HOUSE BILL REPORT

SSB 5285

BYSenate Committee on Financial Institutions & Insurance (originally sponsored by Senators Owen, McCaslin and Kreidler)

Providing that certain covenants survive a tax foreclosure sale.

House Committe on Judiciary

Majority Report:  Do pass.  (17)

      Signed by Representatives Appelwick, Chair; Crane, Vice Chair; Padden, Ranking Republican Member; Belcher, Brough, Dellwo, Hargrove, Inslee, P. King, R. Meyers, Moyer, H. Myers, Patrick, Scott, D. Sommers, Tate and Wineberry.

House Staff:Pat Shelledy (786-7149)

AS REPORTED BY COMMITTEE ON JUDICIARY MARCH 29, 1989

BACKGROUND:

When a parcel of real property is foreclosed for delinquent taxes, easements remain in force if they have been recorded with the auditor in the county where the land is located prior to the year in which the taxes became delinquent.  In 1988, the Court of Appeals ruled that certain covenants which are not "negative easements" and any liens or charges that result from a failure to comply with the covenants, cease to exist after a tax sale.

SUMMARY:

Any covenant or covenants running with the land which have been recorded with the county auditor in the same manner as easements are protected and remain in force in a foreclosure and tax sale in the same manner as easements.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Prime Sponsor.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Covenants will not extinguish with a tax foreclosure sale, protecting rights of the holders of the covenants.

House Committee - Testimony Against:      None Presented.