Selling land that is subject to a State encumbrance
138 Selling land that is subject to a State encumbrance
This section applies if—
a local government intends to sell land under this subdivision; and
the land is subject to a State encumbrance.
A State encumbrance is an encumbrance on land that gives the State or a government entity an interest in the land, including, for example—
a mortgage; or
an interest that arises under a Housing Act contract.
The local government must give the State or government entity that has the interest in the land under the State encumbrance a notice of the local government’s intention to sell the land, before the local government sells the land.
The local government may sell the land only—
subject to the State encumbrance; or
free of the State encumbrance to the extent, and on any conditions (the sale conditions), to which the State or government entity agrees.
If the land is subject to an interest arising under a Housing Act contract, the local government may sell the land free of the interest only if the sale conditions include a condition that the local government pays the State an amount for—
the State’s interest in the land; and
any amount that is owing to the State under the contract.
The statute text is free to read above. View subscription options to unlock the case-law research tools for each provision.