Question 1

What are surplus funds from a Florida tax deed sale?

Accepted Answer

Surplus funds: when a property is sold at a tax deed sale for more than the minimum bid (the total of all delinquent taxes, interest, fees, and costs): the excess is surplus. The clerk of court: holds the surplus funds (Section 197.582), and the funds may be claimed by: the former property owner (first priority), subordinate lienholders (mortgage holders, judgment creditors, and other lienholders whose liens were extinguished by the sale), and other parties with a legal interest in the property. The surplus is held: for a specified period before being transferred to the school board.

Question 2

How does a former owner claim surplus funds in Florida?

Accepted Answer

Claim process (Section 197.582): the former owner files a claim with the clerk of court within 120 days of the tax deed sale. The claim must: identify the former owner, describe the property, provide evidence of ownership (the deed or other documentation), and request payment of the surplus. The clerk: reviews the claim and may require additional documentation. If multiple parties claim: the clerk may interplead the funds (deposit them with the court and let the court determine who is entitled). Attorney fees: the former owner may need an attorney to navigate the process, especially if there are competing claims.

Question 3

What happens to unclaimed surplus funds in Florida?

Accepted Answer

Unclaimed: if no claim is filed within 120 days: the surplus funds are transferred to the county school board (Section 197.582(3)). After transfer: the former owner can still file a claim with the school board, but the process becomes more difficult. The school board: may require additional documentation and may not have a streamlined claims process. Best practice: the former owner should file the claim as soon as possible after the tax deed sale. Some attorneys specialize: in locating former owners and helping them recover surplus funds (typically for a contingency fee of 10-30%).

Tax Deed Sale Surplus Funds

Surplus Funds from Florida Tax Deed Sales

What It Is

Who Can Claim

Unclaimed

Related Terms

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