Denise v. Paxson

Benham, Justice.

Appellees sold a condominium to Denise, taking back a security deed which contained a requirement that Denise “pay all taxes and assessments that may be liens on said property, as they become due.” A notice of federal income tax liens was later filed and appellees sought to foreclose, contending that the attachment of the lien constituted an act of default. In Denise’s action to enjoin the foreclosure, the trial court agreed with appellees that any tax lien would constitute an act of default.

The dispositive issue in this case is whether “all taxes and assessments that may be…