Frequently Asked Questions

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Tax deed surplus funds are the excess proceeds generated when a property is sold at a tax deed auction for more than the amount owed in taxes, fees, and penalties. The surplus belongs to the former property owner or other lienholders with a legal interest in the funds.

• The former property owner (or their legal heirs if deceased).
   
• Lienholders, such as mortgage companies, judgment creditors, or government agencies.
   
• Third-party asset recovery agents (with a notarized Power of Attorney from the rightful claimant).
   

• Check with the county tax collector or clerk of court where the property was sold.
   
• Many counties list surplus funds on their official websites.
   
• The funds may be transferred to the state unclaimed property division if unclaimed within a certain period.

Each county has different deadlines, but in many cases, you have 1-3 years to claim the funds before they are sent to the state unclaimed property division.
 

• Once funds are escheated to the state, you must file a claim with the state to recover them.
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• Claim form (provided by the county or state).
   
• Government-issued ID of the claimant.
   
• Proof of ownership (e.g., tax deed, mortgage, or other lien documents).
   
• Power of Attorney (if using an asset recovery agent).
   
• Death certificate & probate documents (if the original owner is deceased).
   

Yes, a third-party asset recovery agent can file a claim, but they must:

• Provide a notarized Power of Attorney signed by the claimant.
   
• Disclose their fee structure in a written agreement (California and some other states limit recovery agent fees)..

• California: Typically 10-30% of recovered funds, but cannot exceed state-imposed limits.
   
• Florida: By law, recovery fees are capped at 20% for unclaimed funds.
   
• Other States: Limits vary—some states have no cap, while others have strict regulations.
   

• If no one claims the funds within the county’s deadline, the money is escheated (transferred) to the state’s unclaimed property division.
   
• You may still claim the funds later through the state unclaimed property website (e.g., Florida Treasure Hunt or California’s Unclaimed Property).
   

• County Claims: 2-6 months depending on the county’s processing time.
   
• State Claims: 3-12 months if funds have been escheated.
   
• Complex cases (e.g., probate issues, multiple claimants) may take longer.
   

 Yes, surplus funds are generally considered income and may be subject to capital gains tax or other tax liabilities.
 

• Consult a tax professional for specific guidance based on your situation.
   

• Yes, if there are multiple rightful claimants (e.g., heirs, lienholders).
   
• The county/state will determine priority (e.g., liens may be paid before former owners).