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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='font-size:14.0pt;font-family:"Times New Roman","serif"'>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. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'>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. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'>Rob<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'><o:p> </o:p></span></p><div><p class=MsoNormal style='text-autospace:none'><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'>Robert D. Wilson-Hoss <br>Hoss & Wilson-Hoss, LLP <br>236 West Birch Street <br>Shelton, WA 98584 <br>360 426-2999<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'><a href="www.hossandwilsonhoss.com"><span style='color:blue'>www.hossandwilson-hoss.com</span></a><br><a href="mailto:rob@hctc.com"><span style='color:blue'>rob@hctc.com</span></a></span><o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal style='text-autospace:none'><i><span style='font-family:"Times New Roman","serif"'>This message is intended solely for the use of the addressee and may contain information that is privileged, confidential, and exempt from disclosure under applicable law. If you are not the addressee, you are hereby notified that any use, distribution, or copying of this message is strictly prohibited. If you received this message in error, please notify us by reply e-mail or by telephone (call us collect at the number listed above) and immediately delete this message and any and all of its attachments. Thank you.<o:p></o:p></span></i></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Times New Roman","serif";text-transform:uppercase'>This office does debt collection and this e-mail may be an attempt to collect a debt, Any information obtained will be used for that purpose. </span></b><span style='font-size:10.0pt;font-family:"Times New Roman","serif"'>To the extent the Federal Fair Debt Collection Practices Act (15 U.S.C. § 1692) applies this firm is acting as a debt collector for the condominium/homeowners' association named above to collect a debt owed to it. Any information obtained will be used for collection purposes. You have the right to seek advice of legal counsel.</span><o:p></o:p></p></div><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>John McCrady<br><b>Sent:</b> Friday, November 03, 2017 9:46 AM<br><b>To:</b> WSBA Real Property Listserv<br><b>Subject:</b> Re: [WSBARP] Tax Sale Question<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><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. (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. <u>City of Olympia v. Palzer</u>, Nor will it eliminate certain covenants to pay assessments. 42 Wn. App. 751 <u>Lake Arrowhead Club v. Lunv</u>, 112 Wn.2d 288<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'><a href="mailto:j.mccrady@pstitle.com">j.mccrady@pstitle.com</a><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> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">mailto:wsbarp-bounces@lists.wsbarppt.com</a>] <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' <<a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a>><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>