SENATE 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.

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):February 10, 1989; February 16, 1989

Majority Report:  That Substitute Senate Bill No. 5285 be substituted therefor, and the substitute bill do pass.

      Signed by Senators von Reichbauer, Chairman; McCaslin, McMullen, Moore, Rasmussen, Sellar, Smitherman.

Senate Staff:Walt Corneille (786-7416)

                  January 22, 1990

AS PASSED SENATE, JANUARY 17, 1990

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 in the year prior to the foreclosure.  In 1988 the State Appeals Court ruled that certain covenants, and any liens or charges that result, cease to exist after a tax sale.

SUMMARY:

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

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Fred Saeger, Washington Association of County Officials; Jim Strichartz, Community Association Institute (pro); Philip Serka, attorney for Sudden Valley Community Association (pro); Billie Thoresen, Sudden Valley Community Association (pro)