Collector’s Deed Does Not Cancel District’s Lien

A recent Missouri case reviewed whether a County Collector’s deed impacts a lien in favor of a Community Improvement District.  Missouri statutes authorize the creation of a Community Improvement District, which has the power to levy assessments enforceable by a “perpetual” lien on real property until such time as the lien is paid.  Missouri statutes also provide that the County Collector collects District assessments the same way as real estate taxes, which is by tax sale, at which the purchaser must pay any taxes due up to the date of sale.  In light of these statutes, the Court found that the purchase of property at a tax sale and the issuance of collector’s deed did not affect the District liens, neither for assessments levied before the sale nor assessments levied after the sale because the liens were not paid off at the time of the sale.
Real Estate Recovery, LLC vs. Branson Hills Facility Infrastructure, SD36349