Upon application of any religious or charitable organization, the property of which is exempt from general taxation under the provisions of Act No. 206 of the Public Acts of 1893, as amended, being section 211.1 to 211.157 of the Compiled Laws of 1948, the department of conservation may withhold from sale any land owned by the religious or charitable organization at the time of vesting of title in the state, and may reconvey the same to the organization upon payment of the amount of all taxes and special assessments together with penalties and interest thereon for which the lands were sold. No deed issued under the provisions of this section shall be construed to vest in the grantee therein named any title or interest in such lands beyond that which he would have owned, had not title become vested in the state. Such deed shall operate to revive all titles, liens and encumbrances, with their respective priorities, as the same would have existed had not the title become vested in the state.