Insider received a followup question in response to Richard Rothfelder’s article on taxes, foreclosures and billboard easements.

Mr Rothfelder agrees with the investor that he should create the easement, sell the property and pay of the taxes. What happens when the new property owner does not pay the taxes and the property is sold at tax sale?  Based on his opinion the easement is at jeopardy again. I am not sure if this is a state issue. In my State of Indiana statues state all easements survive tax sale. 

Here’s Rothfelder’s response: The Indiana redemption statute provides that, while “a tax deed executed under this chapter vests in the grantee an estate in fee simple absolute, free and clear of all liens and encumbrances,” it goes on to state that such an “estate is subject to … all easements … shown by public records,” and that “a tax deed executed under this chapter for real property sold in a tax sale… does not operate to extinguish an easement [under certain specified circumstances].” Thus, the general common law rules discussed in Rothfelder’s article can be varied by special state statutes, and it its therefore important to consult competent legal counsel in the particular state where the proposed transaction may occur.

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