SENATE BILL REPORT

SB 5570

BYSenators Anderson, Stratton and Bailey

Requiring that certain easements be continued on land foreclosed for tax liens.

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):February 10, 1989

Senate Staff:Bev Tweddle (786-7403)

AS OF FEBRUARY 8, 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 in the year prior to the foreclosure.  In 1988 the State Appeals Court ruled that certain covenants, and any charges that result, cease to exist after a tax sale.

SUMMARY:

Restrictive and affirmative covenants on any land shall remain in force after a foreclosure of delinquent taxes provided they have been recorded with the county auditor prior to the year in which the foreclosure occurs.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested