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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal><span style='color:#44546A'>Just a couple quick thoughts:<o:p></o:p></span></p><p class=MsoNormal><span style='color:#44546A'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#44546A'>A properly conducted tax sale “initiates a new and complete title”, with certain exceptions. </span><span style='color:#44546A'>(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).<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif;color:#44546A'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#44546A'>A tax sale will not eliminate pre-existing public and private easements and common CCR’s. </span><u><span style='color:#44546A'>City of Olympia v. Palzer</span></u><span style='color:#44546A'>, Nor will it eliminate certain covenants to pay assessments. 42 Wn. App. 751 <u>Lake Arrowhead Club v. Lunv</u>, 112 Wn.2d 288</span><span style='color:#44546A'><o:p></o:p></span></p><p class=MsoNormal><span style='color:#44546A'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#44546A'>The IRS considers that property taxes and assessments are superior to its tax liens. </span><span lang=EN style='color:#44546A'>IRC § 6323(b)(6) IRC § 6323(b)(6)<o:p></o:p></span></p><p class=MsoNormal><span lang=EN style='color:#44546A'><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN style='color:#44546A'>The tax sale does not eliminate certain assessment liens levied by municipalities. </span><u><span style='color:#44546A'>Pierce County v. Schwab</span></u><span style='color:#44546A'>, 48 Wn. App. 418.)</span><span style='font-family:"Times New Roman",serif;color:#44546A'><o:p></o:p></span></p><p class=MsoNormal><span lang=EN style='color:#44546A'><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN style='color:#44546A'>I am not aware of any priority that homeowner’s assessments have over property taxes. I would welcome enlightenment on that.</span><span style='color:#44546A'><o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><div><p class=MsoNormal><span style='color:#1F497D'>John McCrady<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Counsel<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Puget Sound Title Company<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>5350 Orchard Street West<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>University Place WA 98467<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>253-476-5721<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>j.mccrady@pstitle.com<o:p></o:p></span></p></div><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b>From:</b> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>Scott Hildebrand<br><b>Sent:</b> Thursday, November 02, 2017 8:35 PM<br><b>To:</b> 'WSBA Real Property Listserv' <wsbarp@lists.wsbarppt.com><br><b>Subject:</b> [WSBARP] Tax Sale Question<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Title Gurus<o:p></o:p></p><p class=MsoNormal>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??<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Thanks,<o:p></o:p></p><p class=MsoNormal>Scott Hildebrand<o:p></o:p></p><p class=MsoNormal>Attorney at Law<o:p></o:p></p></div></body></html>