Evening star., 1937-01-16
DEED CASE HOLDS
THREAT TO VALUES
Action May Be Needed to
Guard Residential Areas,
Board Believes.

Action may be needed to preserve
the residential character of neighbor-
hoods against new threat. Protective
deed restrictions are in danger OF
being wiped out by tax sales. according
to a decision brought recently by the
Iowa Supreme Court, though they
have been upheld in a still more re-
cent decision of the Circuit Court OF
st. Louis, In q case now pending be-
fore the Supreme Court Of Missouri.
The National Association OF Real
Estate Boards, which Is studying the
situation, points out the very grave
public Importance Of the question here
raised. Unless the holding power of
deed restrictions Is sustained, the bot
tom falls out Of the whole effort to
maintain property values in home
areas through voluntary agreements
incorporated in the homesite deeds.
Already bill to insure against this
obliteration of deed restrictions
through tax sales, sponsored by Walter
w. Rose, Orlando, Fla, president Of
the National Association of Real Es-
tate Boards and member of the Flor
IDA Senate, has been passed by the
Florida State legislature The act,
drawn by the general counsel Of the
Florida Real Estate License Law Com
mission. reads as follows:
"1 Whenever q deed in the chain
OF title shall contain restrictions and
covenants running with the land, as
of, Il
restrictions and covenants shall sur
vive and be enforceable after the is
suance Of a tax deed or masters deed
upon foreclosure Of tax deed, tax
certificate or tax lien, to the same ex-
tent that it would be enforceable
against a voluntary grantee, imme-
diate, mediate, or remote, Of the owner
Of the title Immediately prior to the
delivery Of the tax deed or masters
deed.
Application Of Law.
"'2 This law shall apply to the
usual restrictions and covenants limit
ing the Use Of property, the type, char
scter and location of building; the
character, race or nationality of own
ers; covenants against nuisances and
what the former parties deemed to be
undesirable conditions in, upon aad
about the property, and other similar
restrictions and covenants; but this
law shall not protect covenants Gre
sting any debt or lien against or upon
the property, or that will require the
grantee to expend money for any pur-
pose, except such as may require said
grantee to keep the premises in sani-
tsry or slightly condition, or to abate
nuisances or undesirable conditions.
"(3) Any right that the former
owner had to enforce like restrictions
end covenants against the immediate,
mediate or remote grantor and other
parties owning other property held or
sold under the same plan, or in the
same or adjacent subdivisions OF land,
or otherwise, except forfeitures. right
Of re-entry, or reverter, shall likewise
survive to the grantee in said tax deed
or masters deed and to his or its
heirs, successors and assigns.
20 If any portion of this law, or
sny section, sentence, clause, phrase
void or ineffective because Of uncer-
tsinty, repugnance to the Constitution,
or otherwise, the remainder of the law
shall not be affected thereby, but
shall remain in force so as to effec-
ruate as nearly as possible the pur-
pose and intent Of this law"
In the Iowa case the property in
volved was within locality zoned for
commercial and business purposes by
the zoning ordinances Of the city.
The property, however, was in a resi-
dental subdivision in which the deeds
Of conveyance for the homesites con-
tanned restrictive provisions, one OF
which was that no business structures
could be erected upon them prior to
the year 1850. Lots in question were
sold for taxes. Iowa's Supreme Court
decision gives the present owners OF
these lots, under tax deeds, authority
TO erect commercial structures, thus
ieopardizing neighboring residential
property values.
Definition Of Court.
The Iowa Supreme Court defined
the question before it as this: 'Does
g. tax deed in Iowa operate to cut OF
restrictive covenant such as q building
restriction imposed by deed in the pre-
vious chain of titles?" Tt held: When
these lots were assessed as so much
land the State had g. lien on all this
real estate regardless Of titles or in-