2019 Delaware Code
Title 25 - Property
Chapter 29. Liens of the State and/or Its Political Subdivisions
§ 2906 Priority of liens of the State and political subdivisions on real estate; extinction of such liens.
(a) Except as otherwise provided in subsection (b) of this section, liens for taxes and other government charges levied and imposed by the State or its political subdivisions, which liens are assessed against real property, shall be equal in status, regardless of the time of assessment of said lien; no such lien shall have priority over any other such lien in the distribution of proceeds of the sale of real estate pursuant to a writ of venditioni exponis, levari facias or any other process or order of any court resulting in a sheriff’s sale. In the event that the proceeds of a sheriff’s sale are insufficient to satisfy all such liens encumbering the property sold, then the State and/or its political subdivisions holding such liens shall share that portion of the proceeds of the sheriff’s sale allotted to such liens on a prorata basis.
(b) In the event that real property is sold to the State or any of its political subdivisions pursuant to a writ of venditioni exponas, levari facias or any other process or order of any court resulting in a sheriff’s sale and such writ or process was filed by the entity purchasing the real property, then the liens of the purchasing entity shall have priority over all other liens of the State or its political subdivisions and in the event that the proceeds of the sheriff’s sale are insufficient to satisfy all liens of the State or its political subdivisions encumbering the real estate, the liens of the purchasing entity will be paid to the extent funds are available for such purposes and the remaining funds, if any, shall then be distributed on a prorata basis to other governmental entities having such liens on the real estate sold, in full satisfaction of all such liens.
(c) When real property is sold pursuant to a writ of venditioni exponas, levari facias or any other process resulting in a sheriff’s sale, said writ having been filed by the State or any of its political subdivisions, the purchasing party, other than the original owner, shall take the property free and clear of any and all liens on such real property, including liens of the State and/or its political subdivisions whether or not such liens have been fully satisfied from the proceeds of the sale.
(d) Except as specifically provided herein, nothing in this section shall be construed as affecting the order or priority of payment of any other liens, charges, costs or other debts against real estate sold at a sheriff’s sale or the effect of such a sheriff’s sale on the quality of title of real estate sold as provided in any other statute or ordinance of this State or its political subdivisions.
(e) All liens of the State or any of its political subdivisions encumbering real estate sold at a sheriff’s sale prior to July 10, 1980, and purchased by the State or any of its political subdivisions at such sale are hereby extinguished; provided, however, that such lien existed at the time of said sheriff’s sale.
(f) Nothing in this section shall affect the priority of any liens not of the State or any of its political subdivisions which existed of record on or prior to July 10, 1980.
62 Del. Laws, c. 374, § 2.
