] Tax Deed/Sale
Unique Situation<o:p></o:p></span></font></p>
</div>
</div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>This is going to read like an exam question…but any
help would be most appreciated…<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>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.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>A new party wants to buy both parcels from the bank.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Last fun fact, the tax sale parcel is landlocked.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>1. Did the bank have a right to foreclose on the tax sale
parcel? <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>2. Who owns the tax sale parcel now?<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>3. Will potential new buyer be able to get title insured on
tax sale parcel in a purchase from the bank?<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>4. Any other issues or remedies that come to mind?<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>The facts that the house sits on both parcels and they were
divided by the tax sale, it seems, are very unusual.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Please feel free to email me directly or call…thanks
so much.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Eric at dooyemalaw.com <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
<p class=MsoNormal><strong><b><i><font size=3 face="Times New Roman"><span
style='font-size:12.0pt;font-style:italic'>Eric J. Dooyema</span></font></i></b></strong><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>Dooyema Law Office<o:p></o:p></span></font></p>
<p class=MsoNormal><st1:Street w:st="on"><st1:address w:st="on"><font size=3
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12</span></font></st1:address></st1:Street><o:p></o:p></p>
<p class=MsoNormal><st1:place w:st="on"><st1:City w:st="on"><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>Spokane</span></font></st1:City>,
<st1:State w:st="on">WA</st1:State> <st1:PostalCode w:st="on">99218</st1:PostalCode></st1:place><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
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